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Only a fraction of South African companies embed transformation into their core business strategy and the organisations that do are gaining momentum. According to the 2023 Sanlam Transformation Gauge, which analysed B‑BBEE scores of over 14 000 companies, management control in many sectors improved from 56% of target in 2022 to just over 69% in 2023, yet enterprise and supplier development (ESD) still averages only about 75% of target. (Sanlam Transformation Gauge, 2023 )

This data highlights that transformation remains uneven, and companies that treat it strategically, as part of their growth engine rather than a check‑box exercise, are more likely to innovate, grow their markets, and engage their people.

 Analysis into organisational strategies that align to impact imperatives shows that it is important not only to raise managerial awareness of social and environmental issues but also to develop business strategies that synchronously drive economic, social, and environmental value creation. When B-BBEE is understood as a business strategy rather than just an obligation, it can drive innovation, strengthen supply chains, and create opportunities that benefit both the private sector and the communities it serves.

 For far too long, B-BBEE has been misunderstood and misapplied, treated as a compliance exercise rather than a catalyst for business growth. Many organisations still approach it as a checklist item, focusing narrowly on scoring points instead of unlocking its potential to drive inclusion, resilience, and long-term competitiveness. This data reveals a critical truth: companies that treat transformation strategically are better positioned to innovate, grow markets, and engage employees effectively.

The main barrier to meaningful transformation is mindset. Too often, organisations ask, “What must we do to comply?” instead of, “How can transformation unlock growth and sustainability?”

This compliance-driven approach reduces B-BBEE to a technical exercise and overlooks its ability to create value. A short-term view limits progress, while a strategic mindset recognises empowerment as an investment, one that enhances competitiveness, strengthens local ecosystems, and builds social trust.

 We have seen first-hand that when transformation is embedded into the DNA of a business, it delivers measurable and lasting results. Over the years, Siyakha has worked with clients across multiple sectors to help them view B-BBEE not as a cost, but as a driver of performance, resilience, and inclusion.

The real value of B-BBEE lies in its ability to build organisations that are future-ready, companies that are not only compliant, but also agile, trusted, and equipped to thrive in a diverse and competitive economy.

Despite the promise of B‑BBEE, many organisations still treat it as a regulatory chore, a set of ownership deals or a function of risk mitigation or compliance and then fault the policy itself when results don’t materialise.

 Added to this is the media, legislative and Government rhetoric of B-BBEE being a moral and social imperative – without understanding that if you want business to do something “because it makes us good people”, then you can never expect to realise authentic results. The legislation needs strategy, investment and a deep, institutional understanding that local relevance, in any market, does not detract from global excellence.

 True transformation requires strategic intent and sustained effort: building leadership pipelines, activating localised and robust supplier ecosystems, and securing understanding across the business of why transformation matters. When this mindset shift happens, B‑BBEE becomes a platform for innovation and inclusive growth.

Strategically applied, a business should be able to track the return-on-its investment, like any other strategically positioned business investment.

 Transformation should be seen as a strategic advantage, not a compliance box to tick. Organisations that adopt this view are better positioned to attract talent, earn investor confidence, and grow sustainably in an evolving economy.

When implemented with purpose, B-BBEE aligns naturally with Environmental, Social, and Governance (ESG) principles. Both frameworks seek to create long-term value through responsible leadership, inclusion, and governance excellence.

 Investors and stakeholders are no longer satisfied with performance alone. they want accountability and impact. Businesses that align B-BBEE and ESG goals demonstrate that transformation is not just about compliance but about building systems that serve people and planet while ensuring profitability.

 Additionally, the reality is, that we can only sell consumer products, financial services, new housing developments, or achieve business growth, if we have viable, educated and flourishing market to sell into. Global R&D stats show increasing investment into R&D, market analysis and new methods for market penetration.

We need to be thinking about alternative logistics methods, cost reduction through localised supply chain and specialised cold-rooms or clean-laboratory manufacture, fully automated logistics hubs using robotics to replace human risk and error. We need to think about mining communities that exist and thrive beyond life of mine. We need to work alongside rural economies to understand alternative medicines and the role that they will play in managing health risks and the opportunities they create for big pharma to rebuild trust and relevance.

If businesses have not yet linked their B-BBEE investment to the need to rethink, reskill, retrain their organisations and processes, then they may fall behind the curve. Informal economy focus groups and informal retail market absorption, alternative energy utilisation in manufacture and production, circular economies for optimisation of pricing models and risk mitigation on brand stagnation, the list is endless, the reality is that we need to be adaptive and B-BBEE allows us to invest in the skills of tomorrow, to encourage innovation, to rethink traditionality to create inclusive delivery of world-class strategies.

This integrated approach enhances credibility and trust among employees, customers, and shareholders, positioning businesses as leaders in sustainable development and inclusive growth.

With more than two decades of experience driving transformation in South Africa, we are more than an advisor, we are your partner in progress. We guide organisations through every element of B-BBEE to make sure we are supporting strategies that achieve global excellence, and local relevance. Our approach ensures that transformation strategies are not only practical and measurable but also deliver tangible business and social value. When transformation is done well, it creates ecosystems of opportunity. Businesses become enablers of change, communities thrive, and industries evolve. It’s not just about achieving a higher rating; it’s about building sustainable growth and leaving a legacy that benefits generations to come. 

The next phase of South Africa’s growth will be led by organisations that see B-BBEE not as a legal requirement, but as a strategic driver of business excellence. Siyakha continues to partner with visionary businesses ready to turn policy into performance, compliance into competitiveness, and potential into prosperity. 

Ready to transform with purpose? Let’s build growth that lasts.

Dionne Kerr

E: This email address is being protected from spambots. You need JavaScript enabled to view it. | T: +27 (0) 11 706 9006