The B-BBEE Commission released its report earlier this week on the national status and trends on broad-based black economic empowerment for 2021. The report showed that overall black ownership dropped to 29.5% from 31% in 2020 and in a media release, the Commission raised concerns that economic transformation is stagnating and has called for the tightening of sanctions against companies that fail to comply with the country’s empowerment laws.
The following excerpt from the Commission’s media release is of particular interest:
“The inability to match the Enterprise and Supplier Development spend to actual change in the plight of black small businesses and entrepreneurs makes it difficult to opine of the effectiveness of the R26 billion spend in the year under review.”
The above supports Progression’s own internal research which indicates that B-BBEE spend is not being applied strategically or with the spirit of the regulations in mind, but rather as a box ticking exercise to achieve the ultimate goal of B-BBEE points. Our experience is that this also applies to most of the elements across the scorecard.
Read the full report here: https://www.bbbeecommission.co.za/wp-content/uploads/2022/07/B-BBEE-NATIONAL-STATUS-AND-TRENDS-ON-B-BBEE-TRANSFORMATION-JULY-SP-Final.pdf
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