Large-scale broad-based black economic empowerment transactions, like Vodacom’s multi-billion-rand BEE deal restructuring its shareholder base in 2018, illustrate how major corporates use equity ownership schemes not just to meet compliance requirements, but to build long-term, broad-based ownership across employees and community investment structures.
Why large BEE transactions get restructured over time
BEE ownership schemes typically run on fixed terms and eventually unwind, so companies with a long-standing empowerment structure need to negotiate a new deal as the old one matures, often at a significantly larger scale reflecting the company’s growth since the original transaction. Restructuring existing BEE partner shareholdings into a group-level structure, rather than a purely local subsidiary-level one, can also better align empowerment ownership with a company’s broader continental or international growth strategy.
What broad-based BEE deals typically aim to achieve
The most effective large BEE transactions combine existing institutional BEE partners with new structures specifically benefiting employees, spreading ownership benefit beyond a small group of original empowerment partners toward a genuinely broader base of beneficiaries. This kind of structure aims to deliver both continuity, existing partners retain meaningful value, and genuine broadening, new structures extend benefit to employees who weren’t part of the original scheme.
What this means for SMEs and smaller businesses considering their own BEE strategy
While most SMEs won’t structure BEE transactions at this scale, the underlying principle, building genuinely broad-based ownership and benefit rather than a narrow, symbolic empowerment structure, remains directly relevant when smaller businesses design their own BEE compliance approach. Businesses should consult the Broad-Based Black Economic Empowerment Codes directly when structuring any ownership scheme, since compliance requirements and scoring methodology are reviewed periodically.
Frequently asked questions
Why do large BEE transactions get restructured over time?
BEE ownership schemes typically run on fixed terms and unwind eventually, requiring a new deal to be negotiated as the company and its empowerment needs grow.
What do broad-based BEE deals typically aim to achieve beyond compliance?
Combining existing institutional partners with new structures that extend ownership benefit to employees, broadening who genuinely benefits from the scheme.
Is BEE restructuring only relevant to very large corporates?
The scale differs, but the underlying principle of building genuinely broad-based rather than narrow ownership applies to businesses of any size.
Where should businesses check current BEE compliance requirements?
Directly against the Broad-Based Black Economic Empowerment Codes, since requirements and scoring methodology are reviewed periodically.
Does restructuring a BEE deal at group level rather than subsidiary level matter?
It can, particularly for companies with significant operations beyond South Africa, aligning empowerment ownership with broader growth strategy.
Originally published in June 2018. Updated September 2026.
Economic empowerment policy via the Department of Trade, Industry and Competition.
