By Lehlohonolo Lehana.
President Cyril Ramaphosa has once again defended criticism that the government’s Black Economic Empowerment (BEE) policy is hampering economic growth.
Ramaphosa delivered the keynote address at the annual Black Business Council (BBC) Summit Gala and Awards Dinner in the City of Ekurhuleni.
The 2025 BBC Annual Summit, held under the theme “Socio-Economic Transformation and Inclusive Growth in the context of the Government of National Unity (GNU), G20 Presidency and the Changing Geopolitical Dynamics,” brings together senior leaders from government, business, politics, and civil society.
Ramaphosa stated that the Broad-Based Black Economic Empowerment (BBBEE) Act and the Employment Equity Act are integral components of this legislative framework.
“Since these Acts came into being, there have been notable increases in black business ownership as well as in the number of women-owned businesses,” he said.
“We have seen progress concerning management control, skills development, and enterprise and supplier development.”
He added that, in terms of household income, South Africa has seen progress in narrowing the gap between racial groups.
“The data shows that our broad-based black economic empowerment measures have made an impact, but we need to do more, and we need to do better,” he said.
Ramaphosa said people need to challenge the notion that black economic empowerment is a cost to the economy.”We need to demonstrate that it is an investment in the economy,” he said.
“Now is not the time to abandon the measures we have put in place to drive transformation. Now is the time to move forward with greater purpose and ambition.”
Ramaphosa also defended the creation of a R100 billion Transformation Fund to fund black-owned and small business enterprises.
“It’s not only about correcting past wrongs, it is also about establishing a new wave of emerging innovative businesses that can create work and opportunity,” he said.
The Department of Trade, Industry and Competition (dtic) estimates that some R20-billion a year could be mobilized over the coming five years to help capitalise the fund; an estimate calculated using an historical analysis of ESD spending by companies monitored by the BBBEE Commission.
No breakdown has yet been provided as to the precise contributions from each potential funding source.
The dtic is proposing that the fund be established in partnership with the private sector and that a special purpose vehicle (SPV), with its own board and executive, be given responsibility for governance and the day-to-day running of the fund, which would include the National Empowerment Fund as an anchor member.
He emphasised that access to finance remains a key barrier for black-owned businesses: “We therefore as government must make sure that there is access to funding for black-owned businesses.”