← Back
Newzroom Afrika
Informative Trust High 80% #b-bbee #transformation #black-economic-empowerment #bmf #business-performance #compliance #corruption #employment-equity #skills-development #governance

B-BBEE remains vital for transformation but fails to improve business performance, study finds

Podcast Briefing 2:45

Source Video

YouTube

AI Video Summary

Alpha

AI Video Synthesis

This summary is currently being rendered into a dynamic video briefing.

Key Strategic Points

  1. 1 The research surveyed over 500 managers with 41% holding executive positions between C-suite and board level, targeting actual decision-makers responsible for strategy execution and daily business operations.
  2. 2 About 9.1% of organisations surveyed were found to be non-compliant with B-BBEE requirements, with perceptions of B-BBEE improving significantly among highly compliant firms and black managers specifically.
  3. 3 B-BBEE is perceived more positively in areas of sales, market access, human development, and staff morale, but managers flagged structural failures including corruption, fronting, and gaps in monitoring and evaluation as major concerns.
  4. 4 Managers criticised B-BBEE implementation as a 'tick-box exercise' driven by compliance burden rather than genuine strategic transformation, with discrepancies between B-BBEE certificates and annual reports revealing governance gaps.
  5. 5 Over 300 billion rand in value has been created through B-BBEE transactions across the country's history, benefiting not just individuals but employee share schemes, trusts, and communities, countering claims that only politically aligned elites have benefited.
  6. 6 The report recommends multi-stakeholder engagement within organisations to clarify employee roles in transformation, expanded skills development focused on black business leaders, and better collaboration between government and private sector.
  7. 7 A key recommendation is that large corporates should develop black competition within their own sectors—such as black banks, insurance firms, and audit houses—rather than investing in unrelated enterprises, ensuring skills transfer and market access.
  8. 8 Employment equity and affirmative action have successfully moved black professionals into middle management, senior management, and executive positions in both public and private sectors, with listed companies spending approximately 11 billion rand annually on skills development.

Notable Quotes

“They've made it clear that transformation is still critical to the economy, but the issue is its implementation and some of the issues that have come out there.”

— Montenlo, Black Management Forum Managing Director

“Where true B-BBEE is perceived better is where there's high compliance of the business, which means they're doing something right from an implementation perspective.”

— Montenlo, Black Management Forum Managing Director

“Over 300 billion rand from a certain era of our country's history has been created by value of B-BBEE transactions, and this has benefited not just individuals but trusts, communities, and employees as well.”

— Montenlo, Black Management Forum Managing Director

“Big corporates should develop your own black competition. Develop black enterprises in your own sector—in financial services, insurance, banking, audit—and support them with skills transfer and market access, not just financial resources.”

— Montenlo, Black Management Forum Managing Director

More from Newzroom Afrika

Newzroom Afrika
Newzroom Afrika
2 days ago 14:16
Heated
Anc Eff Actionsa +7 more
Topics 10
Trust Medium 65%

EFF withdraws from Ekurhuleni coalition after ANC's unilateral mayoral reshuffle

EFF withdraws from Ekurhuleni coalition after ANC's unilateral mayoral reshuffle
  • The ANC in Ekurhuleni reduced the EFF's representation to two MMC positions down from four, claiming proportional representation principles meant the EFF deserved only one seat.
  • The EFF disputes that it was consulted on the reshuffle, stating it was surprised by the decision, while the ANC claims provincial leadership engaged the EFF and they refused to accept the reduction.
  • ActionSA declined the ANC's invitation to join the executive after the EFF allegedly threatened to withdraw support from ActionSA's mayor in Tshwane if ActionSA replaced the EFF in Ekurhuleni.

“It is entirely untrue that the EFF is not aware. They should come out honestly to say that they did not accept the fact that we are reducing them into two.”

— Jong Labati, ANC Ekurhuleni Secretary
Read summary Watch
Newzroom Afrika
Newzroom Afrika
2 days ago 3:42
Informative
Ramaphosa Sandf Military Funding +5 more
Topics 8
Trust High 80%

Ramaphosa announces 4.3 billion rand military funding boost to address decade of underfunding

Ramaphosa announces 4.3 billion rand military funding boost to address decade of underfunding
  • The SANDF received an additional 4.3 billion rand in the 2025 medium-term expenditure framework to address critical operational needs and troop withdrawal from the Democratic Republic of Congo.
  • President Ramaphosa acknowledged that SANDF funding has been declining over many years and stated the government must 'reposition' the defence force to make it 'stronger' and 'well equipped.'
  • Defence experts warned that the SANDF is 'quite badly underfunded' with strained logistics, aging and obsolete equipment, and insufficient resources to maintain both current deployments and modernization efforts.

“We do concede that over the years the funding for the SANDF has been tapering down and we've been seeking to close the gap in other areas and now it can no longer continue. We must now reposition our South African National Defence Force to make it stronger so that it is well equipped.”

— Cyril Ramaphosa, President of South Africa
Read summary Watch
Newzroom Afrika
Newzroom Afrika
2 days ago 11:48
Informative
South Africa Service Delivery Ethekwini +6 more
Topics 9
Trust High 80%

Mayor Taba defends statue costs, outlines homeless shelter plan for eThekwini

Mayor Taba defends statue costs, outlines homeless shelter plan for eThekwini
  • Two statues of President Nelson Mandela and Oliver Tambo will be unveiled by President Ramaphosa on 6 March at the site where Mandela delivered his pivotal speech on 25 February 1990 calling for an end to violence.
  • The Durban statues, weighing 8 tons and built in China in 2021–2022, are comparable in size and material to the Mandela statue at the Union Buildings in Pretoria built in 2013, with cost differences attributable to exchange rates and inflation.
  • Mayor Taba argues the statue investment supports tourism, noting Durban ranked number 14 globally as a best tourist destination for 2026 and attracted R50 billion in investment last year, primarily in tourism.

“The economy of the city is going to grow if we invest in tourism products. Unless we start to increase our offerings to the public, when a tourist is in the city they must spend the money in the city and extend their stay.”

— Sirill Taba, Mayor of eThekwini
Read summary Watch