BEE changes on the way

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The Black Economic Empowerment (BEE) industry is in a bit of a spin at the moment with people wondering “What is the future of BEE?”. This has been brought on mainly by new changes to the codes.

This is according to a communication to business owners from Business Consultants & Advisors Econoserv, saying the reality is that although some of the changes have been positive and some negative, BEE still remains an absolute necessity and will be around for many years to come, albeit in an evolved form.

“The changes gazetted in draft format a few months ago allows 51% black owned generic companies (turnover of more than R50 million per annum) the opportunity to automatically get a level 2 BEE status. Companies who are 100% black owned will be regarded as a level 1 contributor to BEE.

“This means that they do not need to produce a BEE scorecard at all and as such do not need to comply with skills development and enterprise and supplier development, SED nor even management control. The ramifications of this is that black owned companies could stop asking suppliers for their BEE status, which in turn means that the cascading effect of BEE could possibly come to a grinding halt.

“The dti is clearly trying to give black owned business a bigger advantage. They are proposing a change to enterprise and supplier development which will allow all 51% black owned business to benefit via enterprise and supplier development. This includes generic companies. There are also other changes to the procurement scorecard, enterprise and supplier development and skills development.”

It says the Youth Employment Service (YES) initiative is part of the proposed change. This will allow qualifying companies to be pushed up by 2 BEE levels once they have given the youth skills development, work experience and jobs. The target number of people is dependent on a few criteria and there are complexities.

“In other news, the amended construction sector codes have been gazetted. All construction companies, built environment professionals and now, construction material suppliers must follow the new construction sector codes. The draft mining charter has also been gazetted. Unfortunately, there is still no sign of the amended transport sector codes.”

Econserv is offfering a a series of events on these updates where the changes, and how to implement sustainable strategies to earn BEE points, will be unpacked.

The events are:

Half Day BEE workshop including the Proposed Amendments to B-BBEE Codes
Date: 10 July, 14 August
Duration: 09:00 to 13:00
Price: R1700 Excl VAT (Free of charge for Managed Service Clients)
Venue: 435 Rugby Avenue, Ferndale, Randburg

Half day Draft Mining Charter workshop
Date: 10 July, 14 August
Duration: 09:00 to 13:00
Price: R1700 Excl VAT (Managed Service Clients qualify for 50% discount)
Venue: 435 Rugby Avenue, Ferndale, Randburg

If your time is limited and you want a crash course on the changes, there is an informative evening event where the proposed changes will be discussed in greater detail on 5 and 18 July.
Duration: 16:00 to 18:00
Price: R 750 Excl Vat (Free of charge for Managed Service Clients but booking is essential)
Venue: 435 Rugby Avenue, Ferndale, Randburg