The New BEE Codes of Good Practice

The New BEE Codes of Good Practice


Cabinet has approved the revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice 2012 for public comment.

Some of the key areas of refinement of the codes include:

  1. The reduction of the generic scorecard to five elements, with Employment Equity and Management Control being consolidated, and Preferential Procurement and Enterprise Development merged to form a Supplier Development Element;
  2. All companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard;
  3. ‘Priority elements’ have been introduced, namely ownership, skills development and supplier development, and large enterprises are to comply with all three priority elements. The priority scores of entities that do not comply with sub-minimum requirements in each priority will be discounted;
  4. Points will be deducted from companies that do not invest in skills and supplier development;
  5. The points for ownership have been broadened to include designated groups in the main points;
  6. Revised qualification points for awarding of B-BBEE recognition levels status;
  7. Thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises (QSE) have been adjusted;
  8. Entities that are 100% black-owned will qualify as Level 1, while entities that are more than 50% black-owned will qualify as Level 2.

It appears there’s much to be understood and digested, as well as preparation for a significantly different set of measures and targets going forward.

For further information please contact our HR department on [email protected].