BEE and other bad policies cost South Africa’s mining industry billions and resulted in the loss of 47,000 jobs

The Institute of Race Relations (IRR) is challenging President Cyril Ramaphosa’s claims about the impact of Black Economic Empowerment (BEE) on the mining industry.

During a National Assembly question-and-answer session in Parliament, Toby Chance questioned Ramaphosa about policies that impact investment confidence.

“South Africa’s domestic investment rate has collapsed from 24% in 2009 to 14% in 2025. This means less growth, more debt and fewer jobs created,” he said.

He argued that this decline was caused by poor policies such as BEE, bailing out failed state-owned enterprises, and cadre deployment.

Ramaphosa responded, saying the notion that BEE hinders economic growth is false and based on lies.

He argued that before 1994, the mining industry in South Africa was controlled by just six mega companies.

“They held all the mineral rights in South Africa. And they were tending to hold them in perpetuity,” the President said.

“Today, many black people are in the mining industry. They are mining manganese, which they were unable to get into. They are mining coal.”

“Today, mining has more black entrepreneurs. Some of the black mining companies are the largest. Seriti, for example, is owned by black people.”

He added that black engineers are being promoted to management-level positions and are running those companies effectively. “More jobs are being created,” he said.

“So, if people come with this fallacy that BEE is an impediment to the growth of the economy, go to the mining industry and see what this government has done.”

“Those who say BEE is holding back economic growth in South Africa should hang their heads in shame,” he added.

“If they say this, it means that they want white people only to continue controlling the economy of our country. That cannot be.”

Institute of Race Relations disputes President Cyril Ramaphosa’s claims

The IRR’s Head of Policy Research, Anthea Jeffery, used data to refute Ramaphosa’s claims about the South African mining industry.

This data showed that laws such as the Black Economic Empowerment Act and the Mineral and Petroleum Resources Development Act (MPRDA) hurt the industry.

The mining industry has become a shadow of its former self, partly because of the complex regulatory environment in which it has been compelled to operate.

Mining’s share of South Africa’s gross domestic product (GDP) has fallen from 21% in 1980 to only 7% today.

“47,000 jobs have been lost in the South African mining sector between 2001 and 2024,” Jeffery said in her letter to Ramaphosa.

“Investors have channelled their exploration expenditure to countries that are not hostile to them.”

Regulations such as the MPRDA and BEE have been fingered as key culprits in the hollowing out of the industry.

“These laws, which introduce hurdles that investors do not face elsewhere in the world, erode property rights and increase government control over the industry,” she said.

“It is no wonder that investors have voted with their feet to pursue business and deliver jobs elsewhere.”

The IRR challenged Ramaphosa’s claim that BEE mining deals have benefited South Africans beyond the politically connected elite.

“A 2015 report showed that only 46 BEE entrepreneurs benefited from the deals that increased BEE ownership to 38% by 2014,” she said.

These so-called entrepreneurs gained 310,000 times more than 6.9 million community members, while costing the industry significant investment.