I couldn’t help but nod when Construction Sector Charter Council (CSCC) executive member Gregory Mofokeng boldly told investors at the Built Environment Indaba in Sandton, “No.”
The World Bank recently suggested that South Africa relax its broad-based black economic empowerment (BBBEE) laws to attract more private investment. But Mofokeng made it clear: if investors want to do business here, they must embrace BBBEE—or take their money elsewhere.
At the same event, however, some BBBEE supporters pointed out a harsh reality: investment in the built environment sector remains worryingly low. Black Business Council in the Built Environment (BBCBE) deputy president Bafana Dube put it bluntly: “No amount of moral grandstanding will create jobs—only increased investment can.” Without capital support, he warned, South Africa’s infrastructure development will remain stagnant.
FOREIGN INVESTORS REMAIN WARY
This tension isn’t new. Foreign investors have long voiced concerns about BBBEE’s impact on investment conditions. The World Bank is just the latest to speak up.
Back in 2018, the EU criticised South Africa’s BBBEE ownership rules as “unfairly onerous,” warning they could deter European investors. Some foreign companies have even taken their grievances to international arbitration, arguing that BBBEE violates bilateral investment treaties.
One high-profile example is Tesla and Starlink owner Elon Musk, who recently expressed interest in launching Starlink in South Africa. His plan would have brought affordable, high-speed internet to millions, especially in rural areas. But Starlink withdrew from regulatory hearings because Musk refused to meet local ownership requirements. In contrast, the service is thriving in other African nations like Ghana, where it offers a cheaper alternative to local providers.
WHERE IS THE TRANSFORMATION?
Despite three decades of democracy, true economic transformation remains elusive. BBCBE president Danny Masimene posed the hard question: “We have a pro-black government, black officials, and yet transformation is still lagging. Why?”
Mofokeng agreed that more transformation is needed in the built environment sector but admitted that there’s no recent data to measure progress. “Our last industry report was in 2021. We’re supposed to produce them annually, but we haven’t,” he said, citing a lack of government funding.
Thabo Masombuka, chairperson of the Construction Education and Training Authority, also acknowledged the lack of proper tracking. While he believes progress has been made—particularly in youth employment—without data, it’s hard to say for sure. Youth unemployment remains alarmingly high at 59.6% for those aged 15 to 24.
WHO IS TO BLAME?
Masombuka made an eye-opening statement: “It’s no longer about white people. If we’re not moving forward, it’s about black people in positions of power making things difficult.”
But Mofokeng sees it differently. He accused BBBEE critics of spreading “distortions, misinformation, and lies” to discredit transformation efforts. According to him, global economic powers are being lobbied to isolate South Africa, painting BBBEE as discriminatory.
MOVING FORWARD
This debate is far from over. The real challenge is finding a balance—ensuring meaningful transformation while making South Africa a more attractive investment destination. Without capital, economic growth is impossible. But without transformation, we risk deepening inequalities.
So, where do we go from here? That’s the question we should all be asking.