B-BBEE Policy Unit,
Department of Trade, Industry, and Competition
Summary
The Free Market Foundation warns that the introduction of a Transformation Fund within the Enterprise and Supplier Development element risks functioning as a de facto compulsory levy, raising serious constitutional concerns regarding legality, delegated authority, and Parliament’s fiscal powers.
The FMF submission highlights that the proposals fail to address longstanding structural weaknesses of B-BBEE, including high compliance costs and limited broad-based impact. Building on the FMF and Solidarity Research Institute’s 2025 report quantifying B-BBEE’s annual burden at R145-290 billion and up to 192,000 lost jobs yearly, the FMF recommends reconfiguring the Fund as a voluntary, parallel mechanism with robust governance safeguards to avoid undermining investment, growth, and the rule of law.
Contributors
