Strategic + Transformational + Transactional = BBBEE Excellence
Your company needs to be B-BBEE compliant to operate competitively in today’s robust market. Your B-BBEE approach must be a best-of-breed model that incorporates the STRATEGIC (supports the business’ long-term core objectives i.e. sustainability) + TRANSFORMATIONAL (diversity and inclusion focused) + TRANSACTIONAL (focused on scorecard points in the short-term) into a workable plan with clear →
The R50 Million B-BBEE Question
The R50 million B-BBEE question is: If an EME were to get a formal B-BBEE certificate, instead of a sworn affidavit, would it be acceptable? The Amended B-BBEE Codes states that “An EME is only required to obtain a sworn affidavit…” and “a QSE is only required to obtain a sworn affidavit” if 51% or →
Understanding The Modified Flow Through Principle
What is it? Let’s start with the flow through principle. It says, for example, if a company (A) is 24% black owned and it owns 10% of another company (B), then Company B is 2.4% black owned. (24% times 10%.) If Company A is 100% black owned and it owns 25% of Company B, then →
B-BBEE Practice Guide 02 of 2016 With Regards To Certificates For Exempt Micro Enterprises and Qualifying Small Enterprises
This practice note was 1st issued by the B-BBEE Commission and is published here with their acknowledgement. The Broad Based Black Economic Empowerment Commission (“B-BBEE Commission”) is an entity established by the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013 (“the Act”), to oversee the implementation of the →
Empowering Supplier VS Value-Adding Supplier
Empowering Supplier VS Value-Adding Supplier The Amended Codes of Good Practice, Gazette No.36928 introduces criteria to qualify as an Empowering Supplier and no longer includes the Value Adding status that was included in the previous Codes of Good Practice, Gazette No. 29617. What exactly do these terms mean and what do they mean to your →
With over 10 years’ experience in the B-BBEE and Empowerment Advisory industry my position is that although there are a lot of SMMEs that qualify for ESD contributions, good quality ESD beneficiaries with the requisite qualifications, skills, experience and strategic fit continue to be in short supply. I have therefore provided brief summaries of 08 →
BBBEE And The Board Of Directors
This Practice Note was first published by the Institute of Directors in Southern Africa (IoDSA) in October 2010. It is published here with their acknowledgement. Copyright by the Institute of Directors in Southern Africa. Broad-Based Black Economic Empowerment (B-BBEE) Introduction In South Africa, where social and economic imbalances existed for many decades, transformation is a →
What Is Supplier Diversity And Why Is It Important?
Supplier Diversity is a business strategy that ensures a diverse supplier base in the procurement of goods and services for any business or organization. Supplier Diversity emphasizes the creation of a diverse supply chain that ensures the inclusion of diverse groups in the procurement plans for government, not-for-profits and private industry. Statistics show that companies →
How The South African Government Is Planning To Uplift Entrepreneurship In 2015
By Stephen Timm The Department of Small Business Development in South Africa may have to cut some of its planned projects to support small businesses, after the National Treasury last month effectively slashed a third off its requested allocation from the fiscus. What can we expect to see in the coming year then? Finance Minister →
BBBEE Fronting
The Broad-Based Black Economic Empowerment Act 53 of 2003 (2003 Act) together with the generic codes of good practice and the sector codes, provide the legislative framework for Broad-Based Black Economic Empowerment (BEE) in South Africa. The Broad-Based Black Economic Empowerment Amendment Act, 46 of 2013 (the Amendment Act) which brings about significant changes to BEE, →