The Future of Inclusive Boards in South Africa

Why Inclusivity Matters

Inclusive boards are not just a compliance box to tick, they are the heartbeat of sustainable governance, innovation and trust. In South Africa, a country shaped by both systemic exclusion and a commitment to redress, board composition carries symbolic and practical weight. The conversation is no longer only about who sits at the table, but how their presence translates into meaningful impact at every level of the organisation.

The Current State of South African Boardrooms

Recent research paints a picture of gradual progress:

• Gender: Women now hold about 37% of all board seats across the JSE Top 50, with 40% among non-executive directors. Yet only 5 out of 45 CEOs and 10 out of 39 CFOs are women.

• Race / HDSA Representation: About 32% of directors in the JSE Top 50 are from historically disadvantaged backgrounds - a concerning decline from 36% the previous year.

• Qualifications & Experience: The average new appointee is in their mid-50s, with a postgraduate degree and extensive executive or boardroom experience. Very few are first-time directors, making entry into the board pipeline increasingly difficult.

• Public Sector Boards: Appointments increasingly require postgraduate qualifications in law, finance or governance, but remain vulnerable to political influence and scrutiny.

  
  

South Africa’s boards are therefore slowly diversifying, but gaps remain stark at the executive level and in ensuring that inclusion translates into transformation.

Workforce Demographics vs Board Demographics

South Africa’s population is 51% female and over 80% Black African, yet these demographics are not mirrored in leadership roles. At management and executive levels, representation drops significantly and the gap is most pronounced in high-influence board appointments.

This mismatch raises a critical question: Are boards truly reflecting the workforce and society they serve or are they diversifying at the margins while real decision-making power remains unchanged?

Influences on Board Appointments

Several forces shape who gets a board seat:

• Industry requirements: Highly regulated industries (banking, telecoms, energy) demand specific technical and financial expertise.

• Governance frameworks: King IV, JSE listing rules and B-BBEE codes all exert pressure for diverse appointments.

• Networks & experience: Board placements still lean heavily on existing connections and prior boardroom exposure.

• Political factors: State-owned enterprises face the strongest political influence, with appointments often questioned in terms of both merit and independence.

Beyond the Numbers: Effectiveness vs. Quotas

While these statistics reflect important progress, numbers alone cannot be the victory lap. Meeting quotas without changing how boards influence management risks creating a hollow kind of inclusivity.

As an advisor, I believe the weight of inclusivity should always be measured against its effectiveness:

• Are diverse voices empowered to influence strategy or sidelined in board sub-committees?

• Do inclusive boards model values that filter into executive decision-making and organisational culture?

• Are the economic goals of the business strengthened because inclusivity has sharpened innovation, risk management and accountability?

It is not enough to celebrate that a woman or historically disadvantaged director has been appointed - the true measure is whether their presence meaningfully shifts the DNA of the organisation.

Practical Challenges

1. Pipeline Limitations: Many skilled professionals are overlooked due to lack of board experience, creating a cycle where only the already-included are recycled.

2. Balancing Independence & Expertise: Boards need both insiders with sector expertise and independent directors who safeguard governance.

3. Overemphasis on Credentials: While postgraduate degrees are important, lived leadership experience, entrepreneurial skill and sectoral insight should not be undervalued.

4. Culture & Bias: Representation without psychological safety leads to tokenism, not transformation.

Political & Economic Influences

South Africa’s history ensures that politics will remain intertwined with board appointments. This brings both opportunity and risk. On one hand, policies such as B-BBEE are essential for redress. On the other, politically-driven appointments sometimes undermine effectiveness when competency is sacrificed for compliance.

The future lies in integrity-driven appointments: combining the imperatives of transformation with the demands of competence and independence. Boards that achieve this balance not only comply but also strengthen economic performance.

The Path Forward

• Redefine Success: Inclusivity should be measured not just by percentages, but by whether it catalyses organisational change.

• Develop Pipelines: Invest in mentorship, training and readiness programmes for emerging directors.

• Prioritise Transparency: Companies should disclose not only who sits on their boards, but how inclusion shapes strategy and outcomes.

• Link to Economic Goals: Inclusive governance should be presented as a driver of growth, competitiveness and resilience - not merely a social responsibility.

Conclusion

The future of inclusive boards in South Africa depends on our ability to move from optics to outcomes. Diversity and representation must be seen not as an academic exercise or quota achievement, but as a living force that strengthens decision-making, aligns with national transformation and secures the long-term sustainability of our economy.

At Kulima Capital, we hold a simple truth: a board is only as inclusive as its ability to influence healthy, effective change throughout the organisation.

If your organisation is ready to embrace this future, I invite you to consult with me. As a world-class African, millennial, Masters-level, entrepreneurially experienced advisor, I bring deep insights drawn from extensive exposure to diverse business models and industries. This perspective enables me to help shape governance strategies that are not only inclusive on paper, but transformative in practice - preparing your organisation to thrive in South Africa’s evolving economy.