The B-BBEE Commission regretted that fewer compliance reports were submitted, with the current data uploads decreasing by 76% from 5,818 in 2019 to 1,373 in 2021. This, according to the B-BBEE Commission, impedes it from effectively performing its duties and compiling credible industry analysis. The B-BBEE Commission said that this downturn in the submission of compliance reports was due to the fact that the Broad-Based Black Economic Empowerment Act (B-BBEE Act) does not adequately cater for the consequences of non-compliance with the Act’s requirement for JSE-listed companies, organs of state, public entities and Setas to submit annual compliance reports. The B-BBEE Commission has, therefore, recommended that the B-BBEE Act be amended to include consequences of non-compliance in the form of administrative penalties and criminal sanctions. The B-BBEE Act, according to the B-BBEE Commission, should also provide for mandatory uploading of B-BBEE certificates by B-BBEE verification agencies on the B-BBEE Commission's certificate portal.
Other significant trends reflecting the state of economic transformation revealed in the report include:
The B-BBEE Commission recommended that funds for enterprise and supplier development be pooled into a centralised depository and directed to Black businesses and in particular, Black women-owned businesses. This, together with better coordination between the public and private sectors, would ensure that these funds make a greater impact on enterprise and supplier development initiatives.
In its concluding remarks, the B-BBEE Commission said that South Africa has not made serious inroads in addressing inequality. It suggested that the B-BBEE Act and the Preferential Procurement Policy Framework Act be amended to ensure that preferential procurement was effectively implemented. The B-BBEE Commission concluded that to accelerate the pace of transformation, the B-BBEE Act should be amended to include administrative penalties for non-compliance and provide quicker resolution of B-BBEE violations by establishing a specialised tribunal.