‘No whites’ business programme by United States giant Amazon promotes diversity and inclusion in South Africa

United States business giant Amazon Web Services’ (AWS’s) Equity Equivalent Investment Program is promoting diversity and inclusion in South Africa.

This is achieved through its criteria of only accepting 100% black-owned businesses and disqualifying any company where a white person is a shareholder.

The company launched its AWS Equity Equivalent Investment Program in 2019 as part of a R365 million investment to develop 100% black-owned businesses.

There is a focus on small businesses in information and communications technology (ICT) and the digital economy.

The AWS Equity Equivalent Investment Program (AWS EEIP) is an 18- to 24-month enablement and acceleration programme.

It is aimed at South African black-owned small and medium enterprises that want to build their AWS business and grow as partners in the AWS Partner Network.

“We recognise the challenges that SMEs have in accessing low-cost funding, accessing markets and connecting with buyers,” it said.

“Whether you are new to cloud or need help accelerating your AWS partner journey, the AWS EEIP offers a range of benefits to help you grow your business.”

It added that the programme also enables the business to become a validated partner in the AWS Partner Network.

Amazon said it fosters diversity and inclusion globally and seeks to amplify underrepresented voices and empower diverse communities.

As such, the Amazon Web Services’ Equity Equivalent Investment Program has strict minimum eligibility criteria, including a prohibition on white businesses.

“You must be 100% black-owned as defined in the ICT Sector B-BBEE Codes of Good Practice,” Amazon explained.

“100% Black South African, as the term ‘black people’ is a generic term which means Africans, Coloureds, and Indians.”

Simply put, the programme is open to all businesses unless they have a white person as a shareholder or owner.

Businesses are also required to have a valid Level 1 B-BBEE Contributor certificate or affidavit on the date of application.

Other criteria include a turnover below R50 million and 100% founder-owned equity remaining for the contract term.

There must be no debt attached to black people’s shareholding for the duration of the program, and the business must be a Software Partner.