Why is B-BBEE important
Broad-based Black Economic Empowerment (B-BBEE) is an integration programme launched by the South African government to reconcile South Africans and address the inequalities of apartheid by attempting to compensate for land that was repossessed from Africans.
The program strives to ensure that the economy is structured and transformed to enable the meaningful participation of most of its citizens and to further create capacity within the broader economic landscape at all levels through skills development, employment equity, socio- economic development, preferential procurement, enterprise development, promoting the entry of black entrepreneurs into the mainstream of economic activity, and the advancement of co-operatives.
- Transform South Africa’s economy to allow meaningful participation by black people and to substantially change the racial profile of companies’ owners, managers and skilled professionals.
- Increase the ownership and management of companies by black women, communities, workers, cooperatives and others, and help them access more economic opportunities.
- Promote investment that leads to broad-based and meaningful participation in the economy by black people.
- Help rural and local communities’ access economic opportunities
- Promoting economic transformation in order to enable meaningful participation of black people in the economy
- Achieving a substantial change in the racial composition of ownership and management structures of existing and new enterprises
- Increasing the extent to which communities, workers, cooperatives and other collective enterprises own and manage existing and new enterprises and increasing their access to economic activities, infrastructure and skills training
- Promoting investment programmes that lead to broad-based and meaningful participation in the economy by black people in order to achieve sustainable development and general prosperity
Importance of B-BBEE to your business
- Should you want to engage with a government body your organisation will have to be BEE compliant to be able to apply for a tender; purchase a state-owned asset or enter a public-private partnership?
- Private companies that engage in business with each other may also reap the benefits of being BEE compliant through preferential procurement. Being compliant means, you will not miss out on prospective business from companies wanting to deal with only BEE compliant companies furthermore it could also mean you gain business from non-compliant competitors. Your BEE certificate allows your business to become eligible for grants and obtaining finance. And you can also be a beneficiary of corporate supplier development initiatives.
Why is B-BBEE reporting important?
B-BBEE legislation strives to add to the value to our society through its commitment to skills development together with the contribution to social development and transformation.
According to the DTI “South Africa’s policy of black economic empowerment (BEE) is not simply a moral initiative to redress the wrongs of the past. It is a pragmatic growth strategy that aims to realise the country’s full economic potential while helping to bring the black majority into the economic mainstream”
The Broad-Based Black Economic Empowerment (B-BBEE) Commission is established as an entity within the administration of the Department of Trade and Industry (“the dti”) by the Broad-Based Black Economic Empowerment Act 53 of 2003 to oversee the implementation of the Act, which includes the receiving and analysing of reports as prescribed regarding compliance of organs of state, public entities and private sector enterprises.
Contact us today for all your B_BBEE requirements