What is BEE?
Broad-based Black Economic Empowerment (B-BBEE) is an initiative launched by the South African Government to address the restrictions that exist within the country for Black individuals to participate fairly in the economy.
The BEE Act allows for the existence of the B-BBEE ‘Codes of Good Practice’ which provide the structures for the BEE Scorecard and certain rules associated with claiming BEE points.
BEE is essentially a sellers’ club. If your company has a BEE Certificate then your customers can claim BEE points on their BEE Scorecard for buying from your business.
You can get different level BEE certificates (from level 8 to level 1) depending on what contributions you have made to supporting the integration of black people into the economy. The better level of BEE Certificate you have the more BEE points they can claim.
When your customers are choosing which supplier to use they are likely to look at price, quality and service and your BEE Score. Depending on how important BEE points are to your customer, the more they will consider your BEE Score over the other three elements.
Revised BEE Codes
The first BEE Codes were introduced in 2007 but following a review the South African Government revised the BEE Codes in October 2013. These Revised Codes are applicable from October 2014. However any entity may apply them in the transition period from October 2013 to October 2014.
The table below shows the BEE Point requirement for each of the 8 BEE Status Levels and how much your customers can claim on their BEE Scorecard as a result. It shows the difference between the 2007 Codes and the 2013 Codes;