Trade & Industry Minister to meet with stakeholders over loosening BBEEE rules

The Trade and Industry Minister Parks Tau is set to meet with Sector Charter Councils on Tuesday, to strengthen accountability and reposition Broad-Based Black Economic Empowerment (BBBEE) sector codes as effective instruments for inclusive economic transformation.

Sector Charter Councils are statutory bodies responsible for the implementation of BBBEE legislation in specific industries.

Tau said the engagement with the councils comes at a critical point in South Africa’s economic transformation journey.

The Department of Trade, Industry and Competition (DTCI)’s summons to the councils also comes amid repeated calls for government to loosen BBBEE rules.

Tau said while measurable progress has been achieved in advancing BBBEE, he said persistent structural weaknesses in reporting, data integrity and impact measurement have limited the ability of policymakers to assess real transformation outcomes.

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He added that inconsistent reporting standards and an overemphasis on scorecard compliance have weakened the effectiveness of transformation monitoring.

“We cannot afford a compliance-driven approach that measures inputs but fails to interrogate outcomes. Transformation must be assessed in terms of tangible impact, real ownership, industrial participation, enterprise sustainability and improved livelihoods for the majority of South Africans,” said Tau.

In terms of Section 10(4) of the BBBEE Act, entities are required to submit their BBBEE certificates and verification reports annually to Sector Charter Councils.

Tau said Sector Charter Councils must reposition themselves as visible champions and guardians of transformation and move beyond scorecard administration and play a proactive role in driving measurable socio-economic outcomes.

Tuesday’s talks are expected to address what Tau believes are shortcomings in how the legislation is implemented.