Democratic Alliance (DA) leader John Steenhuisen on Monday unveiled an ambitious six-point economic recovery plan, calling for the scrapping of Black Economic Empowerment (BBBEE) and employment equity policies which he says are “holding the economy back.”
Speaking in Johannesburg – which he described as “the economic heart of our nation” – Steenhuisen painted a stark picture of South Africa’s economic decline, citing unemployment rates of nearly 33% and a 10% shrinkage in GDP per capita over the past 15 years.
“Our economy is in the ICU,” Steenhuisen told media and supporters. “Over the last 15 years, GDP per capita has shrunk by 10%. Add discouraged job seekers, and the real unemployment rate is over 43%.”
Key policy proposals
The DA’s plan targets what Steenhuisen termed “three major roadblocks” – BBBEE, employment equity, and the Expropriation Act – which he claims deter investment and job creation.
“BBBEE and racial quotas have failed, and together with expropriation without compensation, create an environment that deters investment, growth and job creation for the majority of South Africans,” he said.
The party’s comprehensive economic plan includes:
1. Scrapping BBBEE and Employment Equity: Replace with “policies that create opportunity based on need and merit, not race or connection.”
2. Energy Reform: Break Eskom’s monopoly by creating a competitive energy market and ringfencing municipal electricity revenue.
3. Infrastructure Overhaul: Concession freight rail and port terminals, ending what he called “Transnet’s stranglehold.”
4. Public Spending Reform: End bailouts to state-owned entities, which have cost R310 billion, and cut government waste.
5. Local Government Fix: Introduce legislation setting minimum thresholds for political parties to get council seats and welcome private sector participation in struggling municipalities.
6. Rule of Law restoration: Establish a new Anti-Corruption Commission – “Scorpions 2.0” – and implement lifestyle audits for senior police officials.
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The “Kabelo” Story
Steenhuisen illustrated the challenges facing entrepreneurs through the story of “Kabelo” from Vosloorus, a small logistics company owner who started with “two trucks, ambition, and a dream” but faced systemic barriers.
“No funding – because he lacked collateral. No tenders – because he had no political connections. No support – because BBBEE, in practice, has become a hurdle rather than a help,” Steenhuisen explained.
He argued that current policies create “perverse incentives” where large companies exclude small and medium enterprises to improve their own BEE credentials.
National dialogue criticism
The DA leader sharply criticized the ANC’s planned R700 million National Dialogue, calling it “a talk shop with no action, no reform, no plan.” The DA withdrew from the initiative weeks ago, with Steenhuisen noting that even former President Thabo Mbeki has reached similar conclusions.
“We reject that wasteful distraction. Today, we present real solutions, and we offer them free of charge to the ANC,” he said.
Steenhuisen highlighted the DA’s achievements in national government, including blocking a proposed 2% VAT increase, reforming visa rules to boost tourism, opening new agricultural export markets, and easing BEE requirements in the ICT sector.
He pointed to DA-governed areas like the Western Cape, uMngeni, and Midvaal as examples of successful implementation of their policies.
The DA leader announced plans to table the economic plan in Cabinet and demand presidential support for the reforms, while also bringing proposals to Parliament.
“South Africa doesn’t need more talk. It needs Action. It needs the ANC to set aside their ideologies, and instead work with the DA to focus on the economy,” Steenhuisen declared.
He concluded with a direct appeal to voters: “Do you want clean water in your taps? Roads that work? Electricity you can rely on? Jobs for your children?”
The speech comes amid ongoing economic challenges, with South Africa grappling with high unemployment, infrastructure decay, and energy shortages. Johannesburg, once known as the “City of Gold,” has become symbolic of the country’s economic struggles, with crumbling buildings, decaying roads, and water shortages affecting residents.
