After 31 years, there is still no end in sight to Black Economic Empowerment (BEE), and President Cyril Ramaphosa and the ANC still cannot understand why a party such as the Freedom Front Plus (VF Plus) is opposed to it.
President Cyril Ramaphosa’s response today to the Freedom Front Plus’s question about economic growth plans under the Government of National Unity (GNU) and the consequences of BEE made it clear that he still believes the ANC is a party with a two-thirds majority that can do as it pleases.
This has to change – even if the Freedom Front Plus has to fight the battle alone, whether as part of the GNU or not. It makes no sense to discuss economic growth and job creation while BEE is enforced.
The ANC’s race-based policy has resulted in an unemployment rate of 32% – with optimistically projected growth of 1,4% for this year, 1,6% for next year and 1,8% for 2027.
In contrast, Zambia has a current growth rate of 6,2% and even Zimbabwe boasts with 6%.
After decades under ANC rule, it is evident that BEE only paves the way for corruption and cadre enrichment, leading to reduced productivity and investment losses.
BEE’s focus on meeting race-based quotas at the expense of skills and experience destroys productivity and innovation. South Africa’s ravaged state institutions, weak economy and massive unemployment serve as irrefutable proof.
And it is clear for all to see. Even the international community is becoming increasingly weary of stringent BEE regulations, such as mandatory ownership shares and expropriation without compensation.
President Ramaphosa and the ANC are the only ones who do not see it.
This has to, and will, change. There are too many well-meaning people in South Africa who want to see the country succeed and secure a sustainable future for all.
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