Locked out: will BEE save young South Africans?

MORE than two decades since its inception, Black Economic Empowerment (BEE) has not delivered on its promise of economic redress for the majority of South Africans. With youth unemployment at crisis levels, the question is no longer whether BEE has worked but whether it is even capable of addressing the systemic exclusion faced by young South Africans today.

- TARA ROOS

Recent developments have reignited public debate. The DA has launched a court challenge against the Employment Equity Amendment Act, specifically targeting Section 15A. This section empowers the Minister of Employment and Labour to set numerical targets for equitable representation of designated groups. The DA argues that these targets amount to unconstitutional, rigid racial quotas that harm economic growth and violate individual rights.

BEE was originally introduced to correct the deep economic disparities of apartheid, but 31 years into democracy, its track record is mixed. While it has made some gains, most notably the growth of a Black middle class, it has failed to catalyse broad-based economic participation or significantly reduce structural inequality.

One of BEE's more tangible outcomes has been the emergence of a Black middle class. To be considered middle class in South Africa, one must earn between R15 000 and R50 000 per month. Today, the Black middle class numbers approximately 3.4 million people, or around 7% of the Black African population. With a spending power of R400 billion annually, this segment plays a vital role in the consumer economy, driving growth in sectors such as retail, real estate, and banking.

This progress, however, is far from sufficient. South Africa's population stands at around 60 million, and more than half still live in poverty. While the Black middle class has grown by over 30% in the past decade, over 33 million South Africans remain impoverished. The scale of unemployment and inequality dwarfs the gains made. In contrast, between 40% and 50% of the 4.4 million white South Africans are considered middle class, a stark reflection of persistent racial disparities rooted in historical advantage.