Political showdown: ANC rejects DA's BEE reform proposals

While the ANC is adamant that Black Economic Empowerment (BEE) policies are here to stay, the DA has put forward a bill that would seek to replace the race-based legislation.

The two parties, while partners in the coalition Government of National Unity (GNU), have locked horns on a number of issues since the new administration took power with BEE being the latest matter dividing the parties.

President Cyril Ramaphosa, speaking on behalf of the ANC on Monday night, said any changes to BEE had to remain in line with the policy's constitutional underpinnings.

“Currently, we have a BEE policy that is rooted and underpinned by our Constitution, so if anyone wants an amendment to the BEE Act, they must table their proposals, and they must be taken for discussion in Parliament. At the moment, BEE policies, legislation, and regulation apply, without any dilution whatsoever.”

The DA has sought to introduce the Economic Inclusion for All Bill to replace BEE. The Bill seeks to remove race as a determining factor, and replace it with a needs-based approach. 

The party argues that BEE, since its introduction in 2003 as a redress policy for apartheid-era economic inequalities, has been ineffective and has primarily benefited a connected elite, leaving the majority of South Africans impoverished and unemployed.

ANC spokesperson Mahlengi Bhengu shot down the Bill.

“The DA foresees a South Africa that is without transformation laws starting with B-BBEE (Broad-Based-Black Economic Empowerment)... This is an idea that has to be challenged by any democracy-loving people and patriots. Many of whom are beneficiaries of this particular policy,” Bhengu said. 

She said the rise of black individuals in corporate and public sectors, including women in CEO positions, were as a result of BEE. 

Bhengu further reiterated the ANC's stance that they were open to any discussions but were not willing to scrap the policy.

“We are a country that is founded in the culture of dialogue, and if the DA was sincere about their intentions, they would be part of the national dialogue process, which they have boycotted and abandoned. But the ANC is willing to engage.

“However, what I want to stress is that there won't be a day in South Africa where BEE is scrapped as legislation. Amendments are acceptable as long as they do not deviate from the substance of that legislation,” she said.

The Congress of South African Trade Unions (Cosatu) also criticised the move to remove BEE.

“Cosatu remains a steadfast supporter of BEE's progressive objectives, asserting its fundamental necessity in a country still grappling with the legacies of systematic discrimination. 

“As long as South Africa remains scarred by the painful legacies of exclusion, then transformation legislation such as B-BBEE and Employment Equity will continue to be critical tools to overcoming our still entrenched levels of poverty and inequality,” the federation’s spokesperson Matthew Parks said.

The trade union federation dismissed claims that BEE has primarily enriched a few politically connected individuals, calling them “long debunked fairy tale claims”. 

Cosatu pointed to the success of Employee Shareholder Ownership Programmes (ESOPs) as a key component of BEE, which has enabled 500,000 workers of all races to become shareholders, boosting their incomes and promoting inclusion.

The DA's proposed bill seeks to amend the Public Procurement Amendment Act of 2024, repealing race-based preferential procurement and introducing an outcomes-driven system focused on job creation, poverty reduction, skills enhancement, and environmentally sustainable practices.

Mat Cuthbert, DA head of Policy, argued that the ANC’s policy is “only for cadres”, while the DA's emphasises needs-based empowerment and promotes social impact and value-for-money. 

“Despite growing evidence of BEE’s failures, the ANC continues to defend it due to its vested interests. One only needs to look at their President and much of the senior leadership to realise this,” Cuthbert said.

THE MERCURY