An Exempted Micro Enterprise (EME) or Qualifying Small Enterprise (QSE) that qualifies for an automatic level 2 due to having 51% black ownership, is required to comply with 40% of the QSE Skills Development target as a compulsory priority element to avoid discounting. How to achieve level 1. The Amended Construction Sector Charter provides that an EME can choose to enhance its status by one of the following ways: Obtain measurement in terms of Skills Development expenditure as per the QSE...

It is very important to keep in mind that Broad-Based Black Economic Empowerment (B-BBEE) is not a once-off process but a continuous process that has to be implemented and monitored throughout the financial year. Required contributions The following elements require contributions to be made within the financial year: Skills Development Enterprise & Supplier Development Socio Economic Development If a contribution was not made in a financial year you will not be able to use it when you are...

South Africa was engaged in a racially segregated system called Apartheid from 1948 until 1994, where one’s race determined social, economic and political advantages and/ or disadvantages. In 1994, the first democratic government was elected in South Africa. This government implemented Broad-Based Black Econoic Empowerment (B-BBEE) in 2003/2004 as a racially selective program initiated to empower those previously disadvantaged groups. The B-BBEE Codes of Good Practice perpetuate in 2007 as an...

The Amended Construction Sector Codes have brought about significant changes to the Supplier Development element. Generic Enterprises now have to ensure that their assistance meets the requirements of a compliant Supplier Development programme. A Generic Enterprise is regarded as the following: Contractors - revenue above R50 million; Built Environmental Professional (BEPs) - revenue above R25 million. The requirements for a Supplier Development programme are : The measured entity may not hold...

All entities participating in the Broad-Based Black Economic Empowerment (B-BBEE) verification process are aware of how important preferential procurement is to the entity’s scorecard, and the level they will obtain. Keeping this in mind, entities should always ensure that they have a proper supply chain as well as supply chain management system in place. All employees working with suppliers and purchasing must always ensure that the suppliers they are procuring from have valid B-BBEE...

The Amended Agri-BEE Sector Code of Good Practice (“Agri-BEE Code”) was gazetted on 8 December 2017 with immediate effect. The elements that differ most from the Amended Codes of Good Practice are found in the Ownership, Skills and Supplier & Enterprise Development Elements. Exempted Micro Enterprises (EMEs) with a turnover less than R10 million, and Qualifying Small Enterprises (QSEs) with a turnover of between R10 and R50 million, which are at least 51% black-owned automatically qualify...