Deputy President Paul Mashatile has defended broad-based black economic empowerment as central to economic transformation.
On Thursday he outlined a two-phase review of the framework aimed at tightening compliance, closing enforcement gaps and shifting the policy towards measurable economic outcomes.
Responding to questions from DA MP Baxolile Nodada and ANC MP Malusi Gigaba in the National Assembly, Mashatile said the review would be led by trade, industry & competition minister Parks Tau and supported by the BEE Commission and other oversight bodies.
He said the review would take place in two phases, with the short-term process focused on refining subordinate legislation, including regulations, codes of good practice, guidelines and practice notes under ministerial authority, while the longer-term phase would involve substantive amendments to the BEE Act through parliament.
The review is intended to move the framework away from a compliance-driven approach towards one that prioritises measurable outcomes — including:
- improved implementation;
- stricter enforcement;
- defined timelines; and
- stronger alignment with industrial policy and economic growth objectives.
Mashatile said government is seeking to reposition BEE as a catalyst for inclusive growth rather than an isolated compliance exercise, with reforms aimed at linking empowerment more directly to the country’s growth path and industrial strategy.
Empowerment efforts must be concrete, reflected in the creation of jobs, establishment of enterprises, opening of markets, and the significant involvement of women, youth and people with disabilities in the economy
— Deputy President Paul Mashatile
He rejected calls to abandon the policy, stating that “abandoning BEE is not an option” and that doing so would amount to abandoning transformation itself.
In response to concerns about the limited impact of BEE on the structure of the economy, Mashatile said the policy has delivered measurable gains, citing:
- R94bn invested in black-owned enterprises since 2021;
- R72bn directed towards skills development; and
- more than R600bn in share transactions.
He acknowledged that compliance remains a significant challenge, pointing to a sharp decline in reporting to the BEE Commission, with submissions falling from a peak of 5,818 in 2019 to fewer than 1,500 in the current period.
He said the decline in compliance reflects broader weaknesses in enforcement and oversight, which the review process aims to address through stricter regulatory measures and improved monitoring.
The focus, he said, must shift from formal compliance to tangible delivery, ensuring that empowerment translates into:
- job creation;
- enterprise development;
- market access; and
- broader economic participation.
Mashatile added that government is working to integrate BEE into the district development model by incorporating empowerment targets into district “One Plans” and linking these to localisation and industrialisation strategies in both urban and rural areas.
This approach, he said, would be supported by funding instruments, including the Transformation Fund, aimed at unlocking capital for black-owned enterprises and expanding participation across key sectors.
He said stronger enforcement against fronting would form a central part of the reforms, alongside efforts to ensure that empowerment benefits are more widely distributed, particularly among women, youth and people with disabilities.
“Empowerment efforts must be concrete, reflected in the creation of jobs, establishment of enterprises, opening of markets, and the significant involvement of women, youth and people with disabilities in the economy,” Mashatile said.
The reforms, he said, are intended to restore credibility to the framework while ensuring that BEE delivers measurable and sustained economic transformation.
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