Shifting South Africa’s BEE scorecard to reward job creation, fixed investment, and tax payments would better align the interests of investors with those of ordinary people, boosting employment and economic inclusion.

South Africa’s Broad-Based Black Economic Empowerment (BEE) policy has long aimed to redress historical exclusion, but there is mounting consensus that the current scorecard model often misses the mark on economic growth and job creation. While the intention of BEE was to broaden participation, analysts note that the emphasis on ownership and compliance targets can unintentionally deter private investment and slow down employment gains.

The logic is simple: rewarding companies for actual economic contributions, such as the number of jobs created, levels of fixed investment, and the amount of tax paid, would provide a stronger incentive for firms to expand, hire, and contribute to the public purse. This is not merely theoretical. Polling conducted by the Social Research Foundation in 2022 found that 70.9% of South Africans, across all demographic and party lines, believe a business should be allowed to operate even if it is not BEE compliant, so long as it pays tax and creates jobs.

By moving towards a scorecard that recognises these tangible outputs, policymakers could resolve the current misalignment between investor interests and the developmental needs of the country. This approach would broaden opportunities for real empowerment, opening pathways for the unemployed and under-employed to enter the formal economy, while still advancing transformation. The economic evidence is clear: economies that encourage investment and employment see faster poverty reduction and greater inclusion.

Maintaining the status quo risks further stagnation in investment and rising unemployment. In contrast, aligning empowerment policy with the real drivers of growth would unlock the country’s latent potential and restore hope for millions.