The rollout of the updated Broad Based Black Economic Empowerment (B-BBEE) codes that will come into effect from the 1st of May 2015, is evidently much stricter in its scoring and implications for business owners than the older codes.
In order for a business to thrive in this day and age, adhering to the B-BBEE Act and codes is vital.
Here’s why Being B-BBEE Compliant is Important
- If you want to engage with any kind of government body your business will have to be 100% BEE compliant to do the following:
a. apply for a tender,
b. purchase a state-owned asset,
c. 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. Larger businesses are incentivised to do business with you because it improves their own B-BBEE score.
- Being BEE compliant means you will not miss out on prospective business from companies wanting to deal with only BEE compliant companies. It could also mean you gain business from non-compliant competitors.
- And lastly, if you have a B-BBEE Certificate you become eligible for grants and obtaining finance. You can also be a beneficiary of corporate supplier development initiatives.
May 2015 Changes in the B-BBEE Act:
Understanding the new codes and the business risks that they bring are of utmost importance for business owners and directors.
Outsourced CFO and its partners would gladly assist in analysing your company’s scorecard, helping you understand the new codes and sector charters and assist you in planning for a bright future of doing business in South Africa.