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IOL News
3 days ago
- Business
- IOL News
Economic experts weigh in on proposed changes to South Africa's BBBEE policies
DA Federal leader John Steenhuisen has proposed sweeping changes to the country's progressive laws, saying they are regressive. Image: Ayanda Ndamane Independent Newspapers Economic experts are advocating for a balanced approach to reforms of South Africa's Broad-based Black Economic Empowerment (BBBEE) policies and other pro-black legislation. They stress the need to consider the diverse needs of all citizens, especially those who stand to benefit. This comes as the Democratic Alliance (DA), led by John Steenhuisen, proposed ''sweeping'' changes to these policies to promote inclusive economic growth. During a media briefing on Monday, Steenhuisen launched the party's six-point plan to turbocharge the economy, which includes changes to the BBBEE, Land Expropriation and Employment Equity Act. Steenhuisen slammed South Africa's BBBEE policies, saying they failed to uplift the most disadvantaged citizens and have instead promoted elite enrichment of politicians and their affiliates. 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Next Stay Close ✕ As a result, Steenhuisen put forward what he called an inclusive alternative to the current framework of transformation, which he said is based on need rather than race, and which unlocks opportunity for all South Africans. He said the party's proposal will ensure affordable and reliable energy to power the economy, save the country's network industries from collapse, ensure the government's spending for growth, while also addressing the corruption and service delivery challenges in municipalities, and arresting the crime epidemic. "Unlike the National Dialogue, which will cost R700 million, the DA's plan is free. The fact that others are now withdrawing from the National Dialogue shows what it is: an illegitimate talk shop. These reforms will create an environment that encourages growth and lifts people out of poverty. The DA will fight for these reforms in Cabinet, Parliament, and all spheres of government," he said. Reacting to the DA's proposals against BBBEE policies, Constitutional law expert Dr Shadi Maganoe stated that from a constitutional perspective, any reform to economic legislation must balance two imperatives: compliance with the Constitution's transformative objectives, particularly the commitment to substantive equality and socio-economic redress in the Bill of Rights, and the need to promote sustainable economic growth. Maganoe said the country's BBBEE policies have a legal framework, rooted in section 9(2) of the Constitution, which expressly permits legislative and other measures designed to protect or advance persons disadvantaged by unfair discrimination. "An overhaul or repeal, without an alternative mechanism for substantive equality, would risk constitutional challenge, which in turn puts the rights of those the policy intended to protect at risk," she said. On the Expropriation Act, Maganoe indicated that the act must be read in light of Section 25 of the Constitution, which protects property rights while allowing expropriation for a public purpose or in the public interest, subject to just and equitable compensation. Professor Vally Padayachee indicated that the country's economic landscape is complex and is shaped by a history of inequality and systemic disadvantages stemming from apartheid, which need to be considered whenever changes are introduced to the policies. "While the DA's call for urgent reforms is a response to the poor economic climate, there are valid concerns about dismantling the very frameworks intended to provide support for disadvantaged populations. "Instead of completely removing these laws, a better approach may involve revisiting and refining them to close gaps and improve their implementation," Vally said. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
IOL News
3 days ago
- Business
- IOL News
Experts call for 'balanced' approach to BBBEE reforms
