Top Wits University academic Prof William Gumede has come under fire after research he relied on contradicted his own findings about the impact of broad-based black economic empowerment (B-BBEE) on the mining sector.
Gumede claimed in a Truth Report podcast with businessman Rob Hersov that B-BBEE deals concluded in the mining sector policy had benefited only 100 politically connected persons to the tune of R1-trillion, with 46 of those securing 60% of all deals.
He attributed the claims to a 2015 report compiled by the Chamber of Mines, predecessor to the Minerals Council of SA.
However, the report that Gumede said he based his research on, which Sunday World has seen, does not support the claim that only 100 politically connected individuals benefited from B-BBE deals in the mining sector. The report states that B-BBEE deals concluded had a minimum of 46 participants but had also benefitted communities who own 10.8% of the mining industry, benefitting 6.9-million community members.
It found the industry has achieved a BEE ownership level of 37.7% based on value, with the following split:
BEE entrepreneurs – 22.8% ownership of the total South African mining industry (or 60% of total historically disadvantaged South Africans’ economic participation). This includes a minimum of 46 participants;
Communities – 10.8% ownership of the total mining industry (or 29% of total historically disadvantaged South Africans participation). This includes a minimum of 6.9-million community members;
Employees – 4.2% ownership of the total mining industry (or 11% of total historically disadvantaged South Africans participation). This includes a minimum of 20 0 00 employees.
When contacted by Sunday World on Friday, Gumede insisted that only a few politically connected people, which included blacks, white people, businesses, trusts, political parties and trade unions, have benefited in a big way from BEE deals, while the general populace had only benefited minimally.
“Those millions of people have received a small shareholding compared to the BEE entrepreneurs got,” said Gumede.
Tshediso Matona, B-BBEE Commissioner, said he had lodged a formal complaint with Wits School of Governance about Gumede’s comments. Matona said he raised concerns with the university after the academic made public statements “based on extremely weak evidence” on B-BBEE.
Three weeks ago the commission requested Gumede for access to data and research “on which his claim is based, that BEE policy has only benefited 100 politically connected persons to the tune of R1-trillion.
“Our request is pursuant to the commission’s statutory responsibility of monitoring the implementation of B-BBEE.
“In a recent article, Gumede writes that in mining, 46 politically connected persons secured 60% of all BEE deals and attributes this to a 2015 report of the Minerals Council of SA. Perusal of this report, however, disproves Gumede’s claim, and instead it shows that among the companies that participated in BEE deals of that time is Royal Bafokeng Holdings, as a broad-based ownership vehicle representing over 300 000 members of that community,” he said.
“Scrutiny of any public policy is both necessary and healthy, and independent academic scholars are uniquely helpful in this regard. However, it is troubling that Gumede makes such bold assertions about a policy of such foundational importance in South Africa as B-BBEE, based on extremely weak evidence and on research that is only known to him, effectively peddling hearsay, not to mention scaremongering,” Matona wrote.
Matona made reference to recently concluded research, which found steady progress across broad-based aspects of the B-BBEE scorecard. “For example, the average achievement of the 25% ownership score-card target rose from 12.4% in 2013 to 21.4% in 2023,” he said.
“Based on this sample size, it is obvious this cannot be accounted for by only 100 black persons. Similarly, from 2017 to date, 758 ownership transactions have been submitted to the commission, worth a total of R615-billion in shares acquired by black people. In fact, these transactions feature 251 collective ownership vehicles in the form of employee share ownership schemes and trusts, with Shoprite’s Employee Trust alone valued at R8.9-billion with over 130 000 employee beneficiaries and more than R1-billion already distributed to workers between 2022 and 2025.
Economist Duma Gqubule said Gumede lacked the necessary skills to conduct research on BEE. “Gumede must not use fake statistics for research. Two fake statistics are the R1-trillion and 100 people and the one on 46 individuals. There is nowhere in that report where they say the 46 are individuals who are politically connected. He doesn’t have the expertise to analyse the data,” he said.
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- Prof William Gumede claimed in a podcast that B-BBEE mining deals benefited only 100 politically connected individuals, securing R1-trillion, citing a 2015 Chamber of Mines report.
- The original report contradicts Gumede’s claims, showing at least 46 participants plus communities owning 10.8% of the mining sector and benefiting millions, with overall BEE ownership at 37.7%.
- B-BBEE Commissioner Tshediso Matona filed a formal complaint against Gumede for basing statements on weak evidence and misleading the public about BEE benefits.
- Recent official data indicates substantial progress in broad-based ownership, with hundreds of transactions involving collective ownership vehicles and employee trusts benefiting thousands.
- Economist Duma Gqubule criticized Gumede’s research as unskilled and based on fake statistics, reaffirming that the report does not support the claim of only politically connected individuals benefiting.
Top Wits University academic Prof William Gumede has come under fire after research he relied on contradicted his own findings about the impact of broad-based black economic empowerment (B-BBEE) on the mining sector.
Gumede claimed in a
He attributed the claims to a 2015 report compiled by the
However, the report that Gumede said he based his research on, which
It found the industry has achieved a BEE ownership level of 37.7% based on value, with the following split:
BEE entrepreneurs – 22.8% ownership of the total
Communities – 10.8% ownership of the total mining industry (or 29% of total historically disadvantaged
Employees – 4.2% ownership of the total mining industry (or 11% of total historically disadvantaged
When contacted by
“
“Our request is pursuant to the commission’s statutory responsibility of monitoring the implementation of B-BBEE.
“In a recent article, Gumede writes that in mining, 46 politically connected persons secured 60% of all BEE deals and attributes this to a 2015 report of the Minerals Council of SA. Perusal of this report, however, disproves Gumede’s claim, and instead it shows that among the companies that participated in BEE deals of that time is Royal
“
Matona made reference to recently concluded research, which found steady progress across broad-based aspects of the B-BBEE scorecard. “For example, the average achievement of the 25% ownership score-card target rose from 12.4% in 2013 to 21.4% in 2023,” he said.
“Based on this sample size, it is obvious this cannot be accounted for by only 100 black persons. Similarly, from 2017 to date, 758 ownership transactions have been submitted to the commission, worth a total of R615-billion in shares acquired by black people. In fact, these transactions feature 251 collective ownership vehicles in the form of employee share ownership schemes and trusts, with
Economist Duma Gqubule said Gumede lacked the necessary skills to conduct research on BEE. “Gumede must not use fake statistics for research. Two fake statistics are the R1-trillion and 100 people and the one on 46 individuals.
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