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.