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Implementing the Amended Codes of Good Practice – EconoBEE Newsletter – 15 January 2014


EconoBEE - BEE Points = Business

It’s 2014 – to all our valued readers we wish you a prosperous 2014.

The year always tends to start on a sombre note for me. Every year when I read the matric results it feels like a big reality check hits me in the face. Partly due to the fact that so many learners don’t pass – never mind the learners who don’t even make it to matric and partly due to the fact that so many newly graduated students have no prospect of entering the job market.

This year I am very excited to say that we have developed a Learnership programme. The programme is designed to take bright graduates with great potential and help them achieve success. If you know of someone or are someone who has recently graduated then email us your CV.

Implementing the Amended Codes of Good Practice

The amount of interest generated by the DTI with the Amended Codes of Good Practice has been staggering. As a simple comparison, when the DTI launched the first set of the Codes in 2007 there were only a few delegates at a small presentation with not much interest. In October 2013 the entire Hall 5 at Gallagher Estate was booked for the presentation and most of Hall 4 was booked for the exhibition. All in all we estimate that as many as 3 000 people attended. More importantly President Jacob Zuma and two other ministers were speakers.

B-BBEE has become very much entrenched in the way we do business in South Africa. We can complain that the Amended Codes have far too many mistakes and that there are aspects where interpretation is very unclear or even outright wrong. We can continue applying B-BBEE as it was done based on the 2007 codes in the hope that the Amended Codes deadline of October 2014 will be delayed. We can even elect to not get a BEE scorecard in 2014. The reality is BEE is an essential part of the way South African business operates.

It has now passed the point where we can debate whether the Amended Codes are good or not. There is no point in pointing out the mistakes. The old codes had mistakes and interpretation issues and grammar and spelling mistakes and other issues.

The way we see it is that the Amended Codes need to be implemented now so that you can get a head start on your competitors. BEE has always been closely linked to the amount of business a company is awarded. The new codes now present a wonderful opportunity to win business from all those competitors who are still trying to find a reason to not comply.

The question we ask is – using the Amended Codes what can a business do to earn points? Let us look at Procurement (Supplier and Enterprise Development).

Using Black Owned Suppliers is one aspect that a company needs to implement to earn points.

9 points are available on Procurement for 51% or more Black Owned Businesses with a target of 40% of total spend
4 points are available
on Procurement for 30% or more Black Female Owned Business with a target of 12% of total spend

Procurement is also a priority element. Unless you achieve at least 10 points (40% of 25 points) you will drop a level. We already know it will be harder to earn points from suppliers based on their recognition level because it is now much harder to achieve a higher level.

This leaves a major target area to earn points on the Amended Scorecard for procurement from black owned suppliers. 40% is a fair amount of the total procurement to spend on black owned suppliers, in particular if you previously had not bought much from black owned businesses.


The first step is to identify your procurement and calculate it correctly using the amended codes procurement scorecard. We suggest that you halve your total procurement spend from compliant suppliers to take into account a good estimate of the potential scorecards you will receive from those suppliers.

Set a target – how much is 40% of your total procurement and what are you currently spending on black owned suppliers?

Once you know how much you need to spend start looking through your supplier list for suppliers that are hurting your BEE status. Common examples are suppliers who have achieved a bad level and then of course the suppliers who do not have any black ownership.

List the different types of products/services that the suppliers who are hurting your score supply you with.

Through that list identify the types of products/services that you can purchase from alternative suppliers.

List all the suppliers who have black ownership. Speak to them to see if they can supply you with some of the products/services you need. In that way you already have a trusted supplier who can help supply you.

Last step is to start looking for particular types of products that can be supplied by black owned suppliers.

Remember that a black owned supplier can also be used for supplier development which allows you to help them so that they supply exactly what you need. It is a true win-win because you gain a supplier who could be potentially very loyal to you and you gain BEE points in a set of codes where earning points is much more difficult. The supplier also becomes a sustainable business.

Our BEE Procured database is a massive database of compliant suppliers. With over 40 000 BEE certificates we can assist you manage your procurement significantly better. It is much easier to source new suppliers when you know they have already successfully supplied other businesses. We are interested in helping you source new black owned suppliers – please contact us and let us know what types of products you need to source from a black owned business.

Our Managed Service is an ideal solution for any business wanting to save time on implementing B-BBEE. Through our Managed Service we assist clients prepare a scorecard for both the current year and the future year with the view of constantly improving the number of points on the scorecard. Since our view is based on a long term view we are able to continuously keep track of progress, advise on important changes as and when the changes happen and ensure success through every single transaction.

Visit our website or contact 011 493 1190 for more information on our Managed Service.



Implementing the Amended B-BBEE Codes of Good Practice

The new codes will have an impact on your strategies that you need to implement.

Many people think that the new codes will be more difficult to understand and implement. We will show you that this is not necessarily the case.

  • Learn how to benefit from the new codes
  • Understand the intricacies of the codes
  • See the differences between current codes and new codes
  • Identify strategies to follow
  • Recognise how easy it will be to follow the new codes

Full Day Sessions
Half Day Sessions
20th February – JHB
We host regular half day workshops on Tuesday mornings in our Bryanston office.
8:30 for 9:00 – 17:008:30 for 09:00 – 13:00
R2500 excl VAT (R2850 incl VAT)R1500 excl VAT (R1710 incl VAT)
Email info@econobee.co.za
Contact 011 483 1190
Book online or download our brochure.
Email info@econobee.co.za
Contact 011 483 1190

In-house presentations available on request to a minimum of 10 delegates.






Let our consultants save you time on B-BBEE.

Preferential Procurement – Save Time by using the BEE Procured database containing over 40 000 BEE Certificates. Procurement Managed Service: Our consultants can phone your suppliers for a BEE certificate – Managed Service.

Twitter - EconoBEEFacebook - EconoBEELinkdin - EconoBEEYouTube - EconoBEEEconoBEE Blog

While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…

Want us to manage your BEE Process – Managed Service.

Turnover below R10 million – find out how to get your BEE Exemption.

Is BEE procurement a pain? Sort it out quick and easy – BEE Procured.

Need a scorecard – produce one yourself – EconoBEE V3

EconoBEE Newsletter
 15 January 2014

In this issue

  • Implementing the Amended Codes of Good Practice

In other news

About EconoBEE

EconoBEE is an expert BEE consultancy. EconoBEE helps businesses Become BEE Compliant, prepare for verification, earn maximum BEE Points and ensure that they achieve the BEE Level they need to get more business.

Our services include BEE Management Systems, Training, EME Pack, Complete Managed Services; consulting and advisory and Procurement Solutions.

As leaders in the industry we are driven to help maintain and develop knowledge in the BEE industry.

Already have a BEE Certificate

Please send it to us and we will include it in our BEE Procured database.

Contact Us

Tel: 011 483 1190
Fax: 011 483 1195
Email: info@econobee.co.za
Web: www.econobee.co.za

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BEE Points = Happy Customers = Sustainable Business

Gavin and the EconoBEE Team

Executive summary of B-BBEE

Turnover below R10 million per annum – automatic BEE status


Turnover above R10 million per annum – you need a BEE Scorecard. Our workshops, scorecard tools, procurement manager or a complete managed services will be best for you.


Your time on your business, our time on your BEE status


Although the Amended Codes give a 12 month transitional period the reality is that the preparation needs to begin immediately. Through our managed service prepare early and gain a competitive advantage.


10 Strategic Steps to B-BBEE!
 We have prepared an easy to follow guide “B-BBEE in 5 Minutes” and “Crash Course to BEE Verification” which explains BEE in a simple step by step approach.

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