DA MP challenges ANC BBB-EE policies, calls for genuine inclusion

In a fierce critique of the ANC government Broad-Based Black Economic Empowerment (BBB-EE) policies, Democratic Alliance (DA) MP Mat Cuthbert shed light on growing divide between the political elite and majority of impoverished black South Africans.

During DA-sponsored debate in Parliament on Friday, Cuthbert slammed  ANC tactics, labeling them as “trickle-down redress.”

He argued that the belief in transferring assets and contracts from one elite group to another will not lead to true inclusion.

Cuthbert referenced to a recent World Bank report, titled “Driving Inclusive Growth in South Africa,” which illustrates how BEE policies hinder investment and economic expansion.

The report underscores the need for increased market competition and the development of more efficient institutions to achieve genuine inclusive growth.

Highlighting DA commitment to these principles, Cuthbert reiterated the party’s focus on inclusive growth through initiatives like securing energy supply, enhancing market competition, and creating a favourable investment environment.

Despite clear evidence against  ANC race-based policies, Cuthbert expressed his concerns regarding Trade and Industry Minister Parks Tau Transformation Fund announcement.

This fund would require businesses to contribute three percent of their annual net profits after tax under BBEEE Codes of Good Practice, a move Cuthbert believes will impose additional burdens on businesses already grappling with high tax obligations.

In contrast, the DA’s Economic Justice Policy targets poverty as a measure of disadvantage, moving beyond a race-centric approach to empowerment. grounded in the United Nations Sustainable Development Goals Framework, this model is increasingly embraced by businesses looking to fulfill their corporate social responsibility commitments.

With public discontent towards the ANC ineffective policies mounting, Cuthbert urged Minister Tau and ANC to reconsider DA alternative strategy for redress.

He emphasised  importance of addressing  core drivers of inequality, including institutional failures, poverty, unemployment, and quality of education, to foster more inclusive economy that benefits all South Africans.

In an era where BEE has often enabled corruption and inflated patronage networks, Cuthbert insisted that the DA  model represents sustainable and inclusive path toward real empowerment.

“As members of the Government of National Unity (GNU), we have a unique opportunity to nurture an inclusive economy that promotes growth, creates jobs, and advances genuine empowerment,” he affirmed.