What is B-BBEE?
Broad Based Black Economic Empowerment (B-BBEE) is a South African policy that encourages companies to help transform the country. B-BBEE has Codes of Good Practice – known as COGP – which is divided into the following five elements:
What percentage of shares are owned by black people in your business?
How many of your directors, top management and employees are black?
How much money do you spend on developing and training black employees?
Enterprise and Supplier Development
How do your suppliers score and how much do you spend on helping other black-owned enterprises grow?
How much do you spend on assisting charitable organisations?
BES addresses basic and complex B-BBEE challenges using proven methodologies in all of the following categories:
Exempt Micro Enterprises
below R10 million turnover per annum.
Qualifying Small Enterprises
between R10 million and R50 million turnover per annum.
above R50 million turnover per annum.
Your company gets scored on a B-BBEE scorecard where the points you earn for the elements are combined and translated into a level.
|Points||Above 100 points||95-100 points||90-95 points||80-90 points||75-80 points||70-75 points||55-70 points||40-55 points||Less than 30 points|
|Levels||Level 1||Level 2||Level 3||Level 4||Level 5||Level 6||Level 7||Level 8||Non-compliant|
The lower your level, the more attractive your company is to big businesses in South Africa. It’s as simple as that.