POSITIVE NOTES FOR B-BBEE

If you are hesitant about implementing B-BBEE processes, we will guide you through this inevitable and unavoidable process. An investment in our country and its people which is beneficial for any company and more importantly it equips you with the know-how and competitive edge required to grow and sustain your business.

Astute managers and business owners have realised the value of B-BBEE and as a result, more and more companies are eager to achieve their certification. We recommend companies use the Codes to their best advantage, whether it be through PR, marketing or corporate social investment.

With the implementation of the new Codes in 2015, these came with increased expenses and administrative obligations. We will assist you in addressing these tasks without incurring exorbitant extra costs. Our clients typically cease seeing the Codes as a penalty and instead perceive it as an ideal opportunity to improve their business. A good B-BBEE scorecard ensures your business remains competitive. That will most certainly deliver a positive return on investment.

In achieving the correct B-BBEE ratings and standards, it simultaneously improves  the skills levels in our country;  increasing South Africa’s prospects as a destination for foreign investment and entitles your business to compete in a very cut throat environment.

NEW B-BBEE CODE ENTERPRISE CLASSIFICATION & REQUIRED DOCUMENTS:

Empowering Status Classification: (All companies must be an Empowering Supplier)

In Government Gazette Notice No.40375, dated 28 October, 2016, the Department of Trade and Industry announced that the recognition of empowering supplier status for the inaugural year of the Amended Codes of Good Practice, was extended until further notice. All valid B-BBEE Verification Certificates, Exempt Micro Enterprise and relevant Qualifying Small Enterprise Sworn Affidavits and CIPC Certificates issued on or prior to 30 April, 2016, will be automatically recognised as an Empowering Supplier until the date of expiry of that B-BBEE Verification Certificate, Sworn Affidavit or CIPC Certificate.

Any Entity measured on or after 1 May, 2016, will automatically be recognised as an Empowering Supplier until a further notice is issued.

EME (Exempted Enterprise): < R10 million
Time Frame: 2 days depending on information received

Different EME’s:

  1. < R10 million white owned automatic Level 4
  2. < R10 million start-up company automatic Level 4
  3. < R10 million 51% black owned: automatic Level 2
  4. < R10 million 100% black owned: automatic Level 1

Only an EME Affidavit is required in order to finalize this process. This will be given with engagement.

QSE (Qualifying Small Enterprise): >R10 million
Time Frame: 2 days depending on information received.

Different QSE:

1. >R10 million
2. >R10 million < R50 million: 100% black owned: automatic recognition Level 1
Required documents for above mentioned number 1 & 2:

  • A QSE Affidavit (attached) which must be sworn to by the owner.
  • Empowering supplier confirmation

3. >R10 million < R50 million: less than 51% black owned or 100% white owned company normal scorecard

Generic: >R50 million
Time Frame: 6 weeks depending on documentation received.
All Entities must comply with the Amended Codes of Good Practice gazetted on 11 October 2013.

ELEMENT WEIGHTING POINTS
OWNERSHIP* 25
MANAGEMENT CONTROL 15
SKILLS DEVELOPMENT* 20
ENTERPRISE DEVELOPMENT
AND SUPPLIER DEVELOPMENT 40
SOCIO ECONOMIC DEVELOPMENT 5

*Priority Elements, sub-minimum and discounting principle:
(The Measured Entity’s B-BBEE status level will be discounted by one level when sub-minimum on compulsory targets are not met.)

1. *Ownership: 40% of the Net Value based on the Time Based Graduation Factor.
2. *Skills Development: 40% of the total weighting points.
3. *Enterprise and Supplier Development: 40% for each of the 3 categories.

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