Ramaphosa Defends BEE Amid Rising Opposition, Calls for Inclusive Growth to Drive Economic Transformation

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President Cyril Ramaphosa has reiterated his support for Black Economic Empowerment (BEE), emphasising that inclusive economic growth is essential for South Africa’s development, enterprise expansion, and supply chain diversification.

Writing in his weekly newsletter, Ramaphosa said that growth and transformation must go hand in hand. He cautioned against the false dichotomy between the two, asserting that economic growth without meaningful transformation would deepen exclusion, while transformation without growth would be unsustainable.

His comments come amid increasing criticism of BEE and employment equity policies, particularly from coalition partners in the new government of national unity. The Democratic Alliance (DA) and Freedom Front Plus have called for the repeal of such laws, arguing that they deter investment and entrench racial discrimination.

In May, Freedom Front Plus urged Ramaphosa to abandon BEE legislation during a U.S. visit aimed at repairing diplomatic ties strained by concerns over racially exclusive policies. Meanwhile, the DA is mounting a legal challenge to the Employment Equity Amendment Act and the Expropriation Act.

Despite internal criticism, DA Communications Minister Solly Malatsi has defended new ICT regulations, insisting they are designed to attract broad investment and not to accommodate specific firms like Elon Musk’s Starlink. The U.S.-based company has struggled to enter the South African market due to its refusal to meet BEE ownership criteria.

Ramaphosa contrasted South Africa’s transformation agenda with recent rollbacks of diversity and inclusion policies in the United States, warning that diverging policy directions may complicate global cooperation as South Africa prepares to assume the G20 presidency.

Acknowledging criticism that BEE has sometimes benefited politically connected elites, Ramaphosa nonetheless highlighted its successes. He credited the policy with fostering black industrialists and transforming corporate ownership and management structures. He cited data from Statistics South Africa showing that black African households saw a 46% rise in real income between 2006 and 2023. However, white households still earn, on average, nearly five times more.

“The progress is clear,” he wrote. “We’ve seen tangible changes in enterprise development, skills training, and increased participation of women in business,” Ramaphosa stressed that transformation would remain central to government priorities, including infrastructure investment, green economy initiatives, localisation, and reindustrialisation. He rejected superficial compliance, saying: “Transformation is not about ticking boxes. It’s about building a resilient, just economy for future generations.”

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Nonetheless, critics, such as the Institute of Race Relations, advocate for a race-neutral approach, promoting broad economic empowerment for all disadvantaged individuals, regardless of their race.

Ramaphosa acknowledged the complex global environment — marked by conflict, economic stagnation, and institutional distrust — but insisted South Africa’s commitment to inclusive growth and transformation would not waver.