7 Dec 2025
- 17 Comments
When South Africa’s President’s Office declared on June 9, 2025 that Broad-Based Black Economic Empowerment is "not just a policy choice but a constitutional imperative," it wasn’t just a political statement—it was a battle cry in a country still wrestling with the ghosts of apartheid and the weight of unfulfilled promises. The timing? Amid a deepening economic crisis, rising unemployment, and a growing chorus of critics who say the policy has become a tool for the few, not the many. Just months later, on November 14, 2025, Deputy President Paul Mashatile stood before the National Assembly and said plainly: "Let’s correct that. Let’s make amendments." No repeal. No revolution. Just refinement.
Why B-BBEE Still Matters—And Why It’s Under Fire
Since its formal inception in 2003, Broad-Based Black Economic Empowerment has shaped how businesses operate in South Africa. It’s not just about ownership—it’s about management control, skills training, procurement from black-owned firms, and enterprise development. The Department of Trade, Industry and Competition (dtic) has overseen a system where companies earn B-BBEE points based on how well they meet these criteria. The goal? Redress the racial imbalances of the past. The reality? A 2025 AccessEcon study found that small businesses—Exempt Micro Enterprises and Qualifying Small Enterprises—often have to give up ownership just to qualify for high ratings, creating perverse incentives that hurt rather than help.
Meanwhile, the Democratic Alliance (DA) has pushed back hard. In December 2025, it presented its Economic Inclusion for All Bill to the National Economic Development and Labour Council (NEDLAC), arguing that B-BBEE has become a "political loyalty program." Their critique? That a small group of politically connected individuals have captured the benefits, while millions remain unemployed, underemployed, or locked out of capital.
The Government’s Counterargument: Progress, But Not Enough
Government Spokesperson Mr. Sandile Nene didn’t mince words in his October 2025 statement: "Disparities in ownership, management, and income distribution remain stark." That’s an understatement. According to the latest dtic data, while black South Africans now own roughly 30% of corporate equity—up from under 5% in 1994—median household income for black families still hovers at just 42% of white households. And women? They hold less than 15% of board seats in top-tier firms, despite the Black Industrialists Programme having backed over 1,200 ventures since 2017.
The administration points to the Transformation Fund, a R500 million initiative launched in 2024 to back innovative black-owned startups. It’s a step. But critics ask: Why are so few of these startups scaling beyond their first funding round? The answer, many experts say, lies in access to credit. In a June 9, 2025 statement, the President called on private banks to "review their lending practices." The message was clear: B-BBEE can’t work if banks still demand collateral most black entrepreneurs simply don’t have.
What’s Being Changed—And What’s Not
Here’s the twist: The government isn’t throwing out the rulebook. It’s rewriting the footnotes. The dtic review, underway since early 2025, is focused on three fixes: eliminating the "once empowered, always empowered" loophole, expanding equity-equivalent schemes (like employee share ownership), and making procurement rules more transparent. The DA’s bill echoes this, proposing to shift focus from ownership percentages to measurable outcomes—like jobs created or skills transferred.
But here’s the catch: The DA’s alternative scorecard, while appealing in theory, lacks funding mechanisms. Meanwhile, the government’s plan still relies on the same institutions—banks, auditors, certification bodies—that have been criticized for gatekeeping. As one anonymous dtic official told a journalist off the record: "We’re trying to fix a car while driving it. The brakes are worn, but we can’t stop."
The Real Test: Will This Reach the Margins?
The most telling indicator of B-BBEE’s success won’t be the number of black CEOs or the size of corporate B-BBEE certificates. It’ll be whether a young woman in Limpopo can get a loan to start a solar panel installation business. Whether a single mother in the Eastern Cape can win a municipal contract to supply school meals. Whether a disabled entrepreneur in Kimberley can access mentorship without having to navigate a labyrinth of bureaucracy.
The Public Procurement Act mandates that 30% of government contracts go to black-owned businesses. But in practice, less than 12% reach small or emerging enterprises. Why? Because the rules favor firms with audited financials, registered offices, and legal teams—things most rural entrepreneurs can’t afford. The government’s new push to include women, youth, and persons with disabilities is welcome. But without targeted support—grants, incubators, simplified compliance—it’s just another checkbox.
What’s Next? The 2026 Deadline
The dtic is expected to release its final recommendations by March 2026. That’s when the real drama begins. Will Parliament adopt the DA’s non-racial, outcomes-based model? Will the ruling party compromise on ownership thresholds? And will private sector players—especially mining giants and telecoms—actually change their supply chains, or just tweak their reports?
One thing is clear: South Africa’s economy can’t afford another decade of symbolic progress. The people who need empowerment the most aren’t watching boardrooms. They’re watching whether the next generation has a chance to build something of their own.
Frequently Asked Questions
How does the B-BBEE review affect small black-owned businesses?
The current review aims to remove barriers that force small businesses to surrender ownership just to qualify for high B-BBEE ratings. New proposals include equity-equivalent schemes and simplified compliance for Exempt Micro Enterprises, which could let entrepreneurs earn points through job creation or skills training instead of handing over shares. But without funding for legal and accounting support, many still won’t be able to navigate the system.
