BBBEE (Broad-Based Black Economic Empowerment) Skills Development is a key element of South Africa’s BBBEE framework. It is aimed at upskilling black employees and promoting their participation in the economy, ensuring companies contribute to national socio-economic development.
Skills Development focuses on training and developing black employees through structured learning programmes, which can include learnerships, apprenticeships, internships, and other formal training initiatives.
Why is Skills Development Important in BBBEE?
- Compliance: It contributes to a company’s BBBEE scorecard, which affects their eligibility for government contracts and procurement opportunities.
- Empowerment: Helps employees gain new skills, increasing their employability and career growth.
- Economic Growth: Supports the national agenda to reduce unemployment and skills gaps among black South Africans.
- Reputation & Competitive Advantage: Companies that invest in skills development are seen as socially responsible, improving brand value.
How it Works
Skills Development in BBBEE is measured through the Skills Development element of the BBBEE scorecard, which includes:
- Skills Development Spend:
- Companies must invest a minimum percentage of their payroll in learnerships and training programs for black employees.
- Spend on approved training programs counts towards this score.
- Learnerships and Training Programmes:
- Must be registered with the Department of Higher Education and Training (DHET) or aligned with the Sector Education and Training Authority (SETA).
- Can include formal qualifications, short courses, mentorship, or on-the-job training.
- Employee Targets:
- The BBBEE scorecard differentiates between black employees, black youth, and black disabled employees, with higher scores awarded for training initiatives targeting these groups.
- Annual Reporting:
- Companies must submit training spend and programme reports to their relevant SETA and include them in BBBEE verification.
BBBEE Skills Development Scorecard Example (Generic)
| Target | Weighting | Description |
| Skills Development Spend on Black Employees | 25% | Percentage of payroll invested in training |
| Learnerships & Apprenticeships for Black Employees | 5% | Number of learners trained and completed |
| Employee Development for Black Youth | 5% | Training initiatives targeting young employees |
| Training for Black Disabled Employees | 5% | Specialized training for employees with disabilities |
Note: Weightings vary depending on the BBBEE Codes used (e.g., Generic, QSE, EME).
Key Takeaways
- BBBEE Skills Development is both a compliance requirement and a growth opportunity for companies and employees.
- Structured training and targeted spend improve a company’s BBBEE rating, unlocking procurement and business opportunities.
- It’s not just a checkbox—companies benefit from a more skilled, motivated workforce while contributing to national development.
