The Economic Inclusion Act (the “Act”), which came into operation on 20 April 2022, provides, interalia, for the implementation of existing economic empowerment laws and initiatives, as well as, perhaps most importantly, the effective participation of “targeted citizens” in the economic growth and development of the economy. The Act denes a “targeted citizen” as a citizen whose access to economic resources has been constrained by various factors as may be prescribed by the Minister of Investment, Trade and Industry (the “Minister”) from time to time.
Interestingly, the Minister has not as yet prescribed the criteria for identifying a targeted citizen. As such, the actual applicability and effectiveness of the Act is yet to be determined. It is our considered view that the prescription by the Minister, when it comes, will be significant, and significantly contentious.
The Act applies to all sectors of the economy and requires both public and private bodies to participate actively in the economic transformation that the Act seeks to achieve. This note seeks only to elaborate on the role of the private sector as prescribed by the Act. [ Read more ]