When it comes to BBBEE compliance in South Africa, evaluating the following five elements of your company could assist you in reaching the correct level for your company. The following diagram breaks down the different elements:
Of these five BBBEE elements, Ownership, Enterprise Development and Skills Development are considered priority elements. That means that if Stemcor does not score at least 40% of the minimum target of these priority elements, Stemcor will be discounted by one level on their overall score.
Example: Stemcor would get a BBBEE level 5 due to the points achieved, yet will be discounted to level 6 due to not reaching 40% of the threshold for Ownership for example.
Related: What Is BBBEE?
The Weight of BBBEE Compliance
|“Old” Point Structure||Revised Point Structure|
|Ownership||25||25% + 1 voting right|
|Management & Control||19||50% of voting rights|
|Skills Development||15||Skills Development||20
|6% of Payroll Spent|
|Procurement||20||Enterprise & Supplier Development||40
|Preferential Procurement – 80%
Supplier Development – 2% NPAT
Enterprise Development – 1% NPAT
|Socio-Economic Development||5||Socio-Economic Development||5||1% NPAT|
|Total OLD points||100||Total NEW points||109|
➤ The Investment House assists with professional design, implementation & reporting of all Corporate BBBEE efforts to ensure maximum gain
It is a requirement to have suitable documentation & evidence for a business’s BBBEE scoring. Professional BBBEE businesses, like The Investment House (Pty) Ltd, assist in the design, creation, implementation and documentation of all BBBEE efforts.
Related: What To Look For In A B-BBEE Partner
The tasks of Verification Agencies are to audit and verify the BBBEE evidence in order to issue a company with a BBBEE certificate. BBBEE certificates – confirming the BBBEE scoring – can be issued by any Verification Agency that has been approved by the South Africa National Accreditation System (SANAS).
BBBEE Certificates are evidence of a company’s BBBEE credentials and create a new level of access into corporate markets and assist in securing business with the public sector and government body.
➤ BBBEE Certificate proving the BBBEE compliance assists with access into new markets