Trade, Industry and Competition Minister Parks Tau has reaffirmed that South Africa’s economic transformation is “a constitutional and moral imperative” – warning that slow progress, non-compliance and fronting continue to undermine efforts to redress apartheid’s economic legacy.
Addressing a National Council of Provinces (NCOP) Oral Reply session on Tuesday, Tau said the country’s economic structure still excludes many black South Africans, who were historically denied access to opportunities.
Tau highlighted the proposed Transformation Fund as a key instrument aimed at shifting the economy towards greater inclusivity, stressing that its creation is rooted in constitutional directives to advance meaningful empowerment.
Referring to the latest report of the Broad-Based Black Economic Empowerment (B-BBEE) Commission, Tau said government remained concerned about low levels of enterprise and supplier development spending, widespread non-compliance with B-BBEE laws and companies “merely ticking the box” without real impact.
He also corrected what he called a misconception that the fund’s proposed 3% contribution by entities would amount to a levy.
“Companies will be contributing and participating in the fund on a voluntary basis,” he said, adding that details on participation and BEE status assessment would be finalised once the fund is formally approved.
Tau said government had held constructive discussions with stakeholders, including the private sector.
“We want to ensure that this is not just a fund where people contribute, but that it achieves socio-economic objectives.”
The Minister said government was committed to reviewing B-BBEE to address long-standing challenges, including non-compliance by companies unwilling to embrace equity and non-racialism, as well as fronting practices that exploit vulnerable black individuals.
Fraudulent BEE certificates and contracts obtained under false pretences also remain a serious concern.
Tau emphasised that the aim is not confrontation but cooperation.
“The approach will not be to fight with the private sector, but to collaborate to create a society where a person’s ability to attain their talent, capability and ambition is not hindered by race, class or gender.”
Tau said that the ultimate goal of transformation is to expand wealth creation and access to opportunity for all South Africans.