McKenzie proposes scrapping BEE for empowerment bank to boost economic inclusion

Gayton McKenzie, leader of the Patriotic Alliance and Minister of Sport, Arts and Culture, has called for the abolition of Broad-Based Black Economic Empowerment (BBBEE) in favor of a new empowerment bank.

Speaking at the Black Business Council Summit, McKenzie argued that BBBEE has enriched only a small elite, failing to uplift the majority of Black South Africans.

His proposal involves creating a state-backed bank funded by a mandatory 1% turnover contribution from white-owned businesses and previously empowered individuals.

The bank would provide accessible loans to aspiring Black entrepreneurs, with strict accountability measures, including mentorship and proof of economic impact. “BEE has become a tool for the connected few,” McKenzie said. “This bank will fund real transformation from the ground up.”

Critics, however, question its practicality and McKenzie’s track record, citing controversies during his ministerial tenure. Others warn that scrapping BBBEE could disrupt existing transformation frameworks, while the proposed levy raises concerns about implementation and fairness.