As the African National Congress (ANC) grapples with an existential warning to “shape up or face extinction,” a key focus of its National General Council has turned to the future of the country’s Broad-Based Black Economic Empowerment (B-BBEE) policies. While defending the program’s legacy, senior leaders have conceded a need for significant review and adjustment to broaden its impact.
The NGC, the party’s highest decision-making body between national conferences, is meeting under the shadow of the upcoming local government elections. Central to its third-day discussions are stricter candidate selection criteria and a major reassessment of South Africa’s transformation policies.
ANC NEC member and Minister Parks Tau, speaking in his party capacity, launched a robust defense of B-BBEE against criticism from the Democratic Alliance (DA), the ANC’s Government of National Unity partner. The DA has argued that B-BBEE has only empowered a select few and advocates for race-neutral transformation policies.
Tau labelled the DA’s analysis “selective” and “far from reality,” specifically rejecting the claim that only a hundred people have benefitted.
“The reality is that if you look at the number of enterprises that participate in enterprise and supplier development programs in private companies… If you look at the number of people that have gained access to management opportunities… that’s part of the empowerment program,” Tau stated.
He highlighted progress in the growth of black-owned enterprises, increased shareholding in listed companies, and advances in employment equity in senior management.
However, in a notable concession, Tau acknowledged the policy has not gone far enough and requires acceleration. He confirmed the NGC is discussing a “reorientation” of affirmative action laws to reach those at the “lowest rung of the empowerment ladder,” such as unregistered micro-enterprises and entrepreneurs lacking formal balance sheets.
This review comes amid widespread public sentiment that the word “transformation” has been tarnished by corruption and the repurposing of initiatives for personal gain—a point raised during the session. Tau admitted to areas of “excess and abuse,” including criminal activity, fronting, and demands for equity without contributing to businesses.
“Have there been areas of excess and abuse? Certainly… Some of them direct criminal in nature,” Tau said. “But you don’t stop and say I’m not going to achieve my objectives because there have been challenges.”
The discussions follow opening remarks by President Cyril Ramaphosa, who was firm against those “perpetuating misinformation” about transformation policies. Yet, the party has conceded that B-BBEE “has to be tweaked in some way to have greater empowerment impact.”
The council is set to continue its deliberations through 17 separate commissions, tasked with nitpicking the policy details to determine what must be revised and where the party should “double down.” The outcome is seen as critical for the ANC’s election strategy and its ongoing partnership in the GNU, where fundamental policy disagreements with the DA are now laid bare.