Becoming B-BBEE compliant – a one-pager crash course for large businesses

Original publish date – Mon, 16 Jul 2012 15:00:57 +0000, Keith

This document assumes a large business with turnover of above R35 million that is not yet compliant and has no black ownership or top management.

B-BBEE compliancy is measured by means of points.  Companies wishing to become compliant will earn points by taking various actions on the various BEE elements.

A large business will follow the generic scorecard and earn points on all seven elements. These elements are

Ownership Equity (23 points available), Management Control (11 points), Employment Equity (18 points), Skills development (15 points), Preferential Procurement (20 points), Enterprise Development (15 points) and Socio Economic Development (5 points).

Compliancy is measured from 30 points upwards so while all businesses should strive for maximum points, even 35 points is considered.

A typical white owned business can become compliant via the last three elements.

Socio-economic development (donations to charity) 5 points

Enterprise development (assistance for black owned firms)  15 points

Preferential procurement (companies earn points depending on the BEE level of their own suppliers). Quite feasible to earn 10-15 points out of 20.

Total: 35 points (known as level eight)

In addition large companies may earn points on Skills Development (training of black staff) and Employment Equity. It is feasible, with a bit of work to earn 45 points (level 6).


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