OPINION | SCRAPPING B-BBEE WILL REVERSE EMPOWERMENT GAINS AND THE FIGHT FOR EQUALITY
- BEE NEWS
- Dec 4, 2025
- 3 min read
Siphiwe Ndlovu and Zweli Zwane | 3 December 2025
The policy is not perfect, but it needs to be improved, not abandoned.
Recent media commentary has featured calls to scrap the Broad-Based Black Economic Empowerment (BBBEE) Act, with critics arguing it has only benefited a small, connected elite.
While the policy is not perfect, discarding it entirely would be a severe setback for redressing historical economic injustice and building an inclusive society.
BBBEE’s objectives extend beyond financial enrichment. The legislation is fundamentally about promoting gender equality, women’s emancipation and equitable representation across all levels of the workforce.
It aims to rectify historical imbalances through mechanisms such as affirmative action and preferential procurement from black-owned enterprises.
In practice, companies often align their BBBEE strategies with their employment equity plans to comply with both the BBBEE Act and the Employment Equity Act, contributing to SA’s transformation while also ensuring a more equitable workplace.
A significant achievement is the growth of the black middle class, which now numbers about 3.4-million people. This demographic plays a vital role in stimulating consumer demand and driving growth in sectors such as real estate, retail and banking.
The policy has also driven increased black ownership. Black South Africans held 45% of directorships in JSE-listed entities in 2018, with female directors outperforming their male counterparts.
BBBEE has fostered entrepreneurship, job creation and skills development, providing opportunities for black-owned businesses to participate meaningfully in the economy.
In realising the urgent need to boost the economy and job creation, the Gauteng government passed the Gauteng Township Economic Development Act 2022. It aims to promote economic growth and development in townships by, among others, setting specific procurement rules for the government, like 60% township procurement, developing township enterprise zones and fostering partnerships between township-based retail malls and local enterprises.
Critics argue that the Act has not achieved its intended objectives due to implementation gaps, lack of awareness, and fragmented enforcement; hence, the comprehensive review of the Act to strengthen alignment with township business needs.
Many rightly point out that SA still grapples with high inequality and unemployment and that wealth has sometimes been concentrated among a politically connected few.
However, this is not a failure of the policy but rather a sign of its inconsistent application and the need for refinement. The core purpose of the BBBEE Act is to achieve a substantial change in the racial composition of ownership, management and skilled professions.
Other significant challenges include a “tick-box” approach to compliance in some companies, where minimal requirements are met without a genuine commitment to transformation.
The complexity of the regulatory environment also demands specialist resources, which can be a barrier. These valid criticisms highlight the need for policy improvement, not its abolition.
Scrapping BBBEE would reverse the gains made and signal that economic transformation is no longer a national priority. As Prof Ntsikelelo Breakfast of Nelson Mandela University argues, while the policy has not fully achieved its goals, its removal would leave no mechanism to ensure large-scale black participation in the mainstream economy.
BBBEE has encouraged corporate SA to rethink diversity and inclusion, making companies more aware of the need for inclusive workplaces and supply chains and enhancing our overall economic competitiveness.
The focus should be on strengthening BBBEE, making it more effective and efficient in achieving its broad-based objectives.
We must refine it to address current shortcomings, ensure genuine transformation over mere compliance, and strengthen accountability. We cannot afford to throw the baby out with the bathwater; the pursuit of a more equitable society depends on it.
Ndlovu is the deputy director for inclusive economy and Zwane is the director at the Gauteng economic development department.
‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’.