Ramaphosa said economic growth without transformation entrenches exclusion and transformation without growth is unsustainable.
President Cyril Ramaphosa has defended transformation, saying black empowerment is “vital to inclusive economic growth.”
Writing in his weekly newsletter, Ramaphosa emphasised that 2025 marks the 70th anniversary of the Freedom Charter, the country is reminded of its “aspiration that the people shall share in the country’s wealth.”
“Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country.
“For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative,” Ramaphosa said.
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Inequality
The president said that according to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46%, coloured households of 29% and Indian households of 19%.
“Despite this progress, the average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close through deliberate and sustained efforts to expand opportunity.
“Transformation is not a favour. It is a necessity. The inequality of our past continues to shape the lives of millions of black South Africans. And yet many who continue to benefit from the legacy of exclusion continue to decry black economic empowerment and are even challenging it in our courts,” Ramaphosa said.
‘False notion’
Ramaphosa said economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable.
“We must dispense with the false notion that we must make a choice between growth and transformation.
“We also need to challenge the notion that broad-based black economic empowerment is a cost to the economy. It is actually an investment in the economy,” Ramaphosa said.
Last week, Ramaphosa came out swinging against critics of Black Economic Empowerment (BEE), questioning whether their opposition is rooted in “greed” or “jealousy”.
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