1. WHAT IS B-BBEE?

B-BBEE is the implementation of a process to redress the economic historic exclusion of the majority of South Africans and through that, create a more equitable and stronger economy. Government’s BEE strategy is aimed to create a coherent, over-arching approach towards empowerment, starting with state departments’ procurement policies and regulating private sector empowerment via the B-BBEE Act, the DTI’s Codes of Good Practice and Industry Charters. The B-BBEE Act and Codes of Good Practice stress an empowerment process that is associated with growth and enterprise development, and not merely the redistribution of existing wealth. In order to achieve this, the BEE process ensures a more balanced approach and focuses on seven elements (equity ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development) of black empowerment within the Enterprise.

2. WHO IS THE TARGET GROUP?

The B-BBEE Act defines "black people" as a generic term that includes "African, Coloured and Indian" men, women, workers, youth, and people with disabilities and people living in rural areas.

3. HOW DOES B-BBEE IMPACT ON YOUR BUSINESS?

Black Economic Empowerment is regulated in the private sector by the Codes of Good Practice. Several sectors have developed Sector Charters, which are regulating the businesses functioning in the specific sector. The implementation of the BEE measures is an important strategic decision for every company. A BEE compatible company will enhance its position in the SA Business arena. It is foreseen that BEE compliant businesses will, in general, have a competitive advantage or at least prevent a potential competitive disadvantage. All enterprises, as required in terms of the B-BBEE Codes, will increasingly be required to provide its BEE status in order to procure or sell its products or services, which in the longer term will impact directly on its business. This will not only hold true for business with Government, but also for the private business arena. It is foreseen that BEE in the private sector will become a definite consideration in the process of conducting business. Furthermore, it is foreseen that BEE implementation will be a consequence of a spiraling process that will, to a great extent, ensure the natural escalating of compliance.