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What is BEE

WHAT IS BEE?


  • An integrated and coherent socio-economic process
  • Directly contributes to the economic transformation of South Africa
  • Brings about significant increases in the number of black people that manage, own and control the country’s economy
  • Significant decrease in income inequalities

Types Of Enterprises: Gazette No. 36928 and 38766

  • Exempt Micro Enterprises:
  • Your business falls into this category if your turnover falls below R10 million per annum. It automatically qualifies as a 100% contributor towards BEE. Businesses that have a Black Shareholding of more than 51% will qualify as Level 2 BEE contributors. 100% black owned entities under this category will be an automatic Level 1.

  • Qualifying Small Enterprises:
  • Your business falls into this category if your turnover falls between R10 million and R50 million per annum. If your business falls into this category then it is measured against a QSE BEE Scorecard. The measured entity must be evaluated on all 5 elements. Businesses that have a Black Shareholding of more than 51% will qualify as Level 2 BEE contributors. 100% black owned entities under this category will be an automatic Level 1.

  • Generic Enterprises:
  • Your business falls into this category if your turnover is above R50 million per annum. If your business falls into this category then it is measured against a Generic BEE Scorecard. Your verification is measured in terms of all 5 elements of BEE. There are 5 elements on a BEE Scorecard:

    Ownership - Measures the effective ownership of enterprises by black people.

    Management Control - Measures the effective control of enterprises by black people.

    Skills Development - Measures the extent to which employers carry out initiatives designed to develop the competencies of black employees.

    Enterprise and Supplier Development – Preferential procurement which falls within this element measures the extent to which enterprises buy goods and services from empowering suppliers with strong BEE procurement recognition levels. Enterprise Development measures the extent to which enterprises carry out initiatives intended to assist and accelerate the development and sustainability of black entrepreneurs or enterprises. Similarly, supplier development measures these same initiatives in assistance of black owned entities within their own supply chain.

    Socio-economic Development - Measures the extent to which enterprises carry out initiatives that contribute towards Socio-Economic Development that promote access to the economy for black people.

    Comparison between the 2007 (current) and 2013 (Revised) BEE Codes of Good Practice

    COMPARISON OF POINTS
    ElementCurrent ScorecardRevised Scorecard
    PointsBonus PointsPointsBonus Points
    Ownership20325
    Management101-
    Employment Equity153-
    Management Control--15(19)
    Skills Development15205
    Preferential Procurement20--
    Enterprise Development15--
    Enterprise & Supplier Dev.--403
    Socio-Economic Dev.55
    Total1007105(109)8

    KEY CHANGES - RECOGNITION LEVELS
    B-BBEE StatusCurrent ScorecardRevised ScorecardB-BBEE Recognition Level
    Level 1=100 points=100 points135%
    Level 2=85 <100=95 but <100 points125%
    Level 3=75 but <85 points=90 but <95 points110%
    Level 4=65 but <75 points=80 but <90 points100%
    Level 5=55 but <65=75 but <80 points80%
    Level 6=45 but <55=70 but <75 points60%
    Level 7=40 but <45=55 but <70 points50%
    Level 8=30 but <40 points=40 but <55 points10%
    Non-Compliant=30 on the Generic Scorecard>40 on the Generic Scorecard0%