Trade, Industry and Competition Minister Parks Tau has announced that the long-awaited review of Broad-Based Black Economic Empowerment legislation will proceed in two distinct phases, with the first set to be completed before the end of the current financial year in March 2026.
Addressing the National Assembly on Wednesday during an oral question session, Tau explained that the initial phase will concentrate on refining subordinate legislation, clarifying ambiguities and finalising the framework for the promised Transformation Fund. The second, more substantive phase will involve potential amendments to the B-BBEE Act itself and is expected to unfold over a longer period.
Tau stressed that the exercise is designed to align the policy with South Africa’s current growth and inclusion priorities, particularly through demand-led empowerment that encourages companies to perform work themselves rather than outsource it to black-owned entities simply to score points. Such an approach, the minister argued, creates sustainable jobs in marginalised communities and strengthens local supply chains.
The announcement comes against a backdrop of mounting criticism that the existing framework has largely benefited a narrow elite while failing to lift the broader black majority out of poverty. Democratic Alliance MP Mondli Mdluli accused the policy of being “gamed” through patronage networks, and pointed to his party’s recently published Economic Inclusion Bill, which proposes replacing race-based criteria with socio-economic need.
Economic think-tanks and several international investors have echoed similar concerns in recent months, warning that rigid racial quotas deter foreign direct investment and entrench inequality rather than dismantle it. As reported by the Sunday Times, a growing chorus of business organisations is now calling for empowerment codes to be simplified and for greater emphasis to be placed on enterprise development and skills transfer rather than ownership transactions.
Economic Freedom Fighters MP Muzi Khoza questioned whether opposition to B-BBEE from certain Government of National Unity partners would dilute the review. Tau responded firmly that transformation and redress remain non-negotiable constitutional imperatives explicitly recognised in the GNU’s Statement of Intent, adding that differing views within the coalition would be managed through normal policy consultation processes.
According to Business Day, the Department of Trade, Industry and Competition has already begun quiet stakeholder engagements with organised business, labour and black business formations to map areas of consensus ahead of formal public consultation early in 2026. Bloomberg notes that investors are watching the process closely, with many hoping the review will reduce compliance costs for smaller firms and introduce clearer, more measurable targets without abandoning the overarching goal of economic inclusion.
The two-phase approach appears crafted to deliver quick administrative improvements while allowing time for broader political and economic debate on the future shape of empowerment policy – a debate that is likely to dominate South Africa’s economic discourse well into the seventh administration.