Broad-Based Black Economic Empowerment (B-BBEE) is more than a compliance requirement—it’s a strategic opportunity for businesses to grow while uplifting the communities they serve. One of the most impactful elements within the BEE scorecard is Skills Development. But how does it work, and why does it matter?

Let’s break it down.

What Is Skills Development in the Context of BEE?

Skills Development is a priority element under the B-BBEE Codes of Good Practice. It rewards companies that invest in the training and upskilling of Black employees and unemployed Black South Africans.

This investment isn’t just about ticking boxes—it’s about creating a sustainable pipeline of skilled individuals who can contribute meaningfully to the economy. For companies, it’s also a powerful way to meet transformation goals while gaining long-term value.

Why It Matters

Skills Development carries 20 points (plus 5 bonus points) on the BEE scorecard. That means it plays a significant role in determining your company’s BEE level. By actively participating in skills development initiatives, businesses can improve their score and gain competitive advantages, such as:

• • • Access to government contracts and tenders
    • Greater appeal to BEE-conscious clients and investors
    • Enhanced workforce capability and retention
    • Improved social impact and brand reputation

What Qualifies as Skills Development?

For an initiative to qualify under the BEE codes, it must:

• • • Be targeted at Black South Africans (as defined by the codes)
    • Be aligned with learning programmes defined in the National Qualifications Framework (NQF)
    • Be measured in actual spending, not just planned activity
    • Be verifiable with proper documentation and reporting

Qualifying programmes include:

• • • Learnerships
    • Internships and apprenticeships
    • Short courses and skills programmes
    • Bursaries and scholarships
    • Workplace training that leads to a qualification

Key Requirements to Earn Points

To benefit fully from this scorecard element, companies should:

• • • Spend a defined percentage of their annual payroll on training for Black individuals. The target is usually around 3% to 6% of the leviable amount, depending on the size of the business.
    • Track the demographic breakdown of learners (including gender, age, and disability status) to ensure alignment with BEE targets.
    • Prioritise accredited training that leads to recognised qualifications, especially learnerships registered with the SETA (Sector Education and Training Authority).
    • Employ or assist unemployed learners where possible, which can earn additional bonus points.

Practical Example

A company with a R10 million payroll may need to spend around R500,000 on skills development for Black employees and learners. By enrolling youth in accredited learnerships or offering internal training programmes, the company boosts its BEE score while developing future talent.

It’s Not Just Compliance, It’s a Strategic Investment

Skills development isn’t only about meeting legislative targets. It’s about building a skilled, empowered workforce that contributes to business growth and national development. When implemented effectively, it becomes a win-win: individuals gain access to meaningful careers, and companies benefit from greater efficiency, innovation, and market reach.

A Better Future Starts with Better Skills

Transformation is a journey, and skills development is one of its most important steps. By choosing to invest in people, your business is not just improving its BEE score, you’re creating long-term value, changing lives, and shaping South Africa’s future.

If you’re looking for a trusted training partner to help you meet your BEE skills development targets, iFundi offers accredited, high-impact programmes tailored to your business needs.

Schedule a consultation.

Published: May 12,2025