MBOMBELA – Political economist Moeletsi Mbeki has criticised Black Economic Empowerment (BBEE) saying the policy has succeeded in creating a black elite rather than delivering broad-based economic upliftment for the majority of black South Africans.
Mbeki, who is also the executive chairperson of Pomegranate Media and brother to former President Thabo Mbeki, spoke to Highveld Chronicle on the sidelines of the two-day Business Conference hosted by the Kruger Lowveld Chamber of Business and Tourism, which commenced on 21 May in Mbombela.
Initially introduced as BEE and later expanded to Broad-Based Black Economic Empowerment (BBBEE), the policy aims to promote economic transformation by empowering previously disadvantaged black individuals. However, Mbeki argued that the policy has fundamentally failed to improve the lives of most black South Africans since its formal adoption in 2005.
He said the result of the policy has largely been the emergence of a black middle class and politically connected individuals who are wealthy, powerful, and influential.
Mbeki placed significant blame on the African National Congress (ANC) for mismanaging the transformation agenda.
“The problem is the ANC,” he said.
“The ANC is an old party of the African middle class. In the struggle against apartheid, it built alliances with the working class, Indians, coloureds, the international community and so on. But once it came into power, it reverted to being a party that benefits the middle class. That’s the core issue in South Africa.”
He added that instead of maintaining the broad coalition that included workers, the rural poor, and traditional leaders, the ANC chose to focus on benefiting the African middle class.
“BEE is a good illustration of this. It only benefits the African middle class in the ANC. It doesn’t benefit the poor, the working class, or professionals. It only benefits the political elite inside the ANC,” Mbeki said.
According to the Freedom Advocacy Network (FAN), a project of the Institute of Race Relations (IRR), more than 80% of black South Africans have not benefitted from BEE.
“Far from ensuring that businesses give ordinary black people a fair economic chance, BEE has actually ensured that many businesses pay politically connected people to make powerful friends,” FAN stated.
