Agriculture, finance, property worst BEE performers, reveals report

Despite a decade of progress in broad-based black economic empowerment (B-BBEE) implementation, South Africa’s agriculture, financial services and property sectors continue to lag on key transformation indicators, according to a new report released by the B-BBEE Commission.

The sectors recorded some of the highest levels of non-compliance in 2023, and failed to meet minimum ownership targets for both Black people and Black women, highlighting persistent challenges in achieving meaningful economic transformation.

This was revealed in a report by the B-BBEE Commission, titled ‘South Africa’s Transformation Landscape: 2013–2023’, during a stakeholder dialogue on July 29.

The research was conducted in partnership with the Competition Commission of South Africa, the Presidential B-BBEE Advisory Council, the Department of Trade, Industry and Competition (DTIC), and the South African National Accreditation System (SANAS).

The study analysed more than 28,000 B-BBEE certificates issued by 56 verification agencies over a 10-year period, providing one of the most comprehensive assessments of transformation trends since the implementation of the amended B-BBEE Act.

While the study identifies notable gains in areas such as ownership, skills development and enterprise and supplier development across the broader economy, it also points to significant disparities between sectors and calls for renewed efforts to deepen transformation where progress has been slowest.

Evidence of progress

According to the report, compliance with B-BBEE requirements improved significantly between 2013 and 2023, demonstrating that many organisations have integrated transformation into their governance structures and business operations.

One of the strongest areas of progress was ownership, where average scores increased from 12.4 points in 2013 to 21.4 points in 2023, representing 86% of the available scorecard points.

Enterprise and supplier development also recorded major improvements, rising from just 19% of available points in 2013 to 66% in 2023.

Similarly, skills development showed significant gains, increasing from 17% in 2013 to more than 60% in both 2018 and 2023. Meanwhile, socioeconomic development consistently exceeded scorecard targets, reaching 135% of the target by 2023.

The report further notes that the number of entities assessed for B-BBEE compliance increased steadily over the decade, providing a stronger evidence base for monitoring progress across the economy.

Transformation challenges remain

Despite these gains, the research highlights areas where transformation has been slower than anticipated.

Management Control, a key indicator of representation in leadership structures, improved between 2013 and 2018 but stagnated thereafter, reaching only about 54% of available points by 2023.

Representation at the board and top management levels remains a particular concern, with limited progress recorded over the ten-year period.

The report also found that while Black women’s ownership exceeded the minimum target of 10%, it remained relatively modest at 13.6% in 2023.

Another important finding relates to the quality of ownership participation. While economic interest held by Black shareholders improved significantly, voting rights often lagged behind, suggesting that increased ownership has not always translated into proportional influence over corporate decision-making.

Sectoral performance uneven

Transformation performance varied considerably across sectors. The agriculture, property, and financial services sectors recorded some of the weakest results, with non-compliance rates of 50%, 67%, and 62%, respectively, in 2023. These sectors also failed to meet minimum ownership targets for both black people and black women.

Agriculture recorded black ownership of 19.9% and black women ownership of 4.7%, while property achieved 20.5% and 6.4% respectively. The financial services sector recorded 21.5% black ownership and 7.5% Black women ownership.

In contrast, the construction, transport, marketing, advertising and communication (MAC), and forestry sectors were among the strongest performers, recording compliance levels of 81%, 80%, 66%, and 60% respectively. These industries also had the highest proportion of businesses achieving B-BBEE Levels 1 to 4.

However, management control and skills development emerged as common challenges across most sectors, indicating that ownership gains have not necessarily translated into broader transformation outcomes.

Covid-19 impact

The report notes that overall compliance improved throughout much of the decade, although a slight decline was recorded between 2020 and 2023. Researchers suggest that the economic disruption caused by the Covid-19 pandemic may have slowed transformation efforts during this period.

Even so, overall non-compliance remained relatively low, with 26% of Qualifying Small Enterprises (QSEs) and 24% of Large Enterprises classified as non-compliant in 2023.

Building next phase of transformation

Speaking at the launch, B-BBEE Commissioner Tshediso Matona said the findings provide a balanced assessment of transformation progress and challenges.

“This report confirms that South Africa has made measurable progress in implementing broad-based black economic empowerment over the past decade, while also reminding us that transformation is an ongoing national project,” Matona said.

“The findings show that B-BBEE has become embedded in the governance and business practices of many organisations, but they also highlight areas where greater ambition and collective action are required.”

The commissioner emphasised the need to strengthen implementation, improve the quality of transformation data, and refine the policy framework to deliver deeper and more inclusive participation in the economy.

Key recommendations

To accelerate economic transformation, the report recommends:

• Strengthening compliance monitoring and improving the submission of B-BBEE certificates and compliance reports;
• Developing a more robust national framework for transformation data collection, storage, retrieval and reporting;
• Improving reporting by Sector Councils and establishing sustainable funding mechanisms to support their statutory responsibilities;
• Increasing focus on Management Control and Skills Development, where progress has lagged; and
• Reviewing the B-BBEE legislative framework to address loopholes, strengthen implementation and improve policy effectiveness.

Ultimately, the report concludes that the evidence does not support claims that B-BBEE has failed. Instead, it demonstrates that while meaningful progress has been achieved between 2013 and 2023, considerable opportunities remain to deepen economic transformation and ensure broader participation in South Africa’s economy.

​Subscribe To Our Newsletter 

Sunday World