The Democratic Alliance’s (DA) new Economic Inclusion for All Bill has sparked fresh debate within the African National Congress (ANC), with some senior party members suggesting that the time has come to review the Broad-Based Black Economic Empowerment (BBBEE) policy.
Three high-ranking ANC leaders who spoke to the Sunday Times said that while the principle of redress must remain, the current implementation of the BBBEE policy should be revisited.
“We must always allow discussion over the instruments of redress as long as the principle of redress remains. We must allow disagreements to take place. Yes, we can say that BEE has not achieved what it wanted to achieve,” one senior ANC member said.
Another insider noted that the policy had not translated into jobs and argued that government procurement processes also needed a review.
While some ANC members view the DA’s bill as an opportunity to reflect on the effectiveness of the BBBEE framework, others warn that it could deepen divisions within the Government of National Unity (GNU). Certain caucus members have accused the DA of trying to reverse transformation and have even suggested that the ANC reconsider its partnership with the DA ahead of the local government elections.
Earlier this year, tensions between the two parties grew when ANC members called for the DA to be removed from the GNU during a heated meeting over a VAT impasse.
Without a parliamentary majority, the ANC will have to rely on support from the MK Party and the EFF to block the DA’s efforts to repeal BBBEE. President Cyril Ramaphosa has already rejected the DA’s proposal, reaffirming that BBBEE remains fully in force.
“I have not yet seen their proposals. Currently, we have a BEE policy that is rooted and underpinned by our constitution, so if anyone wants an amendment to the BEE Act, they must table their proposals and they must be taken for discussion in parliament. At the moment, BEE policies, legislation and regulation apply, without any dilution whatsoever,” Ramaphosa said.
Another ANC leader said the DA’s proposal—which could replace BEE laws with equity-based alternatives—should have been discussed by the national executive committee.
The DA’s bill aims to amend the Public Procurement Amendment Act of 2024 by scrapping race-based preferential procurement measures. Instead, it proposes an empowerment system focused on poverty as a measure of disadvantage.
According to the DA, the bill eliminates set-asides, prequalification criteria, and local content designations, replacing them with an outcomes-driven system centred on inclusive development and value-for-money procurement.
The transitional provisions include the winding down of the BEE Commission within 12 months and the removal of all BEE references from legislation. The bill also empowers the minister of trade, industry, and competition to design a new preference points system based on social impact and inclusive growth.
Political analyst Mcebisi Ndletyana criticised the DA’s proposal, describing it as an attempt to undermine transformation. “They are pushing an old argument that they have been pushing since their inception, which is opposition to racially based transformation,” he said.
Ndletyana acknowledged flaws in how BEE has been implemented but maintained that the principle remains vital. “The problem has always been at the point of implementation, where corruption comes in. The issue of inequality in South Africa is not accidental—it is a product of deliberate past policies that privileged white people. These advantages still persist,” he explained.
He argued that if the DA were genuinely serious about tackling inequality, it would focus on redistributing land and addressing ownership disparities rather than opposing land expropriation.
DA spokesperson Willie Aucamp defended the bill, saying the party remains committed to redress and inclusive growth. He said that while the DA is in coalition with the ANC, it reserves the right to oppose harmful policies.
“The DA may be in coalition with the ANC, but that doesn’t mean we need to agree with them all of the time. We are a distinct party with our own policies and will continue to advocate for changes we believe will benefit South Africans and the economy,” Aucamp said.
