Keypoints:
- DA seeks to repeal race-based job laws
- ANC defends Black empowerment programmes
- Trump criticism heightens policy tensions
SOUTH Africa’s Democratic Alliance (DA), the second-largest party in the coalition government, has introduced legislation to abolish race-based economic policies, reigniting long-running debates about redress three decades after the end of apartheid.
The Economic Inclusion For All Bill, tabled by the DA, seeks to amend the 2024 Public Procurement Act, which currently gives preference to Black-owned or managed companies in state contracts. The DA argues that the existing framework—anchored in the African National Congress (ANC)’s Broad-Based Black Economic Empowerment (BBBEE) policy—has benefited a politically connected few while leaving millions of ordinary South Africans behind.
‘This bill aims to replace years of ineffective policies that have left the vast majority of South Africans unemployed,’ said DA head of policy Mathew Cuthbert at a press briefing in Johannesburg. He explained that the legislation would target poverty as a marker of disadvantage instead of race, positioning it as a shift towards universal economic inclusion.
ANC defends empowerment laws
The ruling ANC, which leads the coalition, has sharply criticised the proposal, accusing the DA—whose leader, John Steenhuisen, is white—of undermining post-apartheid transformation.
‘Race-based legislation remains essential for redress,’ an ANC spokesperson said, stressing that policies like BBBEE are vital to correcting historic injustices. The party maintains that dismantling them would reverse decades of progress.
According to government data, white South Africans, who make up just seven percent of the population, still hold over sixty percent of top management positions nationwide. The ANC insists that this imbalance justifies continued intervention in favour of Black economic advancement.
Trump remarks amplify debate
The issue gained unexpected international attention after US President Donald Trump criticised South Africa’s race-based economic policies during a May meeting with President Cyril Ramaphosa at the White House. Trump argued that such policies risk entrenching inequality and discouraging foreign investment.
Cuthbert dismissed comparisons with US conservative policies. ‘We are not trying to copycat policies which have been taken in the US,’ he said. ‘Our focus is on building a fairer economy that works for everyone, not just the connected few.’
Deepening political divisions
Analysts say the Economic Inclusion For All Bill highlights growing ideological rifts within South Africa’s unity government. While the ANC sees racial redress as essential for justice, the DA contends that empowerment policies have morphed into instruments of corruption and exclusion.
If passed, the bill would remove all references to BBBEE across national legislation—marking the most significant shift in South Africa’s post-apartheid economic framework since 1994.
