South Africa’s Democratic Alliance (DA) party is taking legal action against a new employment law that sets racial quotas for large employers, aiming to address economic inequality stemming from decades of apartheid-era policies.
The Employment Equity Amendment Act, which came into effect in January, empowers the labor minister to set sector-specific targets for the number of non-white individuals and women in management and professionally qualified roles.
The DA, the second-largest party in the coalition government, will argue in court on Tuesday that the law is unconstitutional, a move that has intensified tensions with its larger coalition partner, the African National Congress (ANC).
This legal battle comes amid heightened political debate, including criticism from former U.S. President Donald Trump, who condemned South Africa for alleged racial discrimination against its white population and offered refugee status to white South Africans.
“We opposed this from the start, as it will lead to higher unemployment and hinder economic growth,” DA Federal Chairperson Helen Zille said at a news briefing. She argued that the policy would discourage investment and negatively impact companies looking to grow, given that smaller firms with fewer than 50 employees are exempt from the law.
The law’s intention is to address South Africa’s stark racial divides. Despite the end of apartheid over three decades ago, white people—about 7% of the population—hold 66% of top management positions in the private sector, while Black people are more likely to face unemployment or hold lower-level positions.
Last month, the government announced five-year racial quotas for 18 sectors, including mining, manufacturing, and agriculture. For example, in mining, the government aims for 57.5% of top management to be Black, Indian, or “coloured” people, a term referring to South Africans of mixed race.
The Ministry of Labor defended the targets, accusing the DA of attempting to preserve the “unfair status quo” that persists from apartheid. The government has long sought to empower Black South Africans through such policies, though critics argue that previous initiatives have been marred by widespread corruption, benefiting only a few politically connected individuals.
The case will be closely watched as it underscores the ongoing tension between efforts to redress historical inequality and concerns about their impact on South Africa’s business climate.
