Broad Based Black Economic
Empowerment (BBBEE)
Presented by: Philip Prinsloo
What is BBBEE
• “An integrated and coherent socio-economic process
that directly contributes to the economic transformation
of South Africa and brings about significant increases in
the number of black people that manage, own and
control the country’s economy, as well as significant
decreases in income inequalities” (the dti, 2003)
Section 1 of the BEE ACT
“… a generic term which means Africans, Coloureds,
Chinese and Indians who are:” citizens of the republic of South Africa
by birth or descent; …
BEE Legislative Framework
Broad-Based
BEE Act
Broad-Based
BEE Strategy and
Scorecard
The Codes of Good
Practice
Industry
Charters
(To be negotiated)
• Enabling framework for the promotion of BEE
• Empowers Minister to issue Codes of Good Practice
• Establishes the BEE Advisory Council
• Defines Government’s Broad-Based Strategy
• Provides the generic balanced-scorecard
• Further
interpretation of the BEE Act
• Determines criteria for BEE measurement
• Details of scorecard verification
• Outlines industry-specific BEE weightings and
targets
•Standardises industry BEE initiatives and reporting
7 Pillars Of Broad Based BEE
(Codes of Good Practice)
Applicable Categories
•
•
Annual Turnover > R35m
Measured on all seven elements
•
•
•
•
Annual Turnover > R5m up to R35m
QSE Scorecard: Select four of the seven elements
All elements weigh 25%
Choose 4 out of 7 elements
•
•
•
Annual Turnover of R5m and less
"Level Four Contributor”
> 50% Black owned - "Level Three
Contributor"
Generic
Qualifying Small
Enterprises
Exempted Micro Enterprise (EME)
5
The BBBEE Scorecard
The BEE Scorecard measures overall BEE Contributions out of 100 points allocated in terms of the
weightings and targets.
Generic
QSE
Ownership
20
25
Management
10
25
Employment Equity
15
25
Skills
Development
15
25
Preferential
Procurement
20
25
Enterprise
Development
15
25
Socio-Economic Development
5
25
Criteria
Total
100
100
(best 4)
Alignment of PPPFA Regulations and B-BBEE
CALCULATION OF POINTS FOR B-BBEE RATINGS
Strategic Objectives

Strategic Objective One (SO1)


“Creating opportunities for growth and jobs”
Economic Empowerment unit’s Strategic Objective:

“To create an enabling environment for sustainable economic empowerment
through the promotion of procurement opportunities to local businesses.”
Physical
Service Offerings
Access
Economic Empowerment Unit
Supplier
Development
Program
Access to Business
Finance & Incentive
Schemes
Realisation
Procurement
Promotion,
Advocacy &
Awareness
Procurement Promotion Strategy
Access to Business Finance &
Incentive Schemes
Supplier Development Programme
(Access to Market Opportunities)
•
Incubation
•
Match-Making
•
Black Supplier Database
•
•
•
•
•
•
•
NEF & ED Fund
Khula
SAMAF
IDC
NYDA
the Dti
Banks
Procurement Promotion &
Stakeholder Relations
(Youth, Women, PLWD, Rurally
located)
•
•
•
Tender Website
Municipalities
Chambers of Commerce
Enquiries
☎ 0861 888 126
☒ redtape@pgwc.gov.za
www.westerncape.gov.za
Thank You
Philip Prinsloo
☎ 021 483 9238
☒ Philip.Prinsloo@pgwc.gov.za
www.westerncape.gov.za/tenders