B-BBEE Consulting

South Africa’s first democratically elected government was elected in 1994, with a clear mandate to redress the political, social, and economic inequalities of the past. The framework of laws and regulations put in place to re-balance the past economic wrongs is known as Broad-Based Black Economic Empowerment (“B-BBEE”).

The B-BBEE framework is by no means simple, with numerous unintended consequences awaiting entities that do not understand the framework, or do not correctly implement the framework.

Our skilled staff stays abreast of the latest B-BBEE rules and regulations, and by so doing we are well placed to advise on all aspects of B-BBEE, for both local and international clients.

This advice includes:

  • Advising and structuring complex ownership structures and funding models (including employee share trusts) and Equity Equivalent Programmes
  • Calculating the client’s indicative B-BBEE rating using our Assessment Tool©, in order to assess whether there are any shortfalls pre the rating, and addressing such shortfalls
  • Assisting with compiling the information for the rating pack that goes to the rating agency, and liaising with the rating agency throughout the process to ensure optimal scoring is achieved
  • Perform a GAP analysis at any stage of the process to identify possible interventions that could improve the rating
  • Developing a longer term B-BBEE strategy for the client in order to achieve a better rating going in the future. Such strategy will take all of the elements into account, with particular attention to the Priority Elements of such as Ownership, Skills Development and Enterprise and Supplier Development
  • Providing training in aspects of the B-BBEE framework, including how and where the framework will impact on the client’s business

Our B-BBEE Consulting Department often works closely our Legal Department on various B-BBEE matters. Find out more about our Legal Advisory Services here.

B-BBEE Insights

Sanity now prevails in the B-BBEE landscape

25 November 2021
The Department of Trade Industry and Competition (DTIC) recently published Practice Note 1 of 2021: Rules for Discretionary Collective Enterprises, together with an explanatory memorandum.

What happens to your B-BBEE Compliance Targets if you make a financial loss?

4 February 2021
Three elements on the B-BBEE Scorecard use Net Profit After Tax (NPAT) to calculate the Compliance Targets: Enterprise Development (ED) (1% of NPAT), Supplier Development (SD) (2% of NPAT) and Socio-Economic Development (SED) (1% of NPAT). These three elements constitute 20 points (excluding 2 bonus points) on the Generic Scorecard.

COVID-19 and B-BBEE

20 May 2020
This article focuses on the last 3 elements on the B-BBEE Scorecard, namely Skills Development (Statement 300), Enterprise and Supplier Development (Statement 400) and Socio Economic Development (Statement 500). These 3 elements are determined at a point in time, i.e. the Measured Entity’s financial period.

Enterprise and Supplier Development for B-BBEE

22 May 2019
Requirements & identification of suitable beneficiaries

Determining the validity of a sworn affidavit for B-BBEE compliance

18 March 2019
On 3 September 2018, the Broad-Based Black Economic Empowerment Commission issued a Practice Guide, which clarified the Broad-Based Black Economic Empowerment (B-BBEE) requirements for Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs).

Explaining the Y.E.S. Initiative

17 May 2018
On the 27th of March 2018, the President of the Republic of South Africa launched the Youth Employment Services (YES) Initiative, a business-led collaboration with government and labour, which aims to create more than one million paid internships for black youth.

Requirements for Employment Equity Reporting

26 September 2017
Prior to 1994, South Africa was governed by apartheid regime, a system in which people were discriminated based on the colour of their skin, gender, disabilities, etc. As a result of apartheid, companies had unequal racial and gender representation of people in different levels of the organisations.

Related People

Jackie KitchingJackie Kitching2.jpg

Director: Audit, B-BBEE & Valuations

 

Contact our B-BBEE team


Frequently asked questions

b-bbee_faqs.jpg

Answers here


Video insights

An introduction to Employment Equity Reporting

lebo_2.jpg

Workplace skills plan and annual training report

workplace_skills_plan.jpg