BBBEE can help drive industrial transformation in SA’s automotive sector

Broad-based black economic empowerment was never meant to be about compliance. It was meant to be about change, about opening doors, building skills, and creating real economic inclusion, writes Dr Bheka Zulu, CEO of the Tshwane Automotive Special Economic Zone.

When we talk about transformation in South Africa’s economy, it often sounds like we are talking about paperwork. Too often, broad-based black economic empowerment (BBBEE) gets treated as a box-ticking exercise, a scorecard to be managed, instead of a movement to be led.

But BBBEE was never meant to be about compliance. It was meant to be about change, about opening doors, building skills, and creating real economic inclusion.

At the Tshwane Automotive Special Economic Zone (TASEZ), we sit at the crossroads of two of South Africa’s biggest goals: industrialisation and empowerment.

This week, as we hosted a BBBEE Commission workshop with our tenants, partners, and local community representatives, one issue came into clear focus – transformation in the automotive sector must go beyond talk. It needs to deliver real, measurable results.

A sector that matters

The automotive industry plays a huge role in South Africa’s economy. It contributes around 5.3% to national GDP and about 30% of total manufacturing output. Behind those numbers are people – more than 130 000 direct jobs, and many thousands more through the supply chain.

But the truth is, transformation has not kept pace with this growth. Leadership in the sector still does not reflect the demographics of our country. Ownership remains concentrated. Supplier development often stops at token efforts.

As the industry shifts toward new energy vehicles (NEVs), we have an opportunity to correct this. The future of the automotive sector cannot mirror the inequalities of the past.

BBBEE gives us the framework to do things differently.

The codes of good practice were never just about ownership; they were about five interconnected pillars: ownership; management control; skills development; enterprise and supplier development; and socio-economic impact.

These must now become the foundation for how we build a fairer, more innovative, and future-ready industry.

Turning policy into progress

At TASEZ, we have made a deliberate choice to make transformation practical and measurable. In recent years, we have channelled more than R1.7-billion in contracts to small, medium and micro enterprises (SMMEs), many of them black- and women-owned. Over 40% of our procurement is local.

Those are not just numbers on a page, they translate to more than 5 000 jobs created during construction, 80% of them for women and 60% for young people. People with disabilities are also increasingly part of our projects.

But transformation is not just about procurement spend.

It is about building capacity that lasts. I would suggest we establish a Skills Development Forum that brings together original equipment manufacturers (OEMs), component suppliers, and local colleges to make sure the skills we teach match the jobs that exist and the jobs that will exist in the future.

Small businesses are another priority. Many promising enterprises do not fail because of a lack of ideas, they fail because they do not have the support systems for compliance, HR, or financial management.

That is why TASEZ is introducing shared back-office support for SMMEs in the automotive value chain. If we want black industrialists to thrive, we cannot expect them to do it alone from garages and backrooms.

Building local capacity

Real transformation is also about building economic independence. For too long, our sector has depended on imports. We have to change that by focusing on localisation and innovation.

Our goal, as expressed in the South African Automotive Masterplan 2035, is to raise local content levels from 40% to at least 60%.

That means developing black-owned suppliers into full manufacturers, innovators, and exporters, not just intermediaries. It means investing in partnerships with universities and research institutions, so that South African engineers and entrepreneurs can lead the way in electric mobility, battery recycling, and green manufacturing.

We should also put in place a Green SMME Innovation Sandbox to support enterprises involved in circular economy opportunities like waste recovery, e-waste, and battery recycling. Let us create a space where new ideas can be tested.

The future of BBBEE is as much about sustainability as it is about ownership.

Inclusion must be intentional

True transformation leaves no one behind.

We have seen the incredible results when women and people with disabilities are intentionally included in training, production, and leadership. That inclusion needs to become standard practice.

The same applies to our local communities. Our social compact with residents around TASEZ is not symbolic, it is real. Through enterprise incubation, community training, and mentorship programmes, we are working to make sure that the special economic zone (SEZ) model uplifts the people who live closest to it.

Transformation and competitiveness go hand in hand

The automotive sector is at a major turning point. By 2035, the world will be dominated by NEVs. Export markets are already tightening their emissions standards, and if we don’t adapt quickly, we risk being left behind.

Transformation must therefore be seen as a tool for competitiveness.

BBBEE should drive innovation and productivity, not just compliance. It should open doors for local firms to access global supply chains and strengthen their ability to compete. That means better financing for black suppliers, guaranteed offtake agreements, and strong mentorship partnerships between international OEMs and emerging South African manufacturers.

The road ahead

Our message is simple: let us reclaim BBBEE as a national mission for industrial renewal. Let us link empowerment to productivity, localisation to sustainability, and inclusion to innovation.

The next phase of transformation must be about building black-owned exporters, green manufacturers, and a generation of young technicians ready for the digital and green mobility era.

We need to move from counting scorecards to building real capacity, because transformation is not only about fairness, it is about South Africa’s readiness for the future.