South Africa’s empowerment policies need a rethink. If the country is serious about tackling inequality and fostering long-term economic growth, we must focus on policies that are designed to move the poor into the middle class, rather than merely ticking boxes or satisfying quotas.

The key to achieving this is creating policies that encourage real investment and long-term development.

Empowerment initiatives should be based around scorecards that reward businesses for their contributions to the economy, such as fixed investments, job creation, tax payments, export contributions, and voluntary social initiatives such as sponsoring schools and bursaries. These are the kinds of actions that will have a meaningful, lasting impact on the lives of South Africa’s most vulnerable communities.

Moreover, to ensure these investments are not only meaningful but sustainable, the points businesses earn should be tradable commodities.

By establishing a national empowerment exchange, these points could be bought, sold, or traded, which would provide firms with the flexibility to invest in the areas that benefit them most while still supporting broader economic goals. This system would give companies more incentive to engage in projects that create value for both the economy and the communities that need it most.

South Africa’s current empowerment model has often focused on short-term compliance rather than fostering long-term growth. A more pragmatic approach, one that encourages businesses to take a leading role in job creation and economic development, could drive more meaningful change.

It’s time for a shift in how empowerment is approached. Policies should be clear, results-driven, and designed to encourage real, sustainable contributions from businesses. This way, South Africa can build a more inclusive economy and work toward the goal of lifting millions of South Africans into the middle class.