DOES THE SKILLS ELEMENT IN B-BBEE REALLY MAKE A DIFFERENCE?
- Compliance Hub Consulting
- Apr 8
- 2 min read
At Compliance Hub Consulting, we believe the numbers speak for themselves — and the impact of Skills Development under the B-BBEE Codes is undeniable.
South Africa’s B-BBEE framework isn’t just a compliance exercise — it’s a powerful driver of education, empowerment, and economic growth. And nowhere is this more evident than in the Skills Development element.
Let’s break it down:
Under the B-BBEE Codes of Good Practice, large organisations (those with annual turnovers exceeding R50 million) are required to invest in education and training as follows:
2.5% of their annual leviable payroll on bursaries for Black students at higher education institutions
3.5% on learnerships, accredited training, and skills programmes for Black employees and learners
So, what does that look like across the country?
Using conservative estimates:
5,000 large companies in SA
Average revenue: R200 million each
Combined: Over R1 trillion in annual revenue
Even if just 2.5% of that goes to bursaries — that’s R2.5 billion per year.Add the 3.5% for other training initiatives — another R3.5 billion.
That’s a total of R6 billion annually invested in skills development and education through B-BBEE alone.
Why This Matters
Imagine what would happen if this funding didn’t exist — or was left entirely in the hands of government processes. That’s R6 billion that might never reach the learners, workers, and communities it now uplifts.
Instead, B-BBEE ensures that training and development remain business-driven, skills-focused, and outcomes-based — aligned to real industry needs and employment opportunities.
The Bottom Line?
Skills development under B-BBEE is not a burden — it’s an engine for transformation. It empowers individuals, builds pipelines of skilled talent, and helps organisations like yours earn recognition and results through meaningful investment.
Let us help you maximise your Skills Development spend with strategic, compliant, and high-impact programmes.
Contact Compliance Hub Consulting today to explore how we can turn your compliance into a competitive advantage, or chat to our CHiP, our Compliance Chatbot.