FF+ questions Amazon Web Services ownership rule

The FF Plus is calling on the Trade, Industry and Competition Department and Amazon Web Services to clarify whether South African law has mandated the requirements of the company’s investment programme.

The company requires firms to be 100% black-owned to participate in its Equity Equivalent Programme.

The party says it also plans to approach relevant authorities in the United States to seek clarity on whether the conditions are consistent with that country’s government policy on race-based issues.

The party’s spokesperson for Trade, Industry and Competition, Jaco Mulder, says “The FF Plus is not asking the American government to dictate South African transformation policy, but is raising a narrower question about whether an American federal contractor’s decision to make racial ownership an absolute condition for participation raises concerns under United States policy on racial discrimination by federal contractors.”

Mulder says the party has not approached the department directly, as it is aware of the department’s policy and compliance requirements.

He says “The FF Plus is not claiming the AWS requirement is unlawful under broad-based black economic empowerment legislation, but wants the source of the 100% threshold established — whether it stems from South African law, the relevant BBBEE code, the terms of the approved programme, or a condition AWS has chosen to impose itself.”

Responding to criticism that the party is undermining transformation and appealing to a foreign government to intervene in a South African empowerment programme, Mulder says a system that determines economic opportunity primarily through racial classification has serious shortcomings. He says the party’s position is that empowerment should address poverty, unemployment, and a lack of skills, capital and opportunity, rather than race alone.

Mulder says, “If Amazon wants to operate an economic development program, we would welcome that. We want Amazon investing in South Africa and entrepreneurs creating jobs and developing technology. But the question for the FFPlus remains why access to that opportunity should depend on racial composition of the shareholders. So our principle is simple. Opportunity should be based on what we call, or what you can contribute, whether you need assistance, not the colour of your skin.”