President Cyril Ramaphosa has said that Broad-Based Black Economic Empowerment (BBBEE) remains a central pillar of South Africa’s economic policy and will not be scrapped.
Responding to debate following the State of the Nation Address in Parliament, Ramaphosa firmly rejected growing calls from some quarters within the Government of National Unity to abandon the empowerment framework. His message was direct and unapologetic economic transformation is not optional, and it is not negotiable.
“BBBEE must not be viewed as a cost to the economy but an investment in sustainable economic growth,” the President said.
Ramaphosa stressed that empowerment is fundamentally about expanding opportunity and correcting structural imbalances that continue to shape South Africa’s economy decades after democracy. For millions who were historically excluded from ownership, skills development, access to capital and meaningful participation, BBBEE represents access not advantage.
He argued that inclusive economies are more competitive, more innovative and more resilient. By widening participation and strengthening black industrialists, entrepreneurs and professionals, South Africa deepens its productive base and stimulates demand across sectors. In this context, empowerment becomes a growth strategy, not merely a redress mechanism.
The President also grounded his position firmly in the Constitution. He reminded Members of Parliament that the democratic state carries a clear responsibility to redress the injustices of apartheid, advance equality and build a society that is just and inclusive. Economic transformation, therefore, is not a political slogan it is a constitutional imperative.
At the same time, President Ramaphosa acknowledged that implementation gaps have limited the full impact of BBBEE. He announced that government will undertake a comprehensive review of the framework to strengthen oversight, close loopholes and ensure benefits reach genuine participants rather than being concentrated among a few.
The review is expected to sharpen support for small and medium-sized enterprises, accelerate enterprise and supplier development, and deepen transformation within key industries. Greater focus will also be placed on monitoring compliance and measuring real economic outcomes. “Now is not the time to abandon BEE,” Ramaphosa stated. “Now is the time to make it more effective.
