More often than not, we are told by clients that they don’t see why they should be Broad-Based Black Economic Empowerment (B-BBEE) compliant. They argue that it is an expensive process to become BEE compliant and they feel it is a worthless exercise and not worthwhile. If you have a good BEE scorecard to possibly qualify for tenders there are certainly prospects in exploring tender opportunities. To eliminate the unfairness of the awarding of tenders, companies should know that they have...

It is important to ensure that you have your Enterprise & Supplier Development in place for your Broad-Based Black Economic Empowerment (B-BEE) verification.  Under the Codes of Good Practice generic scorecard, you are able to obtain 5 points under Enterprise Development and 10 points under Supplier Development. This is 15 points that can be guaranteed if you comply with the requirements.  The first requirement is that the Enterprise, as well as the Supplier Development Beneficiary,...

On 29 March 2018 the minister of Trade and Industry announced another amendment to the amended codes of good practice. As it stands, EME and QSE entities which is at least 51% Black Owned or even 100% Black Owned qualifies for an automatic level 2 or 1 when their turnovers respectively does not exceed R10 million of R50 million per annum.  They are thus exempt to comply on the rest of the 4 elements bases on their ownership percentage. The new announced amendment gives to all generic...

Since the inception of the revised codes, companies have placed more time and resources into their Broad-Based Black Economic Empowerment (B-BBEE) journey. However, after 3 years companies have realised that arguably the most important sub-element of the B-BBEE scorecard is Preferential Procurement, under the Supplier & Enterprise Development element. Previously very little attention was given to this element. However, seeing as this forms part of a priority element and also provides...

Broad-Based Black Economic Empowerment (B-BBEE) legislation is important for businesses and has an impact on the operations of businesses. It is intended to stimulate the process of participation of previously disadvantage groups in the economy and lead to increased economic growth. It is important to note that BEE compliance is technically not compulsory for privately-owned businesses, but it is important for businesses to participate in BEE as it has a big financial impact on the business....

It is very important for a business to be aware of which Broad-Based Black Economic Empowerment (B-BBEE) Codes are applicable to their specific business. The following amended Sector Codes have been gazetted by the Department of Trade and Industry to date: Agriculture Construction ICT (Information Communication and Technology) Finance MAC (Marketing Advertising and Communication) Property Tourism The draft amended Transport Sector Code have been gazetted but not yet finalised. This means that...