Trade and Industry

Wednesday, 06 January 2021

The impacts and outcomes of BBBEE: A preliminary assessment

  • Year: 2021
  • Organisation: TIPS
  • Author(s): Neva Makgetla (TIPS)
  • Countries and Regions: South Africa

This working paper provides an initial overview of the impacts and outcomes of the Broad-Based Black Economic Empowerment (BBBEE) policy. It also draws on business responses to a questionnaire to gain insights into the implementation process. The paper evaluates the BBBEE Codes against their core objectives – representivity in ownership, management and skilled occupations; support for suppliers and other small businesses; and skills development. It analyses the BBBEE ratings achieved by industry. When possible, it estimates the value of the impacts and outcomes. Based on the analysis, the final section notes areas where implementation could be better aligned with the over-arching aim of inclusive industrialisation. The Ministry of Trade, Industry and Competition, Business Unity South Africa and its member associations, and the Manufacturing Circle assisted in reviewing and circulating the questionnaire.