South Africa must stop race-based regulations like BEE and Employment Equity

Political analyst Moeletsi Mbeki said South Africa should repeal race-based regulations like Black Economic Empowerment (BEE) and Employment Equity laws.

He shared this information in response to a question on how to improve South Africa in an interview with Rob Hersov from Truth Report.

Mbeki said that three easy wins for South Africa were removing race-based regulations, cutting public sector salaries, and supporting high-rise apartment construction.

“I would cancel all race laws, such as Employment Equity and Black Economic Empowerment,” he said.

“I would repeal all of those laws like U.S President Donald Trump does with his executive orders. That would be my first executive order.”

“The second executive order would be to cut the salaries of the top layers of the public service, starting with the President.”

Mbeki added that he would demolish all the RDP houses and start building high-rise apartments across South Africa.

“RDP houses are a waste of money and resources, and they don’t benefit families. I would demolish them and start building high-rise apartment buildings,” he said.

He explained that building a high-rise requires a large number of manufactured inputs, like steel, which would benefit the economy.

Mbeki added that he would accelerate the privatisation of state-owned enterprises, which is happening anyway.

“The interesting thing about the ANC government is that they know the solutions, but they would rather eat than work and implement those solutions,” he said.

He explained that the ANC is steeped in ideology, which includes an affinity for socialist and communist systems which have collapsed globally.

Instead of changing course and adopting new models, they continue with the outdated models which worked for the National Party.

Solidarity says the time for race laws is over

Mbeki’s views align with those of trade union Solidarity, which said that race laws no longer have a place in South Africa.

Solidarity CEO Dirk Hermann said that South Africa’s race laws place its African Growth and Opportunity Act (AGOA) agreement with the United States at risk.

The White House is reconsidering South Africa’s and other African countries’ participation in AGOA. An announcement is expected before 1 November 2026.

“One of the unresolved points of dispute between the two countries is South Africa’s racial framework,” said Hermann.

“South Africa’s racial framework was discussed in depth with both governments. Race laws no longer have a place in South Africa.”

According to Hermann, it was made clear that South Africa’s racial framework is viewed as an obstacle to American trade and investment.

“It is also not considered an accepted labour rights practice. These points are requirements for the continued retention of AGOA benefits,” he said.

Solidarity tabled a settlement proposal that South Africa’s racial framework be phased out over a period of time as determined by international conventions.

In this transition period, equity-equivalent programmes should serve on a non-racial basis as a substitute for ownership.

The settlement further proposes non-racial employee share-ownership schemes as a preferred ownership programme.

During the phasing-out process, race may not be the sole criterion for appointment or promotion, and no one may be dismissed on the basis of race.

The settlement proposals also provide that the regulations giving the minister powers to set sectoral racial quotas be put on ice until litigation on the matter is finalised.