A high-level dialogue on Broad-Based Black Economic Empowerment (B-BBEE) concluded on Tuesday with a powerful consensus from senior government and commission figures: the crucial legislation is on a “faltering trajectory” and requires an urgent review to root out illegal practices and cronyism.
Despite unanimous agreement that the act remains a vital tool for redressing historical economic imbalances, former President Kgalema Motlanthe and Trade and Industry Minister Parks Tau argued that its current implementation is failing to deliver genuine, inclusive growth.
The call for a legislative appraisal was led by Minister Tau, who detailed specific failures undermining the policy’s objectives.
“In fact, we have said in the department that a review of the architecture of the entire transformation program policies and instruments is called for,” stated Minister Tau.
He cited the prevalence of fake B-BBEE compliance certificates and other deliberate attempts to circumvent the act as primary reasons for its inability to bring about the true inclusion of previously disadvantaged South Africans into the economy.
“Progress has not been enough to equal the post-1994 promise to free the potential of each citizen,” Tau said. “Ownership patterns remain skewed. Top management representation for black South Africans remains dismally low. And too often empowerment has been undermined by fronting, tokenism, and financial structures that deny true control.”
The head of the Broad-Based Black Economic Empowerment Commission, Tshediso Matona, echoed the minister’s concerns, confirming that illegal practices are a widespread problem.
“We often, every so often, come across fake certificates, practices, fronting that seek to circumvent the objectives of the legislation,” Matona said. “So we do need to clean up this instrument. We are at a turning point, definitely; we cannot carry on on this faltering trajectory. The legislation needs to evolve.”
The dialogue highlighted a significant political divide on the fundamental nature of the policy. The discussions followed recent comments from President Cyril Ramaphosa, who reaffirmed the ANC’s unwavering support for B-BBEE, describing it as a necessary framework for attaining redress.
In contrast, the ANC’s Government of Unity (GU) partner, the Democratic Alliance (DA), criticized B-BBEE as a “failed race-based policy” that deters investment.
Former President Kgalema Motlanthe came to his party’s defense, arguing for the continued necessity of targeted policies to reverse the enduring legacies of apartheid.
“TripleB is a noble, value-laden policy designed to structurally improve the lives of those historically and deliberately excluded from South Africa’s economic mainstream,” Motlanthe stated. “Conceptually, B-BBEE is not about revenge. It is about forgiveness, restoration, and justice.”
Despite this fundamental disagreement, the call for reform appears to have found common ground. Even as the DA maintains that the legislation stifles growth, it has agreed with its GU partners that reforms to the B-BBEE framework are crucial. The consensus from the dialogue suggests a potential push for legislative evolution to combat fraud and ensure the policy delivers on its original promise of broad-based economic inclusion.