Introduction to BEE
Broad-based Black Economic Empowerment (BBEE or BEE) is a
regulatory framework to encourage South Africans who were
previously disadvantaged under the Apartheid regime to be
more fully involved in the formal economy.
|
Why Black Economic Empowerment?
Under the Apartheid regime, race was used to control access
to South Africa’s productive resources and access to skills.
1994 was a watershed year where all races in South Africa
were allowed to vote for a new multi-racial government.
|
What is Black Economic Empowerment?
Black Economic Empowerment (BEE)
is a broad initiative to encourage the participation of all previously disadvantaged communities in the formal economy.
Broad-based Black Economic Empowerment has been developed over a number of years, culminating in the Codes of Good Practice which were released in February 2007.
These Codes measure BEE out of 100 points as a measure of how BEE-compliant companies are, and is typically measured across 7 elements, namely Ownership, Management and Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio-economic Development.
|
How long will BEE last and will the Codes change?
The Codes are in effect until amended or repealed (i.e. indefinitely). The Codes allow for a review after 10 years, with annual reviews to monitor implementation.
During 2008, however, BEE came under harsh criticism,
with many individuals representing government, business
and other groups calling for a review of the Codes. It
is therefore possible that the Codes could be reviewed
and updated prior to 2017. |
Downloads and links
|
|
 |
How is BEE Governed?
1994-1999: BEE was initially a loose programme with no legal framework, typically focusing on Ownership.
1999-2002: Broad-based empowerment became more popular as a result of the need for transformation not only at Ownership level, but at all levels of society. Industry groupings began to put together ‘Charters’ which would determine how BEE efforts would be measured. Independent watchdogs began to form.
2003-2004: With numerous Charters emerging and causing confusion in the market, Government published the Broad-Based Black Economic Empowerment Act of 2003. This act enabled the Department of Trade and Industry (DTI) to publish ‘Codes of Good Practice’ for BEE.
2005-2007: The DTI finalised the Codes of Good Practice. These are binding on all organs of state and public entities. Industry Charters need to be sufficiently similar to the Codes before being recognised by Government and published under section 9 of the BEE act. Charters not meeting the DTI’s requirements are published under section 12 of the BEE and are for information purposes only.
2007-2008: Codes of Good Practice were bedded down, the guidelines to the Codes issued and verification procedures developed and documented. SANAS was tasked with developing the accreditation criteria which Verification Agencies are required to comply with, and with going through the process of accrediting rating agents. A baseline report on progress on BEE was commissioned by the President and highlighted poor progress among South African companies. During 2008, BEE came under harsh criticism, with many individuals representing government, business and other groups calling for a review of the Codes.
2009-current:
Progress has been made on various sector charters, including the drafting of the CA Charter and gazetting of various industry Sector Codes including Integrated Transport, Forest, Construction and Tourism. There were also draft changes released in August 2009 to align the Preferential Procurement Policy Framework Act with the dti Codes of Good Practice released in August 2009. Businesses are experiencing an increasing need to comply with BEE as Government increases pressure (e.g. to award licences). Ultimately we believe companies are running an increasing risk of future pressure by seeing BEE compliance as successful transformation rather than embracing the spirit of transformation.
Baseline report on progress on BEE
|
|
< back to top >
|
|
Meet The Team
Bravura Equity