PRETORIA - The World Bank alleges that South Africa's BEE regulations stifle growth.
The report also focuses on inclusive growth and highlights key structural reforms to assist with inclusive growth.
Economist Dr Khwezi Mabasa says that South Africa does not have a problem with BEE, however, it has structural factors that it has yet to address.
As part of its recommendations, the World Bank has called for a revamp of the BEE laws.
According to Mabasa, what we need to debate regarding BEE is the underlying structural problems in the make-up of our economy that we need to address.
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'What we need to debate is the form and the nature of BEE in terms of its redistributive impact,' he says
In a report, the bank warns that they've led to poor economic performance and high unemployment.
Meanwhile, the Black Business Council has criticised the report, saying the recommendations are similar to those from Afriforum and Solidarity.
BBC CEO says that the face of poverty in South Africa is Black and that the bank needs to come up with something that makes sense to the majority of South Africans.