To BBBEE or not to BBBEE, that is the question!
This has been the question since the Broad-Based Black Economic Empowerment Act (Act 53 of 2003) was promulgated. The Act has received mixed responses and has led to many debates about its place in the economy. There have been numerous amendments over the past number of years to improve the Act.
Fronting, the practice of superficial inclusion of historically disadvantaged individuals, has been outlawed and strict measures have been implemented to deter this practice. The only sustainable way to achieve BBBEE is to focus on the five elements that encompass it namely:
- Ownership – measures the extent to which the business is owned by black people.
- Management Control – measures the extent to which the business is managed and controlled by black persons at executive and managerial levels.
- Skills development – measures the degree to which black employees are trained and upskilled.
- Enterprise and Supplier development – measures the Procurement as well as the development investment into helping other black owned enterprises grow their businesses.
- Socio-Economic Development – measures the amount of money invested into improving conditions in the broader community.
There are two distinct processes to ascertain your BEE Status:
- The first process is dealt with by an Independent Advisory/Consulting company, with whom we have a working relationship, that provides Advisory Services specializing in BBBEE Consulting, including BBBEE Scorecard assessment, strategy development, organisational alignment and verification preparation.
- The second process is done by FinServe BEE Verification, to ensure that BBBEE verification is done to assess the extent to which certain businesses have complied with BBBEE requirements. As a result of verification, a score is provided, and a certificate accredited by SANAS (South African National Accreditation System) is issued. This provides an indication of the level of compliance by the Business.
We have a deep understanding of Broad Based Black Economic Empowerment to ensure the sustainability of your business, to fully comply with all aspects of BBBEE. Contact me at email@example.com
and let’s meet over a cappuccino at our offices or at your premises, for a free no obligation consultation.