Deputy Finance Minister says B-BBEE is here to stay

CAPE TOWN - Deputy Finance Minister David Masondo has given Parliament the assurance that Broad-based Black Economic Empowerment (B-BBEE)  is here to stay.  

It comes amid concerns from the African National Congress (ANC)'s alliance partners that some parties in the Government of National Unity (GNU) are opposed to the policy and that it will be shelved in this administration.  

Speaking ahead of the passing of the national budget on Thursday, Masondo said the policy is critical to achieving economic growth.  

Masondo said he shares the concerns around public debt and agrees the R3-billion spent annually on repaying loans, could be better spent. 

READ: Parliament passes national budget tabled by finance minister in February

He said it is also in the interest of economic growth for the country to get a grip on its debt.  

"Borrowing in itself is not bad, the question is can you afford it, and what are you borrowing for? We've been spending it more on bailing out failing [State-Owned Enterprises] SOEs and consumption," he said.

Masondo has also hit back at the Freedom Front Plus for its views on B-BBEE and said that it is necessary to achieve inclusive growth, a pillar of the GNU.

"All we are doing is to grow South Africa...do not present an argument that seems to suggest that anything black, anything that participates in the economy which is black, is no in the interest of economic growth," Masondo said.  

Masondo added that it is important to manage price inflation to reduce the cost of living and to ensure a robust export market.