BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE)
New amendments to the B-BBEE Act and the Codes have had the effect of fundamentally changing the current B-BBEE framework. These changes indicate that our Government has a strong intention to promote and implement B-BBEE.
Previously the policy was based on the “voluntarist” principle and the manner in which a company applied B-BBEE could be decided by the organisation based on its own business needs and the B-BBEE framework served simply as the methodology for measuring the BBBEE rating of that company.
The new B-BBEE framework introduces penalties in certain circumstances, which was not the case before. Although the B-BBEE Act and Codes do not impose legal obligations on businesses to comply with B-BBEE targets, a company’s B-BBEE status is an important factor affecting its ability to successfully tender for Government and public entity tenders and (in certain sectors like mining and gaming) to obtain licences.
Private sector entities are also starting to a minimum B-BBEE rating from their suppliers in order to boost their own B-BBEE ratings. B-BBEE is undoubtedly an important factor to be taken into account by any company conducting business in South Africa.
How B-BBEE works
The SkillsLink partnership is a leading industry provider of B-BBEE information management, training and administrative solutions for businesses, institutions, industry charter councils, and government organisations, both small and large.
Our partnership has many years of solid, practical experience with Broad-Based Black Economic Empowerment (B-BBEE) and through our daily dealings we have identified the common and (often unique) challenges that companies face when trying to administer their compliance and transformation objectives.
There are close to 900 000 tax-paying companies in South Africa and most of them will feel the impact of the new B-BBEE codes when they come into effect in 2015. While most organisations will be regarded by the codes as Qualifying Small Enterprises (QSE), larger entities will have to hastily adjust from the current scoring structure to take into account the change in weightings and targets of the new B-BBEE scorecard.
To make the transition easier for your company, we can help you with
For more about the above mentioned services, click on the button below to link to B1SA: