The final draft for gazetting of the Amended Construction Sector B-BBEE Codes has been released. There are various interesting changes that will impact heavily on company’s B-BBEE strategies going forward.
The big changes come in Section 4.2 where an Exempt Micro Enterprise is deemed to have the following B-BBEE status Level:
If less than 30% Black Owned then “Level Five Contributor” having a B-BBEE recognition level of 80%
If 30% Black Owned then “Level Four Contributor” having a B-BBEE recognition level of 100%
If 51% Black Owned then “Level Two Contributor” having a B-BBEE recognition level of 125%
If 100% Black Owned then “Level One Contributor” having a B-BBEE recognition level of 135%
The benefits of BEE status include being able to apply for tenders with government bodies as well as purchasing of state-owned assets or entering into public-private partnerships.
Preferential procurement is another benefit that can affect the entire supply chain a company with good BEE standing is connected to.
Adhering to BEE acts and codes ensures a business can truly thrive in today’s economy, never missing opportunities to grow and gain more business, even from non-compliant competitors.