Ramaphosa doubles down on BEE as "constitutional imperative" amid economic struggles and fierce criticism

Key topics:Ramaphosa calls BEE a constitutional and economic necessity.Critics argue BEE enriches elites, deters investment, kills jobs.Debate intensifies over balancing growth with transformation goals..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.Listen to this story instead:.In his weekly newsletter released on Monday, 9 June 2025, President Cyril Ramaphosa firmly reaffirmed his administration’s commitment to Broad-Based Black Economic Empowerment (B-BBEE), describing it as a “constitutional imperative” and not merely a policy choice. Marking the 70th anniversary of the Freedom Charter, the president framed economic transformation as vital to inclusive growth and national stability amid what he described as a global “poly-crisis.”“Our Constitution reflects the promise we made to one another and future generations to redress the injustices of our past,” Ramaphosa wrote. “Transformation is not a favour. It is a necessity.”Despite growing scepticism and legal challenges, Ramaphosa insisted that South Africa must accelerate rather than retreat from BEE policies. He pointed to measurable progress since 1994, including increased black and female business ownership, enhanced management representation, and income growth among black African households, albeit from a low base.However, the president acknowledged the persistent gap: “The average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close.”Ramaphosa highlighted initiatives such as the Black Industrialists Programme and a new Transformation Fund to foster innovation and job creation. He also called private banks to review lending practices to make funding more accessible for black entrepreneurs, emphasising that transformation must extend across all sectors - from IT and mining to agriculture and green energy.A divided responseWhile the president’s supporters praised the recommitment to economic redress, critics quickly condemned the speech as tone-deaf and ideologically entrenched. On X, public voices questioned whether BEE delivered real change or enriched a connected few.Dirk Hermann of Solidarity wrote:“This week is the big week. Solidarity, in collaboration with the Free Market Foundation, will publish a report that will reveal the true cost of BEE. BEE kills the economy and jobs… That is why Beneficiary No. 1 defends BEE at the gathering of the other beneficiaries.”Media personality Gareth Cliff added:“We’ve had plenty of transformation, and no growth. You’ve had 30 years to prove it. You have failed completely.”Another user, Trevor Ryx, pointed to the exodus of international companies and rising unemployment as proof of policy failure:“Goodyear joins BMW, AUDI, Mercedes Benz, Nissan, Volvo, ArcelorMittal, Ford, Murray & Roberts, etc. More unemployment = more poverty = more crime. That’s the ANC destroying South Africa and our livelihoods.”These critics argue that BEE, as implemented, discourages foreign direct investment (FDI) and fosters inefficiencies in both the public and private sectors. They claim that job creation, not ideological transformation, should be the national priority in the face of rising poverty and crime.Growth and transformation - Can both be achieved?Ramaphosa rejected the idea that South Africa must choose between transformation and economic growth. “Economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable,” he said.As the country faces rising inequality, persistent unemployment, and wavering investor confidence, the president’s recommitment to BEE signals a determination to stay the course. However, with the economic climate worsening and political opposition to empowerment policies growing louder, his administration must convince the public and the private sector that transformation can still be a vehicle for shared prosperity, not just another slogan.

Ramaphosa doubles down on BEE as "constitutional imperative" amid economic struggles and fierce criticism

Key topics:

Related Stories