B-BBEE: State to Become the Regulator

Economic and social transformation in South Africa is an evolving and fluid issue, with the rules being written by, and through, our actions.

The revision of the Codes of Good Practice (RCoGP) governing B-BBEE, is a reflection of some of these actions over the past seven years, both the good and the bad. The revised Codes also provide us with some indication of how the Department of Trade and Industry (Dti) views the progress made to-date. It reflects a principle that the Dti is acting as an enabler toward a common vision and reporting format.

Having said this, the recent announcement, that the Dti will downgrade all verification agents to “empowerment advisors” and allow the state to become the regulator, represents a step change of principle in the empowerment landscape. Even if this is an attempt at some sabre rattling,what are the implications?

“The pressure on business of all sizes to do more to empower black people is growing relentlessly. The sooner they start doing this, the better they’ll be able to survive, and in fact prosper.” CGF Executive Business Brief