Use BEE to resource civil society

All black economic empowerment (BEE) deals in the private sector should include participation by genuine civil society, community organisations and social enterprises. Private sector BEE deals largely empower politically connected politicians, trade unionists, civil servants and the ANC, as well as politically connected trusts, businesses and dealmakers of all colours. BEE must be remodelled to become genuinely broad-based, making civil society, community organisations and social enterprises the core beneficiaries. The Competition Tribunal and Competition Commission should also, in high-stakes mergers, compel companies to set aside funding specifically for civil society, community organisations and social enterprises. Companies should also be obliged to channel larger proportions of their corporate social responsibility (CSR) funding to these groups. Many CSR programmes are not impactful, do not reach their stated sustainability targets and are not long-lasting. Dedicated channelling of the funding to civil society, community organisations and social enterprises would be more developmentally beneficial. The licensing conditions of the National Lottery oblige organisations to fund NPOs. However, there has been criticism that the funding has not been effectively distributed to deserving civil society, community organisations and social enterprises. In fact, politically connected individuals have established patronage-based “non-profit” organisations to which the funds were channelled. There have been many disheartening reports of looting of lottery money meant for poor people. There are also reports that lottery funds meant for community upliftment, social infrastructure and public service delivery have been diverted for personal enrichment or political patronage. State development finance institutions, such as the Public Investment Corporation, the Development Bank of Southern Africa and the Industrial Development Corporation, provide significant BEE funding. It shou