By: Pamella Majola
President Cyril Ramaphosa has expressed concern over the narrative that Black Economic Empowerment (BEE) is to blame for South Africa’s economic stagnation.
Responding to oral questions in the National Assembly on Tuesday, Ramaphosa said it is troubling that some sectors of society view BEE as a stumbling block to growth, when in fact the real issue remains the disproportionate concentration of economic ownership in the hands of a small minority.
“Our economy continues to be characterised by deeply entrenched structural inequalities.
The reality is that far too much ownership and control remain with a few, primarily as a consequence of apartheid-era exclusion,” Ramaphosa said.
The President reiterated that BEE and other transformation policies are not just redress measures but essential tools for building a more inclusive and sustainable economy.
Introduced in the early 2000s, BEE is a government initiative aimed at increasing the participation of black South Africans in the economy by promoting equitable ownership, management control, skills development, and enterprise development. It forms part of the broader Broad-Based Black Economic Empowerment (BBBEE) framework.
Critics have argued that BEE has, in some cases, led to corruption and benefitted only a politically connected elite. However, Ramaphosa maintained that its core principles remain vital for addressing the historical injustices of apartheid and creating a fairer society.
“We must confront the uncomfortable truth that, even today, black South Africans remains under-represented in key sectors of the economy. Transformation is not a threat to economic growth; it is a precondition for it,” he added.
