As we move into the new year, we do so with optimism and energy to deliver impact through Broad-Based Black Economic Empowerment (B-BBEE) legislation.
Yuneal Padayachy, Chief Support Officer at The BEE Chamber
2025 has seen a number of debates surrounding B-BBEE legislation, some positive, some negative, but nevertheless under the spotlight in various ways.
The year of 2025 introduced new concepts such as the Enterprise and Supplier Development Fund by the Department of Trade, Industry and Competition (dtic), the implementation of the Employment Equity Act, Regulations and Numerical Sectoral Targets, debates around the viability of implementation of the Legal B-BBEE Codes of Good Practice, discussions on reviewing B-BBEE legislation to improve its implementation, and the introduction of empowerment models that shift away from race-based policies.
While 2025 brought no new B-BBEE legislative changes, clarity was provided. The focus is to drive economic growth and impact through B-BBEE legislation.
In 2026, we are looking forward to the introduction of new B-BBEE legislative amendments, updates on B-BBEE Sector Codes of Good Practice as well as the formalised introduction of the Enterprise and Supplier Development Fund.
This year, South African businesses face the true test: Can B-BBEE transformation translate into measurable outcomes, not just reports and scorecards?
From policy to performance
For business leaders, 2026 signals a transition from policy talk to performance proof. The new employment equity framework requires designated employers to align with sectoral targets for representation and inclusivity, or face penalties including disqualification from state contracts.
Simultaneously, B-BBEE verification is evolving to link to real impact through initiatives and test substance. The emphasis is shifting from compliance documentation to real, sustainable empowerment.
B-BBEE transformation should therefore not be judged by paperwork, but by the impact on Black beneficiaries.
Authentic B-BBEE transformation
In 2026, the trend we hope to see more frequently is that companies see B-BBEE transformation as a growth strategy that will lead the market rather than a regulatory requirement. Authentic B-BBEE transformation is about building capability, competitiveness and credibility in the marketplace.
Key priorities include:
- Aligning B-BBEE and employment equity strategies so that recruitment, promotion, ownership and preferential procurement work together.
- Investing in skills development for a future-ready workforce especially in technology, renewable energy and digital industries.
- Supporting enterprise and supplier development, particularly Black-owned and Black women-owned businesses to grow within major value chains.
The broader B-BBEE transformation agenda
B-BBEE transformation in 2026 extends beyond legislative compliance into environmental, social and governance (ESG) performance and inclusive capitalism.
- Inclusive growth through ESG: Investors and global clients now evaluate how companies contribute to equitable opportunity, fair pay and diverse leadership.
- Just transition opportunities: The green economy opens pathways for new Black industrialists and designated groups, Black youth employment and Black women’s leadership in renewable energy and infrastructure.
- Digital empowerment: As AI, automation and data redefine business, digital transformation must include Black professionals, SMMEs and innovators to prevent a new digital divide.
This integration of economic empowerment, sustainability and digital inclusion is defining a new leadership agenda, one that links profitability and impact with purpose.
Accountability, transparency and mindset
2026 will demand visibility. Compliance submissions are no longer enough; companies must provide evidence of outcomes, progress reports, demographic shifts and investment in development pipelines.
Boards and leadership teams should be expected to take ownership. The responsibility should not be solely left to managers or employees of the company.
B-BBEE transformation key performance indicators (KPIs) should form part of executive scorecards. Transparency with stakeholders such as employees, clients and investors, will become a marker of credibility.
The question is changing from “Are we compliant?” to “What sustainable impact are we making?”
In order to drive B-BBEE transformation, the correct mindset is needed. Education around why we have B-BBEE legislation in South Africa is critical to its success. The BEE Chamber encourages all individuals to upskill on the details of B-BBEE legislation as more often than not, the lack of understanding and knowledge is where incorrect implementation emanates.
B-BBEE transformation as growth
Many may disagree, but B-BBEE transformation is not about politics, tenders or corruption, it is about performance, productivity, impact, growth, sustainability and potential.
Companies that integrate empowerment into their strategy, unlock access to new markets, talent and innovation. Those that delay will face competitive and reputational risk.
The future of business in South Africa depends on inclusive participation. B-BBEE transformation is not a cost, it is the most powerful investment we can make in sustainable growth.
2026 will not be the year South Africa debates B-BBEE transformation again, it will be the year business proves its commitment through action, transparency and measurable progress, as well as government providing a conducive environment and policy clarity and innovation.
When B-BBEE transformation delivers, South Africa wins.
