President Cyril Ramaphosa slams FF Plus leader Corné Mulder’s suggestion to ditch BEE, defending race-based redress as key to South Afrcica’s inclusive economic future
SA’s BEE Laws in Jeopardy? President Cyril Ramaphosa has sharply rebuked the Freedom Front Plus (FF Plus) leader and Government of National Unity (GNU) partner, Dr Corné Mulder, over his suggestion that South Africa should abandon Black Economic Empowerment (BEE) laws in favour of a new economic policy. This exchange took place during an oral Q&A session in Parliament on 27 May 2025, and has sparked widespread debate on the future of race-based transformation policies in South Africa.
A Bold Claim Meets Presidential Fury
Mulder, representing the FF Plus in the GNU coalition, claimed that South Africa’s economic growth was being “militated against” by BEE and other race-based policies. He said for Operation Vulindlela and other reform efforts to succeed, South Africa must “amend or develop a new economic policy” that moves away from BEE, employment equity, and expropriation without compensation.
But Ramaphosa was visibly startled and refused to let the comment slide. He fiercely defended as a necessary corrective to centuries of apartheid-era economic exclusion.
“I’m rather surprised and taken aback… Our economy was held back over many years by the racist policies of the past,” Ramaphosa said.
A Lesson in Economic History
Ramaphosa responded by painting a vivid picture of apartheid South Africa, where black South Africans were systematically excluded from economic participation, reduced to being “hewers of wood and drawers of water.”
He stressed that BEE laws were a constitutional imperative grounded in the equality clause, aiming to redress past injustices. According to the president, transformation policies have already played a crucial role in opening up economic participation.
“Those who would want black people just to play the consumer role are truly mistaken. Black people must play a productive role as well,” he said.
Ramaphosa pointed out the irony in blaming BEE for economic stagnation when the World Bank and IMF have both identified concentrated ownership in the hands of a few — mainly white — economic elites as a key barrier to growth.
A Vision Rooted in the Medium-Term Development Plan
Rather than scrapping BEE, Ramaphosa doubled down on transformation as a pillar of the Medium-Term Development Plan (MTDP) 2024–2029, which aims for inclusive growth and job creation.
He highlighted R1-trillion in planned public infrastructure investment over the next three years, announced in the national budget by Finance Minister Enoch Godongwana. The goal? To modernize infrastructure, stimulate private-public partnerships, and create jobs.
Ramaphosa also outlined strategic economic priorities:
- Growing exports in key sectors like mining and agriculture
- Developing green industries including renewable energy, electric vehicles, and green hydrogen
- Strengthening local government performance
- Rebuilding state capacity
These reforms, according to Ramaphosa, are designed to support economic inclusion, not hinder it.
The Stakes: A Future Defined by Transformation or Regression?
Ramaphosa’s firm stance sends a message: in the GNU era, economic growth must not come at the expense of historical redress. The president argued that seeing black-owned businesses thrive is not just a policy win — it’s an emotional, symbolic victory for a nation still healing from racial oppression.
“There is nothing that gives our people joy… than to find that this production facility is owned by a black person… it makes us feel so good.”
While Mulder and others argue that BEE benefits a politically connected elite and stifles merit-based growth, Ramaphosa maintained that abandoning BEE now would be a betrayal of democracy itself.
As the GNU grapples with balancing economic growth and social justice, Ramaphosa’s fiery response underscores that transformation laws like BEE are non-negotiable for the ANC-led government. For now, the president stands firm: South Africa’s future must be inclusive, equitable, and unapologetically transformative.
Also read: Malema Criticises Ramaphosa for Calling SA a Crime Hub During US Visit
