WILL THE SOUTH AFRICAN GOVERNMENT SCRAP B-BBEE? HERE’S THE 2025 REALITY CHECK

As we move into the second half of 2025, questions are resurfacing in boardrooms, HR meetings, and procurement departments across the country:

“Is B-BBEE going away?”

“Can we stop worrying about compliance?”

The short answer? No. B-BBEE is not being scrapped—and it's not going anywhere anytime soon.

In fact, the South African government remains firmly committed to Broad-Based Black Economic Empowerment (B-BBEE) as a key pillar of its socio-economic development strategy. While some sector-specific reforms and adjustments are being discussed, these are designed to enhance the policy’s effectiveness—not to repeal or replace it.

Let’s unpack what’s happening and what it means for your business.

B-BBEE Remains Central to Government Policy

Since its inception, B-BBEE has aimed to address the deep structural inequalities left by apartheid and ensure broader participation of Black South Africans in the economy.

In line with Section 9(2) of the South African Constitution, which supports measures to promote the full and equal enjoyment of all rights and freedoms, B-BBEE is not just policy—it’s constitutionally grounded.

President Cyril Ramaphosa, along with senior Cabinet members and the Department of Trade, Industry and Competition (dtic), has consistently affirmed that B-BBEE remains a core part of South Africa’s economic transformation agenda. There is no formal proposal before Parliament to abolish or repeal the B-BBEE Act (Act 53 of 2003, as amended).

So, What’s Changing?

While B-BBEE is not being scrapped, there is movement around sector-specific revisions to how the codes are implemented. These include:

1. Sectoral Adjustments and Equity Equivalents

In May 2025, the government introduced a proposed equity equivalent model for the ICT sector. This allows qualifying multinational companies to meet B-BBEE ownership requirements through approved investment initiatives, such as skills development, R&D support, or enterprise development—instead of direct shareholding transfers.

Similar reforms are expected in other sectors, including Transport, where revised sector codes are reportedly in development.

2. New Employment Equity Targets

In line with the Employment Equity Amendment Act, 2022 (which came into effect in 2024), the Department of Employment and Labour has published new demographic targets for designated employers. These targets are aligned with B-BBEE principles and enforce transformation through annual reporting and compliance inspections.

3. Public Engagement and Review

The government has opened several proposed amendments for public consultation, signaling a willingness to adapt B-BBEE frameworks to current economic conditions—especially where rigid requirements may discourage investment or innovation.

Why B-BBEE Will Stay

Several compelling reasons explain why B-BBEE remains a fixture in South African economic law:

• Constitutional Backing: Section 9 of the Constitution justifies corrective measures like B-BBEE to achieve substantive equality. Scrapping the policy would raise significant constitutional questions.

• National Development Plan (NDP): B-BBEE is integrated into the NDP 2030 as a long-term national strategy for inclusive economic growth and social cohesion.

• Policy Consensus: While criticisms exist—and calls for reform are valid—no major political party has formally proposed abolishing B-BBEE. Even critics tend to argue for better implementation, not elimination.

• Parliamentary Process: Repealing B-BBEE would require a complete policy reversal through the legislative process, including stakeholder engagement, public consultation, and constitutional scrutiny. There is no such process underway.

What Should Your Business Be Doing Now?

Rather than hoping for policy reversal, companies should be asking: “How can we comply in a smarter, more strategic way?”

Now is the time to:

• Revisit your B-BBEE strategy, especially if you're in affected sectors like ICT or Transport

• Align your Employment Equity reports with the new sectoral targets

• Consider equity equivalent models or innovative ownership structures, like educational or broad-based trusts

• Leverage available incentives—such as SETA-backed skills development and enterprise development opportunities—to boost your score meaningfully

Your Compliance Opportunity

The message from government is clear: B-BBEE is not being repealed. It is evolving. As businesses, we need to evolve with it—not only to stay compliant, but to contribute meaningfully to a more inclusive economy.

At Compliance Hub Consulting, we help businesses of all sizes navigate B-BBEE compliance with confidence and clarity. Whether you're updating your strategy, considering ownership solutions, or needing sector-specific guidance, our team is here to assist you every step of the way.

Need help adapting to the latest B-BBEE changes? Get in touch—we’ll help you move forward with purpose and compliance.