The Brenthurst Initiative

The Brenthurst Initiative, launched by Nicky and Jonathan Oppenheimer in 2003, argues that successful transformation and Broad Based Black Economic Empowerment in South Africa required a sustained higher economic growth rate of at least 5% per annum and concludes that in order for South Africa to achieve higher growth rates foreign investor perceptions of relatively high risk need to be addressed and overcome. Consequently, the approach to transformation must reduce perceptions of risk, if it is to support the attainment of higher economic growth rates.

Their paper proposes that transformation and investment led growth requires a package of specific measures to provide certainty and clarity in the operating environment, to promote partnerships in business participation and to provide confidence in the future value of investments. These are to be achieved, respectively, through a national transformation score card, applicable across all sectors, the introduction of investment incentives linked to transformation performance (specifically differential rates of corporate tax) and a comprehensive plan to promote alternative available sources of equity funding to support Black Economic Empowerment. In essence, the authors propose a system based on incentives to induce empowerment and transformation in business.

In terms of the way forward, the document concludes that the South African economy must grow by at least 5% per annum, on a sustained basis, to reduce South Africa's unemployment by half over the next 10 years. This required broad based support for targeted measures that will allay investor's perceptions of risk and stimulate the growth South Africa requires to deliver in terms of transformation in black economic empowerment.

The Brenthurst Initiative paved the way for the creation of the Brenthurst Foundation to extend the debate and the sharing of the ideas and information in support of all African countries.

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