Why is the Democratic Alliance pushing for an alternative to B-BBEE?
The DA argues that B-BBEE has been captured by a politically connected elite, leaving the poorest behind. Their Economic Inclusion for All Bill proposes a race-neutral, outcome-based model focused on actual economic disadvantage—not race or political ties. Critics say this ignores South Africa’s racial history, but supporters argue it’s the only way to build a truly inclusive economy without creating new divisions.
What role do banks play in the success of B-BBEE?
Banks control the flow of capital, and most black-owned businesses still face higher interest rates and stricter collateral requirements. The President’s June 2025 call for banks to review lending practices was a direct response to data showing that only 18% of SME loans in 2024 went to black-owned firms, despite them making up over 60% of all small businesses. Without affordable credit, even the best B-BBEE policies are just paperwork.
Has B-BBEE reduced poverty in South Africa?
The evidence is mixed. While a small black middle class has emerged—particularly in finance and mining—national poverty rates have barely budged since 2000. The Foundation for European Progressive Studies concluded in 2025 that B-BBEE has created wealth for some, but not broad-based economic mobility. Unemployment remains at 32.1%, and youth unemployment at 45.6%. Without job creation tied to empowerment, poverty persists.
What’s the difference between B-BBEE and the DA’s Economic Inclusion for All Bill?
B-BBEE uses race-based targets for ownership, management, and procurement. The DA’s bill proposes replacing those with a non-racial, outcome-driven scorecard based on factors like income level, geographic disadvantage, and employment creation. It would also eliminate "once empowered, always empowered," ensuring that only businesses actively contributing to inclusion get benefits. But it lacks the funding mechanisms the government has built into its Transformation Fund.
When will we know if the B-BBEE review succeeded?
The dtic’s final report is due March 2026, but real success won’t be measured until 2028 or 2029—when we see if black-owned SMEs are growing, hiring, and accessing capital at higher rates. The true test? Whether a single mother in Soweto can start a tech repair shop, get a loan, and hire three employees—not just because she’s black, but because the system finally works for her.
Jane Roams Free
December 8, 2025It’s wild how we keep talking about ownership when what people really need is access-to credit, to training, to networks. B-BBEE got the symbolism right but forgot the substance. A certificate doesn’t feed a kid.
ryan pereyra
December 9, 2025Let’s be real-this isn’t about equity, it’s about performative reparations dressed in corporate jargon. The entire B-BBEE framework is a rent-seeking machine engineered by consultants and political cronies. The real problem? Structural underinvestment in public education and infrastructure. You can’t empower people with equity stakes when they can’t read a balance sheet.
The DA’s proposal, while ideologically suspect, at least acknowledges that economic mobility shouldn’t be tied to racial checkboxes. Race-neutral outcomes aren’t denial of history-they’re evolution. And frankly, if your business model depends on government-mandated preferential treatment, you’re not an entrepreneur-you’re a subsidy addict.
Also, why are we still using 2003 metrics in a 2025 digital economy? Where’s the metric for tech skills? For remote work access? For digital literacy? The dtic is auditing ownership percentages while the world moves to AI-driven micro-entrepreneurship.
And don’t get me started on the ‘black industrialists’ program. 1,200 ventures? Sounds impressive until you realize 92% of them are still operating below $50K/year revenue. That’s not empowerment-that’s philanthropy with a tax write-off.
Real transformation isn’t about who owns the company. It’s about who owns the algorithm.
Anthony Watkins
December 11, 2025Stop the nonsense. This whole thing is just reverse racism with a fancy acronym. Why should I pay more for a product just because the owner checks a box? The real problem? Lazy black people who’d rather cry about apartheid than learn how to run a business. Fix schools, not spreadsheets.
Bryan Kam
December 12, 2025They’re fixing the car while driving. Classic.
Arjun Kumar
December 13, 2025Wait, so the DA wants to remove race from the equation but still wants to help the poor? That’s… actually kinda smart? I’m confused now.
Cheri Gray
December 15, 2025i think the real issue is that no one is talkin about the women who are actually doin the work but never get credit. like, i know a lady in cape town who runs a catering biz but her name ain't even on the B-BBEE cert. its under her husband. sad.
Uma ML
December 17, 2025Oh please. You think this is about black empowerment? No. It’s about elite capture disguised as social justice. The same 200 families have been rotating through B-BBEE deals since 2005. They don’t care about the township entrepreneur-they care about their private jets. And now you want to ‘refine’ it? Refine how you hand out the keys to the kingdom to your cousins? Pathetic.
The DA’s bill? Still a joke. No funding? No teeth? You can’t just say ‘outcomes matter’ and expect banks to suddenly stop being racist. They’ve been profiting off exclusion for centuries. You think a new scorecard changes that? Please. The system doesn’t need reform-it needs demolition.
And don’t even get me started on the Transformation Fund. R500 million? That’s what one CEO makes in bonuses in a year. You’re throwing pennies at a hurricane and calling it policy.
Real empowerment? Nationalize the banks. Break the oligarchs. Give land. Give capital. Give real power. Not a certificate. Not a rating. Not a PowerPoint slide.
