Category: Newsletter

A member of ABVA put out an email advert yesterday explaining that Self Rating is not valid. They said “Spending money on suppliers who did self-assessment to compile their BBBEE scorecard does not count as BEE procurement spend on your scorecard”. This is totally wrong. They use as their source...

10-Step Process to BEE Compliance EconoBEE, leading BEE innovators and compliance experts have created the ultimate step by step process for companies to become BEE Compliant. The 10-Step Process to BEE Compliance is the most efficient and cost effective way to get your BEE Certificate. We identified the 10 most...

The dti has now announced that they will be extending the transitional period by 6 months to August. I do apologize for providing outdated information in my newsletter. The dti has issued a proclamation extending this date which will be available in hard-copy from the government printer next week. The...

The Status of the Codes February 9th should have been a big day in the life of the BEE codes, but it passed without comment from dti, or ABVA! Transitional Period The transitional period is now over. The codes had stated that there will be a transitional period where enterprises...

December  – a Time for Relaxing and Accounting Accounting is something that has always been close to our hearts. When EconoServ started, we created EconoAccounting and shortly afterwards EconoAccounting Lite which are absolutely excellent tools for small businesses to use to keep their accounts up to date, with almost no...

Enjoy the Benefits of Developing the Skills of your Employees By Thapelo Motloung The Skills Development Act provides employers the opportunity of deriving benefits for their organizations if they set up and maintain an integrated skills development programme. The benefits include claiming back up to 70% of the skills development...

EconoBEE on the Warpath The only BEE consulting company that is fighting for your rights. We at EconoBEE have always and will always continue to support the BEE act and codes of good practice. We like the way the dti has phrased them, and we have a 100% success rate...

Status of Verification Agencies – Don’t get a Rating now! The rating agency accreditation process is still moving slowly. SANAS the accreditation body have not accredited any agencies as yet. SANAS also believe the process is still likely to take some time. They did not give any specific dates which...

Enterprise Development Enterprise Development – (ED). Enterprise development is worth 25 points on the QSE scorecard with a target of 2% of net profit after tax and 15 points on the generic scorecard with a target of 3% of net profit after tax. You may contribute to two types of...

How to Speed up the Slow Pace of Transformation There has been a fair amount of talk these days around speeding up BEE and how to improve BEE compliancy amongst businesses. A number of surveys have been done which all seem to have the same conclusion.  The reason given in...

Implement BEE with Innovation and Business Sense BEE as a new business environment has been solidly established and is causing some companies great stress. Some companies are threatening to stop buying from suppliers who do not have a BEE Scorecard. Companies are constantly being asked to become BEE compliant and...

Time to produce a BEE Scorecard With the recent gazetting of the BBBEE Codes of Good Practice some of your customers have started asking you about your BEE Status. As time goes on companies will need your BEE Scorecard more urgently and may start looking for alternative suppliers. In a...

Getting an “accredited” rating does nothing for your business or true empowerment! Your companies BEE rating means absolutely nothing if you do not know why you achieved that rating. We see many companies who state they have a particular rating, but do not understand how that rating was achieved. A...

True Empowerment True empowerment is about the people who can benefit the most. That is why we like the 7 elements. It covers charities to employment and emphasises skills training and entrepreneurial development. No one item is the be all and end all of BEE. If it was it would...

How wrong can you be? A sales manager visited us recently. We asked her to supply us with her company’s scorecard (important for our own Preferential Procurement). Her instant answer was: “We are not compliant, we will not be BEE complaint, my boss refuses to give his business away” –...

Finance Minister calls for BEE review The finance minister, Trevor Manuel has been quoted quite often recently as saying that BEE needs a review. His comments, most recently in a Financial Times interview, relate to black tokenism and ownership issues. His comments will strike a chord with many people who...

The Procurement Problem Procurement is worth 20 points on the Generic scorecard and 25 points on the QSE scorecard. On the Generic scorecard it is worth as many points as equity ownership (without the bonus points). The aim of preferential procurement is to support black owned businesses, EMEs, QSEs and...

BEE Codes have been Gazetted 9th February 2007 The dti has managed to get the Codes of Good Practice gazetted. This is very good news and quite exciting for all businesses (especially those involved). The dti did say that the codes would be out in the early parts of 2007,...

We wish all subscribers and valued clients a great 2007. We believe that 2007 will be a good year – and the FIFA World Cup C is only a short 3 years away. BEE Codes have been Approved Codes have been approved, but are not yet out! Cabinet approved the...

The 6 December 2006 Cabinet meeting has approved the BBBEE Codes of Good Practice. “Cabinet meeting approved the Codes of Good Practice on Broad-Based Black Economic Empowerment (BBBEE). Mr Lionel October will now present a statement on the codes.”  In terms of the Act the minister of Trade and Industry...

A New Business Environment If you were to go to New York City and decide to open a fish and chips shop in lower Manhattan, and call it “The Osama Bin Laden Best Fish Shop”?, you would probably lose your money. Everyone knows that it would offend most of your...

BEE – Where to Start Many businesses ask us how they can start implementing BEE. BEE is a process and the key is to understand the requirements. The starting point is education. We always emphasise that no business should have a “gut-reaction” and make uninformed decisions. Once you understand the...

“Goodbye Caird – Hello EconoBEE” by Keith Levenstein Many people will know I used to run Caird Consulting from my own offices. Caird is closing down, but EconoServ has started a new division, EconoBEE. EconoBEE will offer BEE advice, consulting on BEE issues, assistance, and EconoBEE Scorecard – a computerised...