The Democratic Alliance (DA) has announced plans to replace South Africa’s long-standing Black Economic Empowerment (BEE) policy with a new initiative called the Economic Inclusion for All Bill.
According to the opposition party, BEE has failed to achieve its core objectives of reducing poverty, driving job creation, and growing the economy.
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The DA argues that, despite being introduced in 2003 to promote equality, BEE has instead entrenched inequality by benefitting a limited group of politically connected elites.
In a statement released this week, the party said that “conditions for most South Africans have worsened since the introduction of BEE in 2003,” highlighting that the current system has not brought about the broad-based empowerment it promised.
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Economic Inclusion for All: Shifting Focus from Race to Poverty
The DA’s proposed Economic Inclusion for All Bill seeks to amend the Public Procurement Amendment Act of 2024 by repealing all race-based preferential procurement clauses. Instead, the bill will use poverty as the main indicator of disadvantage — a move the party says is aimed at creating a fairer and more inclusive economy.
Under the new framework, public procurement would prioritise economic disadvantage rather than racial identity. The DA believes this shift would ensure that state resources and opportunities reach those most in need, regardless of their race or background.
‘We Need Inclusive Policies,’ Says DA Head of Policy
DA head of policy, Mat Cuthbert, acknowledged that the legacy of racial inequality remains a pressing issue in South Africa. However, he maintains that the current race-based system has not gone far enough in addressing the country’s deep-rooted socio-economic divide.
“We need to call for the policy changes that are required to create an inclusive South Africa,” said Cuthbert.
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He added that the DA’s new approach is designed to empower all disadvantaged South Africans by focusing on the eradication of poverty rather than the enforcement of racial quotas.
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