dtic Outlines Transformation Fund Capitalisation and B-BBEE Compliance Figures

Posted 13 August 2026 Written by Acts Online
Category B-BBEE & Commercial Law

Brought to you by SAnews: The Department of Trade, Industry and Competition (dtic) has detailed the capitalisation and partnership structure of the Transformation Fund alongside national Broad-Based Black Economic Empowerment (B-BBEE) performance statistics.

In terms of the regulatory framework established under the Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (as amended by Act No. 46 of 2013) and the B-BBEE Codes of Good Practice, national compliance indicators show an increasing trend across key scorecard elements, including management control, skills development, enterprise and supplier development (ESD), and socio-economic development.

Speaking at the Black Business Council’s Annual Summit, Minister of Trade, Industry and Competition Parks Tau reported that overall Black ownership under the B-BBEE scorecard reached 45.8% in 2023, exceeding the baseline statutory target of 25% plus one vote. Black female ownership recorded 13.6% in 2023 against the statutory target of 10%.

To accelerate access to capital for black-owned, women-owned, and youth-owned micro, small, and medium enterprises (MSMEs), the dtic has structured the Transformation Fund through blended public and private funding partnerships. Capital contributions committed to the Transformation Fund include:

  • Unemployment Insurance Fund (UIF): R500 million;
  • Development Bank of Southern Africa (DBSA): R250 million;
  • Vodacom: R400 million; and
  • IBM: R220 million.

Furthermore, development finance institutions under the dtic portfolio have scaled up direct development finance. The Industrial Development Corporation (IDC) facilitated R26.6 billion in transformation funding, which included approximately R5.6 billion allocated specifically to women entrepreneurs and women-empowered enterprises.

What this means for you, your business, or your clients

  • For yourself: Legal and compliance professionals should monitor B-BBEE ownership evaluation standards and worker ownership scheme structures when advising on corporate transactions and verification audits.
  • For your business: Measured entities subject to the Generic B-BBEE Codes or Sector Codes can evaluate strategic alignment with Transformation Fund initiatives to satisfy Enterprise and Supplier Development (ESD) and preferential procurement criteria.
  • For your clients: Black-owned and female-owned MSMEs seeking growth capital can engage with DFI funding channels and Transformation Fund partners to access targeted debt and equity finance.

Originally published at https://www.sanews.gov.za/south-africa/transformation-and-economic-inclusion-are-central-sas-economy

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