A powerful critique of South Africa’s Black Economic Empowerment (BEE) policy is gaining momentum, with prominent economist Dawie Roodt declaring that true black empowerment “does not exist” and the Democratic Alliance (DA) launching a legislative bid to replace it entirely.
The debate pits the governing ANC’s defence of its long-standing transformation policy against a growing chorus of critics who label it a failure that enriches a connected elite while leaving millions behind.
“A Large Portion of Kids Go Hungry”
In a stark assessment, economist Dawie Roodt argued that the current model of BEE is a misnomer. “We do not have black economic empowerment in South Africa. That claim is simply untrue,” he stated, asserting that giving shares to a select few is not empowerment when a third of children suffer from malnutrition.
“True empowerment is cleaning up the streets and giving households electricity and water,” Roodt said, calling for a focus on safety, education, and basic services instead.
His views were echoed by political economist Moeletsi Mbeki, who described BEE as a system that incentivizes being “parasitic on existing companies and the state” rather than creating new wealth or entrepreneurs.
DA Proposes a “Needs-Based” Alternative
Capitalizing on this criticism, the DA has launched its “Economic Inclusion for All Bill,” which aims to scrap race-based preferential procurement and replace it with a system targeting poverty, job creation, and skills development.
DA policy head Mat Cuthbert cited damning statistics: “Since the ANC’s BEE policy was first introduced in 2003, conditions have significantly worsened for the people it claims to represent.” He pointed out that black unemployment has risen to 36%, while the policy has become a “key driver of corruption.”
“Under the ANC, race is the sole criterion, whereas the DA emphasises needs-based empowerment,” Cuthbert argued, stating their model requires “no political connections.”
ANC Digs In: “Transformation Laws Are Here to Stay”
The ANC has fiercely rejected any move away from the current model. ANC spokesperson Mahlengi Bhengu dismissed the DA’s proposal, stating unequivocally, “There will not be a day in South Africa where black economic empowerment is scrapped as legislation.”
Bhengu defended BEE, pointing to “many black people who have been beneficiaries,” including women who have climbed the corporate ladder at entities like Eskom. “The idea of a future South Africa without transformation laws… must be challenged by all democracy-loving people,” she said.
While President Cyril Ramaphosa said he had not seen the DA’s bill, he affirmed that the current BEE policies, “rooted in the constitution,” remain in effect.
The clash sets the stage for a heated parliamentary and public debate, centering on a fundamental question: has BEE empowered a nation, or merely a privileged few?
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