EconoBEE Newsletter – January 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 codes early in December 2006, but we are still waiting for them to be published and gazetted.
They have put out a short summary (see the summary). This gives us a scorecard, but the details are still to be published.
We are happy that the codes are now finalized. We have always said that there would be confusion while the codes are still in draft format. The final codes will provide standardisation amongst customers who are asking you for your BEE credentials.
No more will your customers be able to use their own methods to rate you – they will have to follow the codes.
This will give you certainty of how to react and ensure that all your customers will accept your profile or rating.
Unfortunately we will have to wait a bit longer to see full details of the final codes. The final gazetted codes is said to take place at the end of January.
Our promise to you
Last year we promised our readers that we would produce a simple Excel spreadsheet containing the latest BEE Scorecards. Notwithstanding the lack of clarity from the dti, we have produced 3 spreadsheets.
A summary scorecard
A small enterprise scorecard (the old QSE)
A generic scorecard
You are welcome to download them from our website (please register as a user at no charge, and visit the members area, downloads section).
NB Please keep visiting the site as we do update it regularly.
Salient features of the final codes
The biggest changes are the thresholds:
A company is exempt from all forms of BEE if its annual turnover is less then R5 million – proof in the form of financial statements will be required.
A company is classed as a QSE (qualifying small enterprise) if its annual turnover is between R5 million and R35 million and will follow the small enterprise scorecard.
The small enterprise scorecard is “easier/more lenient”? to achieve than the generic scorecard. QSE’s need only choose 4 out of the seven elements with which to comply.
Companies with a turnover of greater than R35 million will follow the generic scorecard.
How does this affect you?
Because the QSE’s scorecard is more lenient, it is likely that QSE’s will score high points – better than a level 4 company. Now an exempt micro enterprise is automatically a level 4, so it may have fewer points than the competition. If you are an exempt micro enterprise it may make business sense to voluntarily create a BEE profile or rating.
Where do I find out more?
We are proud to tell you that we are already running half-day/full day workshops on the new codes. We use a practical approach to help you understand the codes from a business point of view.
The objective is to assist you, through knowledge, to ensure your business makes the best decisions and makes greater profits. For more information about our workshops please visit the workshop section on our website.
EconoBEE Scorecard Updates
EconoBEE Scorecard – our BEE Scorecard Software package will be updated to include the gazetted BEE Codes of Good Practice. This update will only be completed once the codes have been published/gazetted. Once the codes are out we will then release the update to the software shortly thereafter. Registered users will be able to download the software from our website.