Businesses performing lower than set targets for B-BBEE ownership
These details are contained in the 2022 Sanlam gauge, which is based on the B-BBEE scores of over ten thousand companies, measuring transformation across all sectors that was released on Wednesday.
- Black Economic Empowerment
- South African business
JOHANNESBURG – Despite recording high ownership, scores of South African businesses continue to perform lower than set targets on broad-based black economic empowerment (B-BBEE) ownership.
These details are contained in the 2022 Sanlam gauge, which is based on the B-BBEE scores of over 10,000 companies, measuring transformation across all sectors that was released on Wednesday.
Black ownership stood at 74.8% against a target of 100% a slight increase from last year.
The Black Business Council, which is cited in the report, points to a discrepancy between the high-ownership scores and management-control scores.
Businesses performed poorly in the management control category at 55,9%, also against a target of 100%.
The council’s chief executive officer Kganki Matabane was quoted in the report saying that the management control and ownership data would correlate if there was no fronting, adding that owners usually hire people who look like them.
Another irregularity pointed out was that the companies attained 74,4% for skills development, however, questions were raised about where the trained black people then go thereafter when they are not reflected in top management figures.
The compilers of the study say the survey and comments by industry participants highlight numerous problem areas that require immediate attention by the recently formed presidential B-BBEE advisory country.