President Cyril Ramaphosa has strongly defended Broad-Based Black Economic Empowerment (BEE), saying economic transformation remains essential to correcting the injustices of apartheid and reducing inequality in South Africa.

Speaking during his reply to the State of the Nation Address (SONA) debate in Parliament, Ramaphosa criticised calls to scrap BEE, arguing that the country’s Constitution requires deliberate action to address historical exclusion.

“We cannot do that without transforming our economy,” Ramaphosa said. “It cannot be acceptable… for African people, coloured people and Indian people to be poorer and have fewer opportunities than white people.”

The president rejected claims that BEE benefits only a select few or harms economic growth, pointing to what he described as measurable progress since the policy’s introduction.

He said black African household incomes grew by 46% between 2006 and 2023, while poverty levels among black South Africans declined significantly over the same period.

“Now is not the time to abandon BEE. Now is the time to make it more effective,” he told MPs, adding that government is reviewing the empowerment framework to strengthen inclusive growth.

Ramaphosa also emphasised unity within the Government of National Unity (GNU), saying ministers serve collectively rather than representing party interests in Cabinet.

“During the course of this debate, MPs have spoken on behalf of their political parties. When they are out on the streets, they campaign for their parties. But in Cabinet, there are no parties. There are no ANC or DA or IFP or PA or UDM or GOOD or FF Plus or PAC or Al Jama-ah ministries. Every Minister and Deputy Minister is part of a collective, working together to implement a common programme, the Medium Term Development Plan. No Minister or Deputy Minister should be claiming their work in the GNU as an achievement
of their party.”

However, the Democratic Alliance (DA), the second-largest party in the GNU, has sharply criticised the president’s stance, warning that the issue could deepen tensions within the coalition government.

In a statement responding to the speech, DA leader John Steenhuisen said the party “reject[s] the protection of BEE, which has benefited only politically connected elites at the expense of the poor.”

“We will continue to fight for an alternative that creates a more inclusive economy for all,” Steenhuisen said, adding that the DA’s proposed Economic Inclusion for All Bill aims to replace race-based empowerment policies with measures focused on poverty reduction and job creation.

While reaffirming its commitment to the GNU, the DA said participation in the coalition does not mean “passive support,” and that it would continue pushing for faster economic reforms, including energy market restructuring, merit-based public appointments, and policies aimed at boosting investment and growth.

The debate highlights ongoing policy differences within the GNU, particularly over how best to address inequality while accelerating economic growth.