The Sanlam Transformation Gauge Report 2023, produced by Intellidex in conjunction with Business Times and Andile Khumalo, provides a comprehensive analysis of Broad-Based Black Economic Empowerment (B-BBEE) compliance in South Africa. The report is based on the B-BBEE scores of 14,542 companies across ten sectors and includes a survey of B-BBEE verification agencies.

Key findings include:

  1. B-BBEE Compliance: The Financial sector leads in B-BBEE compliance, followed by the Tourism sector, while the Construction sector lags behind.
  2. Management Control: Despite improvements in B-BBEE scores across the scorecard, management control remains a significant challenge, achieving only 69% of the target.
  3. Policy Adaptation: The report suggests that B-BBEE policy needs to keep pace with major changes in various sectors. The current transformation is not as advanced as the scorecards suggest.
  4. BEE123’s Solutions: BEE123, a leading provider of B-BBEE and Employment Equity (EE) compliance solutions, offers a range of solutions designed to simplify and streamline the process of B-BBEE compliance. These include BEE123 Software & Advisory, Skills123, ESD123, SED123, YES123, and EE123.
  5. Preferential Procurement: The report emphasizes the importance of preferential procurement in B-BBEE compliance. It’s a way for businesses to improve their scorecard while supporting and helping smaller black-owned businesses grow. BEE123’s Advanced Supplier Management Module is designed to alleviate this burden for businesses.

The report concludes with a call to action for businesses to continue their efforts in driving transformation and achieving B-BBEE compliance, thereby fostering a more inclusive and prosperous future for all South Africans.

Based on the comprehensive summary of the Sanlam Transformation Gauge Report 2023, here are the top 5 takeaways:

  1. B-BBEE Compliance Varies Across Sectors: The report highlights that B-BBEE compliance levels vary significantly across different sectors in South Africa. The Financial sector leads in compliance, followed by the Tourism sector, while the Construction sector lags behind.
  2. Management Control Remains a Challenge: Despite improvements in B-BBEE scores across the scorecard, management control remains a significant challenge, achieving only 69% of the target.
  3. B-BBEE Policy Needs to Keep Pace: The report suggests that B-BBEE policy needs to keep pace with major changes in various sectors. The current transformation is not as advanced as the scorecards suggest.
  4. BEE123’s Role in B-BBEE Compliance: BEE123, a leading provider of B-BBEE and Employment Equity (EE) compliance solutions, plays a crucial role in helping businesses achieve compliance and drive transformation. Their range of solutions, including BEE123 Software & Advisory, Skills123, ESD123, SED123, YES123, and EE123, are designed to simplify and streamline the process of B-BBEE compliance.
  5. Importance of Preferential Procurement: The report emphasizes the importance of preferential procurement in B-BBEE compliance. It’s a way for businesses to improve their scorecard while supporting and helping smaller black-owned businesses grow. BEE123’s Advanced Supplier Management Module is designed to alleviate this burden for businesses.