New B-BBEE Codes to be released tomorrow!
The Minister of Trade and Industry Rob Davies announced at the B-BBEE summit that the new Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice will be released by government on Friday, 11 October 2013.
Below are some of the salient features of the revised codes which were revealed at the summit:
- The new thresholds will be as follows:-
- EME < R10m
- QSE < R50m
- Generic > R50m
- All companies will have to report their BEE Performance
- There will be a 12 month transitional period
- There will be good news for small black-owned businesses in that enterprises that are 100% owned by black South Africans and have an annual turnover of R10-million or less will now be automatically awarded a “level one” B-BEE status, the highest level that can be obtained
- Companies of the same size that are at least 51% black owned will be recognised as “level two” B-BBEE contributors. These companies will merely be required to produce an affidavit as proof of their B-BBEE status
- The Generic and QSE scorecards will have 5 elements
- Both QSEs and Generics will drop one BEE level if sub minimums are not achieved in the priority elements of Ownership, Skills Development and Supplier Development. Sub-minimum requirements are:
- Ownership – 40% of net value
- Skills development – 40% of the element points
- Supplier Development
- 40% of the target for Preferential procurement
- 40% of the target for Enterprise/Supplier Development
- A Value Added Supplier will be redefined as an entity that can demonstrate that its production and value added activities are in South Africa
- Clarity will be provided on Family Trusts; ownership points have been broadened to include designated groups in the main points; and employment equity elements are to be aligned with the Employment Equity Act
All material subject to our Legal Disclaimers.