South Africa’s ruling African National Congress said it will not abandon the country’s race-based economic empowerment policy despite opposition from parties within the Government of National Unity, exposing tensions within the coalition government.
Zuko Godlimpi, deputy minister of trade, industry and competition and a member of the ANC’s national executive committee, said the Broad-Based Black Economic Empowerment policy remains essential to address racial inequalities from apartheid.
“We remain committed to B-BBEE as an unavoidable path to making South Africa work for all of us,” Godlimpi said at a media briefing on Saturday. “B-BBEE, as a strategic programme, remains intact and it’s not going anywhere.”
The Democratic Alliance, the second-largest party in the coalition, has argued that B-BBEE has failed to stimulate economic growth and instead harmed the economy. The party maintains that jobs and opportunities should be allocated on merit and qualifications rather than race.
The dispute highlights ideological differences within the GNU, which was formed in June 2024 after the ANC lost its parliamentary majority for the first time since the end of apartheid. The ANC secured 40 percent of the vote in the May 2024 election, forcing it to form a coalition with nine other parties including the DA.
B-BBEE was signed into law in 2003 to address economic disparities caused by apartheid. The policy gives companies incentives and preferential treatment for government contracts if they contribute to empowerment of historically disadvantaged groups.
In October, the DA introduced a bill seeking to replace B-BBEE with policies focused on poverty alleviation rather than race. The ANC rejected the proposal.
Godlimpi acknowledged that implementation methods could be improved but said the core policy would remain in place. “If there are ethical problems with particular instruments of implementing policy, we improve them as we go,” he said.
Deputy President Paul Mashatile said last week the government is reviewing B-BBEE to identify gaps but will not abandon the framework.
The tension over B-BBEE reflects broader challenges facing the coalition as parties balance policy differences while trying to govern together. The GNU holds 273 seats in the 400-member National Assembly.
