Minister Barbara Creecy Accused of Weakening BBBEE Targets Amid Policy Revision

In a move that has stirred controversy, Minister of Forestry, Fisheries and Environment Barbara Creecy is being scrutinized for the Department of Forestry, Fisheries and the Environment's (DFFE) decision to “abandon” the previous target of allocating 75% of budget expenditure to Broad Based Black Economic Empowerment (BBBEE) and black-owned enterprises. This shift follows a parliamentary inquiry by Economic Freedom Fighters (EFF) MP Nazier Paulsen into the reasoning behind the department's revised policy, which emphasizes compliance with the new Preferential Procurement Regulations (PPR) of 2022.

Minister Creecy clarified that the initial target was part of the DFFE 5-year strategic plan set in 2019, under the National Treasury’s 2017 Preferential Procurement Policy Framework Regulations. However, the recent update in procurement regulations necessitated a policy adjustment, demanding a recalibration of goals and methods for advancing preferential procurement efforts. Specific goals within the revised policy assign priority to businesses with more than 50% ownership by previously marginalized groups, such as black people, women, and those with disabilities.

The policy change has been met with mixed responses. Paulsen attacked the ruling African National Congress (ANC) for adopting a “neo-liberal” stance, which, according to him, deviates from truly empowering black individuals and remediating historical economic disparities. Likewise, the Black Business Federation's spokesperson Sifiso Shezi critiqued the new approach as incongruous with national BBBEE policy and lacking sufficient public scrutiny, calling for a more inclusive legislation that genuinely strengthens BBBEE initiatives.

In contrast, Matthew Parks, a parliamentary coordinator for the Congress of South African Trade Unions (Cosatu), expressed support for the preferential procurement framework and was optimistic about the potential for the upcoming Public Procurement Bill to fortify these measures across the nation.

Controversy extends to how the policy revision impacts the DFFE’s performance. Policy analyst Nkosikhulule Nyembezi critiqued Creecy’s specific goals, suggesting that despite the policy's intentions, actual progress on delivering concrete benefits to the designated groups lags. Moreover, he highlighted the political implications of the policy alterations on voter perception and the minister's accountability.

Duma Gqubule, an economist, concurred that the revision reflects a broader trend of the government distancing itself from its established policies. He warned that without considerable pushback to reinvigorate the policy, its efficacy and relevance are at risk.

The debate over the department’s changes to BBBEE expenditure targets raises fundamental questions regarding South Africa’s commitment to economic transformation and the practical execution of policies aimed at correcting historical imbalances. The discourse underscores the tensions between ideology, policy design, and tangible outcomes in the nation's ongoing journey to achieve equitable economic empowerment.