Forty-six politically connected people secured the majority of all black economic empowerment (BEE) deals in the mining sector since the early 1990s. This is according to Professor William Gumede, an academic at the University of the Witwatersrand.

Gumede was writing in PoliticsWeb, where he exposed that policy’s failure to deliver on its promises of broad-based economic empowerment. Gumede argued that BEE had primarily “enriched a tiny, politically connected elite” instead of benefiting the broader black population.

He points to the fact that since the early 1990s, “46 largely politically connected individuals secured 60% of all the BEE [deals in] mining”, which allowed them to become billionaires or multimillionaires almost overnight. This group of beneficiaries includes “African National Congress [ANC] leaders, ANC‑aligned trade union leaders”, and entities directly linked to them.

Gumede also highlighted the severe economic consequences of BEE, especially in the mining sector.

He notes that “incompetence, deteriorating state infrastructure, corruption, nationalisation threats, and mining value‑destroying BEE strategies” have led to a staggering “loss of over 500 000 mining jobs”.

Even official government statistics show “a loss of over 300 000 mining jobs” since the early 1990s, a trend that continues to affect the country’s economic stability.

The negative effects of BEE are not limited to the mining sector.

The policy has extended its reach into numerous industries yet, rather than broadening access to economic opportunities, it has mainly benefited a small group of politically connected individuals.

Gumede argues that “broad-based deals”, which were supposed to include many people, often “end up benefitting a few connected individuals” who dominate ownership and profits.

Gumede’s argument is a sobering reflection on the systemic flaws of BEE, highlighting the gap between its intentions and its actual outcomes.

“BEE has not helped the poor, the unemployed, or the majority of black South Africans who remain outside the gates of economic participation,” he writes.

Despite the policy’s good intentions, it has failed to create the inclusive and sustainable economic growth that South Africa needs.

Gumede advocates for “a drastic overhaul of BEE” — one that would focus on genuinely empowering the broader population rather than continuing to funnel wealth to a small, well-connected group.

“The failure of BEE to deliver its promise demands urgent reform,” he warns.

He calls for an approach that is “inclusive, transparent, and truly transformational”, ensuring that the benefits of economic progress are shared equitably and do not remain the preserve of the political elite.

Gumede’s critique highlights the urgent need for a more “effective approach to empowerment”, one that can address the economic needs of South Africa’s majority and deliver on the promises made at the dawn of democracy.