Millennials: The torchbearers of true B-BBEE transformation

This year, South Africa marked 30 years of democracy.

For those of us born in the late 1980s, like myself, this anniversary resonates deeply. I was born in 1989, a year of transition and hope, but also of immense uncertainty.

My generation, the millennials, stand at a unique crossroads. We are both the beneficiaries of the sacrifices of those who came before us and the architects of the future.

As a millennial leader and business owner, I often reflect on the role of broad-based black economic empowerment (B-BBEE) in shaping our economy. It was introduced to address the injustices of the past, yet its effectiveness remains a topic of heated debate.

Is B-BBEE doing enough to ensure a truly inclusive economy? If not, how can we collectively do better?

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The South Africa I was born into was a nation of stark contrasts. A small minority held the majority of wealth and power, while the majority were excluded from economic participation.

B-BBEE was born from the necessity to redress this imbalance. B-BBEE was never just about equity in numbers; it was about equity in opportunity, developing a society where every South African could thrive.

In many ways, B-BBEE has delivered significant wins. Black ownership in listed companies stands at 29%, according to the B-BBEE Commission’s 2022 report. Women held 25.8% of top management positions in 2023.

According to Deloitte’s 2023 Millennial Survey, 74% of millennials in leadership roles say they prioritise inclusivity and diversity in their organisations. For me, this is a calling. Transformation is a commitment to the belief that diversity strengthens us all.

B-BBEE has often been criticised for falling short of its goals. Over the years, businesses have found loopholes in the system, turning what was meant to be a transformative policy into a compliance exercise.

One of the most glaring issues is “fronting”, where companies falsely represent black ownership or management to achieve higher B-BBEE scores. The B-BBEE Commission has flagged numerous cases of individuals listed as shareholders without their knowledge or meaningful participation in the business.

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Additionally, many organisations approach B-BBEE as a checklist, focusing on scoring points rather than creating change.

This box-ticking approach perpetuates inequalities.

Corruption exacerbates the problem. Reports of nepotism and cronyism in awarding tenders erode public trust and hinder the potential for B-BBEE to create lasting economic change.

Transformation remains uneven. The youth unemployment rate, at a staggering 45.5% as of Q1 2024, is a painful reminder of the gaps that still exist. For many young South Africans, the promise of democracy and empowerment feel out of reach.

For women, particularly those in marginalised groups, systemic challenges persist.

While the numbers may show progress, the lived reality often tells a different story: unequal pay, limited mentorship opportunities and workplaces that still struggle to accommodate the realities of women’s lives.

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For me, workplace transformation means creating environments where people of all backgrounds can lead, innovate and excel.

To achieve this, firstly we must champion women by addressing gender pay gaps and providing pathways for women to enter leadership roles.

Secondly, we must empower young people by investing in education, skills development and mentorship to prepare them for meaningful careers.

Thirdly we must ensure that transformation efforts are transparent, ethical and focused on long-term outcomes.

As a millennial business leader, I believe our generation has a unique opportunity to reshape the narrative. We are not constrained by the past, but we carry its lessons with us.

Our challenge is to build on the foundation laid by B-BBEE and ensure that its impact is felt by all South Africans.

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– Langa is Group CEO for South Africa at Leagas Delaney.