By Thebe Mabanga
Abandoning Broad-Based Black Economic Empowerment (B-BBEE) is not an option, what is required is proper implementation, backed by strong monitoring and enforcement mechanisms. Instead, BEE can be leveraged to address structural challenges such as market concentration, youth unemployment and critical skills shortages.
This is according to Deputy President Paul Mashatile, who spoke at the Frank Dialogue seminar on the future of B-BBEE, held at the Coastlands Umhlanga Hotel and Convention Centre in Durban.
The dialogue comes at a time when BEE is under attack from various quarters, including calls by the Democratic Alliance (DA) for it to be scrapped.
Mashatile said B-BBEE remains the most viable instrument to address historical inequality and drive inclusive growth.
“However, I acknowledge that the implementation of B-BBEE has faced inconsistencies and various hurdles over the years, some of which are still evident today,” Mashatile said.
“Economic opportunities remain largely concentrated, accompanied by significant skills deficits that impede the policy’s effectiveness. Furthermore, procurement processes often marginalise Black-owned enterprises, contradicting the objectives of B-BBEE.”
Mashatile told delegates that the legitimacy of B-BBEE, or any policy, depends on outcomes.
“Where empowerment becomes paper-based rather than production-based, where fronting occurs, and where exclusion persists, trust is weakened,” he said, calling for the strengthening of monitoring and enforcement mechanisms.
He also responded directly to what he described as the DA’s tendency to attribute a range of social ills — from corruption to hunger and joblessness — to BEE.
“It is essential not to conflate failures of implementation and broader governance challenges with the intrinsic purpose and design of B-BBEE,” he said.
Mashatile added that it is misleading to attribute complex macroeconomic outcomes solely to the policy while ignoring structural constraints and other pressing economic factors.
“Such factors, however, do not necessitate the abandonment of the policy. To put it plainly, abandoning B-BBEE is not an option. The path forward is reform, strengthening and disciplined implementation,” he said.
He reiterated that government is undertaking a two-phase review of the B-BBEE framework, led by the Department of Trade, Industry and Competition.
The review was announced earlier in the session by Trade, Industry and Competition Minister Parks Tau.
“The aim is clear: refine and reinforce the policy so that it drives transformation, reduces corruption and promotes inclusive, broad-based growth,” Mashatile said.
Despite its shortcomings, he argued that B-BBEE has led to measurable progress in inclusion, particularly in the growth of the Black middle class and advances in sectors such as mining and finance.
He cited highlights from the BEE Commission’s 2022 National Status Report, which tracks various pillars of empowerment and found that transformation is advancing — albeit unevenly — rather than stagnating.
Mashatile described BEE as a moral imperative, adding that government’s approach is guided by constitutional provisions on equality and redress. He said B-BBEE must expand access to sectors such as agriculture and mining.
“We also need to utilise B-BBEE to ensure that, in the near future, we have equal participation of Black people in the ocean economy,” he said, pointing to the ports of Durban and Richards Bay as strategic assets that could broaden access.
Mashatile was later challenged on how he would manage policy differences with the DA, a partner in the Government of National Unity (GNU), particularly given his role in overseeing the clearing mechanism for resolving disputes on policy and legislation.
He said the ANC would rely on “progressive forces” in Parliament to support its position — a remark suggesting it could seek backing from parties outside the GNU, such as the Economic Freedom Fighters.
Mashatile reiterated the view of President Cyril Ramaphosa that BEE is not a cost, but an investment in economic growth.
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