Prominent business group Sakeliga has firmly opposed the proposed broad-based black economic empowerment (B-BBEE) conditions put forth by the South African Health Products Regulatory Authority (SAHPRA).
The draft policy titled Broad-Based Black Economic Empowerment Policy for Issuance of Licences includes provisions that mandate the adherence to BEE requirements for the manufacturing, importing, prescribing, and trading of health products and medical equipment.
One of the critical points of contention raised by Sakeliga is that SAHPRA’s plan would effectively ban the supply of health products and medical equipment that do not meet specified BEE criteria.
“Such actions offer an alarming preview of the drastic consequences of an NHI [national health insurance] system in which the state would have the entire medical supply chain under its control,” Sakeliga said.
According to Sakeliga, the policy presented by SAHPRA consists of two phases. In phase one, the group said applicants are mandated to submit a BEE certificate when applying for licences. Failure to provide a BEE certificate will result in SAHPRA rejecting the licence application.
Subsequently, in phase two SAHPRA intends to further enforce BEE requirements by denying the granting and renewal of licences unless specific BEE levels are attained and continuously upheld by the applicants.
Sakeliga noted that it opposes both phases of the policy, expressing concerns about the potential implications on businesses and the health industry as a whole.
The group is arguing that such stringent BEE conditions could create barriers for companies, impacting their ability to operate and potentially restricting access to healthcare products and medical equipment for the public.
“The BEE licensing of health products and equipment is a grim illustration of how BEE promotes the narrow interests of politicians, bureaucrats, and self-enriching intermediaries at the expense of the public,” it said.
“It is inevitable that the addition of BEE requirements, a measure with inherently no relevance for the effective supply of medical products, will lead to declines in the quality, affordability, and availability of medical products.
“The stifling effect will discourage both local and international operators.”
Reiterating the group’s plans to challenge the proposed policy both in and out of court, Sakeliga argues that it is illogical for BEE compliance to be a requirement in the field of medicine.
“We consider it the duty of businesspeople to combat and undermine in every reasonable way such harm to the public’s economic and healthcare interests.
“It is untenable that BEE compliance becomes a condition for saving people’s lives, just as it is untenable to make it a condition for economic activity and public service in other fields.
“In addition to the implications for medical care, it must be considered that SAHPRA’s proposed BEE licence requirements will also apply to animal health products, with adverse implications for, among others, the agricultural industry.”
The group added: “Sakeliga will write to SAHPRA during the comment period. However, we will not limit our actions to SAHPRA’s comment opportunity and reserve all rights to oppose by way of litigation and otherwise the implementation of BEE licences for medical products.
“We emphasise that BEE licensing of health products will be harmful and encourage other organisations and the public to register their opposition to SAHPRA.”
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