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#BizTrends2025: Anticipating B-BBEE transformation in South Africa in 2025
14 Jan 2025
As South Africa exits 2024 and moves steadily into 2025, the landscape of Broad-Based Black Economic Empowerment (B-BBEE) is poised for significant shifts. The B-BBEE framework has been a cornerstone of Economic Transformation in our country, aiming to address historical imbalances and promote inclusive Economic Growth.
Yuneal Padayachy, Chief Support Officer at The BEE Chamber
In 2025, I am hoping to see the following taking place in the B-BBEE transformation space:
Updated B-BBEE Sector Codes of Good Practice
The B-BBEE Codes of Good Practice including for specific sectors, are subject to periodic reviews, and 2025 may see updates to these Codes of Good Practice especially aligning to the 2019 Amendments to the General B-BBEE Codes of Good Practice.
Businesses should anticipate changes in scorecard elements, weightings, principles and compliance criteria. Staying abreast of the modifications will be crucial for companies striving to maintain or improve their B-BBEE status.
Whilst 2024 did not bring any of these to fruition, we are hopeful and looking forward to this happening in 2025 under the new leadership at the Department of Trade, Industry and Competition.
Implementation of the Legal B-BBEE Sector Codes of Good Practice
With the release of the Legal B-BBEE Sector Codes of Good Practice on 20 September 2024, it was an exciting time for the sector to drive B-BBEE transformation. We are hoping to see further clarity released to allow for effective implementation of this B-BBEE Sector Code of Good Practice in 2025.
Implementation of the Amended Employment Equity Act
On Thursday, 28 November 2024, Proclamation Notice 231 of 2024 was issued in relation to the Commencement of the Employment Equity Act, No, 4 of 2022.
The statement indicated the following:
In terms of section 65(2) of the Employment Equity Act, 1998 (the EEA), I hereby, by means of the accompanying proclamation in English, determine 1 January 2025 as the date on which sections 1, 8, 14, 15A, 16, 20, 21, 27, 36, 37, 42, 53, 64A and Schedule 4 of the Employment Equity Amendment Act, No. 4 of 2022 shall come into operation.
Some of the amendments to be implemented from 2025 would include the deletion of part of the definition of a ‘designated employer’, the amendment to the definition of ‘disabilities’, clarification on the consultation obligations with representative trade unions, the ability of the Minister to identify national economic sectors and set numerical targets for any such sectors, and the introduction of criteria to be met by an employer in order for a certificate of compliance to be issued by the Department of Employment & Labour.
We are looking forward to the final Gazette of the Sectoral Targets and Regulations to allow for smooth implementation in 2025.
Enhanced focus on implementation and monitoring
One of the primary expectations I hope to see for 2025 is an increased emphasis on the effective implementation and monitoring of B-BBEE initiatives.
The notion of impactful B-BBEE initiatives needs to be instilled within the mindsets of B-BBEE practitioners and transformation managers. There is a need to place a stronger focus on ensuring that companies are actively working towards achieving the outlined B-BBEE goals and that the intended benefits are reaching the targeted Black beneficiaries. The shift from being transactional to transformational is a must.
Increased collaboration and partnerships
Collaboration between businesses and stakeholders should remain a key theme in 2025. Companies may engage in strategic partnerships to pool resources, share best practices, and collectively work towards achieving B-BBEE objectives which will achieve larger impacts on the intended Black beneficiaries.
Focus on skills development
Skills development has been a crucial pillar of B-BBEE, and in 2025, there may be an intensified focus on training and upskilling initiatives. I do foresee companies exploring more innovative approaches to skills development, including mentorship programmes, online training platforms, and partnerships with educational institutions to address the skills gaps in our country.
Focus on job creation
South Africa still faces a large challenge in respect of unemployment. In 2025, I hope to see more collaboration between the public and private sector to address challenges of unemployment.
From a B-BBEE perspective, it would be great to see more of an uptake of participation under the Youth Employment Service (YES) initiative in 2025 and giving young people an opportunity to gain working experience.
Inclusive procurement practices
Procurement is a significant component of B-BBEE, and 2025 is likely to witness a continued emphasis on inclusive procurement practices. Companies are encouraged to source goods and services from Black owned and Black women owned businesses focusing on small business as well.
In a significant move towards enhancing efficiency, transparency, and accountability in public procurement processes, the gazetted Public Procurement Act of 2024 aims to revolutionise the way government entities engage in procurement activities. We are looking forward to implementation of the Public Procurement Act of 2024 in organs of state and public entities.
As South Africa looks ahead to 2025, the evolution of B-BBEE transformation is inevitable. Companies must proactively adapt to the changing landscape, embracing technology, fostering collaboration, and prioritising the holistic impact of their B-BBEE initiatives.
The trajectory of B-BBEE transformation in South Africa for 2025 promises an array of pivotal changes and opportunities for businesses. As we anticipate updated B-BBEE Sector Codes of Good Practice, a pronounced emphasis on implementation and monitoring, increased collaboration, and a sharpened focus on skills development, job creation, and inclusive procurement practices, the landscape of empowerment and economic growth is set to undergo significant evolution.
Businesses must be vigilant in staying abreast of these developments, ready to pivot and align their strategies to effectively navigate the shifting B-BBEE landscape. Embracing innovation, forging strategic partnerships, and committing to impactful initiatives will be integral in not just meeting compliance criteria but truly fostering inclusive economic growth and addressing historical imbalances.
About Yuneal Padayachy
Yuneal Padayachy is the Chief Support Officer at The BEE Chamber. Padayachy has over 14 years of experience in the B-BBEE and Transformation Environment of which over 11 Years has been in a Middle / Senior Management level. He holds a Masters in Business Administration (MBA) from Mancosa.