Businesses are not meeting their B-BBEE scorecard targets, collectively achieving only an average of 87.16% of their contribution targets, according to the 2022 Sanlam Gauge Report.
“This year’s report drills down into the hard facts of economic transformation, what’s working, what is not working and what needs to change with South Africa’s B-BBEE policy,” said Andile Khumalo, co-founder of the Sanlam Gauge Report.
Given that targets are not being met, there is a school of thought that says that the overall B-BBEE strategy needs to be adapted – or even overhauled completely – to measure qualitative as well as quantitative areas in order to better reflect transformation on the ground, said Khumalo. Until the South African economy recovers from the years of state capture, maladministration, political uncertainty and a lack of urgent economic reforms, sustainable Black Economic Empowerment will be hampered, said BASA managing director, Bongiwe Kunene.
Banks procured 82% of their goods and services – worth R137 billion – from BEE compliant businesses, against a target of 80%. “The findings of the Transformation in Banking Report, show in hard numbers, that the narrative that banks are falling far short of their FSC targets is based on an incorrect interpretation of the numbers as guided by the FSC. This can distort facts and discredit the contribution of banks to the transformation of the financial services sector and economic empowerment in South Africa,” said Kunene.
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