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ActionSA proposes reforms to BBBEE and transformation legislation in Parliament

ActionSA proposes reforms to BBBEE and transformation legislation in Parliament

IOL News08-05-2025

ActionSA leader Herman Mashaba calls for an overhaul of failed transformation policies, saying BBBEE has enriched elites while leaving millions of South Africans behind.
Image: Itumeleng English/Independent Newspapers
ActionSA has announced the tabling of a Draft Resolution in Parliament to establish an Ad-Hoc Committee tasked with investigating South Africa's post-1994 transformation legislation.
The move, in terms of Rule 119 of the National Assembly, is aimed at initiating a national dialogue on genuine economic justice, beyond the current Broad-Based Black Economic Empowerment (BBBEE) framework, which the party says has failed to achieve its constitutional purpose.
Speaking at the Apartheid Museum, ActionSA leader Herman Mashaba addressed political, business, civil society leaders and young school leavers, stating: 'The discussion around the constitutional objective of transformation in our country has stalled.'
He described the location as a symbolic reminder of the nation's past and the unfinished work of creating a more inclusive future.
Mashaba said transformation must break away from failed ANC policies, singling out BBBEE as a programme that has enriched a connected elite rather than correcting systemic inequality.
'What we need now is a model that creates equality of opportunity for all. A model that breaks down the real barriers that keep millions excluded from the promise of freedom.'
He cited apartheid-era laws to illustrate the deep structural damage inherited by the democratic state, lamenting that successive ANC governments turned transformative intent into tools of patronage.
'Under the ANC, we saw the enactment of laws such as Affirmative Action and BBBEE. While the introduction of these laws was noble, their implementation has proven to be poor, weakened by all manner of incompetence and selective application.'
In the resolution to be tabled, ActionSA proposes that Parliament investigate the actual outcomes of existing transformation laws and consult broadly with South Africans, experts, and political parties to identify reforms that achieve the Constitution's vision of economic justice.
Mashaba called for the creation of an 'Inclusive Economic Empowerment Act' centered on a new 'Opportunity Fund' to replace BBBEE. This fund, to be financed through a 5% levy on company profits (excluding SMMEs), will invest in education, infrastructure, and entrepreneurship in disadvantaged communities.
'Instead of reinforcing inequality under the guise of empowerment, we will focus on real investment in real people.'
He also advocated for a time-bound Universal Basic Income Stimulus (UBIS), accelerated land and housing reform, gender justice initiatives, and policies to promote national cohesion.
On immigration, Mashaba reiterated ActionSA's stance that the country cannot sustain transformation efforts with porous borders and undocumented migration straining basic services.

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