BBBEE - Strategic Services
The Government introduced the Broad-Based Black Economic Empowerment Act (“the Act”) in order to accelerate the transformation of the economy and to bring Black people into the mainstream activities of the economy.
In addition, the government introduced the Broad-Based Black Economic Empowerment Codes of Good Practice (“the Codes”) to guide and to measure the progress of transformation in the economy.
Companies that seek to do business with the government, or are dependent on governmental licenses or concessions for the conduct of their business must demonstrate their level of B-BBEE compliance as calculated in terms of the B-BBEE scorecard.
Of particular note is preferential procurement’s ripple effect and impact on the supply chain in a downward spiral which will eventually affect all businesses. Having a B-BBEE status will be a pre-requisite of doing business in South Africa.
The Codes initially gazetted in 2007 have been revised in October 2013. The revised legislation reflects higher targets and more punitive measurement criteria.
QUESTIONS TO ASK YOURSELF:
|Question||How can we assist you?|
| ||We will be able to assist you with the issue of a B-BBEE certificate in accordance with the guidance issued by the IRBA and the DTI.|
| ||We will enable you to confidently present your B-BBEE Status to your suppliers.|
| ||We are able to assist you with the development of a comprehensive B-BBEE strategy to ensure that your business processes are aligned to the provisions of the Act and the applicable Code.|
| ||We will assess your suppliers for you and consider the impact of their status levels when calculating your score.|
| ||We will draw on best practices and our experience in the South African economy to address your concerns.|
| ||We will assist you with the various options available to address the legislative requirements. Once a structure is agreed-upon we will assist to operationalize the same by working collaboratively with our corporate finance, accounting and tax teams.|
BENEFITS OF COMPLYING:
- Ability of an entity to enter into any tender with a governmental organization
- Decreases the likelihood of losing contracts with customers for the provision of goods and services to more empowered companies
- It reaffirms your entity’s commitment as responsible corporate citizens and assists in contributing to the improvement and development of the quality of life of communities thereby fulfilling social responsibilities
- We do not view compliance with the B-BBEE legislation as a legislative imperative, but as a pragmatic growth strategy that aims to realise the country's full economic potential. Therefore, embracing B-BBEE has not only proved to be the right thing to do, but is also a fundamental aspect to ensure the successful development of our country.