🚨 The Employment Equity Targets Still Stand

On 28 August 2025, the Gauteng High Court ruled against an urgent application brought by the National Employers’ Association of South Africa (NEASA) and Sakeliga. The two organisations had sought to block the implementation of the new sectoral numerical targets introduced under section 15A of the Employment Equity Act (EEA).

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Government Signals Shift in BEE Licensing for the ICT Sector

In a bold move to expand broadband access and attract foreign investment, the South African government has proposed easing B-BBEE licensing requirements for satellite service providers like Elon Musk’s Starlink. The draft policy, issued by Minister of Communications and Digital Technologies Solly Malatsi, aims to align ICT sector licensing regulations with the amended BEE ICT Sector Code.

Currently, ICT licensees must have a 30% equity ownership by historically disadvantaged individuals. However, this requirement has created barriers for multinational companies without local equity partners. The proposed changes would allow alternatives such as Equity Equivalent Investment Programmes (EEIPs)—a shift that reflects global investment norms while still supporting South Africa’s socio-economic goals.

Malatsi emphasised that this is not a political concession, but rather a step toward “regulatory certainty, innovation, and inclusive digital access.” While Parliament has raised concerns, this signals an evolving B-BBEE framework more open to alternative empowerment models, particularly for high-tech sectors.

If adopted, the policy could reshape how multinationals engage with South Africa’s digital economy, balancing transformation with investment attraction.

 

đź”— Watch this space for updates as this policy develops and how it may set a precedent for other sectors.

 

📩 Contact us to learn more about how we can support your ICT business.

Contact: Jaco Jacobs

Office: 012 997 0037

E-mail: consult@beeanalyst.co.za

Update on the B-BBEE Legal Sector Codes ⚖️

The gazetting of the BEE Legal Sector Codes has stirred considerable debate within the legal community. NRFSA has initiated a two-part application in the High Court, targeting the Legal Practice Council, the Department of Trade, Industry and Competition (dtic), and the Minister of Justice and Constitutional Development.

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Employment Equity Amendment Act: Key Changes Coming in January 2025

The Employment Equity Amendment Act (EEA) is set to be officially enacted on 1 January 2025. These amendments will significantly impact how businesses across South Africa manage employment equity and comply with transformation goals.

Here’s a summary of the key changes and what they mean for your business:

  1. Redefined “Designated Employer” Status

Companies with fewer than 50 employees will no longer be classified as designated employers. This means they will not be required to comply with Chapter 3 of the Act, which outlines affirmative action measures.

However, businesses in this category will still need to:

  • Confirm their status by demonstrating their employee count.
  • Comply with Chapter 2, which focuses on eliminating unfair discrimination and promoting equal opportunities within the workplace.

If you have fewer than 50 employees, it’s essential to ensure your company maintains compliance with these provisions, even though your designation status will change.

  1. Five-Year Sectoral Targets

One of the most notable changes is the introduction of sector-specific targets for designated employers. These targets will span five years and will apply across key occupational levels. Employers will need to align their employment equity plans with sectoral targets. It’s important to start assessing your workforce and setting goals accordingly. Companies can also choose to set targets for Semi-Skilled and Unskilled levels, though these are not mandatory.

2024 EE Reporting Obligations

While these changes will take effect in 2025, it’s important to note that all designated employers must still submit their Employment Equity reports for the 2024 reporting period in line with the current regulations. The 2024 reporting cycle will remain under the existing compliance framework, so make sure your reports are submitted in accordance with the current rules before the end of the year.

What Does This Mean for Your Business?

As these amendments are set to reshape the employment equity landscape, now is the time to start preparing. The changes will require companies to be more proactive in aligning their workforce with sectoral targets, ensuring compliance with anti-discrimination policies, and obtaining certification for doing business with the state.

Our team is closely monitoring these developments and will keep you informed as new regulations and guidelines are released.

