ANC stands firm on BEE despite US pressure
Key topics:
ANC reaffirms Black Economic Empowerment amid US pressure.
US tariffs target South African goods over BEE and trade disputes.
ANC cites B-BBEE success in benefiting marginalised South Africans.
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 African National Congress (ANC) has doubled down on Black Economic Empowerment (BEE) amid questions over its policies’ true beneficiaries and pressure to exempt U.S. companies from BEE requirements.
“As the leader of society, the ANC will continue to evaluate the implementation of all transformation policies to ensure they remain true to their mandate,” the political party said in a statement on Tuesday.
“Where these policies are found not to benefit those who were previously oppressed and marginalised, they will be reviewed and strengthened.”
ANC Secretary General Fikile Mbalula published the statement on X, calling on people who benefited from BEE to defend the policies against attempts to dismantle laws based on ascribed traits.
“We call on all South Africans who have benefited from these measures, including those appointed to various positions in the private sector, to stand in defence of their own gains,” the ANC said.
“South Africans who have benefited from these measures must reject any political agenda aimed at reversing the progress made.”
The ANC said that people must speak out against such attempts, whether they are professionals, business owners, or workers.
“Our commitment remains firm: to advance inclusive economic growth, to deepen equity, and to safeguard the hard-won victories of our struggle for freedom.”
The United States recently implemented a 30% tariff on South African imports to the country after talks between Pretoria and Washington failed.
Economists, political analysts, and Afrikaner leaders who visited Washington have reported that one of the requirements from the U.S. to avoid the tariffs was to exempt its companies from BEE.
Other issues that concern Washington include guarantees that South Africa would reverse course on laws allowing the expropriation of property without compensation.
The U.S. also reportedly wanted farm attacks classified as a priority crime, and an unequivocal public condemnation by the ANC of “Kill the Boer, kill the Farmer”.
Most of these issues made headlines before and after President Cyril Ramaphosa’s meeting with Trump in May.
While the Department of International Relations and Cooperation (Dirco) previously denied that the U.S. had made such demands, it later emerged that BEE was on Washington’s agenda.
Dirco director-general Zane Dangor said during a gathering of former president Kgalema Motlanthe’s Winter Forum that BEE was high on the U.S. list of demands.
Despite this, ANC-led government departments have refused to budge on the policy, resulting in the U.S. enforcing 30% tariffs on South African goods that land at its ports, with certain exceptions.
The tariffs are expected to have far-reaching consequences, including for South Africa’s information and communications technology (ICT) sector, which depends on a complex global supply chain.
Originally set to take effect on 9 April 2025, the White House postponed the tariff increases for 90 days to allow time for negotiation following a market crash. U.S. President Donald Trump vowed that there would be no further extensions.
Read more:
The Minister of Trade, Industry, and Competition, Parks Tau, said on the eve of the deadline for tariff negotiations that they had been encouraged to submit an “enhanced proposal” to the U.S. government.
South Africa had reportedly proposed a trade deal that involved a $3.3 billion (R59 billion) local investment in sectors like mining and recycling.
The proposal featured a 10-year liquefied natural gas import deal, U.S. poultry and blueberry imports, and exemptions on certain tariffs.
The South African government’s contingency plan includes finding alternative markets and Treasury-backed tax incentives for the motor vehicle and agricultural sectors.
No compromise
In its statement doubling down on BEE, the ANC also took aim at the Democratic Alliance, saying its rival and national coalition partner repeatedly signalled its intention to dismantle transformation policies.
“We have observed a growing public discourse surrounding policies intended to address historical inequalities and build a society founded on democratic principles, social justice, and human rights, as outlined in the Constitution,” the ANC said.
“These policies aim to create an open and democratic society where the government is based on the will of the people and all citizens have equal protection under the law.”
The ANC said it recognised that these conversations and debates must be held among all South Africans, particularly to address concerns that such policies may be unintentionally creating a new form of elitism.
“To effectively tackle any unintended consequences, the ANC believes that the discussion must be guided by scientific findings,” it said.
“Therefore, the ANC supports the Black Economic Empowerment (BEE) Commission’s call for focused evaluation studies to assess the transformative impact of Broad-Based Black Economic Empowerment (B-BBEE).”
The ANC said the goal of these studies would be to provide actionable insights that will ensure these policies achieve their intended purpose of building a more equitable society.
“The recently released 2023-2024 Analysis of Major B-BBEE Transactions report confirms that B-BBEE continues to deliver measurable benefits to ordinary South Africans,” the ANC contended.
“Workers, small enterprises, and communities, who were historically excluded from economic participation, have benefited.”
The ANC said that B-BBEE is designed to benefit South Africans classified as black, which includes Africans, Coloureds, and Indians.
“It also extends benefits to white women, who were also historically marginalised in economic participation,” the ANC said.
“These empowerment measures have opened pathways for millions of South Africans into business ownership, corporate leadership, and skilled employment.”
This article was first published by MyBroadband and is republished with permission