BLACK OWNERSHIP ON THE JSE DURING THE FIRST THREE DECADES OF DEMOCRACY

Why The Transformation Lens published this report

Over the past decade, South Africans have become confused by the dramatic differences between reported statistics of black ownership on the JSE. There is a now a bewildering maze of conflicting statistics, at the levels of the whole JSE, sectors such as mining and finance and individual companies. The measurement of black ownership has lost credibility and there is now no relationship between what companies disclose in their own their annual reports and the statistics that appear on their BEE certificates. Recently, there has also been a proliferation of false statistics and urban legends about black ownership on the JSE and the economy that are polluting public discourse.

Alarmed by a decline in the quality of debate about BEE and black ownership on the JSE, Duma felt that he had to draw upon his unique experiences and expertise and conduct credible research on black ownership on the JSE which explained the different methodologies.

The Transformation Lens published the report that provides the most comprehensive ever analysis of black ownership on the JSE during the first three decades of democracy. The objectives are to change the narrative about BEE, accurately document what happened during the first three decades of democracy and to inform debates during the department of trade, industry and competition’s current review of BEE policies.

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Methodology

The methodology is based on actual ownership as reported by companies in their own annual reports. BEE only applies to the South African operations or assets of JSE-listed companies. The paper calculates the value of South African operations or assets and provides two measures of black ownership: at the level of the whole JSE and after excluding the value of foreign operations or assets. Where information is available, it also measures black ownership at the level of unlisted subsidiaries of JSE-listed companies. It provides statistics on black ownership within the critical mining and finance sectors. These sectors account for the majority of black ownership on the JSE.

Content

The paper provides a brief historical overview and an analysis of corporate restructuring after 1994. It then outlines the three phases of BEE dealmaking from 1994 to 2024 and presents statistics on black
ownership within the Top 60 JSE companies. The final section makes policy recommendations on how to redesign the ownership element of B-BBEE and kick-start a fourth phase of BEE transactions. The appendix below provides a more detailed explanation of what is in the report. We hope that this report will be useful for international audiences who are interested in BEE and South African political parties, policy makers and researchers, JSE-listed companies, BEE companies and investment bank

Appendix: Black Ownership within the JSE Top 60 Companies

The paper includes the following information with statistics on black ownership at the end of
December 2024

Dealflow statistics for the period 1994 to 2024
A qualitative analysis of BEE transactions during the following phases
a. The first phase of BEE transactions (1994 – 2002)
b. The second phase of BEE transactions (2003 – 2008)
c. The third phase of BEE transactions (2009 – 2024)
The market capitalisation of the JSE Top 60 companies
The BEE market capitalisation of the JSE Top 60 companies
PIC market capitalisation within the Top 60 JSE companies
The market capitalisation of JSE-listed companies with no SA assets
The value of SA assets within the JSE Top 60 companies
a. Mini case studies of every company which explain the methodologies used to calculate the value of SA assets
BEE market capitalisation of transactions concluded at the level of unlisted subsidiaries or other operations of Top 60 JSE listed companies
Summary of black ownership at the listed and unlisted levels as percentages of the JSE and SA assets
Black ownership within the mining sector
Black ownership within the financial sector
The top 15 transactions by value since 1994
The best BEE transactions of all time
The worst BEE transactions of all time
Black ownership by broad-based ownership schemes (BBOS) and strategic black partners (SBPs)

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Trusted perspectives from
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Hear from readers and industry voices on the value of evidence-based analysis in understanding BEE, ownership and South Africa’s transformation future.

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“

Sound research must be our tool for silencing the needless noise and illuminating the dark and this is what Mr. Gqubule’s research tells us. This report cuts through the corporate smoke and mirrors and provides the public, policymakers, and corporate leaders with the objective, empirical truths and the truth is heavy but it must be borne if we are to effect the change our society needs to transform. So, Iurge those who read this report to do so with honesty and an open mind.

Transformation requires radical transparency. Afterall, if we continue to deny the reality of who commands our economy, we won’t be able to address the dire need for change in ownership, management, and control. My call to action is let the data speak for itself and let's move past compliance-driven box-ticking to building an economy that genuinely belongs to all who live in it.
Monde NdlovuMD of the Black Management Forum

“

By interrogating the Top 60 JSE-listed companies, representing R17.1 trillion or 92.3% of total market capitalisation, this report provides an uncompromising, evidence-based dissection of ownership inside the engine room of our economy. Its rigorous methodology, distinguishing global corporate structures from underlying domestic operations, offers an authentic view of South Africa's true economic reality. The findings challenge us to re-engineer the architecture of B-BBEE: while passive ownership pillars have served their historical purpose, the next iteration must pivot decisively toward active ownership, operational command, and long-term value creation
Anthony GovenderCEO of ASI

“

Drawing on extensive research, company disclosures, annual reports and a detailed examination of empowerment transactions undertaken since the dawn of democracy, the study provides one of the most comprehensive assessments to date of black ownership within the JSE Top 60 companies. Importantly, it moves beyond a narrow focus on headline ownership figures to examine the evolution, structure and composition of ownership over time. The findings reveal a far more nuanced reality than is often reflected in public discourse.

While individual transactions and prominent empowerment beneficiaries have attracted significant attention over the years, the report demonstrates that a substantial portion of economic empowerment has been achieved through broad-based ownership schemes, employee share ownership programmes, community trusts, public participation vehicles and other collective ownership structures. These initiatives have enabled millions of South Africans to gain a stake in the economy and participate in wealth creation in ways that are not always visible in conventional ownership analyses
Transformation requires radical transparency. Afterall, if we continue to deny the reality of who commands our economy, we won’t be able to address the dire need for change in ownership, management, and control. My call to action is let the data speak for itself and let's move past compliance-driven box-ticking to building an economy that genuinely belongs to all who live in it.
Mziwabantu DayimaniCEO of the National Empowerment Fund