B-BBEE
What is B-BBEE?
What is B-BBEE?
The primary purpose of the BBBEE Act and the Codes is to address the legacy of apartheid and promote the economic participation of Black People in the South African economy.
Why is it important to comply with B-BBEE? Well, for starters with the implementation of the newly Amended B-BBEE Codes, companies will have to be pro-active in their approach to transformation in order to maintain:
- a good BEE score for enhanced business opportunities;
- access to state funding & public tenders;
- as well as, and most importantly, empowering the South African market.
Does it apply to your company?
The codes define three types of companies:
- EME (Exempt Micro Enterprises) with an annual turnover of less than R 10 million. These companies are automatically given a B-BBEE Level 1 with a 100% black shareholding OR a Level 2 with a 51% or more black shareholding OR a Level 4 with 50% or less black shareholding
- QSE (Qualifying Small Enterprise) with an annual turnover of between R 10 million and R 50 million. These companies are automatically given a B-BBEE Level 1 with a 100% black shareholding OR a Level 2 with a 51% or more black shareholding OR would be required to undergo a generic B-BBEE scorecard audit with 50% or less black shareholding
- Generic – companies with a turnover above R 50 million per annum undergo a generic B-BBEE scorecard audit.
How is it measured?
How is it measured
B-BBEE compliance is measured by means of a scorecard. The scorecard is based on various elements and measured out of a maximum of 100 points (excluding bonus points). The first step however would be to identify which scorecard you need to follow and the relevant associated targets.
What elements are measured?
- Management Control – this measures the directorship, executive management, other executive management, senior management, middle management, junior management and disabled staff in the business;
- Skills development – this measures the amount of money spent on training of black employees and black people. This is regarded as a priority element and failure to comply with the minimum target of 40% will result in the Level as obtained being discounted;
- Enterprise and Supplier development – this measures your spend on helping other black owned enterprises grow, both suppliers to you and non-suppliers. This is regarded as a priority element and failure to comply with the minimum target 40% in all categories will result in the Level as obtained being discounted;
- Socio-Economic Development – this measures your spend on assisting charitable organisations.
We can manage all the stipulated elements, conveniently on an online platform.
Our software ensures that your data security and privacy is at its optimum, Our data-centers are equipped with state of the art software and hardware security. Your data is transmitted via an encrypted channel and can only be accessed via our secure online portal.
The best way to predict the future is to plan it. Our software incorporates a best practice project execution methodology developed to keep Programmes on track, on target and on budget.
Services
All rights reserved iGrowData 2020 ©