White owned companies will now be forced to have at least 60% black employees.
A minimum of 10% of black people in executive positions will also be required for much bigger companies. This came out of the new and updated BEE policy which was discussed during the radical economic transformation meeting and will take effect in 2018.
Companies that will not comply will face penalties ranging from inflated taxes, huge fines and so on. If everything runs smoothly for the first two-year the ultimatum will also be given to non-South African companies.
Black owned companies will not be affected in any way as long as they are over 80% black owned. All the details will be published on the next government gazette.
President Jacob Zuma said this should have been done long ago. “This is based on the ratio of black to white population in the country. This is another attempt at trying to have black people reap the fruits of South African flourishing economy”. Said Zuma.