According to the report, South Africa's transformation landscape demonstrated an increase in B-BBEE compliance levels between 2013 and 2023. However, a slight decline in this indicator was noted between 2020 and 2023.
B-BBEE Data Analysis
The new report, released by the B-BBEE Commission, analyzed B-BBEE score data for the last decade. This report was prepared in collaboration with the South African Competition Commission, the President's Advisory Council on B-BBEE, the Department of Trade, Industry and Competition (dtic), and the South African National Accreditation System (SANAS).
The Commission stated that the study was conducted as part of its mandate to monitor and deepen the understanding of economic transformation in South Africa. The analysis was based on B-BBEE certificates and compliance reports provided by both state and private entities required to report under the Broad-Based Black Economic Empowerment Act.
Key Achievements and Challenges
B-BBEE Commissioner Chesediso Matona noted that the report provides valuable insight into the country's transformation journey. He emphasized that analyzing the ten-year figures allows for the identification of achieved successes, areas of stagnation, and opportunities to accelerate transformation, while also contributing to the evidence base for strengthening policy and promoting a more inclusive economy.
Over the last decade, the number of organizations assessed for compliance has steadily grown, providing a broader database for measuring transformation. Although the overall compliance level increased significantly from 2013 to 2023, the Commission noted a minor drop between 2020 and 2023, indicating that the Covid-19 pandemic disrupted transformation efforts.
The report showed that Exempt Micro Enterprises (EMEs) continue to demonstrate the highest levels of compliance, as they automatically qualify as Level 4 B-BBEE participants under the legislation. Asset ownership showed the largest growth among key certificate elements over the decade. Average ownership scores rose from 12.4 points (50% of available) in 2013 to 19.2 points (77%) in 2018, and then reached 21.4 points (86%) by 2023.
Significant improvement was also observed in enterprise and supplier development, which increased from 19% of available points in 2013 to 66% in 2023, reflecting strengthened business efforts in transforming supply chains. Skills development improved substantially, rising from 17% of available points in 2013 to over 60% in both 2018 and 2023, indicating sustained investment in black talent development. Socio-economic development continued to exceed the set target throughout the period, reaching 135% of the target in 2023.
Areas of Transformation Slowdown
However, the report also identified several areas where transformation has stalled. Corporate governance improved between 2013 and 2018, but progress has been minimal since then, reaching only 54% of available points by 2023. Transformation at the board and senior management level remains particularly slow, with only marginal improvement over the entire decade.
The Commission found that although the proportion of black women ownership exceeded the minimum target of 10%, it remained relatively modest—at 13.6% in 2023. Furthermore, the economic interest of black shareholders continued to outweigh their voting rights, suggesting that despite increased ownership, decision-making power has not always shifted proportionally.
Sectoral Differentiation and Conclusions
The report revealed significant differences in transformation outcomes across economic sectors. Agriculture, real estate, and financial services were among the least successful sectors, recording some of the highest non-compliance rates in 2023. According to the data, the non-compliance rate was 50% in agriculture, 67% in real estate, and 62% in financial services. Corporate governance and skills development were identified as general areas of underperformance across most economic sectors.
Matona concluded that the findings indicate that while significant progress has been made over the last decade, further work is needed to ensure coverage across all economic sectors. He added that the report confirms that South Africa has made measurable progress in implementing B-BBEE over the past decade, while also reminding that transformation is an ongoing national project.
