Transformation will not succeed unless all key stakeholders embrace it, defend it and implement it with conviction.
This is according to the Minister of Trade, Industry and Competition, Parks Tau.
He was speaking during the historic engagement session between the Department of Trade, Industry and Competition and all 11 Broad-Based Black Economic Empowerment (B-BBEE) Sector Charter Councils in Pretoria on Tuesday.
The session marked the first time that all Sector Charter Councils convened collectively with the custodian of the Broad-Based Black Economic Empowerment Act to assess progress, confront weaknesses, and chart a strengthened, outcomes-focused path for economic transformation in South Africa.
Opening the session, the Minister described the engagement as a landmark moment for B-BBEE, noting that while progress has been recorded, the next phase of transformation must place sharper emphasis on impact, accountability and scale.
Recent B-BBEE data presented during the session showed black ownership at approximately 29%, JSE-listed companies at 31% black ownership, black women ownership at around 12%, management control between 39% and 51%, and transaction values reaching approximately R600 billion.
“These numbers reflect a policy that has made a significant impact in undoing the injustice of the apartheid economy. But transformation works when it is implemented. It fails when it is ignored or circumvented,” said Tau.
He underscored that South Africa is at a decisive moment.
“Crossroads are not places of collapse; they are places of choice. And now, choices must be made,” he said.
A key outcome of the engagement was agreement on the need to move from a compliance-driven approach to an outcomes-based transformation framework. There was also a call to move beyond ticking boxes and focusing only on numbers.
“We must ask what has actually changed in ownership, management, skills, enterprise growth and industrial capability,” said Tau.
Discussions also focused on the effectiveness of skills development spending, with the Minister noting that over R100 billion had reportedly been spent on skills development over three years.
“With that level of investment, we should not be facing the skills crises we see today. Sectors must demonstrate tangible skills outcomes rather than expenditure alone,” he said.
The engagement concluded with consensus on a three-point action approach: addressing funding mechanisms, optimising implementation within the current legal framework, and reviewing institutional architecture where systems are not functioning effectively.
“We are not here to create conflict. We are here to fix what is not working, strengthen what is working, and ensure that transformation remains central to South Africa’s economic trajectory,” he said.
Tau confirmed that feedback from the engagement will be consolidated and presented to Cabinet as part of the ongoing review of the B-BBEE framework. Delegates further agreed that this engagement marked the beginning of a more structured and continuous platform between the government and Sector Charter Councils.
“This is not the last engagement; it is the first in this format. If this country does not transform, none of us will succeed,” he said. – SAnews.gov.za
