Broad-Based Black Economic Empowerment (B-BBEE) Ownership has become a reality to most companies operating in South Africa. As a result of the pressure for businesses to produce not only compliant BEE certificates, but certificates which provide a good score on the procurement element of their client’s BEE ratings, together with the downgrading of the recognition level of a business who does not comply with the sub-minimum requirement of 40% of the target on the Ownership element, businesses...

Companies must ensure that they adhere to all the requirements when making contributions toward Socio-Economic Development (SED) to obtain the maximum points available. You need to determine what type of entity your business will be classified as. The thresholds for Qualifying Small Enterprises (QSEs) are: For Contractors - a total annual revenue of between R10 million and R50 million per annum. For Built Environment Professional (BEPs) – with a total annual revenue between R6 million and R25...

In terms of the Broad-based Black Economic Empowerment (B-BBEE) Amended Construction Sector Code, specific thresholds determine whether an entity is classified as an Exempted Micro Enterprise (EME) for Built Environment Professionals (BEPs) and Contractors. These thresholds are: Type Turnover Black Ownership Level BEP Below R6 Million Below 30% 5 BEP Below R6 Million 30% - 50% 4 BEP Below R6 Million 51% or more 2 BEP Below R6 Million 100% 1 Contractor Below R10 Million Below 30% 5 Contractor...

It will be fair to say that 2018 started with much more certainty than 2017 did. At the same time last year various Broad-Based Black Economic Empowerment (B-BBEE) Sector Codes were only in draft format and not yet aligned with the amended Codes of Good Practice. Out of a planning and budgeting point of view, it made life very difficult for all entities operating in any of the affected industries. Since April 2017, 5 additional amended Sector Codes were published in the Government Gazette. The...