Ramaphosa
In a firm stance against the Democratic Alliance’s (DA) push to overhaul South Africa’s empowerment policies, President Cyril Ramaphosa has downplayed proposals to replace Broad-Based Black Economic Empowerment (B-BBEE) with a new needs-based approach.
Speaking during a ceremonial visit to ANC veteran Tlou Cholo’s home in Soshanguve on Monday, 20 October 2025, Ramaphosa emphasised that B-BBEE remains rooted in the Constitution and any amendments must follow proper parliamentary processes.
His comments came on the same day the DA unveiled its Economic Inclusion for All Bill, which aims to eliminate race as a factor in public procurement, sparking renewed debate on redress and economic justice in the post-apartheid era.
The president’s response highlights ongoing tensions within the Government of National Unity (GNU), where the DA and ANC hold differing views on transformation tools. While the DA argues B-BBEE has failed to deliver broad benefits and instead enabled fronting and elite enrichment, Ramaphosa doubled down on its role in addressing historical inequalities. This exchange underscores the challenges of balancing redress with inclusive growth in a country still grappling with high unemployment and poverty rates.
DA’s Economic Inclusion Bill: A Shift from Race to Needs-Based Empowerment
The DA’s proposed Economic Inclusion for All Bill seeks to repeal race-based elements of B-BBEE, replacing the current scorecard with a simplified framework focused on value for money (weighted at 80%) and economic inclusion (20%). Under this model, government contracts would prioritise cost-effectiveness, quality, and developmental outcomes like job creation and skills training, without mandating black ownership percentages or sub-contracting to black-owned firms.
DA Head of Policy Mathew Cuthbert criticised B-BBEE as a system that has locked many South Africans out of opportunities, often serving as a vehicle for deals between big business and politically connected individuals. “Simply shuffling the deck chairs on the Titanic by trying to give over shares or ownership of a company is in essence being used as a method for fronting. And it doesn’t actually filter down in a way the ANC purports it to do,” Cuthbert said during the bill’s unveiling in Johannesburg.
The party argues that a needs-based approach would better target poverty across all races, fostering genuine empowerment rather than token compliance. A disqualification clause for bidders with fraud or corruption records aims to enhance transparency in public procurement, which totals over R1 trillion annually. The DA plans to table the bill in Parliament soon and has urged GNU partners, including the ANC, to support it for broader economic reform.
This proposal builds on the DA’s long-standing opposition to B-BBEE, viewing it as a barrier to merit-based competition. Critics within the party point to high black unemployment rates—often exceeding 40%—as evidence that the policy has not achieved its goals, instead benefiting a small elite while excluding the majority.
Ramaphosa’s Unyielding Defence of B-BBEE as Constitutional Pillar
During his visit to confer the Isithwalandwe/Seaparankwe award on 100-year-old ANC stalwart Tlou Cholo, Ramaphosa addressed the DA’s announcement directly. “I have not yet seen their proposals. Currently, we have a BEE policy that is rooted and underpinned by our Constitution, so if anyone wants an amendment to the BEE Act, they must table their proposals and they must be taken for discussion in Parliament. At the moment, BEE policies, legislation and regulation apply, without any dilution whatsoever,” he stated.
Ramaphosa’s remarks reaffirm the ANC’s commitment to B-BBEE as a tool for redress, introduced in 2003 to correct apartheid-era economic imbalances. The policy requires companies to meet targets in ownership, management, skills development, enterprise support, and socio-economic contributions to qualify for state contracts. The president has consistently defended such measures, arguing they are essential for reconciliation and inclusive growth.
In past statements, Ramaphosa has highlighted B-BBEE’s role in fostering diversity in the economy, countering criticisms by noting its alignment with constitutional imperatives for equality. During a 2022 Black Industrialists Conference, he called for an improved trajectory for empowerment policies, emphasising the need to leverage resources society-wide for transformation. His administration has pushed for stricter compliance, with incentives and potential fines to boost corporate participation.
Tensions in the GNU: A Bone of Contention Between DA and ANC
B-BBEE has long been a flashpoint between the DA and ANC, even within the GNU formed after the 2024 elections. The DA views the policy as outdated and prone to abuse, while the ANC sees it as indispensable for addressing historical injustices. This divide was evident in earlier policy clashes, such as the DA’s opposition to racial quotas in the Bela Bill.
The DA’s bill could test the GNU’s unity, with the party yet to consult partners on support. ANC figures like First Deputy Secretary-General Nomvula Mokonyane have previously rejected similar easing of empowerment rules, as seen in 2025 debates over satellite licensing for companies like Starlink. EFF leader Julius Malema has criticised such moves as undermining black economic progress.
Public opinion remains divided, with some surveys showing frustration over B-BBEE’s limited impact on poverty, while others value its role in redress. Unemployment, at over 33% nationally, disproportionately affects black South Africans, fuelling arguments for reform.
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