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