DA Proposes Reforms to Empower State-Owned Entities
The Democratic Alliance (DA) has introduced a series of reform proposals aimed at strengthening state-owned entities (SOEs). These initiatives are presented as a more effective alternative to policies such as Black Economic Empowerment (BBBEE), employment equity, and the Expropriation Act. The DA argues that these existing policies hinder economic growth and should be abolished.
At a media briefing in Johannesburg, DA leader John Steenhuisen emphasized that BBBEE and racial quotas have not delivered on their promises. He stated that these policies, combined with expropriation without compensation, create an environment that discourages investment, stifles growth, and limits job creation for most South Africans.
Steenhuisen criticized the current policies, claiming they are unfair and do not help the millions of South Africans who simply need the government to step back and allow the economy to flourish. He argued that the only way South Africa will transform is through fair and inclusive alternatives that lift people out of poverty and into social mobility.
He stressed the importance of creating jobs and growing the economy, suggesting that this would address many of the country's challenges. According to Steenhuisen, the government should replace BBBEE and employment equity with policies that focus on opportunity based on need and merit rather than race or political connections.
Despite being part of the Government of National Unity (GNU), the DA's demands are primarily directed at the African National Congress (ANC), which leads the coalition. Steenhuisen called for reducing red tape and freeing small, medium, and micro enterprises (SMMEs) from excessive bureaucracy and burdensome labor laws.
The DA, as the largest partner in the GNU, has long viewed the three policies as problematic and has opposed several key ANC initiatives since the coalition was formed. Although there have been tensions and threats of withdrawal, the DA has chosen to remain in the coalition, emphasizing its commitment to fighting corruption and promoting economic growth and job creation.
Steenhuisen claimed that DA ministers have already begun implementing reforms within their departments, contrasting this with the actions of ANC counterparts. He outlined several key reforms, starting with addressing the energy crisis by breaking Eskom's monopoly over electricity generation and introducing competition and investment into the sector. He also called for ring-fencing municipal electricity revenue to maintain and reinvest in infrastructure, avoiding future bailouts and blackouts.
Another reform focuses on modernizing rail, ports, and digital infrastructure. Steenhuisen highlighted that South Africa’s ports are among the worst globally and urged the government to concession freight rail and port terminals, ending Transnet's control. He emphasized the need for South Africa to become a world-class export economy, not one where goods rot on the docks.
The fourth reform involves shifting public spending towards growth. Steenhuisen pointed out that bailouts to SOEs have cost R310 billion, calling for an end to such practices. He advocated for stabilizing debt, cutting waste, and eliminating ghost employees, ensuring that public money builds infrastructure and provides frontline services instead of funding incompetence.
Fixing local government is another priority. Steenhuisen called for a new law to stabilize councils, setting minimum thresholds for political parties to gain seats. He emphasized the need to protect and reinvest revenue from services directly into infrastructure while welcoming private sector participation in struggling municipalities.
The sixth reform centers on restoring the rule of law. Steenhuisen proposed establishing a new Anti-Corruption Commission, akin to the Scorpions, to combat corruption. He also called for tackling police corruption through lifestyle audits for senior officials and implementing the DA’s Rural Safety Plan in collaboration with community policing units.
These six reforms, according to Steenhuisen, will create an economy where one’s surname does not determine their future. He noted that the DA has already implemented similar strategies in the Western Cape, Mngeni, Midvaal, and other municipalities under its governance.
In May, the DA filed papers in the Western Cape High Court challenging the Expropriation Act, calling it unconstitutional. Helen Zille, DA federal council chairperson, stated that the party seeks a court order to nullify the Act in its current form. She highlighted the historical context of the apartheid government using similar powers to forcibly remove communities from their land, emphasizing the importance of protecting property rights.
President Cyril Ramaphosa signed the Expropriation Act into law on January 23. The legislation allows for the expropriation of land and other property for public and specified purposes. However, a ruling on the DA’s legal challenge remains pending.