Broad-Based Black Economic Empowerment (B-BBEE) is a stepping-stone to assist the South African Economy by creating a framework to rights the wrongs of the past. B-BBEE seeks to promote the effective participation of black people in the economy and thereby economic growth.
Keeping the above in mind it is clear that all the B-BBEE elements were well thought of and still holds relevance today:
- Ownership: Black people will have the right to enjoy the economic benefits that result from their participation as owners by accruing the right to use and enjoy the assets and resources of the business;
- Management and Control: This element ensures that black people are involved in the control of the business and decision making and it is a route that businesses can use to promote black individuals within the organisation, thereby increasing the individual’s financial position;
- Skills Development: The promotion of training and development within a business to upskill black employees, black employees with disabilities and black people are beneficial overall. Due to the current COVID-19 pandemic, businesses can help black people by assisting with bursaries or training which will be a financial relief to them and will assist them when seeking employment;
- Procurement: This element encourages businesses to procure from other businesses who are also B-BBEE compliant and preferably black male and female-owned thereby assisting black businesses by supporting them. This element also encourages local procurement within the country;
- Enterprise and Supplier Development: This is an opportunity for businesses to assist a more than 51% black-owned business that has a turnover under 50 million. This is any kind of extra assistance that will help the Black Owned business grow into a self-reliant business that contributes towards the economy of South Africa.
A supplier development beneficiary is part of the business supply chain, whereas the enterprise development beneficiary is not.
The monetary or non-monetary assistance promotes development, sustainability, financial, and operational independence to the beneficiary. This element will especially be relevant and of need with the current looting situation that occurred in KZN and Gauteng to enable the small black-owned businesses to get back on their feet. - Socio-Economic Development: The objective of this element is to promote sustainable access to the economy to the broader socio-economic context of the society in South Africa through monetary or non-monetary contributions primarily benefiting black people;
In conclusion, B-BBEE is overall beneficial to your business and the greater South Africa. As a business operating in South Africa, it is our responsibility to sustain and grow the economy that we trade-in.
Contact your SEESA Legal Advisor for any BEE related queries that you might have, alternatively, please leave your contact details on our website.
About the author:
Solita Narayan started her career at SEESA in 2020. She is a Legal Advisor in the BEE department. She graduated with an LLB Degree from the University of KwaZulu Natal.
Resources:
-Broad-Based Black Economic Empowerment Act 46 of 2013 [‘B-BBEE Act’]