B.B.B.E.E IS THE WAY FORWARD…
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BEE has been on the agenda of government
since 1994. The detail for implementation is
to be found in Codes of good Practice which
were gazetted in February 2007. The aim of
BEE has always been to redress the economic
exclusion of the majority of South Africans,
by doing that it was believed that a more
evenly shared & stronger economy would be
created and this would lead to job creation.
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AS FROM THE 7TH OF December 2011 the government
came up with a law that states that all business
should have a BBBEE certificate. Therefore when
applying for government tenders and Data Base
application or even to show your suppliers that you
are BEE compliant, which is very important.
Having a BEE certificate as become one of the
requirements in doing business in South Africa. This
is a very smart way used to get and encourage South
African Businesses to become BEE compliant (having
a BEE Certificate), therefore all businesses in S.A who
gets a BEE certificate will need their supplier’s BEE
certificate.
GOVERNMENT
Supplier A
SUPPLIER B
SUPPLIER C
Exempted Micro Enterprise
Level 3
QUALFYING SMALL ENTERPRISE
LEVEL 4
GENERIC
LEVEL 6
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It has been said that, “B-BBEE legislation is
the most significant piece of legislation
affecting South African business today.”
The Broad-based Black Economic
Empowerment Act, Act 53 of 2003 (“BBBEE”), affects all business and individuals
in South Africa. It is not just vital for the
country’s integrated prosperity but a
catalyst for economic growth.
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There are Benefits of having a BEE certificate
for your company, you will received more value
adding goods and services, decrease crime by
employing more people (skills development)
and training in productive activities, also you
are able to the Global Market.
BEE can be used as a marketing tool for your
company. As a client of BEE EMPOWERED, your
company’s name will be listed on our website’s
BEE Directory and will be available to all those
searching for BEE compliant suppliers.
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Exempt Micro Enterprise (EME). Below 5
million. White owned level 4 & black owned
level 3.
Qualifying Small Enterprise (QSE) Above 5
million but below 35 million. 4 elements
Generic (Above 5 million). 7 elements
The nature of your business
 Architecture
 Engineering
 Landscape surveyors
 Quantity surveyors
 Town & Regional planners
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Exempted Micro Enterprise . (EME below 1.5
million) White owned level 4 and Black owned
level 3
Qualifying Small Enterprise. (QSE above 5
million but below 11.5 million) 4 elements
Generic (exceed 11.5 Million) 7 elements
Should you fall under the Qualifying Small
Enterprise or Generic category then you will
need to be compliant on the following
elements
1.
2.
3.
4.
5.
6.
7.
Ownership
Management control
Employment equity
Skill development
Enterprise development
Socio economic development
Preferential procurement
I will be explaining the seven elements of the
B-BBEE Scorecard, which are Ownership,
Management, Employment Equity, Skills
Development, Preferential Procument,
Enterprise Development and Socio Economic
Development. I hope that this will assist you
to comprehend the elements of the Scorecard
and helps you to know what needs to done in
order to Score good points from these
elements.
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The objective of this element is to expose Black
people to the economic Substance of ownership,
and we also look on the number of shares that
are in the hands of Black people.
Ownership Element measures the effective
ownership of enterprise by black people
“Black people is defined as Africans, Colored's
and Indians who are South African Citizens.
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The ownership Element is about sharing the
economic fruits of the country with Black
people , but it is also about sharing the
knowledge and successful ownership with
Black people though exposing them to active
participation in ownership.
There are two components in ownership:
Voting rights and economic interest in the
hands of Black South African Citizen people.
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This element measures the effective control of enterprises by
black people
Top management(Senior Management) in the company are the
employees of the measured entity who serve on the Broad over
and above their additional responsibility of providing leadership
and managing day-to-day operations of an enterprise.
Only Black employees that are considered under Top
management. Like executive officer, chief operating officer Head
of Sales, Head of Public Relations ect.
Bonus Points are awarded for 10% holding of Economic interest
by Black women.
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This element is trying to redress the imbalances of
the past by increasing participation & equitable
representation of suitable qualified Black employees
in general and Black employees with Disability.
Employment Equity role in B-BBEE is to promote
diversity & equitable representation of Black
employees in workplace which should reflect the
demographic of country in terms of race.
Increase employment opportunity of all suitable
qualified Black employees in Senior management,
Middle Management and Junior Management
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We look on South African Black people who
are under Management (Senior management,
middle Management and Junior Management)
Look for the overall employees of the
company as a percentage of all employees
using the Adjusted Recognition of Gender.
At least 40% of Targets must be meet from all
indicators under Employment Equity Element.
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Skills Development addresses the skills
shortage challenges & encourages
development of core, Critical & scares skills
among Black employees
To support economic growth that result in
employment creation & poverty eradication
QSE 2% OF their Skill Leviable amount,
Generic 3% of Leviable amount.
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Training can be either Internal Training, External
Training and Learnerships.
Generic companies needs to be registered with the
applicable SETA and they must have developed
Workplace Skills Plan
And they implemented programmes targeted at
developing Priority skills generally, and specifically
for Black employees
For QSE company they need to have 12 months
EMP201’S submitted to SARS within their period of
Financials.
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This element measures the extent to which
enterprises buy goods & services from
suppliers with strong BBBEE procurement
recognition level.
The BEE Act does not place a legal onus on all
businesses to comply with its provisions. It
places a legal onus on organs of state and
public entities to contribute to BEE, but not
on private sector companies
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Preferential procument carries one of the highest
points on the Generic BEE Scorecard(20)
To achieve points, entities must buy or procure
from companies with a favorable BEE status;
otherwise the tender will favor competitors who
offer a better BEE Status
Generic Companies also need to procure from
QSE and EME companies that are more than 50%
Black owned and also to measured entity that are
30% Black women owned.
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Examples: providing houses gives people a
platform for organizing their lives and for
launching economic activity.
Providing people with food gives strength to
participate in the economic activities.
Monetary or non- monetary contributions
The objective of the contribution must have been
to provide sustainable access to the economy for
the respective beneficiaries.
The measured entity need to spend 1% on NPAT.
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This element measures the extent to which
Enterprises carryout initiatives intended to assist
& accelerate the development & sustainability of
other Enterprises.
The contribution to Enterprise Development must
be something that will assist the ultimately Black
owned enterprises in developing its operational
and/ or financila capacity.
QSE contribute with 2% and Generics contribute
with 3%
Points
 Level
1
 Level 2
 Level 3
 Level 4
 Level 5
 Level 6
 Level 7
 Level 8
 Non compliant
> 100
> 85-100
> 75-85
> 65-75
> 55-65
> 45-55
> 40-45
> 30-40
<30
>
>
>
>
>
>
>
>
>
135%
125%
110%
100%
80%
60%
50%
10%
0%
From now on make sure that your suppliers are at least
51% black owned & also 30% female black female
ownership it’s very important, you may not see the
need for that now but one day you will……..