Decades after apartheid, a persistent challenge: “fronting” thwarts efforts to integrate Black South Africans into the corporate sector.
South Africa’s history is marked by discriminatory policies that denied Black citizens access to economic opportunities. Since the end of apartheid in 1994, the government has implemented progressive laws, like the Broad-Based Black Economic Empowerment (B-BBEE) Act, to ensure Black South Africans play an active role in the country’s economy. However, a practice known as “fronting” continues to impede progress.
Fronting: A Loophole in Transformation
Fronting occurs when white-owned companies superficially transfer ownership or control to Black individuals to comply with B-BBEE requirements. These Black individuals often lack real decision-making power or economic benefit, essentially serving as a front for the original owners.
Unearthing the Roots: A Legacy of Exclusion
The study explores the historical context, highlighting the draconian policies of the colonial and apartheid eras that systematically excluded Black South Africans from economic activity. The post-apartheid government’s efforts to dismantle these structures are commendable, but fronting practices undermine these attempts at transformation.
Combating Impunity: Holding Perpetrators Accountable
The South African government is actively tackling fronting through legal means. By pursuing civil and criminal avenues, they aim to hold perpetrators accountable and deter future instances.
The Persistence of Fronting: A Call for Proactive Measures
Despite legislative efforts, including amendments to the B-BBEE Act, fronting remains a persistent issue. The study emphasizes the need for more proactive anti-fronting measures. These could include stricter regulations, enhanced enforcement mechanisms, and increased transparency within corporate structures.
Beyond Compliance: Fostering Real Inclusion
The ultimate goal is not just to achieve compliance with B-BBEE but to foster genuine economic empowerment for Black South Africans. Proactive measures should aim to create a corporate environment where Black individuals have genuine opportunities for participation, leadership, and wealth creation.
The study underscores the ongoing struggle for economic transformation in South Africa. By addressing fronting and implementing proactive measures, the country can move towards a future where Black South Africans are not just included but thrive within the corporate sector.
Treasure Hlayisani Mathebula and Kolawole Olusola Odeku. An Analysis of Post-Apartheid Anti-Fronting Interventions Fostering Mainstreaming of the Black South Africans into Corporate Sector. Laws 2023, 12(6), 87; https://doi.org/10.3390/laws12060087