Department of Trade, Industry and Competition has defended the Broad-Based Black Economic Empowerment (B-BBEE), as Minister Parks Tau is reviewing the policy to reduce corruption and ensure more inclusive growth.
Image: Itumeleng English Independent Newspapers
The Department of Trade, Industry and Competition (DTIC) has defended the Broad-Based Black Economic Empowerment (B-BBEE), saying the policy has achieved a certain level of economic participation of black people, adding that the attack against it is part of a global, politically driven trend by opposition to affirmative action.
This follows calls, from the DA and other civil society organisations, for the government to scrap or fundamentally replace the BEE policy, arguing that it has failed to uplift the majority of citizens and has instead fostered corruption and enriched a politically connected elite.
Trade and Industry Ministry spokesperson, Kaamil Alli, said the attack is a result of global opposition to affirmative action, driven by opponents of “redress”, adding that South Africa is not unique in this instance
Alli added that the US serves as an example.
The US is actively pressuring other countries to dismantle affirmative action and Diversity, Equity and Inclusion (DEI) policies, labelling them as infringements on human rights, discriminatory and violations of the merit principle.
While the Donald Trump administration has not released a specific, numerical list of target countries, reports indicate a broad, global focus, with specific pressure applied to European nations, including France and Belgium, to roll back diversity measures in corporations doing business with the US.
The administration also showed interest in policies in India and South Africa, specifically mentioning South Africa regarding the treatment of minority farmers and expressing a desire to act against affirmative action policies, which the administration has characterised as “racially discriminatory employment practices".
Alli said the policy has worked well in achieving a certain level of economic participation of black people since its inception, adding that over 500 companies have been involved in around R600 billion in transaction value.
He said ownership patterns have shifted, with around 30% of black ownership being reported among measured entities.
The DTIC, led by Minister Parks Tau, is currently conducting a two-phase review of the B-BBEE framework. Announced in late 2025, the review aims to refine the policy to better drive transformation, reduce corruption, and ensure more inclusive growth.
Alli added that the review of the policy is intended to strengthen the weak points and enhance its strong points. He said this will ensure more broad-based participation by historically disadvantaged people in the South African economy.
Alli said that although corruption must be dealt with, with the necessary severity, it is incorrect to say that the BEE is a major driver of corruption, adding that abuse of policy must be correctly attributed to those who abuse it for personal gains.
“The objective of the BEE is to ensure that black people in general participate meaningfully in the South African economy. Hence, the need for a review of the policy,” he said.
Independent economist Duma Gqubule said issues such as investment, unemployment and gross domestic product (GDP) growth are macro-economic policy issues and have nothing to do with the BEE.
He said BEE is about transformation, adding that there are many companies applying the policy and it does not affect their investment.
“What people are forgetting is that the implementation of BEE for many large companies found ways to improve the system, and they got high ratings,” he said, adding that the problem with black businesses is funding.
Gqubule said the funding for these businesses is completely inadequate and that there must be ways for private companies to procure from black businesses, as most of them depend on the public sector, which is not sustainable.
Governance expert Sandile Swana said the Black ownership of JSE-listed companies is about 5,8%, adding that the actual Black economic empowerment in terms of share ownership has not been implemented by companies and the government.
Swana said a number of government departments have not gone through a BEE audit on a year-on-year basis to determine the extent to which the government budget for procurement is actually being allocated to proper BEE companies.
“BEE by private companies and the State has not been properly implemented. BEE at the shareholder level has also not been properly implemented and we are at an infancy stage,” he said.
Political analyst Zakhele Ndlovu said there is no doubt that BEE is politically connected, saying the Zondo Commission into allegations of State Capture, as well as the Madlanga Commission looking into criminality, political interference and corruption in the criminal justice system, exposed some of the rot.