Mbhazima Shilowa argues that SA must embrace BEE not just as a policy, but as a moral project to shape a more just, inclusive, and prosperous country for generations to come.
Soon after the collapse of the Soviet Union and many of its satellite states, debates about the relevance of socialism ensued.
Many blamed it on Mikhail Gorbachev’s perestroika (economic restructuring and reform) and glasnost (openness and freedom of expression and information).
Joe Slovo, then general secretary of the South African Communist Party (SACP) wrote a seminal paper titled: “Has socialism failed?“ He argued that what collapsed was a form of socialism that was rooted in the suppression of democracy. Democracy, supposedly the cornerstone of socialism and communism existed in name only.
He concluded that democratic socialism, which included what was then considered bourgeois democracy, was needed. This included the existence of different political parties, regular elections, independent media, an independent judiciary, and popular organisations such as independent trade unions and civil society organisations.
Eric Hobsbawm, an English historian, Marxist and author, made a similar argument. In his book “The Age of Extremes”, he made the bold claim that “the failure of the Soviet Union was a failure of state socialism, and not a test of the socialist ideal”. He attributed its shortcomings to “contingent factors like war, chaos, and Joseph Stalin’s actions, rather than inherent flaws in the socialist system, and its failure to assume its role as a primary driver of social and political change, but rather a response to the internal pressures within capitalist societies and the labour movement”.
Similar criticism
South Africa’s Broad-Based Black Economic Empowerment (BBBEE) faces similar criticism.
Those opposed to it have latched on to its failure to radically transform patterns of economic ownership, and say only a few have benefitted from it, most of whom are connected to big business seeking to curry favours with the governing party and the elite connected to government.
South Africa’s history of apartheid and colonialism institutionalised racial segregation and economic exclusion and deliberately marginalised the majority of the population for more than four decades.
Black South Africans, in particular, endured systemic discrimination that deprived them of land, education, economic opportunities, and political rights. The scars continue to influence our society today, manifesting in stark inequalities in wealth, land ownership, employment, and access to basic social services.
READ | Qaanitah Hunter: BEE policies have failed. Not transformation
Addressing these enduring disparities is not only a moral obligation but a constitutional imperative rooted in the principles of equality, dignity, and social justice.
Contrary to those who bastardise it, BEE is not merely about increasing black ownership or management but about reshaping the economic landscape to be more inclusive.
BEE is more than an economic policy: it is a moral and social justice project aimed at transforming our society. At its basic core is a commitment to empowering previously disadvantaged individuals and the belief that as they succeed, they will uplift others - building factories, investing in the economy, creating jobs, driving prosperity, and reducing poverty and inequality.
At its heart lies a simple fundamental moral principle: fairness. The apartheid regime systematically excluded black South Africans from economic participation, confining them to subordinate roles as labourers, artisans, or tenants with limited opportunity for ownership or wealth accumulation.
BEE is no different to apartheid-era work protectionism policies that benefitted poor Afrikaners.
Our economic disparities are stark. A small minority owns a disproportionate share of the country’s wealth, land, and productive assets, while the majority live in poverty, in under-developed areas and are mostly unemployed.
Bridging the divide
BEE aims to bridge this divide through multiple interconnected channels like ownership and control which facilitates black ownership of productive assets, land, and enterprises, enabling wealth accumulation and intergenerational economic security. There’s a focus on skills development and employment equity, and these promote equitable representation of black people across all occupational levels, especially in management and leadership roles, thus ensuring influence and decision-making power.
Further, this economic transformation occurs through local economic development, which supports community-based projects and small businesses to stimulate local economies, reduce regional disparities, and promote sustainable livelihoods.
READ | Mpumelelo Mkhabela: ANC must answer why BEE failed as a tool for change
Beneficiaries are intended to include workers, women, rural populations, and underprivileged communities.
When a broader base of the population participates in economic activity, consumer markets expand, domestic demand increases, and social tensions reduce.
Effective implementation of BEE requires shared responsibility. The government must lead through clear policies, targets, and oversight, but the private sector’s active participation is equally vital. Sector transformation charters, supplier development programmes, and enterprise support initiatives are all mechanisms that foster a culture of inclusion.
I hold the view that just as Slovo and Hobsbawm argued, that is not BEE that has failed but its application.
We must debunk the argument that market forces alone will rectify historical inequalities. This ignores the deeply entrenched structures of racial and economic exclusion that require deliberate intervention. Without targeted policies like BEE, inequalities are likely to persist or worsen, undermining social stability and economic sustainability.
Thriving environment
True empowerment involves creating an environment where black entrepreneurs and workers thrive, not just through access to capital but also through skills development, mentorship, and access to markets.
When black South Africans participate fully in the economy, as owners, managers, entrepreneurs, and consumers - the entire nation benefits.
We must continue to embrace BEE not just as a policy, but as a moral project - one that will shape a more just, inclusive, and prosperous South Africa for generations to come. Or we must risk the poor and marginalised turning their back on democracy, resorting to extra-parliamentary methods to the detriment of all of us - rich and poor.
- Mbhazima Shilowa is the former premier of Gauteng and former general secretary of Cosatu.
