What is B-BBEE?
Black Economic Empowerment Act of 2003 is an elective legislation which seeks to reward entities who commit to the economic transformation strategies outlined by Government though the allocation of pricing, concessionary, licensing and incentive preference.
This legislation was refined in 2007 with the implementation of the Broad-based Black Economic Empowerment Codes of Good Practice to increase the pace of economic transformation encouraging closer alignment to the demographics of the Economically Active Population statistics and recognising that an organisations commitment to this legislation could not only be measured by their ownership and management control credentials.
How are Businesses Scored?
The level of an organisation’s contribution is described on a scale of non-compliant to a level 1 contributor status based on their scores out of 100 for both Generic & QSE entities. There are now 3 priority elements these being Ownership (Net Equity Section), Skills Development and Enterprise & Supplier Development. In the event that a Generic entity does not achieve the 40% sub minimum for each of these elements they will be discounted by 1 level. A QSE is required to achieve the sub minimum for Ownership and one other priority element or they too will be discounted by 1 level.