And before you say ‘that’s communist’-tell me why the white elite got 300 years of state-backed wealth creation and we get a checklist?
You want change? Then stop talking about ‘refinements’ and start talking about reparations. Not as a policy. As a moral obligation.
And if you’re still defending this system? You’re part of the problem. Not the solution.
Rakesh Pandey
December 18, 2025i think both sides are missing the point. it's not about race or outcomes. it's about whether the system lets someone start a business without needing a lawyer and a CPA just to fill out a form. the real failure is bureaucracy. not politics.
aneet dhoka
December 19, 2025Did you know the World Bank secretly funded B-BBEE to destabilize African economies? It’s all part of the New World Order. The same people who pushed structural adjustment in the 90s are now pushing ‘equity’ to make sure black people stay dependent on white institutions. The banks? Controlled by the same shadow network. Even the DA? They’re planted. You think they want real change? No. They want to co-opt the movement and sell it back to you as ‘market-friendly reform’.
And the Transformation Fund? A front. Every Rand goes to offshore shell companies in Mauritius. The ‘black industrialists’? Mostly shell corporations with the same directors as the old apartheid conglomerates. You’re being played. Hard.
Check the audit trails. You’ll find the same names. The same auditors. The same lawyers. This isn’t reform. It’s rebranding.
And if you think this is about poverty? Wake up. Poverty is a distraction. The real war is about control. Who owns the narrative? Who owns the data? Who owns your future?
They don’t want you empowered. They want you grateful.
Harsh Gujarathi
December 20, 2025Love that they’re trying to fix it instead of just tearing it down 💪 Let’s hope the new rules actually help the small guys. I’ve seen too many hardworking people get crushed by red tape. If we can make it simpler, fairer, and more about real results-then yes, let’s go for it 🙌
Senthil Kumar
December 21, 2025the problem is the certification process is too expensive for small biz. why should a guy selling veggies at the market need an auditor just to get 1 point? make it free and simple. then watch things change.
Rahul Sharma
December 23, 2025It's important to recognize that B-BBEE was never meant to be a perfect solution-it was meant to be a starting point. The fact that we're now debating its evolution means progress is happening. The real challenge lies in implementation: ensuring that the benefits reach the rural entrepreneur, the single mother, the disabled innovator. Policy without practicality is just symbolism. Let's not lose sight of the human beings behind the metrics.
And while the DA's proposal has merit, we must be cautious not to erase historical context in pursuit of neutrality. Equity isn't blind-it's corrective. But it must be smart, not just symbolic.
Perhaps the answer lies in hybrid models: outcome-based metrics with targeted support systems. Not race-based, but need-based. Not ownership-driven, but opportunity-driven.
We need incubators. We need mobile legal aid. We need simplified compliance portals. We need mentors-not just certificates.
Let’s build the bridge, not just debate the color of its railing.
Ayushi Kaushik
December 23, 2025Imagine if we treated economic justice like we treat sports: no one gets a trophy just for showing up. You earn it by creating jobs, by innovating, by lifting others. B-BBEE’s biggest flaw? It gives out participation medals while the real players starve. The DA’s bill? It’s got the scoreboard right-but no scoreboard means nothing if there’s no field to play on. We need both: fair rules AND a level field.
And can we please stop pretending that ‘black-owned’ means ‘empowered’? I’ve seen businesses with 51% black ownership where the black owner’s name is on paper but the white CFO holds the keys to the bank account. That’s not empowerment. That’s theater.
The real win? A woman in Limpopo gets a loan, hires two neighbors, and starts exporting her herbal teas to Europe. No ceremony. No certificate. Just a bank transfer and a delivery truck.
That’s the metric we should be chasing.
Basabendu Barman
December 23, 2025you think this is about economics? nah. it's about control. the same global elite that runs the IMF and the World Bank are using B-BBEE to create a compliant black middle class so they can say 'see, we fixed it' while the real poor stay poor. the DA? they're the other side of the same coin. both want you distracted while they loot the treasury. the real enemy? the audit firms. they're the ones making billions off this mess. burn them all.
Krishnendu Nath
December 25, 2025bro the system is broken but dont give up!! small biz owners are the real heroes. if we can get more mentorship and less paperwork we can turn this around. i believe in SA!! 🇿🇦💪
dinesh baswe
December 26, 2025The biggest gap isn’t policy-it’s execution. The dtic has the data. They know which regions have the highest failure rates. They know which banks refuse loans to black-owned SMEs. But they don’t act. Why? Because accountability is absent. No one gets fired for failing. No one gets rewarded for succeeding. Until that changes, no amendment will matter.
Transparency isn’t a feature. It’s the foundation. Publish every certification. Publish every loan denial. Publish every contract awarded. Let the public see the gaps. Let the media dig. Let civil society hold them accountable.
That’s the only reform that will stick.
Jane Roams Free
December 27, 2025That’s exactly what I meant. The system rewards paperwork, not progress. A single mom in the Eastern Cape doesn’t need a B-BBEE certificate-she needs a bank that believes in her.