SOUTH AFRICA: DIRECT EMPLOYMENT BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER; FOCUS ON HISTORICALLY DISADVANTAGED SOUTH AFRICANS (HDSAS)
Summary
The document analyzes the Broad-Based Black Economic Empowerment (B-BBEE) strategy and the 2010 Mining Charter, which mandated that by 2014, mining companies be 40% owned by Historically Disadvantaged South Africans (HDSAs) and have HDSAs in 40% of management roles. While a 2015 report indicated the industry generally exceeded black representation targets and met skills development spending goals, the framework faced challenges including complex targets and the capture of benefits by politically connected elites. A 2017 update with tougher requirements was suspended following industry criticism and fears of reduced foreign investment, as evidenced by South Africa's drop to 13th place among African mining investment destinations.
Key insights
- The 2010 Mining Charter established specific local content targets for the empowerment of Historically Disadvantaged South Africans (HDSAs), requiring that by 2014, mining companies achieve 40% HDSA ownership and 40% HDSA representation in all management positions.
- A 2015 report from the South African Department of Mineral Resources found that the mining industry generally surpassed the 40% black representation requirement across all functional categories and mostly met the target of allocating 5% of annual payroll to skills development.
- The B-BBEE framework has been criticized for a lack of definitional parameters, which allowed benefits to be captured by politically connected black elites rather than those genuinely in need, thereby entrenching existing inequalities.
- A new Mining Charter introduced in June 2017 with stricter local content requirements was suspended within a month due to intense industry criticism and concerns that it would stifle foreign investment and destroy the mining sector.
- South Africa's investment attractiveness in mining has declined, falling to 13th place among African mining investment destinations and ranking 74th globally on the 2016 Fraser Institute investment attractiveness index.
Cite the original document
- APA
- Grice, T. (2018). SOUTH AFRICA: DIRECT EMPLOYMENT BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER; FOCUS ON HISTORICALLY DISADVANTAGED SOUTH AFRICANS (HDSAS). International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-south-africa-direct-employment.pdf
- Chicago
- Grice, Tim. SOUTH AFRICA: DIRECT EMPLOYMENT BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER; FOCUS ON HISTORICALLY DISADVANTAGED SOUTH AFRICANS (HDSAS). International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-south-africa-direct-employment.pdf.
- Wikipedia
- {{cite report |last1=Grice |first1=Tim |title=SOUTH AFRICA: DIRECT EMPLOYMENT BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER; FOCUS ON HISTORICALLY DISADVANTAGED SOUTH AFRICANS (HDSAS) |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-south-africa-direct-employment.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{grice2018south, author = {Grice, Tim}, title = {{SOUTH AFRICA: DIRECT EMPLOYMENT BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER; FOCUS ON HISTORICALLY DISADVANTAGED SOUTH AFRICANS (HDSAS)}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-south-africa-direct-employment.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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