What is B-BBEE?
This is a Broad-Based Black Economic Empowerment is a form of economic empowerment initiated by the South African government in response to criticism against this legislation was the response to the previously disadvantaged group of people in this country during apartheid times.
B-BBEE falls under Act 53 of 2003 this act was a government intervention as the results of past racist regimes. However, the act is highly controversial in nature and some consider its racial preference statements as a direct contradiction to the UN’s Universal Declaration of Human Rights.
What is B-BBEE Legislation?
The B-BBEE Legislation serves as a guideline and driver for developing Codes of Good Practice that describe measurement criteria, targets, audit requirements and definitions for each of the 7 pillars in detail. Further to this, the codes of good practice have also been released with regards to complex structures, broad-based ownership schemes, fronting practices and verification agencies.
How are the B-BBEE Legislation codes developed?
There is a BEE task team that is responsible for developing the Codes that are then set up by the South African Department of Trade and Industry (DTI) comprises and individuals representing various areas (private and public sectors, various industries, research, and BEE measurement).
On 1 May 2015, B-BBEE amended Code of Good Practice which consists of the 5 elements which most of the focus has been placed on Ownership and Skills Inspiredex measure B-BBEE Legislation by these elements and the criteria have detailed targets which need to meet and on which companies will be assessed and rated. Once the revised codes are gazetted, the seven pillars will become five through the merger of Management Control and Employment Equity and Preferential Procurement with Enterprise Development.
– Ownership – 25 points
– Management control – 19 points
– Skills Development – 25 points
– Enterprise and Supplier Development – 40 points
– Socio-economic development – 5 points
What does B-BBEE Legislation do to your business?
Working with Inspiredex which is a SANAS Accredited B-BBEE Agency the B-BBEE legislation regulations provides a well-structured framework whereby businesses must position themselves in terms of achieving the goals of Broad-Based Black Economic Empowerment and receiving full recognition for their contributions towards the goals in this regard. B-BBEE is not for coffee table discussions and should be a standing agenda item for board and management meetings. Strategic planning is required to enable your business to maximize its B-BBEE rating in terms of the legislation and charters that are applicable to your business.