Thesis (MDF (Development Finance))-- University of Stellenbosch, 2009. / ENGLISH ABSTRACT: Black Economic Empowerment (“BEE”) is an imperative economic tool that the South African government established to achieve its transformational objectives which are meant to grow the economy, decrease inequalities and create more job and business opportunities for the South African majority of the population. The objectives of transformation strategy seek to redress economic imbalances created by the previous apartheid regime. The approach is widely shared by the majority of South Africans. Since its inception, BEE as an implemented policy has created vast opportunities for previously disadvantaged individuals. Some positive spin offs that have been realised in an effort to address economic and social imbalances are discussed in the paper. The paper seeks to demonstrate the progress made in South Africa so far with regard to implementation of BEE initiatives. It further highlights some pitfalls as per the previous experience with BEE and in addition to that, covers some of the developments and benefits to date. Chapter 3 and 4 focuses on funding of BEE investments with reference to specific case studies of some of the landmark BEE deals concluded in the past. The evolution of BEE funding structures is also analysed with specific reference to some lessons learnt from the origins of BEE in South Africa. In chapter 5, BEE in South Africa is compared to transformation policies implemented by another country. Malaysia shares some similarities and challenges in the implementation of transformation policy, hence a comparison is drawn between the two countries. Finally chapter 6 concludes by providing an overview of the findings in analysing BEE strategies with specific reference to funding and the evolution of funding structures in facilitating BEE.