BBBEE Transformation Fund Will Destroy Growth and Jobs

The below speech was delivered by Sonja Boshoff MP during today’s State of the Nation Address Debate.

Honourable Speaker,

Hon. Chairperson of the NCOP,

Mr. President,

Members of the House, and

Fellow South Africans.

We meet today in the wake of the President’s State of the Nation Address, an occasion intended to offer direction and hope. Yet, how can we speak of hope when this President, yet again proposes a questionable policy that could undermine economic growth, discourage investment and exacerbate already high levels of unemployment.

Minister Parks Tau’s unilateral announcement of the R100 billion Transformation Fund is not just bad policy, it is a significant concern for the democratic process, an attack on our economy, and a direct threat to fairness, accountability, and the rule of law.

This fund was never approved by Cabinet. It was never debated within the Government of National Unity (GNU). It was never subjected to the due processes that govern major financial policy decisions. Instead, it was unilaterally declared as though the ANC still govern alone. Let me make it clear: they do not.

This government is a GNU, not an ANC dictatorship. The days of steamrolling over South Africa’s economy and institutions for the benefit of a connected elite are over.

Years of poor economic policies, crippling corruption and rampant crime has resulted in a stagnating economy, and gradually, over the last three decades, the voters took away 20% of their support.

And despite this, the ANC went ahead and pushed through NHI, BELA and EWC under the guise of caring. But in effect, all three acts do nothing for economic growth or creating jobs, and each of them limits individual freedom.

Read the headlines ANC.

Your policies are not working, and that’s why the voters are rejecting you.  The ANC did not deliver a GNU, THE VOTERS DID!

They rejected ANC policy. They rejected race-based legislation.

I must stress that the need for transformation is not up for debate, it is a necessity.

However, the means by which we achieve it must be legally sound, economically viable, and transparent. This fund, in its current form, fails on all three counts.

We have seen this exact playbook before – at Eskom.

At Prasa.

In PPE scandals.

And in the billions looted during state capture.

South African businesses are already struggling due to the unreliable power supply, a failing infrastructure, an unreliable water supply, a punishing tax regime, and policy uncertainty that chases investors away. This reckless fund will only worsen these conditions, deepening unemployment and sending capital fleeing from our shores.

The National Empowerment Fund (NEF), which is expected to administer this fund, has faced ongoing scrutiny for governance inefficiencies and financial mismanagement. Without strong oversight mechanisms, R100 billion in public and private sector contributions could easily become a bottomless pit, failing to deliver meaningful economic transformation while enriching a select few.

We advocate for transparent governance that ensures all public funds are managed through National Treasury and not the questionable NEF.

The DA has exposed the full extent of this disaster. My colleague, Toby Chance, has done the hard work in Parliament to reveal the fund’s lack of consultation, financial irregularities, and unconstitutional design.

Daar is klinkbare bewyse dat ekonomiese beleide wat rasgebaseerde nakomingskriteria nastreef,  daargestel is om net die elite te bevoordeel, en, moet onmiddelik geskrap moet word en vervang word met meriete-gebaseerde, behoeftegedrewe bemagtiging.  Finish en klaar.

Across every sector, from small business owners to major corporations and foreign investors, there is widespread rejection of this plan. Business leaders, already burdened by overregulation and economic mismanagement.

En die publiek? Hulle sien regdeur dit. Na jare van korrupsie, van staatskaping tot die plundering van COVID-help,  weet Suid-Afrikaners presies wat gebeur wanneer die ANC hul hande op R100 miljard kry. Dit gaan nie na transformasie nie. Dit gaan in die sakke wat polities verbind is.

Laat ek dit duidelik stel

Ons sal nie toelaat dat transformasie as ‘n verskoning vir plundering gebruik word nie.

Ons sal nie toelaat dat nog ‘n ANC-beheerde omkoopgeldfonds openbare hulpbronne uitput nie.

Ons sal nie toelaat dat hierdie ongrondwetlike, ekonomie-verwoestende skema onbestrede deurgaan nie.

Honourable members, there is an alternative to this slush fund, the Democratic Alliance’s Economic Justice Policy. This offers a transformation model that is transparent, accountable, and driven by economic growth.

This policy speaks to Enterprise-driven transformation, empowering small and medium businesses through incentives, investment-friendly policies, and skills development, not forced racial quotas.

The reason for a GNU is to find the best policies from each member party, and implement them well.

Mr. President, if you still believe in fairness, accountability, and economic growth, I say this: reconsider this brewing mistake. Fight for real transformation and economic growth of all South Africans, not the politically connected few. Scupper this impending disaster of a fund, and listen to South Africans – jobs and growth are what they need, not repackaged policy failures.

We are committed to ensuring that this policy does not proceed in its current form.

I thank you.