REVISED BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE) CODES OF GOOD PRACTICE

Cabinet noted the revised B-BBEE Codes of Good Practice 2012 and approved that these be published for public comment.
The revised Codes will enhance the implementation of B-BBEE in a meaningful and sustainable manner, and contain principles and guidelines that will facilitate and accelerate the implementation of B-BBEE. The purpose of the Codes is to assist and advise the public and private sectors in the implementation of the B-BBEE Act.

Key areas of refinement include:

  • The generic scorecard has been reduced to five elements, with Employment Equity and Management Control being consolidated, and Preferential Procurement and Enterprise Development merged to form a Supplier Development Element;
  • The points for Ownership have been broadened to include designated groups in the main points;
  • Thresholds for Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) have been adjusted;
  • All companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard;
  • The introduction of the priority elements: ownership, skills development and supplier development. Large enterprises are to comply with all three priority elements. The priority scores of entities that do not comply with sub-minimum requirements in each priority will be discounted;
  • Entities that are 100% black-owned will qualify as Level 1;
  • Entities that are more than 50% black-owned will qualify as Level 2;
  • Updated framework for the accreditation of B-BBEE Verification Agencies to include the Independent Regulatory Body of Auditors;
  • Skills Development Elements have been aligned to the New Skills Development Strategy and are to be outward focused; and
  • Qualifying Small Enterprises (QSEs) must comply with all five elements on the scorecard.

(Department of Labour)

 

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