Broad Based Black Economic Empowerment (B-BBEE) or BEE is a reality and a business imperative. With the implementation of the amended B-BBEE Codes and black economic empowerment scorecard, broad based transformation has entered a new phase of diversity, requirements, dimensions and facets and is not limited to ownership and management considerations as some individuals may believe.
Companies that have failed until now to react need to do so very soon or face the gloomy prospect of not being in business within a relatively short period of time.
Do you know your A-Z of B-BBEE Legislation?
The complexities of the B-BBEE Codes, a low-growth economic environment and various other challenges that businesses are facing in industries such as Construction and Mining mean that B-BBEE is not simply a “tick box” exercise. You don’t have to become a B-BBEE expert as we are the industry leader when it comes to the strategies and processes associated with a B-BBEE rating certificate.
The challenge in understanding the complexity of the how, who, when and what of a BEE accreditation agency and the black economic empowerment scorecard is the main cause of concern and perceived risk for many owners of large corporates, family businesses, small and medium-sized businesses and professional practitioners.
We have established ourselves as the leader in South Africa in the field of restructuring of businesses to become B-BBEE compliant. We are not just another B-BBEE rating agency.
The BEE Scorecard Elements
- Ownership: measures black ownership of the entity.
- Management: measures participation of black people in the Board and management control structure.
- Skills Development: measures skills development spend on black employees and unemployed individuals, as well learnerships, apprenticeships/ internships and SETA-accredited training programmes.
- Enterprise and Supplier Development: measures procurement spend from empowering suppliers, together with Supplier Development and Enterprise Development contributions to beneficiary entities that are at least 51% black owned, in respect of their development, sustainability, financial and operational liberation.
- Socio-Economic Development: measures contributions for socio-economic development.
*Please note that these comprised seven elements on the old BEE scorecard.
In the amended Codes there is greater emphasis on majority black ownership, particularly in relation to the sub-element of Procurement as well as Enterprise and Supplier Development.
Our value-adding B-BBEE service
All services and legal work relating to the implementation of your customised B-BBEE strategy are included in our fees.
The following is included:
- Issuing of a SANAS accredited B-BBEE verification certificate by an accredited verification agent.
- Developing of strategies and compiling of a strategic report to enhance B-BBEE levels.
- Setting up unique B-BBEE ownership structures i.e. collective programmes, employee- or broad based programmes, community beneficiaries, programmes, trusts and non-profit companies etc.
- All agreements relating to such structures, i.e. shareholder agreements, memorandum of incorporation, subscription agreements, etc.
- All BEE joint venture, partnership and association agreements.
- All amendments in this regard as required by the Companies and Intellectual Property Commission of South Africa (CIPC).
- All resolutions and special resolutions to give effect to the above.
- Access to unique Empowerment Development structures for purposes of Enterprise, Supplier and Social Development.
- Continuous professional consultation and advice.
Why choose SERR Synergy as your B-BBEE service provider?
Our leadership team has been involved with black economic empowerment in South Africa since 2004. Our comprehensive B-BBEE services include tailor-made solutions that meet existing B-BBEE challenges by implementing effective and value adding strategies.
The existing B-BBEE Codes make provision for a variety of entities as a form of indirect B-BBEE ownership. The B-BBEE scorecard has been set up in such a way that it encourages broad-based ownership and the establishment of collective ownership programmes in the form of broad-based ownership schemes (B-BOS), employee share ownership programmes (ESOPs), non-profit companies (NPCs) and trusts, etc.
We follow a systematic approach to B-BBEE by categorising our services into several phases:
- Gathering of customer information
- Preliminary B-BBEE (or BEE) scorecard assessment as per the B-BBEE rating certificate elements
- Preparation for B-BBEE scorecard verification
- Drafting of a provisional B-BBEE strategy to enhance BEE scorecard levels for our customer
- BEE verification by a SANAS accredited BEE verification agency when required
- Managing all aspects of the B-BBEE rating certificate and verification process
- Dealing with all queries pertaining to the verification process
- Acceptance of a final B-BBEE strategy from our customer
- If more than one B-BBEE rating certificate is required additional verification fees will be incurred
- EME categories only – will exclude all cost relating to legal representation and restructuring.
- Implementation of the B-BBEE Strategy and provision of mandates, with feedback and evaluation reports to our client on a regular basis
Download our Broad-Based Black Economic Empowerment (B-BBEE) services brochure.