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Condemn those who corrupted BEE, not the policy itself

Calling for BEE’s abandonment and deracialising transformation deliberately obfuscates the fact that economic exclusion was race-based and the impact of this continues to reverberate around the country.

The Mapungubwe Institute for Strategic Reflection (Mistra) held a roundtable discussion titled “Age of Identity Politics?” last week. On Monday I received a copy of the remarks framing the core issues of identity politics by Mistra’s executive director and one of South Africa’s foremost thinkers and strategists, Joel Netshitenzhe.

The ending of his inputs on the day’s discussions really resonated with a document I had received last week. “The social capital that attaches to the liberation and transformation identity has largely been squandered,” Netshitenzhe wrote.

“Activism around the legitimacy of affirmative action and broad-based black economic empowerment (B-BBEE) by the successful beneficiaries of these policies... is hardly visible. The trauma of having historically been consigned to the status of inferiority seems to have been aggravated.

“What is required to revive the energy towards forging a South African nation, united in its diversity and in pursuit of social justice, is the exercise of social agency.

“The elites and ruling classes across the globe are exercising their agency with much force and confidence. They have generated a trickle-up economics... characterised by wealth excess and political corruption – all the while corralling the working people towards social self-immolation.

“A common human identity should be forged in the fight for social justice, whatever legitimate sub-identities individuals may harbour,” he concluded.

I was reminded of the BEE compliance document I received and the thoughts it elicited in me, particularly in light of the recent discussions that have vilified the existence of BEE from inside and outside our borders, with the DA the loudest in its denouncement.

And what struck me is that the policy has always been grudgingly accepted, echoing Netshitenzhe’s words that the “trauma of having historically been consigned to the status of inferiority seems to have been aggravated”. This is because what necessitated the policy, and what its intended outcomes were, are hardly discussed. What has instead dominated the discourse is a call for its blanket demise, which threatens to erase its historical context and legitimacy.

It is unfortunate that people have to be reminded that BEE was introduced as a policy initiative meant to transform South Africa’s racially exclusionary economy by promoting black ownership and management control in companies and developing skills to correct the imbalances of apartheid.

And though it is true that a minority have co-opted the policy to amass obscene wealth, why is the focus not on sanctioning them as opposed to a wholesale condemnation of a progressive policy?

Calling for BEE’s abandonment and deracialising transformation deliberately obfuscates the fact that economic exclusion was race-based and the impact of this continues to reverberate around the country.

The only way forward towards a society premised on social justice is not only the lip service of a recognition of past injustices, but a correction of them through policies like BEE. We should all be working towards safeguarding these policies from being corrupted so that our collective identity is not marred by racial injustice or denialism. DM

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.

Comments

Geoff Krige Oct 13, 2025, 05:01 PM

The problem goes beyond abuse at the top levels. At all levels it has been very destructive of competence. As a very small company BEE always tops the list of compliance requirements when I am vetted as a vendor to companies. This is followed by tax, financial, then various insurance requirements. In most cases the vetting never gets as far as checking my competence to actually do the work. BEE far outweighs competence in contract awards. So BEE is structured to bring about incompetence.

Glyn Morgan Oct 13, 2025, 05:40 PM

BEE is blatently racist.

Glyn Morgan Oct 13, 2025, 05:40 PM

BEE is blatently racist.

Gretha Erasmus Oct 13, 2025, 08:14 PM

Firstly, racial redress and affirmative action was necessary and correct, and the first iteration of BEE was helpful. The middle class is now more black than anything else, including the writer. But it is 30 years on, and the policy itself has become a stumbling block to growth and an enabler of corruption. The mere fact that a BEE company may charge 25% more than any other company and still win the tender is policy - enabling of entrenched corruption. You do not need BEE to help the poor.

Gretha Erasmus Oct 13, 2025, 08:20 PM

To continue, I agree that legislated change was necessary at the start of democracy, and it achieved a lot. Most top end private schools now have more black pupils than other, most companies now have more black employees than not. All in all it helped establish a demographically representative middle class. Which was necessary. But now what is most imperative is to grow the economy and uplift the true poor with voucher systems or poor specific, not race specific, measures.

Gretha Erasmus Oct 13, 2025, 08:29 PM

Lastly - the only people fighting for the continuation of BEE and doubling down on punitive, business destroying measures are the few upper middle class beneficiaries of BEE. In a country with 8% white people you do not need BEE to have more black senior managers and more black business owners and more black share holders. All you need is to grow the economy. A growing economy with more new businesses, more open positions will automatically have more black people fill those positions. Stats101.

Ron McGregor Oct 14, 2025, 03:55 AM

Pikoli misses the point. BEE is, by definition, racist. Using racism to fight racism doesn't work. The problem is that we have people who are disadvantaged - NOW, in the present. That is what we should be addressing. Not things that stopped happening 35 years ago. BEE should not be a Holy Grail. There are other, non-racist ways, to address the problems. The beneficiaries would still be mostly black.

Louis Fourie Oct 14, 2025, 06:18 AM

The distinction has become irrelevant.

Steve Broekmann Oct 14, 2025, 07:27 AM

Apartheid was repugnant, and so is apartheid in reverse. While transformation is important, it should not trump non-racialism. Race-based policies are not only morally wrong but are nobbling the economy. Shame on Daily Maverick for promoting this kind of analysis

Dietmar Horn Oct 16, 2025, 08:50 AM

Could it be that DM itself has become a victim of the system?

Dietmar Horn Oct 16, 2025, 01:06 PM

And is therefore no longer completely free when it comes to choosing content and authors?

Dietmar Horn Oct 16, 2025, 01:28 PM

Any idea why my comment was initially rejected? What does this tell us about their attitude toward freedom of speech?

Karl Sittlinger Oct 14, 2025, 07:40 AM

Calls to scrap BEE ignore that corruption and enrichment by connected elites are symptoms of ANC misrule, not of the policy’s critics. After three decades, BEE has entrenched a small politically linked class while leaving millions excluded. True transformation needs transparency, competition and growth — not perpetual racial engineering used as a political tool. It’s been so badly warped that only a complete scrapping and honest redesign can restore fairness and credibility.