Understanding B-BBEE
The Broad-Based Black Economic Empowerment Act 53 of 2003 contains the Codes of Good Practice that when followed will result in Broad-Based Black Economic Empowerment (B-BBEE). A company’s compliance and status is measured against these seven elements:
| Ownership | Who owns your business? |
| Management control | Who controls your business?? |
| Employment equity | Who works in your business? |
| Skills development | Who is trained by your business? |
| Preferential procurement | Who does your business make purchases from? |
| Enterprise development | What efforts does your business make to develop enterprises external to itself? |
| Socio-economic development contributions | What contributions does your business make for social causes? |
The answers to each of these questions are viewed as a proportion of ‘black’ investment to ‘non-black’ investment and result in a compliance level. The sum of all these elements of compliance forms a broad-based scorecard.
Five reasons to comply with B-BBEE
- pressure from customers
- individual companies achieve greater compliance when they purchase from suppliers with high compliance levels
- a compliant company will obtain a competitive advantage over its non-compliant competitors
- companies that do business with government departments are required by law to demonstrate compliance with the Codes of Good Practice – tenders, licences or concessions may be withheld from non-compliant companies
- voluntary compliance creates economic opportunities for all.
Downloads
Legislation
Sector codes
- chartered accountancy [part 1 | part 2 | part 3 | part 4]
- construction
- transport
- forestry [part 1 | part 2]
- tourism
Sector charters
Draft sector charters
- financial [phase 1 | phase 2 part 1 | part 2]
- information and communication technology (ICT)
- property [part 1 | part 2 | part 3]
Forms
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