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The Citizen
7 days ago
- Business
- The Citizen
Here's why B-BBEE should not be scrapped – and what needs to change
Although the DA wants to get rid of B-BBEE, political analysts say the policy should not be scrapped yet. Despite concerns about the broad-based black economic empowerment (B-BBEE) policies in South Africa, some economists and political analysts believe this policy can still benefit many black people. On Monday, DA leader John Steenhuisen said his party is declaring war on the B-BBEE system. Other political parties, such as the Freedom Front Plus (FF+), have criticised the policy, describing it as dysfunctional and only benefiting a few politically connected people. They also claim it has not helped create work opportunities for the majority of previously disadvantaged people. Why B-BBEE is seen as a failure However, Sanet Solomon, a political analyst from Free State University (UFS), believes that this policy can still work if implemented properly. 'It is important to note that B-BBEE is not a form of affirmative action favouring a singular group, but rather legislation aimed at helping marginalised groups enter sectors in which they are underrepresented. 'If it is implemented correctly, it could assist large portions of society,' she said. The problem, she said, is that the B-BBEE policy has been manipulated by some individuals. 'Despite the continued updates to legislation, individuals and groups have still managed to find loopholes to bypass what could be a beneficial policy and system. She said this creates the impression that B-BBEE is 'an absolute failure'. ALSO READ: Ramokgopa dismisses claims US tariffs target BEE policy but admits it needs 'tweaking' Solomon said when this legislation was introduced in 1994 it had good intentions of leveling the scales between black and white South Africans. 'The introduction of the BEE was needed post-1994 to remedy the impact of South Africa's apartheid legacy. 'Despite their good intentions, these policies have been utilised to abuse the country's procurement policies, which have resulted in high levels of bureaucracy and the prominence of entrepreneurs who are solely dependent on state contracts,' she said. Because of this, the political analyst said, B-BBEE has consequently failed emerging entrepreneurs and small businesses instead of assisting them. What will replace B-BBEE? Prof Ntsikelelo Breakfast, a political analyst from Nelson Mandela University (NMU), told The Citizen that he also believes B-BBEE should not be scrapped. 'The policy has not achieved its desired outcome but that does not mean there is no need for black people to get empowered. One can also argue that it has created a scope for corruption coupled with the privatization of services. 'But if you do away with the policy then how do you make sure that black people are part of the main stream economy on a large scale, and how do you make sure that black people are entrenched in the commanding heights of the economy,' he said. Breakfast said the application of B-BBEE has been problematic. 'The people who have benefited from this policy are normally associated with the ruling party, this includes people like Ramaphosa, Tokyo Sexwale and other big names. Those are people who have benefited on a large scale,' he said. The DA does not see colour? Breakfast, said the DA's view is that they do not see colour when it comes to crafting their policies. 'They are moving from the premise that they do not believe in racial categorisation or racial classification. They have the philosophical tradition of non-racialism, meaning that they are colour blind. 'The agreement they are using against this law they are also using it against affirmative action or the Employment Equity Act,' he said. Who benefits from B-BBEE? Breakfast said B-BBEE was intended to benefit women, people with disabilities and all groups that were previously disadvantaged before 1994. 'There are seven pillars of this law before a business is awarded to you; you must meet those requirements,' he said. Prof Dirk Kotze, a political analyst from the University of South Africa (Unisa) said opposition parties such as the DA are not opposed to the empowerment of black people. But instead, are against the negative effects of the law. 'It's not about the principle; it's about the policies. Even inside the the ANC this has been discussed,' he said. Kotze said there is a view that B-BBEE has failed to ensure that businesses that are completely black-owned grow and get listed on the Johannesburg Stock Exchange (JSE). 'There is a view that it hampers the development of black companies,' he said. ALSO READ: Economists question if SA has a plan for US tariffs, Tau says here it is Economists weigh in Meanwhile, economist Makwe Masilela told The Citizen that he believes that the policy should not be scrapped. 'The issue with B-BBEE is that it's perceived to benefit the few, and honestly, there's some element of truth in that. 'But that doesn't mean it must be scrapped instead. We need to make sure that the implementation thereof gets done in such a way that the policy meets the intended purpose. 'I guess just like any other policy, if not implemented correctly or allowed to be abused, then it's expected that people will start to be against it,' he said. Another economist, Dawie Roodt, said the problem with B-BBEE is that it was now empowering the rich. 'It does not empower the majority of people but it empowers that few select individuals who are fabulously rich, so we have to get rid of this nonsense called BEE and ensure that government empowers its citizens and not a select few. 'It turned out completely wrong and I am opposed to the way we apply BEE in South Africa,' he said. According to Roodt, real empowerment means equipping the country's citizens with skills and education. He said a functional state that delivers services will create a conducive environment where black people can prosper. NOW READ: DA declares war on B-BBEE system
