The Amended Broad-Based Black Economic Empowerment (B-BBEE) Sector Codes for the Construction and the Finance Services sector were gazetted by the Department of Trade and industry (DTI) on 1 December 2017, while the Agriculture Sector Codes were gazetted on 8 December 2017.
These codes were implemented with immediate effect without any transitional period, which means that any B-BBEE verifications signed off after the publication dates have to be performed in terms of these amended (new) codes. All verifications performed prior to the above publication dates would remain valid for the validity period of the certificate.
The new Construction Codes do not introduce any substantial changes to the version published for public comment in October 2016. Companies are only measured against South African Operations and the changes in verification, measurement and monitoring principles that have been introduced relate to the following:
In a supplementary letter from the Construction Sector Charter Council (CSCC) reference is made to the Scope of Application, which includes Construction Material Suppliers (hardware outlets) with the exemption mentioned and, under Verifications and Affidavits, to the cut-off thresholds for the use of affidavits.
EMEs with automatic levels of between 1 and 5, and turnover that exceeds R1,8 million for BEP and R3 million for contractors, will have to comply with the 40% sub-minimum prerequisite on the Qualifying Small Enterprise (QSE) Skills Development Scorecard to avoid being discounted a level.
Some entities are exempted from complying with the sub-minimum requirements and will be issued with an affidavit (and not a B-BBEE certificate). They are:
QSEs with 51% or more Black Ownership will qualify for an ARL 2 B-BBEE Certificate and a 100% Black-Owned QSE will qualify for an ARL 1 B-BBEE Certificate. Both of these will have to comply with the 40% sub-minimum requirement as per the Skills element to avoid being automatically discounted one level.
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YES programme participation can assist qualifying businesses to enhance their overall B-BBEE status with up to 2 levels.