According to the Codes of Good Practice, all entities operating in South Africa need to contribute toward the objectives of Broad-Based Black Economic Empowerment, known as B-BBEE. This includes the Ownership element, which poses a problem for a Multinational Company (a foreign-owned company). First, we need to look at the definition of a Multinational Company. According to Investopedia, the definition of a Multinational Company is a company that has facilities and other assets in at least one...

The annual conference of the B-BBEE Commission was held on the 1st of April 2022. The conference’s purpose was to reflect on the 18 years in which the B-BBEE codes have been applied and the period after which the Commission was established. The conference’s main aim was to reflect on the challenges faced, progress made and to identify plans to improve economic transformation moving forward. The impact of the priority elements on the B-BBEE codes was also an important aspect. It was reported...

There is a common misconception or misunderstanding that companies have regarding B-BBEE and the level that they will receive. Most companies believe that should they be 100% or 51% black-owned, they would receive an automatic level 1 or 2 based solely on their ownership and, that no other element in the B-BBEE scorecard must be complied with. However, when dealing with the subject of BEE, the starting point for any company will always be to consider which sector code it operates within and...

The B-BBEE Transport Sector includes many sub-sectors such as Road Freight, Aviation, Rail, Coach, etc. This sector is unique because the amended codes have not yet been gazetted, and entities under this sector will therefore be measured on the old Transport Sector Codes. For this reason, there are differences in the relevant thresholds and certain advantages available to the benefit of the measured entity. For an entity to determine whether it will be categorised under the Road Freight...