Revised B-BBEE codes in a nutshell

The Minister of Trade and Industry, Dr. Rob Davies, says that the Revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice will enhance the implementation of B-BBEE in a meaningful and sustainable manner. Davies added that the revised B-BBEE Codes of Good Practice 2012 contain principles and guidelines that will also facilitate and accelerate the implementation of B-BBEE.
The purpose of the Codes is to assist and advise the public and private sectors in the implementation of the B-BBEE Act.
Key areas of refinement include the followings:
• The generic scorecard has been reduced to five elements, with Employment Equity and Management Control being consolidated, and Preferential Procurement and Enterprise Development merged to form a Supplier Development Element;
• The points for Ownership have been broadened to include designated groups in the main points;
• Thresholds for Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) have been adjusted;
• All companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard;
• The introduction of the priority elements: ownership, skills development and supplier development. Large enterprises are to comply with all three priority elements. The priority scores of entities that do not comply with sub-minimum requirements in each priority will be discounted;
• Entities that are 100% black-owned will qualify as Level 1;
• Entities that are more than 50% black-owned will qualify as Level 2;
• Updated framework for the accreditation of B-BBEE Verification Agencies to include the Independent Regulatory Body of Auditors;
• Skills Development Elements have been aligned to the New Skills Development Strategy and are to be outward focused; and
• Qualifying Small Enterprises must comply with all five elements on the scorecard.
Last week Cabinet approved the revised B-BBEE codes of good practice, and Minister Davies said they were intended to broaden the effects of empowerment.
The public will have 60 days to comment once the codes have been officially gazetted by the Department of Trade and Industry