May 24, 2022

Findings Of The B-BBEE Commission Annual Conference

The annual conference of the B-BBEE Commission was held on the 1st of April 2022. The conference’s purpose was to reflect on the 18 years in which the B-BBEE codes have been applied and the period after which the Commission was established.

The conference’s main aim was to reflect on the challenges faced, progress made and to identify plans to improve economic transformation moving forward. The impact of the priority elements on the B-BBEE codes was also an important aspect.

It was reported that the common theme addressed was that there should be an improved collaborative effort of all stakeholders and improved practical implementation of the B-BBEE codes. It was stated that two of the concerns to South Africa are youth unemployment and the economy’s slow growth.  It must therefore be considered how B-BBEE must be utilised to give effect to solving or improving the challenges above. Thus, the skills and enterprise development elements will be important to ensure that workers and youth are upskilled to meet the future criteria.  It was found that although employees are trained as per the skills development element, it is seldom that they are promoted to higher management levels or top management.

It was found that the B-BBEE Commission is perceived to do well in terms of its goals and outcomes it wishes to achieve. It was emphasised again that for the Commission to properly fulfil its role, all stakeholders involved need to provide their collaborative participation. This is of such importance because the B-BBEE Commission is seen as the regulator of B-BBEE and operates an oversight and supervisory role to promote adherence to the B-BBEE Act.  Examples of other functions that the Commission fulfil are as follow:

  • To investigate, either on its own initiative or in response to complaints received, any matter concerning broad-based black economic empowerment;
  • To strengthen and foster collaboration between the public and private sector to promote and safeguard the objectives of broad-based black economic empowerment;
  • To maintain a register of significant broad-based black economic empowerment transactions above a threshold determined by the Minister in the Gazette.“

It was further reported that a concern discussed is that businesses do not properly implement the B-BBEE codes to give true effect to the nature and intention of the codes. Therefore, the actions that are taken do not realise in actual benefits for those that it is intended for.  However, it was stated that the sectors that are seeing positive economic transformation were construction and transport as opposed to the financial, property and tourism sectors, which are the least positive sectors.

Legal entities/employers need to take note and be up to date with the findings and viewpoints of the B-BBEE Commission as indicated and discussed at the annual conference. The recommendations and findings of the Commission can be seen as directing the route forward for B-BBEE and how the codes can change or be amended to give effect to their goals and recommendations.

Therefore, businesses can be able to anticipate and possibly plan for future amendments of the B-BBEE codes and/or any other further requirements or directives that the Commission can impose. Noting the above mentioned is therefore very important considering the substantial efforts businesses can undertake to achieve the necessary compliance to the B-BBEE codes.

Want to know more about BEE? Contact your nearest SEESA for professional BEE advice. Alternatively, leave your name on our website and we will contact you.

About the author:

Edmund Drake started his career at SEESA in January 2016 and is currently a BEE & Labour Senior Legal Advisor at SEESA’s Port Elizabeth branch. He is an admitted attorney and notary of the High Court of South Africa.

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