What is the best framework to use for BBBEE when doing business in SA?

Hi Marieta:

I have a friend in SA and this is what he said.

There are three important pieces of legislation that control B-BBEE, namely:

Employment Equity Act (1998)

The Employment Equity Act applies to black people, all women, and disabled people, in addition, stipulates the requirements for affirmative action to ensure that qualified people from these groups are equitably represented in all occupational categories and levels of a company.

The Act is binding on any business that employs 50 or more staff, or that has an annual turnover of more than R2 million to R25 million [removed]

Skills Development Act (1998) and the Skills Development Levy Act (1999)

These provide a framework for improving the skills and employment prospects of black people.

These Acts also make it compulsory for certain employers to contribute a percentage of their payroll (known as the Skills Development Levy) to a fund that can be used to train staff. The current generic B-BBEE scorecard awards points for skills development, but only for that which is over and above the payment of this levy.

Preferential Procurement Policy Framework Act (2000)

This allows any State entity to give preference to black people when awarding contracts. It also aims to boost SME development, create new jobs and promote local enterprises in specific provinces. Currently, the regulations of this Act are based largely on ownership, but this is likely to be revised in order to align it with the B-BBEE Act and Codes.

I hope this heps.

Hi Marieta:

This is all I know about the BBBEE framework:

 The Broad-Based Black Economic Empowerment Act 53 of 2003 [removed]

The current “generic” Codes of Good Practice (“Codes”) were published on 11 October 2013 and came into effect on 1 May 2015.Certain amendments to the Codes have been proposed by the Minister of Trade and Industry for public comment by 28 May 2018. As at the publication date of this Guide, the final form of the amendments is not clear.

The primary purpose of the BBBEE Act and the Codes is to address the legacy of apartheid and promote the economic participation of Black People in the South African economy.