DA Federal leader John Steenhuisen has proposed sweeping changes to the country's progressive laws, saying they are regressive. Image: Timothy Bernard/Independent Newspapers Economic experts have called for a balanced view on possible changes to the country's Broad-based Black Economic Empowerment (BBBEE) policies, and other pro-black South African laws, which must balance the needs of everyone, especially those who stand to benefit from these laws. This comes as the DA through its leader, John Steenhuisen, proposed 'sweeping' changes to some of the country's pro-black policies. On Monday, during a media briefing, Steenhuisen launched the party's six-point plan to turbocharge the economy, which includes changes to the BBBEE, Land Expropriation and Employment Equity Act. Steenhuisen slammed South Africa's BBBEE policies, saying these policies have failed to uplift the most disadvantaged citizens and have instead promoted elite enrichment of politicians and their affiliates. 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Advertisement Next Stay Close ✕ Ad loading As a result, Steenhuisen put forward what he called an inclusive alternative to the current framework of transformation, which he said is based on need rather than race, and which unlocks opportunity for all South Africans. He said the party's proposal will ensure affordable and reliable energy to power the economy, save the country's network industries from collapse, ensure the government's spending for growth, while also addressing the corruption and service delivery challenges in municipalities, and arresting the crime epidemic. "Unlike the National Dialogue, which will cost R700 million, the DA's plan is free. The fact that others are now withdrawing from the National Dialogue shows what it is: an illegitimate talk shop. These reforms will create an environment that encourages growth and lifts people out of poverty. The DA will fight for these reforms in Cabinet, Parliament, and all spheres of government," he said. Reacting to the DA's proposals against BBBEE policies, Constitutional law expert Dr Shadi Maganoe stated that from a constitutional perspective, any reform to economic legislation must balance two imperatives: compliance with the Constitution's transformative objectives, particularly the commitment to substantive equality and socio-economic redress in the Bill of Rights, and the need to promote sustainable economic growth. "Proposals that aim to improve policy efficiency and enhance service delivery can be considered positively, provided they remain consistent with constitutional principles. The true test is whether these reforms uphold the Bill of Rights and advance the public interest without undermining existing protections for historically disadvantaged groups," he stated. Maganoe stated that the country's BBBEE policies have a legal framework, rooted in section 9(2) of the Constitution, which expressly permits legislative and other measures designed to protect or advance persons disadvantaged by unfair discrimination. "While the policy's objectives are constitutionally sound, questions around its implementation, including the targeting of benefits and the risk of 'fronting', have been widely debated. Legally, any amendments would need to preserve the constitutional mandate for redress while addressing inefficiencies or unintended economic distortions. An overhaul or repeal, without an alternative mechanism for substantive equality, would risk constitutional challenge, which in turn puts the rights of those the policy intended to protect at risk," she stated. On the Expropriation Act, Maganoe indicated that the act must be read in light of Section 25 of the Constitution, which protects property rights while allowing expropriation for a public purpose or in the public interest, subject to just and equitable compensation. "The Courts have clarified that public interest includes land reform and equitable access to natural resources. Any reform or repeal of the Act must ensure procedural fairness, proportionality in compensation, and protection against arbitrary deprivation. The legal debate is not much about whether expropriation powers should exist, they are constitutionally recognised, and more about the scope, checks, and balances/protections that are built into the legislation," she added. Professor Vally Padayachee indicated that the country's economic landscape is complex and is shaped by a history of inequality and systemic disadvantages stemming from apartheid, which need to be considered whenever changes are introduced to the policies. "While the DA's call for urgent reforms is a response to the poor economic climate, there are valid concerns about dismantling the very frameworks intended to provide support for disadvantaged populations. "Instead of completely removing these laws, a better approach may involve revisiting and refining them to close gaps and improve their implementation," Vally stated.
