BIG CHANGES TO BBBEE COMING, BUT STAY COMPLIANT TODAY

Transformation Review Underway, Compliance Still Critical

The South African government has confirmed that major changes to Broad Based Black Economic Empowerment legislation are on the way. A two phase review process is currently in progress, aimed at strengthening the framework and addressing long standing concerns about its overall impact.

What Is Changing

Phase 1: Short Term Legislative Refinement

The first phase focuses on refining subordinate legislation, updating certain implementation mechanisms, and introducing a new Transformation Fund to support more meaningful empowerment initiatives.

Phase 2: Long Term Amendments to the BBBEE Act

The second phase will address deeper structural issues within the Act. This part of the process will take time, as it requires broad consultation, drafting, and parliamentary approval.

Government leaders, including Deputy President Paul Mashatile, have made it clear that BBBEE will not be scrapped. Instead, it will be corrected, strengthened, and aligned with the country’s transformation goals.

Why the Review Is Needed

BBBEE has faced increasing criticism from across business and political sectors. Key concerns include:

• Perceived cronyism and fronting

• Limited impact on inequality

• Administrative and cost burdens

• Gaps between policy and real outcomes

Although reform is necessary, the current framework remains fully in force until the review process is complete.

What This Means for Your Business Right Now

Current Compliance Requirements Remain Unchanged

Companies must continue to meet all existing scorecard requirements, complete their annual verification, and maintain valid BBBEE certificates.

Legislative Change Will Take Time

The short term phase may conclude by year end, but substantial amendments to the Act will take years to implement.

Compliance Cannot Slip

Regulators and procurement partners will continue to enforce current BBBEE rules. Any lapse could:

• Jeopardise tenders and contracts

• Damage stakeholder relationships

• Reduce competitiveness

• Create governance and reputational risks

In short, staying compliant remains essential.

Stay Focused and Stay Compliant

While reform is coming, your BBBEE compliance obligations remain non negotiable. Businesses should monitor government developments but continue prioritising strong empowerment practices today.

Compliance Hub Consulting will keep you updated as more details emerge. In the meantime, we are here to support your verification, planning, and compliance needs every step of the way.