Calls for scrapping of BEE 'premature' and 'unfair' - Ntshavheni

Ntshavheni addressed the Black Business Council Summit on Thursday.

The summit comes amid pushback from some sectors of society against the Employment Equity Amendment Act, which was recently signed into law by President Cyril Ramaphosa.

The act seeks to advance the transformation of South Africa’s workforce by "setting equity targets for economic sectors and geographical regions and requiring enterprises to develop transformation plans".

Among its key provisions, the bill empowers the Minister of Employment and Labour to set employment-equity targets for economic sectors, as well as regions where transformation is lagging. 

This will allow employers to align their plans to achieve the targets for the employment of black people under the broad-based black economic empowerment (B-BBEE) codes of good practice with their employment equity plans.

But various organisations, including the Democratic Alliance (DA), trade union Solidarity and business interest group Sagelika have already approached the High Court to challenge the new law.

Ntshavheni said the pushback against transformation policies was clearly spurred on by racism. 

"An unequal society is detrimental to the interest of all, be it government, private sector, non-governmental sector, and citizens (both black and white) as demonstrated by the events of July 2021."

Ntshavheni also emphasised the importance of access to education.

"Education or access thereof also contributes to the deepening inequality in South Africa – with a 30% influence on inequality gap. However, education also holds a key to addressing disparities in society by providing equal opportunities for all. 

"Investing in quality education, particularly for historically disadvantaged communities, equips individuals with the knowledge and skills needed to participate meaningfully in the economy, reducing income inequality and promoting social mobility."

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