Ramaphosa Downplays DA’s Proposal to Scrap B-BBEE, Insists Policy Rooted in Constitution
President Cyril Ramaphosa has brushed off the Democratic Alliance’s (DA) latest push to replace Broad-Based Black Economic Empowerment (B-BBEE) with a new bill, stressing that the policy is firmly grounded in South Africa’s Constitution. Speaking to the media in Soshanguve on Tuesday, 21 October 2025, during a visit to honour ANC veteran Tlou Cholo with the Isithwalandwe/Seaparankwe award on his 100th birthday, Ramaphosa said he has not yet seen the DA’s proposals but made it clear that any changes must follow proper parliamentary steps. This response highlights ongoing clashes within the Government of National Unity (GNU), where the DA and ANC hold differing views on how to tackle economic inequality and empowerment.
The DA’s announcement on Monday sparked fresh debate, as the party labelled B-BBEE a tool for state-sponsored corruption that has failed to address deep-rooted disparities. Ramaphosa, in his role as ANC president, doubled down on the transformation agenda, saying current B-BBEE laws, regulations, and policies apply “without any dilution whatsoever.” With South Africa’s economy still marked by high unemployment and poverty, this standoff raises questions about the future of redress policies in a post-apartheid society.
DA’s Economic Inclusion for All Bill: A Shift to Needs-Based Empowerment
The DA launched its Economic Inclusion for All Bill on Monday, 20 October 2025, aiming to amend the Public Procurement Amendment Act of 2024 and repeal all race-based preferential procurement rules. The party argues that B-BBEE has not delivered broad benefits, instead enabling fronting—where companies appoint black individuals to token roles without real power—and enriching a small elite while locking out many South Africans from opportunities.
Under the new bill, the current B-BBEE scorecard, which includes elements like ownership, management control, skills development, enterprise and supplier development, and socio-economic development, would be simplified to just two criteria: value for money procurement (weighted at 80%) and economic inclusion (20%). Value for money would focus on cost, quality, and delivery efficiency, while economic inclusion would target poverty alleviation through job creation, skills training, and support for small businesses, without mandating racial quotas or sub-contracting to black-owned firms.
DA Head of Policy Mathew Cuthbert criticised B-BBEE’s origins, saying it stemmed from deals between big business and ANC political entrepreneurs to maintain the status quo. “This is largely why we find so many South Africans locked out of opportunities,” Cuthbert said. He pointed to high black unemployment rates as proof of the policy’s failure, arguing that shuffling shares does not create real empowerment. The bill also includes a disqualification clause for bidders with records of fraud or corruption, aiming to clean up public procurement worth over R1 trillion annually.
The DA has called on its GNU partners, including the ANC, to support the bill, framing it as a way to achieve genuine inclusion and boost economic growth. However, the party admitted it has not yet consulted allies, setting the stage for potential friction.
Ramaphosa’s Untroubled Response: No Dilution Without Debate
Ramaphosa, speaking informally during the award ceremony for Cholo, appeared unfazed by the DA’s move. “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 said.
As ANC president, Ramaphosa reaffirmed the party’s commitment to B-BBEE as a key tool for redress, introduced in 2003 to correct apartheid-era economic imbalances. He has consistently defended such policies, arguing they align with constitutional mandates for equality and transformation. In previous addresses, like at the 2022 Black Industrialists Conference, Ramaphosa called for better implementation to ensure broader impact, countering claims of elite capture.
His response signals no immediate shift, emphasising that changes must go through democratic channels. This stance reflects the ANC’s view that B-BBEE is essential for addressing historical injustices, even as critics highlight its slow progress in black ownership and wealth creation.
Tensions Simmer in the GNU: A Recurring Divide
B-BBEE has long been a sticking point between the DA and ANC, even within the GNU formed after the 2024 elections. The DA sees the policy as outdated and prone to abuse, while the ANC views it as indispensable for empowerment. Similar clashes have arisen over issues like the Bela Bill’s racial quotas and satellite licensing for companies like Starlink.
ANC figures, such as First Deputy Secretary-General Nomvula Mokonyane, have rejected easing empowerment rules in the past. Trade unions like Cosatu have yet to respond but have historically supported B-BBEE as vital for workers. The DA’s bill could test the GNU’s unity, with potential parliamentary debates exposing rifts.
Political analysts note that while the DA’s proposal appeals to those frustrated with corruption, it risks being seen as a rollback of redress, potentially alienating voters in a country where inequality remains stark.
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