Broad-Based Black Economic Empowerment (B-BBEE) Strategic Services

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The South African Government introduced the Broad-Based Black Economic Empowerment Act (“the Act”) to accelerate the economy’s transformation and bring black people into the economy’s mainstream activities, and the Broad-Based Black Economic Empowerment Codes of Good Practice (“the Codes”) to guide and measure progress of the economy’s transformation.

The Codes initially gazetted in 2007 were revised in October 2013, and the Act was also revised in 2015. The revised legislation reflects higher targets and has more punitive measurement criteria.

Of particular note is preferential procurement’s ripple effect and its downward spiral impact on the supply chain, which will eventually affect all businesses. The codes have also introduced the concept of an “empowering supplier”, which essentially requires companies workforces’ to reflect local content and local labour in order to qualify.

To remain competitive in South Africa today and in the future a company must address the following two gateways to B-BBEE compliance:

  • Achieve an empowering supplier status; and
  • Obtain a favourable B-BBEE status.


Questions to ask How we can help
  • Does your company have a B-BBEE Scorecard?
We can help you with the issue of a B-BBEE certificate in accordance with guidance issued by the relevant regulatory bodies.

  • Are your customers demanding your B-BBEE status?

We can help you develop a comprehensive B-BBEE strategy to ensure your business processes are aligned to the provisions of the Act and the applicable Code.

We can help with your implementation plan so you can confidently present your B-BBEE credentials to customers.

  • Are you aware of the impact of your suppliers’ empowering supplier status and their B-BBEE status on your scorecard?
We will assess your suppliers and consider the impact of their status levels when calculating your score.

  • Do you know the impact on your business if you do not address B-BBEE?
We will draw on best practices and our experience of the South African economy to address your concerns.

  • Would you like to re-structure your business to align to the requirements of the amended legislation?
We can help you with the various options available to address the legislative requirements, and, once a structure is agreed on, help implement it by working with our corporate finance, accounting and tax teams.


Benefits of complying

  • The ability to enter into any tender with a government organization
  • Decreases the likelihood of losing contracts with customers for the provision of goods and services to more empowered companies
  • Reaffirms your entity’s commitment as responsible corporate citizens, and helps contribute to the improvement and development of communities’ quality of life, fulfilling social responsibilities.