DA proposes economic empowerment bill that removes race as determining factor

The Democratic Alliance (DA) has proposed an economic empowerment bill that removes race as a determining factor, replacing it with a needs-based approach.

The bill is the party’s proposed policy to replace Broad-Based Black Economic Empowerment (BBBEE).

At a media briefing in Johannesburg on Monday, the party said BBBEE has only benefited a few politically connected individuals instead of a majority.

The BEE Act was introduced in 2003 as a redress policy to deal with the racial economic inequalities caused by apartheid.

Under apartheid, large parts of the economy remained in the hands of the white minority, while the black majority was excluded.

DA federal chairperson, Ivan Meyer, said while this is true, affirmative action policies do not necessarily need to be race-based.

“For example, if you apply for social grants, not on the basis of race, if you go and look who are the main beneficiaries - it’s black people. You don’t need to target black people, you need to target the need."

“The majority of people getting support for students, look at the books, you don’t target the black colour of your screen, you target the need and by the very nature of people in SA being black, they are the main beneficiaries. It’s incorrect to say this will not empower them. They will be more empowered because BEE has a narrow focus.”

The DA said it will be tabling the bill before Parliament soon.