The Democratic Alliance will this morning unveil its new position on Broad-Based Black Economic Empowerment (BEE), arguing that the policy has failed both economically and morally.

According to the party: “Roundly, across South Africa and the world, BEE in its current form is now rejected as an abject failure. Only the ANC clings on to it.”

The announcement will be led by several senior leaders, including Federal Chairperson Dr Ivan Meyer, Head of Policy Mat Cuthbert, Social Development Spokesperson Alexandra Abrahams, and National Spokesperson Karabo Khakhau.

A growing number of economists have identified BEE’s distortions as a key reason for South Africa’s weak growth and high unemployment. Earlier this year, Wits University professor William Gumede argued that BEE has concentrated more than a trillion rand in the hands of roughly 100 politically connected individuals, rather than broadening economic participation.

Evidence before both the Madlanga Commission and the Parliamentary inquiry into police corruption has shown how criminal syndicates have used BEE structures as a façade to loot the public purse.

The United States has reportedly made the exemption of American firms from BEE rules a condition for any new investment deal with South Africa.

Last week, the Institute of Race Relations proposed replacing BEE with a new policy of “Economic Empowerment for the Disadvantaged,” based on business, health, and education vouchers to help poor South Africans move into the middle class.

Polling by the Social Research Foundation shows that the overwhelming majority of voters, including almost eight-in-ten African National Congress supporters, believe that as long as businesses create jobs and pay tax, they should not be compelled to meet any BEE regulations or thresholds.