President Cyril Ramaphosa says BEE is good for the South African economy

President Cyril Ramaphosa stated that black economic empowerment (BEE) is an investment in the economy, which helps it grow.

He made these comments during his keynote address at the 2025 Black Business Council Summit Gala at the Radisson Hotel & Convention Centre in the City of Ekurhuleni.

He stated that the Broad-Based Black Economic Empowerment (BBBEE) Act and the Employment Equity Act are integral components of this legislative framework.

“Since these Acts came into being, there have been notable increases in black business ownership as well as in the number of women-owned businesses,” he said.

“We have seen progress concerning management control, skills development, and enterprise and supplier development.”

He added that, in terms of household income, South Africa has seen progress in narrowing the gap between racial groups.

“The data shows that our broad-based black economic empowerment measures have made an impact, but we need to do more, and we need to do better,” he said.

Ramaphosa said people need to challenge the notion that black economic empowerment is a cost to the economy. “We need to demonstrate that it is an investment in the economy,” he said.

“Now is not the time to abandon the measures we have put in place to drive transformation. Now is the time to move forward with greater purpose and ambition.”

Ramaphosa said South Africa’s public infrastructure spending over the next three years will amount to R1 trillion.

“It is vital that we use this investment to provide opportunities for black businesses in all the sectors that will provide the materials, goods and services,” he said.

He also defended the creation of a R100 billion Transformation Fund to fund black-owned and small business enterprises.

“It’s not only about correcting past wrongs, it is also about establishing a new wave of emerging innovative businesses that can create work and opportunity,” he said.

BEE under siege in South Africa

While President Cyril Ramaphosa defends BEE, arguing it is good for the economy, many economists and analysts hold a different view.

Political analyst Frans Cronje said it is essential for South Africa to do away with black empowerment policies to attract international investments.

He said the only way for South Africa to achieve significant economic growth is to lift its fixed investment rate from the current 15% to 25%.

This will boost economic growth to 4%, which, in turn, will drive job creation at a rate that will reduce unemployment to 10% over the next 20 years.

However, to achieve this, South Africa needs to stop taxing companies that want to invest in South Africa through policies like black economic empowerment.

Efficient Group chief economist Dawie Roodt said President Cyril Ramaphosa’s message to the world is that South Africa is not an investor-friendly country.

He referred to Ramaphosa’s comments that racist policies of the past are holding back South Africa’s economy, and that BEE is solving this problem.

“I am surprised and taken aback when I hear that policies of black economic empowerment militate against the growth of our economy,” he said.

He said the lack of black economic empowerment comes from the ANC government’s poor economic policies, corruption, and incompetence.

Roodt added that the idea that increasing wealth by redistributing it through BEE is entirely misguided.

“Clearly, our president does not understand the importance and essence of a modern economy,” he said.

Roodt said Ramaphosa’s message to the world was that he does not have a clue how an economy operates.

“We have been implementing the wrong macroeconomic policies for years. We are going to do more of that and double down on it,” he said.

“This is because Ramaphosa believes that if we implement more of the wrong macroeconomic policies, suddenly it will start looking better.”

He said Ramaphosa sent the message that they do not see South Africa as an investor-friendly country where political leaders understand the economy.

“They do not want to create an environment to attract investments. That is the message he sent to South Africans and the rest of the world,” he said.