Category: Black Economic Empowerment (B-BBEE)

EconoBEE - BEE Points = Business

Time to Abolish the Sector Codes – EconoBEE Newsletter 13 October 2015

Our last newsletter “Overlapping Rating Periods – Right or Wrong” received such a wonderful response. Unsurprisingly it is a very controversial aspect of current verification preparation. Hopefully we will see some positive responses from the DTI to accommodate the unfairness caused by the DTI’s delayed announcement. Time to Abolish the...

Time to Abolish the Sector Codes

The sector codes have been a problem since the day they were first released. They add no value to the transformation process – in fact many companies use the “imminent release” of a sector code as a reason to continue delaying their own BEE activities. Companies choose to follow a...

BEE Success or Failure

In every facet of business life in South Africa, Broad Based Black Economic Empowerment plays a substantial role. Since BBBEE is so important for business in South Africa why then are so many falling short on their own targets, or becoming overwhelmingly frustrated at having to meet seemingly impossible legislative...

So you need to become compliant?

If you need to be compliant, you will need to follow a long term process, that in the end becomes a habit. If you cannot answer “Yes” to every question in this checklist, you are likely to fail, or not achieve your own targets. 1) Does the board of directors...

Black owned QSEs could drop a level

The Amended Codes have made BEE more complex. One aspect of the codes intending to make BEE easier for small black owned businesses (QSEs) could hurt those businesses. The codes state that if a business has an annual turnover of between R10million and R50million (excluding those with sector codes), then...

financial sector codes

Amended Codes Sub-Minimum requirements

  Introduction: The Amended Codes have sub-minimum requirements for three elements: ownership, skills development and enterprise and supplier. If an entity does not meet the minimum requirements on all three elements its calculated BEE level will drop by a further 1 level. Sub-minimum element – Ownership: The sub-minimum is 40%...

sanas logo bee certificate

SANAS (National Accreditation System) and its own BEE certificate

Need a BEE Verification? We can assist you! View our managed services here. Click here to gather an enormous amount of free information from our website We have many clients who procure from SANAS (SA National Accreditation System). In many cases, this is an exclusion to a company’s eligible procurement, but it can...

Broad-based schemes

Still making the news is the clarification issued by the dti on 5th May 2015, and its subsequent retraction on 15th May 2015.   The intention of the clarification was to clamp down on dodgy or as the minister calls them “mischievous” broad-based schemes – not to close them all....

Broad-based/employee ownership schemes

  We are pleased that the minister has decided not to implement a blanket ban on broad-based and employee ownership schemes see http://www.thedti.gov.za/editmedia.jsp?id=3314. As we have said previously the minister would have to retract his notice, because it was wrong. A good analysis of some good broad-based and employee ownership...

Definition of Black

The B-BBEE Amendment Act 2013 defines Black as follows: ‘black people’ is a generic term which means Africans, Coloureds and Indians—(a) who are citizens of the Republic of South Africa by birth or descent; or(b) who became citizens of the Republic of South Africa by naturalisation—(i) before 27 April 1994;...

Black Owned QSEs

Black Owned QSEs The Amended codes state that a QSE has a turnover of between R10m and R50m ( as long as it does not fall into a defined sector code). Extract from paragraph 3 of statement 000: 3.3.2.2    A Qualifying Small Enterprise is required to comply with Ownership as...

EconoBEE - BEE Points = Business

Amended QSE Codes – Commentary Period Extended – EconoBEE Newsletter – 07 November 2014

EconoBEE has been working extremely hard since the Amended QSE Codes were released to ensure that the interests of small businesses are kept close at heart. The Minister when gazetting the Amended QSE Codes allowed comments to be submitted up until 14 November 2014 which was only 35 days from...

management advisors

QSE Codes regard employment equity as unimportant

The structure of the QSE codes is such that the important policy of employment equity is almost ignored. The Employment Equity Amendment Act was recently proclaimed. It aims to address inequality in the workplace. The latest Commission for Employment Equity reported in April 2014 a good improvement in equity in...

Undue haste after long delay

The revised B-BBEE codes were issued as a draft on 5th October 2012. At the time the QSE codes were not included. The dti kept saying that the QSE draft codes would be released shortly. In October 2013 the dti released the final amended codes, again without the QSE codes....