Ramaphosa offended by GNU partner Mulder's suggestion to scrap BEE laws

President Cyril Ramaphosa did not take kindly to a suggestion by GNU partner and FF Plus leader Cornè Mulder that the country should rethink its racial redress legislation, which in his view hindered economic growth.

In an oral question to the president, Mulder said the policies raised by Ramaphosa pertained to Operation Vulindlela, which he claimed would not see the light of day if the country did not abandon race-based reforms.

“We need to amend or develop a new economic policy that can make possible real growth. If we do not have economic growth, none of the programmes will be implemented nor will they be successful. The new policy needs to take a different approach regarding black economic empowerment, employment equity and expropriation without compensation,” Mulder said. 

Ramaphosa was startled by the assertion and gave Mulder a history lesson on the ownership of the economy during apartheid and why legislation such as BEE was necessary.

“I’m rather surprised and taken aback when I hear that policies of BEE militate against the growth of our economy. That I find quite surprising. I work from a starting point that our economy was held back over many years by the racist policies of the past.

“Those racist policies prevented a majority of South Africans to play a meaningful role in their own economy. Black people were brought in as hewers of wood and drawers of water, as labourers. They were not even seen as consumers or active players in the economic landscape of our country.”

He said democracy saved the day, opening up the economy and broadening participation.

“It is right in your face. During apartheid South Africa, you’d never see a black personality being made to advertise soap or milk or anything. Today every advert you look at has got black people. This is because it has now been realised that it is black people who are the consumers and are economic players.”

Those who would want black people just to play the consumer role are truly mistaken, Ramaphosa said, adding that black people must play a productive role as well.

“I am really baffled by people who still hanker for policies of the past and to have you, sir, say that BEE is holding our economy back goes completely against even what the World Bank says. What is known clearly is that there was a report that detailed that what holds South Africa back is the level of concentration.

“They said what holds South Africa back is the fact that the ownership of the economy is in far too few hands and has not spread, that is what the World Bank and IMF said. In our country it is the privileged white people who intimidated to own the means of production. I find it very worrying that we continue to have this notion that BEE is holding us back.”

Ramaphosa said the constitution’s equality clause implores the government to redress the imbalances in the country, including the ownership of the economy.

“There is nothing that gives our people joy, as they go around and find that this production facility is owned by a black person, it warms one’s heart, it makes us feel so good because we come from a horrible past where that was not allowed by law.”

The president detailed that the Medium-Term Development Plan 2024—2029 (MTDP) in its current form will foster economic development, with an apex priority to achieve inclusive growth and job creation as the key focus.

“To achieve higher levels of economic growth, we are in many ways undertaking massive investment in infrastructure and upgrading our maintenance activities. In the budget speech finance minister Enoch Godongwana confirmed that public infrastructure spending in the next three years will amount to R1-trillion. Allocations towards capital investment remain the fastest-growing area of spending, ensuring that we use our resources to foster and support growth.

He said the investment on infrastructure will be complemented by the reforms that government has embarked upon and the regulatory framework to enable public private partnerships.

“A further pillar of our economic strategy is to support sectors with high potential for growth and job creation. This includes growing our key export sectors like mining and agriculture, while developing new industries such as renewable energy, where we continue to distinguish ourselves, electric vehicles and green hydrogen in harnessing our unique advantages in the green economy.

“We are strengthening the capacity of the state, which is our key pillar of the MTDP, including turning around the financial and operational performance of state institutions including delivery at local government level.”

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