AMENDED
B-BBEE CODES OF GOOD PRACTICE CONTAIN SIGNIFICANT CHANGES AND SEEK TO ALIGN
POLICY TO GOVERNMENT’S ACTION PLAN
The Department of Trade and
Industry (the dti) hosted a stakeholder engagement on the Revised
Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice at the
National Empowerment Fund in Johannesburg yesterday.The aim of the engagement
was to ensure that business chambers and their members understand their role in
the implementation of the Revised B-BBEE Codes.
According to the Acting
Chief Director of Black Economic Empowerment at Trade and Industry, Mr Liso
Steto, the objectives of the stakeholder engagement on the Revised B-BEE Codes
are to get an understanding of the challenges and concerns of business
regarding the Revised B-BEE Codes and also to address the concerns.
“This is an opportunity to
provide business with a practical understanding of applying the revised codes
and explaining what these codes mean for business. The amended B-BBEE Codes
contain significant changes and seek to give effect to Section 9 of the
Constitution by providing opportunities to those who were marginalized,” said
Steto.
The context within which
the B-BBEE legislative framework was revised was Government’s top agenda of
economic transformation and its expression in the National Development Plan
(NDP), and the drive for supplier development, localization, industrialization,
job creation and skills development.
This being said, the
revised codes are more focused and constructive. The seven elements have been
reduced to five, by merging employment equity with management control, and
enterprise development with preferential procurement, retaining ownership,
skills development and socio-economic development.
“The emphasis has shifted
from only ownership to include priority elements of enterprise and supplier
development as well as skills development. Of the hundred and nine available
points on the scorecard, twenty five are for ownership, twenty for skills
development and forty for enterprise and supplier development,” Steto said.
To promote localization and
industrial policy, the codes require that suppliers for preferential
procurement must be B-BBEE compliant and fulfill regulatory requirements, meet
at least three of the local procurement, job creation, raw material
transformation/beneficiation and skills transfer requirements. Furthermore, the
targeted beneficiaries for enterprise supplier development have to be fifty one
black-owned and black-women owned enterprises.
“The thresholds have been
adjusted, giving enhanced recognition to black-owned small medium enterprises
and to promote access to markets. Fifty one percent black-owned automatically
qualifies for level two, and those that are hundred percent black owned qualify
for level one,” added Steto.
The revised codes came into
effect on 1 May 2015. The implementation of the Codes is supported by the
amended B-BBEE Act 53 of 2003 as amended by the B-BBEE Amendment Act 46 of
2013, which came into operation on 24 October 2014.