LAUSR

A new era dawned in South Africa in 1994 as the apartheid regime was replaced by a democratic one and freedom for all citizens seemed possible at last. Amidst the changing political landscape, the late president Nelson Mandela pleaded for reconciliation among all racial groups. He stated that physical freedom was not sufficient, and that economic freedom had to be cultivated (Ponte, Roberts & Van Sittert 2007; Tangri & Southall 2008). A staggering 80% of black business owners felt that their foundation was weak at the end of apartheid, and that they could not compete fairly with white individuals (Masito 2007). One suggestion to level the playing field was to introduce legislation to promote Black Economic Empowerment (Acemoglu, Gelb & Robinson 2007; Jeffrey 2014).