DA Reiterates Stance Against BEE, as Dawie Roodt Foresees Policy’s End

The Democratic Alliance (DA) has firmly reiterated its stance against black economic empowerment (BEE), demanding its replacement with a policy aimed at genuinely lifting South Africans out of poverty. Party leader John Steenhuisen says BEE only benefits politically connected elites while leaving the broader population trapped in unemployment and poverty.

Steenhuisen was commenting on President Cyril Ramaphosa’s response to the State of the Nation Address (SONA) debate, where the president said BEE was here to stay and should be accelerated.

Steehnhuisen said, “We reject the protection of BEE, which has benefited only politically connected elites at the expense of the poor, who remain trapped in poverty, locked out of employment, and with little hope of climbing the opportunity ladder. We will continue to fight for an alternative that creates a more inclusive economy for all. It is for this reason the DA has tabled the Economic Inclusion for All Bill. We will relentlessly pursue the replacement of BEE with policy that truly focuses on addressing poverty.”

Also reacting to Ramaphosa’s remarks, economist Dawie Roodt predicted the eventual end of BEE. Roodt said BEE would likely be “redefined”, which would probably mean the end of the policy. He said that a “black fund” (the mooted “Transformation Fund”) would in all likelihood replace BEE.

Polling conducted by the Social Research Foundation (and reported on by The Common Sense) at the end of last year found that most South Africans supported a reform of BEE, with a majority of both African National Congress voters and black voters supporting the replacement of BEE with a system that focuses on actual disadvantage rather than race, as proposed by the DA.

Although John Steenhuisen has come out against BEE in his response to Ramaphosa, critics have pointed out that under his tenure, the Department of Agriculture (for which Steenhuisen is the responsible Cabinet minister) has ramped up BEE requirements, implementing its AgriBEE policy.

Earlier this month, business lobby group Sakeliga said: “The Minister of Agriculture, John Steenhuisen, is expanding BEE in the agricultural sector...Contrary to denials by the department and industry role-players these past two years, there is indeed clear evidence that the Department of Agriculture is implementing its AgriBEE policy, which seeks to subject agricultural activity to BEE requirements.”