South Africa's Democratic Alliance (DA), the second-biggest party in government, went to court last week to challenge new employment equity laws that impose strict hiring targets for non-white employees.

The Employment Equity Amendment Act updates a 1998 law requiring employers to set and report on diversity targets. It aims to boost the hiring of Black people and other groups in some industries.

Statistics cited by Reuters news agency show that South Africa's companies are still dominated by white people at the top, with Black employees mainly occupying lower-level roles. Unemployment is much higher among Black citizens.

Companies with more than 50 employees must meet sectoral targets for the number of non-white people, women and disabled people in skilled and senior roles under the act — or justify their failure to do so.

For example, it requires 57.5% of top management to be Black, Indian or "coloured" people, a term for biracial South Africans.

The measures have drawn fire from the US government under President Donald Trump, who cited "racist laws" as part of his reasons to cut aid to South Africa and offer support to minority Afrikaners to relocate to the United States.

Debating fairness and power

The pro-business DA says the act violates anti-discrimination clauses in South Africa's constitution and gives the state too much regulatory power.

Helen Zille, chair of the DA Federal Council, said the new law would "drive unemployment up, economic growth down and make far more people marginalized in our economy than they already are."

She added that the legislation is unfair and gives totalitarian powers of social engineering to the country's labor minister.

Sabelo Myeni, a board member of the Institute of People Management, a human resource and people management fraternity, told DW that, "the Act prompts a thorough review of workforce demographics to ensure alignment with these targets."

He suggested that business leaders are expected to not merely meet legal obligations, but proactively assess compliance with the intention "to foster an inclusive workplace that reflects South Africa's diversity."

Nqobani Mzizi, an academic and corporate governance executive, said the original law fell short of its transformation goals, so amending it made sense to ensure real transformation.

"I would not think that it is unfair because it still accommodates the current, except that it says, let us progress and make sure that now in the next five years, organizations have something set to target against," Mzizi said.

Sabelo Myeni noted that while the Act is a bold step towards addressing South Africa's historical inequalities, its success depends on strategic implementation and complementary initiatives such as "balancing quotas with upskilling, fostering inclusive workplaces, and strengthening alternative frameworks like the B-BBEE [Broad Based Black Economic Empowerment Equity]."

A means to transform or to discriminate?

The African National Congress (ANC), now the biggest party in a unity government formed after it lost its parliamentary majority in the 2024 elections, criticized the DA's court challenge.

Fikile Mbalula, ANC secretary general, told reporters that "the DA's hatred for transformation has become shameless," adding that the ANC warned ahead of the 2024 general elections against the DA's reluctance to transform.

Mbalula claimed that in the Western Cape province, where the DA has majority governance, employers are advised not to comply with equity legislation.

While Myeni appreciates the DA's challenge, he said it reflects a broader debate on race-based laws and respects their right to seek legal clarity.

However, he added that a complete disregard of the Act would overlook the structural inequalities it seeks to address.

"From a business perspective, the court challenge could refine the Act's implementation, ensuring flexibility for industries with unique challenges while preserving its transformative intent," Myeni said. "As a business leader I advocate for dialogue over division, using the Act as a framework to build inclusive, high-performing teams." 

The Minister of Labour and Parliament defended the law, assuring the court that it wouldn't harm jobs or the economy, and rejected the DA's claim that it favors race over merit.

The Pretoria High Court has not yet issued its ruling in the DA's challenge to the Act, having reserved judgment after hearing the case.

Reuters and AFP contribured reporting

Edited by: Keith Walker