Anticipating BBBEE transformation in South Africa in 2024
As South Africa moves into 2024, the landscape of broad-based black economic empowerment (BBBEE) is poised for significant shifts.
The BBBEE framework has been a cornerstone of economic transformation in our country, aiming to address historical imbalances and promote inclusive economic growth.
In 2024, I am hoping to see the following taking place in the BBBEE transformation space:
Updated BBBEE Sector Codes of Good Practice
The BBBEE Codes of Good Practice, including for specific sectors, are subject to periodic reviews, and 2024 may see updates to these Codes – especially aligning to the 2019 amendments to the General BBBEE Codes of Good Practice. Businesses should anticipate changes in scorecard elements, weightings, principles and compliance criteria. Staying abreast of the modifications will be crucial for companies striving to maintain or improve their BBBEE status.
Enhanced focus on implementation and monitoring
One of the primary expectations I have for 2024 is an increased emphasis on the effective implementation and monitoring of BBBEE initiatives. The notion of impactful initiatives needs to be instilled within the mindsets of BBBEE practitioners and transformation managers. There is a need to place a stronger focus on ensuring companies are actively working toward achieving the outlined BBBEE goals and that the intended benefits are reaching the targeted black beneficiaries. The shift from being transactional to transformational is a must.
Increased collaboration and partnerships
Collaboration between businesses and stakeholders is expected to be a key theme in 2024. Companies may engage in strategic partnerships to pool resources, share best practices and collectively work toward achieving BBBEE objectives that will achieve larger impacts on the intended black beneficiaries.
Focus on skills development
Skills development has been a crucial pillar of BBBEE, and in 2024, there may be an intensified focus on training and upskilling initiatives. I do foresee companies exploring more innovative approaches to skills development, including mentorship programmes, online training platforms and partnerships with educational institutions to address the skills gaps in our country.
Focus on job creation
South Africa still faces a large challenge in respect of unemployment. In 2024, I hope to see more collaboration between the public and private sector to address challenges of unemployment. From a BBBEE perspective, it would be great to see more of an uptake of participation under the Youth Employment Service initiative in 2024, and giving young people an opportunity to gain working experience.
Inclusive procurement practices
Procurement is a significant component of BBBEE, and 2024 is likely to witness a continued emphasis on inclusive procurement practices. Companies are encouraged to source goods and services from black-owned and black women–owned businesses, focusing on SMEs as well.
As South Africa looks ahead to 2024, the evolution of BBBEE transformation is inevitable. Companies must proactively adapt to the changing landscape – embracing technology, fostering collaboration and prioritising the holistic impact of their BBBEE initiatives.
The trajectory of BBBEE transformation in South Africa for 2024 promises an array of pivotal changes and opportunities for businesses. Businesses must be vigilant in staying abreast of these developments, ready to pivot and align their strategies to effectively navigate the shifting BBBEE landscape. Embracing innovation, forging strategic partnerships and committing to impactful initiatives will be integral in not just meeting compliance criteria but truly fostering inclusive economic growth and addressing historical imbalances.
Yuneal Padayachy
Chief Support Officer
