By Johnathan Paoli
President Cyril Ramaphosa has reaffirmed the government’s unwavering commitment to broad-based black economic empowerment (B-BBEE), calling it a “constitutional imperative” and a key driver of inclusive economic growth.
Writing in his weekly letter to the nation on Monday, he urged South Africans to recommit to transformation, warning that abandoning these efforts now would undermine the nation’s potential.
“Transformation is not a favour. It is a necessity. The inequality of our past continues to shape the lives of millions of black South Africans. And yet many who continue to benefit from the legacy of exclusion continue to decry black economic empowerment and are even challenging it in our courts,” Ramaphosa said.
This year marks the 70th anniversary of the Freedom Charter, which famously proclaimed that “the people shall share in the country’s wealth”.
Ramaphosa drew on this legacy to emphasise the moral and legal obligations to redress historical injustices and accelerate inclusive development.
Ramaphosa’s comments come amid what he described as a global “poly-crisis”, an era marked by economic stagnation, geopolitical instability, institutional mistrust and environmental threats.
In this volatile context, he warned, South Africa could not afford to lose momentum on transformation.
“Now is not the time to abandon the measures that we have put in place to drive transformation. To the contrary, it is the time to move forward with greater purpose and raise our ambition,” he stated.
The president highlighted the legislative foundations of South Africa’s transformation agenda, particularly the Broad-Based Black Economic Empowerment Act and the Employment Equity Act.
These have led to tangible progress since 1994, with notable changes in ownership, enterprise development, skills advancement and the rise of women in business.
Citing Statistics South Africa data, Ramaphosa noted significant growth in household incomes for previously disadvantaged groups between 2006 and 2023: a 46% increase for black African households, 29% for coloured households and 19% for Indian households.
However, he acknowledged that stark disparities remain, with white households still earning nearly five times more than black African households on average.
He criticised those who challenged B-BBEE policies in court or depicted them as burdens on the economy, arguing instead that they were vital investments in long-term prosperity.
To achieve inclusive growth, Ramaphosa emphasised the need to strengthen initiatives like the Black Industrialists Programme, which supported black-owned enterprises in manufacturing and other key sectors.
He said the new Transformation Fund was aimed at backing emerging, innovative businesses capable of creating jobs and building competitiveness.
The president said a recurring concern was access to finance.
While development finance institutions play a role, he called on private banks to revise their lending practices and help unlock the potential of black-owned businesses.
“They need to review their lending practices to unleash the potential of black business,” he urged.
Ramaphosa also stressed the importance of procurement reform and private sector accountability.
He said through legislation like the Public Procurement Act, opportunities must be extended to businesses owned by women, youth and persons with disabilities.
He called on corporations to use their supply chains more deliberately to empower black suppliers, not just to meet B-BBEE targets but to diversify and grow their own operations.
The president linked the country’s broader industrial policy agenda, from green hydrogen to electric vehicles, to transformation, noting that emerging industries must be designed with equity in mind.
Calling on both the public and private sectors, Ramaphosa urged South Africans to move forward “with greater urgency, unity and ambition” to realise the founding vision of a fair and inclusive economy where all could truly share in the country’s wealth.
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