BBBEE Certificates
Broad Based Black Economic Empowerment - “BBBEE”
All businesses need an accredited BEE certificate. - if your business hasn’t complied yet, kindly read the following:
“BEE” stands for Black Economic Empowerment, whilst “BBBEE” stands for Broad Based Black Economic Empowerment. -- All rules are now based on “BBBEE” rules.
The biggest problem is that uninformed people spread untruths about “BBBEE” and create confusion. These people are obviously too often believed.
Use a specialist in the field of “BBBEE” to ensure your status is 100% correct. -- You'll never board a plane whose pilot only shows a 50% successful touchdown record
As said, all businesses doing business with other businesses are expected to have a BEE scorecard with the necessary certification:
Businesses must spend 70% of their procurement with other “BBBEE” registered businesses to earn maximum points for procurement.
The rules differ for businesses with annual turnover greater than R35 million. There are also different rules for different types of industries.
“BBBEE” is also a requirement for all tender applications.
From the 8th December 2011 all government departments are only allowed to do business with registered “BBBEE” businesses.
There are different rules for businesses with a turnover under R5 million per year, etc, etc.
These details and specific rules can only be discussed during a one-on-one conversation.
IMPORTANT to know that BEE does not imply that your business should have black partners.
See “BBBEE” registration as the biggest investment you’ll ever make in your business. See the growth in your revenues caused by . “BBBEE” certification.
See “BBBEE” as a management style and not as a sword on your head and experience the benefit immediately.
It is also extremely important to use a reliable Verifying Agency who uses the latest methods. A fine of 10% of your annual turnover and/or imprisonment for the owner for incorrect / false information on your score card is installed. --- we want to ensure you have peace of mind.
There is no minimum point to achieve, but is important for the process to start and so you can see where you can improve on the following year’s Certificate.
A certificate must be renewed every year.
A good “BBBEE” certificate is definitely the best document you can send to clients or for your marketers to convince possible clients of using your business to increase their “BBBEE” points on procurement. Display your certificate on your website or display your BBBEE level on a magnet on your vehicles.
I have examples of small businesses (Construction) whose turnover increased with R60 million in one year because of their “BBBEE” status. Likewise, businesses which lost turnover by R80m because they did not render their “BBBEE” certificate in time.
There are seven elements which your business can earn points on. Businesses between R5 million and R35 million earned a mark of 25 for any four of the seven elements and businesses more than R35 million will be scored on all seven elements. The seven elements for which points are allocated are as follows.
- Ownership. (Ownership)
- Management and control. (Management and Control.)
- Employment Equity. (Staff Composition)
- Training (Skills Development)
- Preferred Purchasing (Procurement)
- Enterprise Development. (Several things can count)
- Socioeconomic Development. (Donations)
It is not a problem if your business earns low or no points at some of the above elements simply because it could be made up by doing well on the other elements, or alternatively choose four other elements that will give you the highest points.
There have been special rules approved by DTI for the following sectors.(Charters).
- Tourism.
- Transportation.
- Construction.
- Forestry.
- Financial Services.
All other industries are still measured by the general rules of the "Codes of Good Practice".