Amazon responds to Solidarity’s questioning of business development BEE requirements

Amazon Web Services (AWS) maintains that its business development programme's ownership criteria, which require 100% black ownership, are not discriminatory. Labour union Solidarity expressed concerns on Wednesday that the programme's eligibility requirements were discriminatory and applied racial limitations to economic opportunity.

AWS disagreed, stating the requirements were in line with South African legislation. The tech giant is a subsidiary of Amazon, focusing on cloud computing products and services. AWS explained that the Equity Equivalent Investment Programme (EEIP) is a legal requirement for multinational companies operating in South Africa, providing operational funding, market access, and other resources to participating businesses for 18 to 24 months.

The company affirmed that the EEIP does not limit who it engages with and that any business in South Africa can work with AWS. AWS cited the Department of Trade, Industry and Competition's policies on Black Economic Empowerment (B-BBEE), asserting the programme was not unique to AWS. The company emphasized the EEIP was a "compliance mechanism" required by South African law for companies operating in the country.

Solidarity reported receiving allegations that AWS' EEIP eligibility criteria were similar to the "100% exclusion of white people." The union pledged to investigate the claims and consider potential remedies, stating that should racial exclusion be confirmed, it would take "decisive action." Solidarity stressed that race should not be a prerequisite for economic opportunity and that multinational companies should apply consistent ethical standards globally. The union opposes absolute exclusion based solely on race, both domestically and internationally.