The Citizen
03-05-2025
- Politics
- The Citizen
Lesufi suggests SA is being ‘abused' by illegal foreigners
Here's your daily news update for Saturday, 3 May 2025: An easy-to-read selection of our top stories. Today's news includes MacG being summoned to appear before Parliament's Portfolio Committee on Women, Youth and Persons with Disabilities for his comments about Minnie Dlamini. Meanwhile, Gauteng Premier Panyaza Lesufi says the 'honeymoon period' for illegal foreigners in South Africa must end. He suggests that they are contributing to some of the country's ills, such as strained health care services and crime. Futhermore, The Freedom Front Plus (FF+) on Saturday said the EFF's march to Kleinfontein 'was nothing but political theatrics'. It accused the EFF of trying to turn attention away from the poor performance of the Tshwane government. Stay up to date with The Citizen – More News, Your Way. News Today: 03 May 2025 Parliament to summon MacG after comments about Minnie Dlamini Picture: X/@MacGUnleashed Macgyver Mukwevho, popularly known as MacG is set to be summoned to appear before Parliament's Portfolio Committee on Women, Youth and Persons with Disabilities for his comments about Minnie Dlamini. Should the Podcast and chill host fail to appear, he may be liable to a fine or to imprisonment for a period not exceeding 12 months or to both the fine and imprisonment. Continue reading here 'It must come to an end': Lesufi suggests South Africa is being 'abused' by illegal foreigners Gauteng Premier Panyaza Lesufi. Picture: Gallo Images Gauteng Premier Panyaza Lesufi says the 'honeymoon period' for illegal foreigners in South Africa must end. He suggested that they are contributing to some of the ills in the country, such as strained health care services and crime. The premier made these comments at the ANC Gauteng lekgotla at the Indaba Hotel in Fourways on Saturday. The gathering aims to solve challenges in the province and develop strategies for the upcoming local government elections. Continue reading here EFF accused of hypocrisy after Kleinfontein march Supporters of the EFF march to Kleinfontein. Picture: Michel Bega The Freedom Front Plus (FF+) on Saturday said the EFF's march to Kleinfontein 'was nothing but political theatrics'. It accused the EFF of trying to turn attention away from the poor performance of the Tshwane government. The EFF is in a coalition with the ANC and ActionSA in Tshwane. Other parties in the coalition government are the ACDP, AIC, DOP, PA, PAC, ATM and GOOD. FF+ also accused the EFF of having a 'dangerously inflammatory and destructive culture'. The EFF marched to the Afrikaner-only settlement in Kleinfontein on Friday demanding that its 'segregation' policies be abolished. Continue reading here Joshlin Smith: Kelly's house burnt down after being found guilty Kelly Smith's house during the Joshlin Smith kidnapping trial in Saldanha Bay. The wooden shack was later burnt down. Picture: Gallo Images Hours after Joshlin Smith's mother was found guilty of kidnapping and human trafficking by the Western Cape High Court on Friday, her house in Middelpos, Saldanha Bay, was burnt down. A video of the incident was posted on social media on Friday night. In it, a woman can be seen screaming and raising her fist in the air while standing in front of the flames. Continue reading here Trio found in Hennops River to be buried next week; joint memorial service on Tuesday The trio's joint memorial service will be held on Tuesday at Bobbies Park in Bloemfontein, Free State. Constable Boipelo Senoge will be buried on Thursday, Constable Cebekhulu Lindaon Friday and Constable Keamogetswe Buys on SaturdaY. Pictures: Supplied. A joint memorial service will be held on Tuesday for the three constables who were found in the Hennops River in Centurion, but their funerals will take place separately. Free State provincial premier MaQueen Letsoha-Mathae, MEC Jabu Mbalula, and provincial commissioner Lieutenant General Baile Motswenyane announced the funeral arrangements on Friday. 24-year-old Constable Cebekhulu Linda, 30-year-old Constable Keamogetswe Buys, and 20-year-old Constable Boipelo Senoge went missing for days, before their lifeless bodies were recovered from Hennops River on Wednesday, 29 April 2025. Continue reading here Here are five more stories of the day: Yesterday's News recap READ HERE: Top 10 stories of the day: Kelly Smith, co-accused convicted | EFF Kleinfontein march | Fuel good news
