DA calls for scrapping of BEE, blames it for job losses, cronyism

DA Federal Chairperson Ivan Meyer briefs the media at its headquarters in Bruma, East Rand on October 20, 2025.

The Democratic Alliance (DA) has called for the scrapping of Black Economic Empowerment (BEE), saying it has killed jobs, promoted corruption and benefitted politically connected individuals.

Briefing the media at its headquarters in Bruma, East Rand, the party has unveiled details of its Economic Inclusion for All Bill. It proposes that measures be put in place to wind down the BEE Commission over 12 months and calls for the removal of references to BEE across all the country’s legislation.

The DA’s Head of Policy Mat Cuthbert says the party’s Economic Inclusion for All Bill aims to replace years of ineffective African National Congress (ANC) empowerment policies, which the DA contends have left the vast majority of South Africans unemployed, impoverished, and hopeless.

Cuthbert says, “While the ANC’s policy is exclusive to cadres, the DA’s policy demands no political connections. Under the ANC, race is the sole criterion, whereas the DA emphasises needs-based empowerment.”

He says, “The ANC encourages fronting culture while the DA promotes social impact and value for money in procurement and while the ANC continues to exclude small businesses. The DA considers small businesses vital partners in the fight against unemployment. So while the ANC is preoccupied with increasing red tape and compliance, the DA seeks to reduce red tape, boost social investment and foster economic growth.”

CONTRACTS

The Bill calls for an alternative scorecard for awarding contracts to suppliers. The DA says its simplified preference point system is based on suppliers’ demonstrated contributions to inclusive development and social impact and comprises three components: value for money, economic inclusion and disqualification criteria.

Cuthbert says, “The value for money component assesses cost effectiveness, technical capacity and the reliability of bidders, which accounts for 80%. The economic inclusion component assesses bidders’ demonstrable contributions to the SDGs (Sustainable Development Goals) across five key categories, such as human development, economic empowerment, environmental sustainability, inclusive communities and a mixed impact option which accounts for 20%. The disqualification criteria exclude bidders if there’s a proven record of fraud, corruption, or misrepresentation.”

The DA says that the government’s BEE policy is in contravention of Section 217 of the Constitution and the party will therefore challenge it in the highest court of the land.

Party Federal Chairperson Ivan Meyer says that the Constitution stipulates that an organ of state must contract for goods and services in accordance with a system that is equitable, transparent, competitive and cost-effective.

Meyer says, “Our proposals are in line with the provisions of the Constitution. BEE is not in line with the provisions of the Constitution in terms of the provisions of section 217 of the Constitution, and that’s why the Western Cape government, a DA-led government has taken the Public Procurement Act to the Constitutional Court. I have received confirmation that the Constitutional Court has received our application. Our affidavit has been sent to the relevant people and they are having time until the 27th of November to reply to that affidavit.”

The DA insists that being part of the Government of Unity (GNU) will not muzzle its efforts to bring about what it says is real structural reform in the country’s economy.