Treasury rejects calls to scrap B-BBEE amid GNU friction over economic growth

Finance Minister Enoch Godongwana says an honest debate is needed regarding the shortcomings of Broad-Based Black Economic Empowerment (B-BBEE), rather than calls for the policy to be scrapped.

The African National Congress's flagship policy again came under attack from the Democratic Alliance(DA) in Parliament on Friday.

MP Andrew Bateman contended that the framework is holding back the economic growth required to improve the country’s balance sheet.

Parliament's finance committees have been questioning National Treasury officials about Budget 2026, which was tabled by Godongwana on Wednesday.

B-BBEE continues to be a sticking point within the Government of National Unity (GNU).

However, Godongwana maintains that as a constitutional imperative, the policy cannot simply be done away with.

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Bateman argued that BEE is actually disadvantaging Black South Africans by limiting their opportunities while simultaneously undermining economic growth and the country’s fiscal position.

"BEE has empowered some Black South Africans, but it’s done so at the expense of all South Africans—the vast majority of whom are Black. So, it’s failed in its central objective on balance," Bateman stated.

Responding to Bateman’s assertions, Godongwana argued that the policy should be objectively critiqued rather than attacked on principle.

He suggested that the focus should shift toward identifying and fixing specific flaws.

"You can’t say do away with it," Godongwana said. "Are there any unintended consequences? If the debate starts there, at an objective basis of analysing some of the unintended consequences and we have a constructive discussion. At the moment, it’s an ideological attack rather than an objective analysis of its efficacy."