The Cost Benefit of BEE – EconoBEE Newsletter – 08 July 2011

EconoBEE - BEE Points = Business

Your verification agency will need to meet various criteria – most are not as simple as meets the eye as some large companies discovered. Firstly you must ensure they are accredited for the scorecard you require. Collate information that they specifically need and gather the evidence so that the agency is able to verify your company. During this, the agency will ask for more data which you will need quickly to avoid a non-compliant status.

Once the agency leaves, hold thumbs that they give you the level you need!

Join us this July in Durban (14 July), Cape Town (21 July) and Johannesburg (28 July) for a knowledge filled Prepare for BEE Verification Conference and ensure that your BEE verification isn’t a stressful “hope for the best” exercise.


B-BBEE Benefits can be Costed out Properly

Now that the PPPFA has been reconciled with B-BBEE (and it comes into effect on 7th December 2011), there is a direct relationship between your BEE level and the tender price. The PPPFA says that you are awarded 10 points for being a level 1 BEE contributor. If you were non-compliant you would get no points. In order to win the tender your prices need to be 10 points better than your competitor who may be level 1. On a simple level this can translate into a 11.11% advantage on any tender over a non-compliant competitor.
If your BEE status is level 2 then you could have a 10% price advantage over the opposition.
If your BEE status is level 3 then you could have a 8.89% price advantage over the opposition and so on.

In the case of private enterprise, your customer is less likely to accept a quote that is 10% more expensive, but they are likely to recognise that there is a benefit to them to get a good score from you. A good BEE scorecard therefore can and does translate into monetary value, and profits. Isn’t that why you are in business?



Prepare for BEE Verification Conference – early bird specials ends 8th July – book now to qualify

EconoBEE will be holding three “Prepare for Verification” Conferences during July 2011.

Durban (14 July), Cape Town (21 July) and Johannesburg (28 July), providing business managers / owners with vital information that will ensure that one is able to maximise one’s BEE points, avoid unnecessary delays during the verification process and ultimately take control of the verification process to ensure a correct result every time. Read more…





BEE – too much red tape


An article in the Business Report recently indicated that BEE, and now the reconciliation with the PPPFA has added extra red tape. The journalist, Donwald Pressly, explained that BEE has created mountains of red tape. He even, very kindly gave us some good PR by referring to consultants like us whose mission it is to help companies become compliant. We are obviously in the business of compliance, but B-BBEE is not really as difficult as it sounds. Our message to our clients has always been to try to simplify it and show that even without our expertise a company can become compliant. Certainly using us will speed up the process.



More BEE red tape will give lunatics more airtime – Donwald Pressly – read full article

The standard response to those who question so-called “broad-based” black economic empowerment (BEE) is for enraged ANC MPs to say that the questioners are motivated by an antagonism towards “transformation” at best and racism at worst. In other words, they argue, these people just want things to remain the same, with the economy pretty much in white hands.

It does not take a student of economics to realise that even arch-racists who believe in a siege economy – such as the failed Cape Party which garnered just 3 000 votes in the municipal election for a sort of white/coloured led Western Cape secession from deepest darkest Africa – simply will not be able to achieve this aim. That party was whipped at the polls.

With unemployment running at anything between 25 percent and 40 percent, depending how you define it, and youth unemployment at about 50 percent, obviously the economic recipe that we have employed since 1994 has not worked for about half of South Africa’s population.

While we have always supported B-BBEE we have always seen BEE as an “admin irritation – not a nightmare” and we know that there are far more onerous rules and regulations that firms have to follow than B-BBEE.

Any company that is ISO 9001 compliant knows the hassles of that certificate, and they know the business benefits they will gain. The laws around tax, accounting, health and safety are far more difficult to understand. Anyone who has imported any goods knows the complexities of waybills, customs duty and the customs laws. That is why they use clearing agents to do the job. If there was absolute free trade, forex and clearing would be a non-issue. Labour laws are a minefield, and the new Consumer Protection Act is far more complicated and onerous than B-BBEE.

B-BBEE is closely related to ISO compliance in that it is a desirable benefit to offer your customers. Like B-BBEE, no law requires you to be ISO compliant, some of your customers will simply refuse to do business with you if you are not ISO compliant.

Yes, there are probably too many laws in this country, but to single out B-BBEE has to be based on an emotional and not objective argument. The calculations around B-BBEE are less complex than doing your books every month, than your payroll and tax. B-BBEE is less complex than drawing up a legal contract.

Yes, there are complications in B-BBEE. Each new charter brings new challenges to us – as consultants we have to know and understand each charter and the ramifications of how it will affect each client. From your viewpoint, if you are, for example an accountant, you need only be concerned with the accounting charter, and none other. If you are not an accountant you do not need to know what it is and how it works.


BEE Managed Services Saves Time
EconoBEE can assist you with your BEE Verification – our consultants will even sit in during your BEE Verification giving you the extra time to work in your business. Learn more about our managed service, contact us on  011 483 1190 or




Expert Advice pays for itself
Save time and effort by allowing EconoBEE, Experts in BEE Compliance and scorecard optimisation handle all of your BEE requirements. Contact us on  011 483 1190 or

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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 – simple 10 steps to BEE Compliance.

Use our pre-prepared “Verification Ready” documents and templates in your business – contact us for more.

Turnover below R5 million – find out how to get your BEE Exemption.

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

EconoBEE Newsletter
08 July 2011

In this issue

  • B-BBEE Benefits can be Costed out Properly
  • BEE – too much red tape

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

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BEE Points = Happy Customers = Sustainable Business

Gavin and the EconoBEE Team

Executive summary of B-BBEE

Turnover below R5 million per annum – automatic BEE status

Turnover above R5 million per annum – you need a BEE Scorecard. Our workshops, scorecard tools, procurement manager or a complete managed services will be best for you.

Complete Managed BEE Service


Government tenders will use your BEE status to award business – the higher your points the better chance of winning the business.

Contact us.

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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