Deputy Pres. Paul Mashatile (Photo: Jairus Mmutle/GCIS)
“To put it simply – abandoning BBSEB is not an option. The way forward is reform, strengthening and disciplined implementation.”
That’s how adj.pres. Paul Mashatile said during a dialogue on broad-based black economic empowerment (BBSEB) in Durban on Saturday.
The government will, however, undertake a two-phase review of the BBSEB framework, led by the Department of Trade, Industry and Competition. “The goal is clear: refine and strengthen the policy so that it drives transformation, reduces corruption and promotes inclusive, broad-based growth,” said Mashatile.
BBSEB, despite its shortcomings, has led to measurable progress in inclusion, especially when looking at the growth of the black middle class and progress in industries such as mining and finance, believes Mashatile. “It is critical to emphasize that BBSEB is also a moral obligation rooted in democratic processes.”
Mashatile admitted that contradictions and various obstacles have faced the implementation of BBSEB over the years.
“It is important not to confuse the failures of implementation and broader governance issues with the intrinsic purpose and design of BBSEB. It is misleading to attribute complex macroeconomic outcomes solely to the policy while ignoring other pressing factors, including structural constraints.”
It was further emphasized that transformative policies such as affirmative action, equal employment and BBSEB remain absolutely essential because exclusion remains measurable and continuous, according to Mashatile.
“Thus, these transformative policies offer an opportunity to create a future where everyone has equal opportunities, despite not starting on equal footing. These policies are essential to tackling the significant wealth gap between black and white South Africans, which highlights the need for race-based laws to ensure a level playing field.”
Mashatile further emphasized that Pres. Cyril Ramaphosa said during the debate on his state of the nation address on BBSEB, namely that BBSEB should not be seen as a cost to the economy, but as an investment in the sustainable growth of the economy.
