The Blog of Cenfed BBBEE Verification Agency. For all things regarding BBBEE Certificates, BBBEE Verification and BBBEE codes.
The term BEE, short for BBBEE, or Broad-Based Black Economic Empowerment, is often tossed around in business circles – without a proper understanding of what it is about. BBBEE has become a bit of a bogeyman, with misconceptions, concern and hesitation abounding in discussions about it. But BBBEE is, overall, a very positive social initiative that can benefit everyone – not just, as is often assumed, a small sector of society. Good consulting services can go a long way towards
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In South Africa, Broad-Based Black Economic Empowerment (BBBEE) is a much-discussed topic in the realms of business. The complexities of the legislation mean that BBBEE, sometimes incorrectly called BEE for short, is often misunderstood and a source of confusion and concern. However, it is an integral part of the nation’s growth and advancement, and the government is taking an increasingly active approach to encouraging compliance with BBBEE policies. As a result, BBBEE accreditation is important for businesses. The aims of
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Broad-Based Black Economic Empowerment policies can be confusing for business owners, especially when words like “certificate” and “verification” are added to the mix. However, the rules and procedures are often not as complicated as they seem – particularly for smaller businesses. In this article, we provide a brief overview of the BBBEE verification requirements for the smallest of companies – Exempt Micro Enterprises, commonly known as EMEs for short. Businesses in South Africa are classified as EMEs if their annual
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Obtaining a Broad-Based Black Economic Empowerment (BBBEE) certificate for your company may seem like a lot of hard work, tedium and jumping through bureaucratic hoops – but it doesn’t have to be. A certificate can give you an edge over competitors and open up a lot of doors for business growth – and it might be easier to acquire than you think. BBBEE policies are set out in the BBBEE Act (No. 53 of 2003) and reinforced by the Codes
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The revisions to Broad-Based Black Economic Empowerment (BBBEE, or BEE) legislation that came into effect in May 2015 continue to cause confusion and anxiety among business owners in South Africa. The original BBBEE legislation comprised the Broad-Based Black Economic Empowerment Act, Number 53 of 2003, and its supplementary, detailed Codes of Good Practice (issued in 2007). The guiding goal of the legislation has always been to effect positive transformation in the business world, addressing the legacy of apartheid and empowering
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Broad-Based Black Economic Empowerment, BBBEE or BEE for short, can be a confusing subject to navigate as a business owner. While compliance with BEE legislation is not compulsory, it is highly recommended because of the benefits it can confer on businesses. Particularly for Qualifying Small Enterprises (QSEs), compliance with BEE can give them a competitive edge; allowing them to work with government and public entities, and participate in the chain of preferential procurement. As a result, many QSEs seek certification.
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THE PURPOSE OF AN EMPLOYEE’S BENEFIT TRUST (EBT) IS TO ACHIEVE THE FOLLOWING: Maximising BEE ownership points whilst achieving: to incentivize participating employees to contribute to the profitability and growth of the donor; to empower the employees through participation and wealth creation; to encourage alignment to the company values and to retain employees. In terms of the BEE Codes, black participants in an EBT holding rights of ownership in the company being measured (Measured Entity) may contribute: SCORECARD POINTS Maximum
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Before requesting a BBBEE Verification we should always follow the 5 rules of an astute business man: What’s In It For Me This meaning you have to analyse the value of a BBBEE Verification Certificate to ensure the Certificate will add value to your company. Should I be BBBEE Compliant? If a certificate does not add value to your company it does not make business sense to have the verification done. Some companies are embarking on the BBBEE Verification process for
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What is required by the BBBEE act in the “Ownership” element? “BBBEE Ownership Scheme” means a collective ownership scheme constituted with the view to facilitating the participation of specified natural persons in the benefits flowing from the ownership by that scheme or by its fiduciaries of an Equity Interest. Key Measurement Principles An Enterprise may be awarded points for the participation of black people in the Economic Interest or Exercisable Voting Rights of the Enterprise, in accordance with the ownership scorecard
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A BEE Certificate has been most helpful as past successes do prove. Wits Business School Journal had a look at the success the original BEE strategy had in a number of companies focusing on companies that engaged in a transformative strategy to business and one such company was Old Mutual. The company has grown from strength to strength in its strategy to implement BEE and follow the protocol. Why it is important for your business to have a BEE certificate Old
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