According to the Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice, all entities must meet the criteria of being a good citizen and consequently, an empowering supplier. If you are not an empowering supplier, your client will not be able to claim any recognition for their purchases from you regardless of the black ownership within your entity.
For empowering supplier status the verification agency will require, the following (minimum):
- Valid Tax Clearance Certificate.
- Proof all CIPC annual returns paid up to date.
- Workplace Skills Plan.
- Department of Labour Letter of Good Standing (if available).
- Proof of Employment Equity submission (if available).
Generic entities should also meet 3, and Qualifying Small Enterprises (QSEs) entities should meet 1, of the following criteria:
- At least 25% of cost of sales excl. labour costs and depreciation is procured from local producers or local suppliers in South Africa. 50% of the jobs created during the past period are for black people, provided that black employment levels are maintained.
- At least 25% transformation of raw material or beneficiation, which includes local manufacturing, production and/or assembly and/or packaging.
- 50% of the jobs created during the past period are for black people provided that black employment levels are maintained.
- At least 12 days of productivity has been deployed in assisting Black EMEs and/or black QSE beneficiaries to increase their operational or financial capacity.
Workplace Skills Plan as a requirement for empowering supplier status
A Workplace Skills Plan (WSP) is defined as the following: a strategic document that articulates how the employer is going to address the training and development needs in the workplace.
Although only generic entities was previously required to submit a WSP and supply proof thereof to their BEE legal advisor to obtain points under the skills element, it is now compulsory for all QSE as well as Generic Entities to submit a WSP to enable them to get rated and obtain points on the skills element and also to qualify as a good citizen (for your empowering supplier status). This is for all ratings on the amended scorecard.
All automatic level 1 and 2 entities will therefore also have to submit the above mentioned plan for their empowering supplier status.
ABOUT THE AUTHOR
Esti Joubert has been appointed as a SEESA BEE Legal Advisor since June 2015. She obtained her LLB degree in 2011 and her LLM degree in 2014.