IOL News
10-06-2025
- Business
- IOL News
BBBEE policies vital for South Africa's economic transformation
President Cyril Ramaphosa has once again reaffirmed the country's commitment to defending its BBBEE laws as the only way to realise economic inclusion. Image: ANC/X South Africa's Broad-based Black Economic Empowerment (BBBEE) policies are here to stay. These were the words of President Cyril Ramaphosa who once again re-affirmed the country's affirmative action policies as key to economic transformation and inclusion. This comes as the DA among others have recently voiced their opposition to the country's economic policies. Ramaphosa and Minister of International Relations, Ronald Lamola during their recent address before the Black Business Council summit, affirmed the current legislative framework. In his newsletter on Monday, Ramaphosa indicated that the country's economy will not succeed without the current policies, adding that now is not the time to back-track on these policies as they are the cornerstone of economic inclusion and the much-needed economic growth as enshrined in the constitution and the Freedom Charter. "Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country. For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative. "In recent months, the world has entered what many now term a 'poly-crisis' where global conflict, economic stagnation, mistrust in institutions and environmental degradation are challenging even the most resilient of nations." Ramaphosa said now is not the time to abandon the measures that have been put in place to drive transformation. "To the contrary, it is the time to move forward with greater purpose and raise our ambition. Since 1994 we have built a robust legislative framework to advance the transformation of our economy, anchored in the Broad-Based Black Economic Empowerment Act and the Employment Equity Act. The progress we have made is undeniable," he said. In his address to the Black Business Council summit on Thursday, Lamola encouraged black entrepreneurs to take a firm stand in the country's ailing economy. "In the context of our country, inclusive growth has a broader meaning, it must mean the inclusion of black entrepreneurs in the mainstream of our economy and into the South African business playing a role in the world. This is a constitutional imperative. Further to the above small businesses have a key role to play, exchange program and collaboration becomes key," Lamola said. Despite the DA saying the BBBEE laws have not worked, Ramaphosa indicated through legislative frameworks such as the BBBEE policies and other interventions, the country has realised and seen real changes in ownership patterns and more businesses owned by women. "We have seen changes in management control, enterprise development and skills development. According to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46%, coloured households of 29% and Indian households of 19%. "Despite this progress, the average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close through deliberate and sustained efforts to expand opportunity. Transformation is not a favour. It is a necessity," he added.
IOL News
09-06-2025
- Business
- IOL News
Ramaphosa reaffirms BBBEE policies as vital for South Africa's economic transformation
President Cyril Ramaphosa has once again reaffirmed the country's commitment to defending its BBBEE laws as the only way to realise economic inclusion. Image: ANC/X South Africa's Broad-based Black Economic Empowerment (BBBEE) policies are here to stay. These are the words of President Cyril Ramaphosa who has once again, re-affirmed the country's affirmative action policies as key to economic transformation and inclusion. This comes as the Democratic Alliance (DA) and other commentators have recently voiced their opposition to the country's economic policies. Ramaphosa and Minister of International Relations, Ronald Lamola during their recent address before the Black Business Council summit, affirmed the current legislative framework. On Monday, in his weekly newsletter, Ramaphosa indicated that the country's economy will not succeed without the current policies, adding that now is not the time to back-track on these policies as they are the corner stone of economic inclusion and the much-needed economic growth as enshrined in the constitution and the Freedom Charter. "Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country. For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative. "In recent months, the world has entered what many now term a 'poly-crisis' where global conflict, economic stagnation, mistrust in institutions and environmental degradation are challenging even the most resilient of nations." Ramaphosa said now is not the time to abandon the measures that have been put in place to drive transformation. "To the contrary, it is the time to move forward with greater purpose and raise our ambition. Since 1994 we have built a robust legislative framework to advance the transformation of our economy, anchored in the Broad-Based Black Economic Empowerment Act and the Employment Equity Act. The progress we have made is undeniable," he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading In his address to the Black Business Council summit on Thursday, Lamola encouraged black entrepreneurs to take a firm stand in the country's ailing economy. "Promoting inclusive trade and investment can help bridge both domestic and global divides, supporting the resilience of developing countries in particular. "In the context of our country, inclusive growth has a broader meaning, it must mean the inclusion of black entrepreneurs in the mainstream of our economy and into the South African business playing a role in the world. This is a constitutional imperative. Further to the above small businesses have a key role to play, exchange program and collaboration becomes key," Lamola said. Despite the DA saying the BBBEE laws have not worked, Ramaphosa indicated through legislative frameworks such as the BBBEE policies and other interventions, the country has realised and seen real changes in ownership patterns and more businesses owned by women. "We have seen changes in management control, enterprise development and skills development. According to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46%, coloured households of 29% and Indian households of 19%. "Despite this progress, the average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close through deliberate and sustained efforts to expand opportunity. Transformation is not a favour. It is a necessity," he added.
