South African leader defends black economic empowerment policy
Speaking at the Black Business Council's annual summit gala dinner at the Radisson Hotel and Convention Centre in Kempton Park, Ekurhuleni, Ramaphosa doubled down on the government's unwavering support for transformation policies aimed at redressing South Africa's deep-rooted inequalities.
He reaffirmed plans to convene a national dialogue focused on tackling the country's most urgent socio-economic challenges — a process he said will be vital in shaping an inclusive and sustainable future.
Ramaphosa argued that real economic growth will only be possible through meaningful transformation while highlighting the significance of the proposed Government of National Unity (GNU).
'Fundamental economic transformation is vital to the growth of our economy and the progress of our nation. This transformation is necessary if we are to unlock the capabilities of all our people and realise the full potential of our economy,' he said.
He positioned the GNU as a platform for uniting stakeholders behind bold reforms that can drive change.
'Transformation is not a hindrance to growth — it is the engine of growth,' Ramaphosa said, underscoring the role of legislative tools such as the Broad-Based Black Economic Empowerment (BBBEE) framework and the Employment Equity Act in building a more equitable economy.
'We must dispense with the false choice that we are urged to make between growth and transformation. Transformation is vital if growth is to be meaningful, inclusive and sustainable.
'Growth is essential if we are to effectively transform our economy. Our task is to ensure that we pursue both growth and transformation, in concert, with more vigour and to greater effect,' he said.
While acknowledging progress, the president was candid about the stark racial disparities that persist.
He noted that the average income of white households remains nearly five times higher than that of black African households — a gap that, in his view, underscores the continued need for aggressive policy intervention.
'We need to challenge the notion that black economic empowerment is a cost to the economy. We need to demonstrate that it is an investment in the economy.
'Now is not the time to abandon the measures we have put in place to drive transformation.Now is the time to move forward with greater purpose and ambition.
'We must use the lessons we have learned over the last 30 years to make our empowerment policies and programmes more meaningful and more impactful.
'They must be ever more effective drivers of inclusive growth and employment,' Ramaphosa said.First published by IOL
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