Stay Tuned for More Updates

As we receive more information we will share key updates and provide actionable advice on how your business can remain compliant. Our goal is to make this transition as smooth and effective as possible for you.

Legal Sector Code Gets Green Light

Trade, Industry, and Competition Minister Parks Tau has given the green light to the Legal Sector Code under section 9(1) of the B-BBEE Act, which aims to expedite transformation within the legal sector.

“This administration is dedicated to speeding up transformation, as guided by the preamble of the South African Constitution, which underscores the need to address past injustices. This commitment is reflected in the Government of National Unity’s (GNU) statement of intent,” Tau stated.

The process has paved the way for the sector to achieve its Broad-based Black Economic Empowerment (B-BBEE) objectives of the following:

  • an ownership target of 50% and black women ownership of 25% over 5 years.
  • a management control (executive and board participation) target of 50% representation of black practitioners and a target of 25% for black women practitioners, particularly as equity partners and associates.
  • a skills development target of 3.5% expenditure on training programmes for black candidates. The aim is also to ensure training in specialised skills for black legal practitioners, candidate legal practitioners, candidate legal practitioners and black junior advocates within the following designated categories: black women, black youth, black people with disabilities and black people from rural areas.
  • a procurement target of 60% by the private sector, and there is a target of 80 % to be achieved through the specialised procurement scorecard applicable to the public sector. This will ensure fair and equitable access to specialised areas of law and complex matters when the state procures legal services from black Legal Sector Measured Entities (LSMEs) and ensure the sustainability of LSMEs.

With the recent approval of the Legal Sector Code, legal professionals and firms must stay ahead of these transformative changes. Our team is ready to assist you in understanding and implementing the new regulations to ensure your practice remains compliant and competitive.

Contact us at consult@beeanalyst.co.za to schedule a consultation.

ICT Council Notification

Reminder: ICT Council 2023/24 Annual Fees Due by December 1, 2024

This is a friendly reminder that your annual fees for the ICT Council 2023/24 are due by December 1, 2024. Please confirm your ICT suppliers’ contributions to the ICT Council Private Contribution Model.

The Private Sector Contribution Model helps determine the financial contributions of ICT Measured Entities to support the ICT Council’s operations. These contributions are based on the annual turnover as reflected in your B-BBEE verification certificate or B-BBEE Sworn Affidavit under the 2016 Amended ICT Sector Code.

Note that these contributions cannot be claimed for B-BBEE points under the 2016 Amended ICT Sector Code.

After making your payment, email the proof to ictcouncil@ictsectorcouncil.org.za. We will send you a proof of contribution letter to the same email address.

For any questions, please contact the Acting Secretariat, Mrs Stefani Naidoo, at ictcouncil@ictsectorcouncil.org.za.

Read the notification here and see the bank confirmation letter here.

President Ramaphosa Signs Public Procurement Bill into Law

President Cyril Ramaphosa approved the Public Procurement Bill on 23 July 2024, marking a pivotal step towards streamlining and regulating public procurement practices across South Africa. The enacted legislation establishes a unified framework designed to oversee the procurement activities of all state organs.

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A Shift in Skills Development on the Horizon

The QCTO changes being implemented have the potential to not only significantly impact your skills development plan reporting to the SETA, but also your BEE scorecard. It is important to consider these changes carefully and take any necessary steps to ensure that your company remains compliant and achieves its desired outcomes.

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Latest Update in Construction

A revised list has been published by the Construction Sector Charter Council announcing new Professional Registration bodies for the Construction Sector Code. This list is published in accordance with Statement CSC Code Series 200 and 300 of the Amended Construction Sector Code.

If your business falls within the scope of the Construction Sector Codes, additional BEE points can be earned on your Management Control and Skills Development elements on your BEE scorecard, if proof of membership is submitted.

This is an important notice for all South African businesses that operate in the Construction Sector.

Download the list here and contact BEE Analyst for more information at (012) 997 0037 or email us at consult@beeanalyst.co.za