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DeliveringonthePromiseof
CorporateSocialInvestmentinSouthAfrica
CollaboratingtoacceleratesocialimpactMarch2025
2
ThreedecadesaftertheofficialendofapartheidinSouthAfrica,thecountryhasmadesignificantstridesindeliveringeducation,housing,andsocialbenefitstoaconsiderableshareofsociety.Asthenationsetouttobuilddemocraticinstitutions,the
SouthAfricangovernmentalsosoughttospurbusinessestoparticipateinthecountry’ssocialandeconomicdevelopment.Policiesevolvedovertime,leadingtotheBroad-BasedBlackEconomicEmpowerment(B-BBEE)Actin2003.
TheB-BBEEActcreatedasetofpracticesthatstronglyencouragecorporatesocial
investment(CSI)toenablemeaningfulparticipationofBlackpeopleintheSouthAfrican
economyaswellastosupportcommunitydevelopment,education,andpovertyalleviation.Complianceisvoluntary,buttheactcreatedascorecardsystemthatofferstaxbreaks,
andaccesstogovernmentcontractsandfunding,tocompanieswithhighmarks.CompaniesearnscorecardpointsincategoriessuchasBlackownership,Blackmanagementparticipation,purchasesfromBlack-ownedbusinesses,skillstraining,anddevelopmentforunderservedcommunities.1
By2024,CSIexpenditureshadrisentonearly13billionrand($686million2),accordingtoTrialogue,acorporateresponsibilityconsultancythatconductsindustryresearch.Thebulkofthatspendingwenttoeducation,communitydevelopment,andfoodsecurityinitiatives.(Impressiveasthatnumberis,growthinCSIhasbeenflat,afteradjustingforinflation,formorethanadecade,untilanuptickin2024.)3
Bysomemeasures,spendingonB-BBEEcompliancehashelpedtogrowamoreequitableandinclusiveeconomy.A2021studyfoundthatthenumberofBlack-ownedformal
businessesdoubledfrom2002to2019,and“representationofBlackpeopleinmanagement,execut
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