Corporate BBBEE Compliance Turned Into BBBEE Investment

Corporate BBBEE Compliance Turned Into BBBEE Investment



Although there are no direct financial penalties that could be applied to non BBBEE compliant businesses, the BBBEE system ensures that procurement managers and buyers will favour businesses that are compliant since that enhances their own BBBEE Scorecard under the Preferential Procurement element provisions.

Corporates would have to meet at least 3 of the following 4 criteria to qualify as Empowering Supplier: (Generics have to meet 3, QME’s have to meet 1).

Related: What Is BBBEE?

Corporate as Empowering Supplier, would be a preferred supplier, as Corporate customers will be able to claim expenditure spent with them under preferential procurement (BBBEE points).

  • At least 25% of costs of sales (excluding labour costs and depreciation) must be procured from local producers or local supplier in South Africa
  • 50% of jobs created are for black people (the number of black employees prior verified B-BBEE measurement must be maintained)
  • At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.
  • At least spend 12 days per annum of productivity deployed in assisting Black EMEs and QSEs beneficiaries to increase their operation or financial capacity.

Corporate BBBEE Recommendation & Model

By having analysed the Corporate business environment – from operations, management, ownership, human resources and procurement perspective, and after the identification of company objectives, we are able to give recommendations and present opportunities to fill your gaps on the BBBEE scorecard in order to create a prosperous future for your business.

In order to stay competitive in the South African market, Corporate will have to undergo the challenge of creating a new business reality. The stringent BBBEE legislative makes it clear, compliance and good practice is inevitable for large enterprises.

“Old” thinking habits as well as “old” structures & processes will have to undergo considerable changes. BBBEE should not only be perceived as a compliance requirement, but rather as an integral element of Corporate business, marketing and growth strategy.

Related: The 5 Elements Of BBBEE

The Challenge of Creating a New Business Reality


Objectives Corporate

  • Increase BBBEE level
  • Continue business with current suppliers and customers
  • More competitive in your market
  • Access to new markets
  • Turn Stemcor into a social responsible entity with reputable image

Our BBBEE Compliance Recommendation and BBBEE Model are focused on, not only contribution to a growing and employment-generating economy, but also to meet Corporate objectives and gain sustainable business benefits:

Benefits Corporate

  • Securing maximum BBBEE scoring
  • Ensuring the reputable integrity of Corporate through innovative BBBEE compliance
  • Access into new markets & expansion of target market
  • Access to highly skilled (existing or potential) employees, tailor-made to Corporate requirements
  • Access to reliable, well trained and mentored suppliers
  • Access to reliable, well trained and mentored stakeholders
  • We turn your BBBEE compliance spend into an investment spend.


Related: BBBEE Employee Share Schemes – Should I Or Not?

The Investment House
The Investment House combines leading-edge industry expertise with creative talent and strategic thinking to reach the objectives of our clients. Our mission is to contribute with Business Development and Business Intelligence to an empowered nation enjoying financial freedom and prosperity. Our vision is to be South Africa's most successful business developer creating sustainable economic growth and wealth.