B-BBEE Is Being Rewritten. Here’s What Okiru Believes Will Actually Come Out of It

02/12/2025 11:41 AM - Comment(s)


South Africa is entering the most significant rewrite of B-BBEE legislation since the Act was created.
Minister Parks Tau has announced a short-term regulatory review, concluding in March, and a long-term legislative overhaul. 
The message is clear: the current model is not delivering what it promised.

This moment is not a collapse of B-BBEE, and it is not a simple fix either.

It is a reset. The impact of that reset will depend less on government and more on how organisations respond.
At Okiru, we have analysed the intentions, the politics, the structural weaknesses and the incentives inside the system.
Here is what we think is actually coming and what businesses should prepare for.


1. Expect Stricter and More Technical Compliance, Not Looser Rules

The short-term review aims to refine codes, guidelines and interpretation notes that currently create confusion.
Many companies assume this will mean simplification.

We disagree.

If a policy is failing because companies are gaming it, the logical response is to tighten controls, not relax them.
We expect clearer definitions, stricter audit requirements, more specific rules around supplier classification, cleaner enforcement mechanisms and fewer loopholes that allow fronting or symbolic ownership.

This will expose businesses that relied on superficial strategies.
Those that treat transformation as an operating model rather than a checklist will be positioned for success.

2. The Crackdown on Fronting Will Shift From Talk to Enforcement

Government consistently highlights fronting as a major failure point. They are correct.
Fronting thrives because the system rewards ownership on paper rather than value creation in practice.

If the review succeeds in one area, it will be shifting the market away from paper partners and toward genuine black-owned suppliers with real capabilities.

Expect more active investigative teams, stronger pressure on verification agencies, higher documentary requirements, more audits and real penalties for misrepresentation.

The era of casual affidavits and unchecked claims is fading.

3. The Transformation Fund Could Reshape Supply Chains if Governance Holds

A new Transformation Fund is planned to support black entrepreneurs, especially SMEs.
This is the unpredictable element.

If governed well, it could expand access to capital, strengthen supplier development, open high-value sectors to new entrants and increase the number of credible black-owned partners in supply chains.

If governance fails, it becomes another pot that benefits the already connected and solves nothing.

Our view is balanced. We see opportunity, but only if execution matches ambition.

4. The Long-Term Review Will Not Abandon B-BBEE, but It May Rebalance the System

The minister insists the foundation of B-BBEE will remain intact.
Politically, that is expected. No governing party will walk away from a national redress policy.

However, keeping the foundation does not mean leaving the structure unchanged.

We expect the long-term review to explore a different balance of priorities. That may include reducing points for symbolic compliance, increasing the weight of enterprise development and job creation, updating skills requirements to match automation and AI, rethinking ownership models for long-term sustainability and strengthening local procurement obligations.

The likely direction is fewer cosmetic requirements and more measurable economic inclusion.

5. Businesses That Wait for Clarity Will Lose Ground

Periods of regulatory transition tempt organisations to wait for certainty.
That hesitation comes at a cost.

The companies that adapt early always capture the advantage when new rules settle.

Organisations should be auditing their B-BBEE strategies now for substance rather than optics, supporting credible black-owned SMEs before demand spikes, building long-term supplier pipelines, shifting procurement thinking from opportunistic to strategic and documenting every decision in anticipation of stricter verification.

Transformation should be treated as an investment in resilience, not a compliance obligation.

Where Okiru Stands

We believe the B-BBEE review is necessary, overdue and full of both risk and opportunity.
It will expose gaps, but it will also force a move toward more authentic and economically meaningful transformation.


Our intention is to deepen our partnerships with black-owned SMEs, assist clients in building real supplier-development ecosystems, use AI and automation to eliminate inefficiencies in compliance, advocate for fair and practical implementation, and help businesses shift from points chasing to integrated transformation strategies.


Our position is straightforward.


Transformation must produce capability, not paperwork.
Opportunity, not optics.
Value, not veneers.


The upcoming review will not fix B-BBEE on its own, but it can push the market closer to the outcomes the policy was always meant to deliver.
That is where real progress begins.

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