BEE must be scrapped and replaced by a 5% levy on profits to help black people – Herman Mashaba

ActionSA leader Herman Mashaba said Black Economic Empowerment (BEE) is a system that only benefits the politically connected and should be scrapped.

Mashaba shared his views on the government’s Broad-Based Black Economic Empowerment policies on the Palatable Politics podcast.

He rejected the state’s current economic empowerment model, advocating for its total abolition rather than modification.

“Unfortunately, BEE has proven to be a system to benefit the politically connected. So, for that reason, I’m against BEE,” he said.

“I don’t think Broad-Based Black Economic Empowerment needs to be reformed. It needs to be scrapped.”

He said that redress for black people in South Africa is a non-negotiable, but that it should be done differently from BEE.

“Our proposal is that companies must contribute 5% of their profits to a wealth fund,” Mashaba said.

“This fund must be run by professional people who are not accountable to political parties; instead, they must account directly to Parliament.”

The money in this empowerment fund must be used exclusively for those who were previously disadvantaged in South Africa.

“It must ensure that no black child leaves school because they lack funding, and no black entrepreneur is denied access to capital when they have a viable plan,” he said.

Mashaba added that no township or historically black area is left behind with substandard facilities.

“We must ensure that we build the best schools and the best universities for black children to attend,” he said.

Because this fund will collect billions of rands each year, its administrators must report annually to Parliament.

“They must disclose how much was collected and how many universities, schools, clinics, swimming pools, sporting facilities, and black entrepreneurs were funded.”

“In this way, it becomes a project that benefits broader society and those who were previously disadvantaged for many years.”

Mashaba said that this fund will empower millions of black people instead of just benefiting selected individuals, which is the case with BEE.

“This is our alternative to the BEE system, which exists merely to benefit political cadres,” he said.