Our history in South Africa has shown that we are largely segregated and unequal, as race continues to define the opportunities of many. Post-apartheid interactions continue to be troubling in racial terms. The new interracial relationships that are created in religious organisations can become a model of social cohesion for South African society. However, Christian organisations are structured in patriarchal and hierarchical ways with their authoritarianism; hence, the roots of oppression lie deeper. Black theology is part of a larger ongoing movement of liberation and must turn its attention to persistent forces such as racism that cause human alienation. This article will attempt to analyse racism by unpacking the findings of an empirical research project on diversity, and explore the transformative methodology of Black theology in raising critical awareness on identity issues within South African theological education.