ANC partner DA calls for scrapping of Black Economic Empowerment

Briefing the media in Johannesburg on Monday, Steenhuisen stressed that the DA is not opposed to redress or transformation, but believes these laws have become counterproductive.

The DA argues that Black Economic Empowerment in its current form has failed to deliver meaningful change for ordinary South Africans.

According to the party, BBBEE disproportionately benefits politically connected individuals and large corporations close to the ruling party, while excluding many small and medium-sized enterprises (SMEs) and ordinary black South Africans.

Steenhuisen explained that the complex BBBEE compliance requirements impose heavy costs and administrative burdens on SMEs.

He says many small businesses cannot afford to meet the onerous criteria, such as extensive paperwork, ownership quotas, and preferential tender rules, effectively locking them out of opportunities.

"The perverse incentive of BBBEE has become that large companies cut out all SMEs to inflate their own BEE credentials," Steenhuisen said.

He shared a story representing many South Africans' struggles.

"Let me begin with a story of shattered dreams. Every day people approach me and members of the DA with stories of how they are cut out of the economy. For purposes of this story, I will name him Kabelo, from Vosloorus.

"Kabelo started a small logistics company with two trucks, ambition, and a dream. He believed hard work would be enough. But the system worked against him. No funding, because he lacked collateral. No tenders, because he had no political connections. No support, because BBBEE, in practice, has become a hurdle rather than a help.

"This is not just Kabelo's story. It's the story of millions of South Africans, locked out by a system that rewards the connected and punishes the rest."

Steenhuisen said South Africa's economy is in the ICU, with GDP per capita shrinking by 10% over the last 15 years.

He said the only way to transform the country is through fair, inclusive alternatives that lift poor South Africans out of poverty and onto the social mobility ladder.

"Today, we present real solutions, and we offer them free of charge to the ANC, so that the millions allocated for the national dialogue can instead be spent on services for the people of South Africa.

"The first order of business in our plan is to target three major roadblocks which are holding our economy back: BBBEE, Employment Equity and the Expropriation Act.

"BBBEE and racial quotas have failed, and together with expropriation without compensation, create an environment that deters investment, growth and job creation for the majority of South Africans."

Steenhuisen emphasised that the DA is not against transformation, but that BBBEE has done nothing for ordinary South Africans.

"The only empowerment South Africa needs is more jobs. With more jobs and a growing economy, many of our other problems will be solved.

"Government must replace BBBEE and employment equity with policies that create opportunity based on need and merit, not race or connection. Red tape must be slashed, and SMMEs freed from suffocating bureaucracy and crushing labour laws."

He also outlined other pillars of the DA's economic reform plan, including:

Fixing the energy crisis by breaking Eskom's monopoly and introducing competition in electricity generation and distribution.

Repairing and modernising rail, ports, and digital infrastructure, ending Transnet's stranglehold to turn South Africa into a world-class export economy.

Reforming public spending to stabilise debt, cut waste, root out ghost employees, and redirect funds to infrastructure and frontline services.

Fixing local government by stabilising councils through new laws, protecting and reinvesting municipal revenue, and encouraging private sector participation in struggling municipalities.