The Democratic Alliance (DA) has called for an independent review of Broad-Based Black Economic Empowerment (B-BBEE), labeling the policy as “heavy-handed” and a deterrent to foreign investment. This comes just days after President Cyril Ramaphosa publicly defended B-BBEE, reigniting tensions within the Government of National Unity (GNU).
The DA has also opposed the proposed R100 billion Transformation Fund, set to be rolled out over the next three years. Trade and Investment Minister Park Tao opened the fund for public comment, describing it as a critical step to accelerate economic transformation. However, the DA argues that the fund will fail to stimulate growth and risks becoming another avenue for corruption.
“To have another transformation fund, which is going to be another looting fund, is unacceptable,” a DA representative said. “We’ve seen what happened in the past with these funds, like with cadre deployment, and how it derailed the project of lifting up all South Africans.”
Policy Clashes Within the GNU
The dispute over the Transformation Fund coincides with another policy debate, as Telecommunications Minister Solly Malatsi defended proposed amendments to ICT regulations. The new policy would allow foreign tech companies, such as Elon Musk’s Starlink, to bypass local B-BBEE shareholding requirements if they invest equivalent value through equity-based programs.
While some GNU partners, including the ANC, have criticized the move, Ramaphosa has acknowledged the need to review policies that may hinder investment.
“Those regulations that impede our growth and movement forward should be reviewed,” Ramaphosa said in Parliament. “Where laws or regulations need to be amended, they should be brought before this house with clear arguments.”
Despite internal disagreements, the president maintains that B-BBEE is not to blame for South Africa’s economic struggles.
“When I hear that black economic empowerment policies are holding back our economy, I find that surprising,” Ramaphosa said. “Our economy was held back for years by the racist policies of the past.”
DA: “We Support Empowerment, But Not for the Elite”
The DA insists it is not opposed to black empowerment but argues that the current system benefits a politically connected elite rather than fostering broad-based inclusion.
“Ramaphosa asked, ‘How can you be against black empowerment?’ We’re not against it—we’re totally for it,” a DA spokesperson said. “What we’re against is the recycling of the same old people.”
The party’s stance is expected to further strain relations within the GNU, but the DA maintains its priority is economic growth and equitable empowerment.
As the debate continues, the future of B-BBEE and the proposed Transformation Fund remains a contentious issue, with significant implications for South Africa’s investment climate and political stability.