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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Sector Charter on Black Economic Empowerment

1. Preamble

 

1.1 In August 2002, at the NEDLAC Financial Sector Summit, the financial sector committed itself to the development of a Black Economic Empowerment (BEE) charter. We made this commitment noting that:
• despite significant progress since the establishment of a democratic government in 1994, South African society remains characterised by racially based income and social services inequalities. This is not only unjust, but inhibits the country's ability to achieve its full economic potential;
• BEE is a mechanism aimed at addressing inequalities and mobilising the energy of all South Africans. It will contribute towards sustained economic growth, development and social transformation in South Africa;
• inequalities also manifest themselves in the country's financial sector. A positive and proactive response from the sector through the implementation of BEE will further unlock the sector's potential, promote its global competitiveness, and enhance its world class status;
• equally, the financial stability and soundness of the financial sector and its capacity to facilitate domestic and international commerce is central to the successful implementation of BEE.

 

1.2 We, the parties to this charter, therefore commit ourselves to actively promoting a transformed, vibrant, and globally competitive financial sector that reflects the demographics of South Africa, and contributes to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted sectors of the economy.

 

1.3 This financial sector charter
• was voluntarily developed by the sector;
• is a Transformation Charter as contemplated in the Broad-Based BEE legislation;
• constitutes a framework and establishes the principles upon which BEE will be implemented in the financial sector;
• represents a partnership programme as outlined in Government's Strategy for Broad-Based BEE;
• provides the basis for the sector's engagement with other stakeholders including Government and labour;
• establishes targets and unquantified responsibilities in respect of each principle; and
• outlines processes for implementing the charter and mechanisms to monitor and report on progress.