Ramaphosa Defends BEE Policies, Rejects Claims They Hinder Economic Growth

President Cyril Ramaphosa has firmly rejected criticism that Black Economic Empowerment (BEE) policies are stifling South Africa’s economy, arguing that economic transformation remains essential to redress historical inequalities.

During a heated Q&A session in the National Assembly on Tuesday, Ramaphosa clashed with Freedom Front Plus (FF+) leader Corne Mulder over the role of BEE, expressing bewilderment at opposition to empowerment policies.

“What do you want to see happening? Should black people remain forever as labourers, drawers of water, and mere consumers? Why shouldn’t they own productive assets and build wealth like others have?” Ramaphosa challenged.

Drawing a historical parallel, the President pointed to Afrikaner economic advancement under apartheid-era policies.

“Afrikaners were once economically marginalised by British dominance, yet through deliberate policies—laws, preferential deals—they became key economic players. Why shouldn’t black South Africans have the same opportunity? To me, this is not just fair—it’s necessary for national unity and growth.”

The debate comes amid tensions within South Africa’s Government of National Unity (GNU), where parties like the FF+ and Democratic Alliance (DA) have opposed ANC-driven reforms, including the Expropriation Act and Employment Equity Act amendments.

A recent World Bank report acknowledged the need for redress but criticized BEE’s implementation, stating that while well-intentioned, the policies are “overly complex and restrictive,” discouraging private investment. South Africa’s regulatory constraints, it noted, are nearly three times stricter than those in top-performing economies.

The Bank recommended refining equity-equivalent programs to balance transformation goals with investor confidence—a suggestion likely to fuel further debate as Ramaphosa’s administration navigates competing demands for inclusive growth and economic competitiveness.

The President’s unyielding stance signals that BEE remains non-negotiable for the ANC, even as pressure mounts to streamline policies affecting business. With the GNU’s stability hinging on such compromises, the clash over empowerment versus efficiency is set to define South Africa’s economic trajectory.