Broad-based black economic empowerment services

Overview

The South African government has developed a transformation strategy supported by legal structures, aimed at fostering and encouraging Broad-Based Black Economic Empowerment (BEE) in all levels of the economy. Whilst BEE compliance is technically not compulsory for privately-owned businesses, the following measures act as drivers of BEE and promote its implementation:

Regulation
- The BEE status of enterprises has become part of the criteria for licence applications in a number of regulated industries
- In terms of the King III framework, good corporate governance requires specific attention to social sustainability, e.g. through contributions to black economic empowerment.

Markets
- The BEE status of suppliers is considered an application criterion in tenders for government projects
- To receive points for the element of preferential procurement, entities hoping to improve their BEE scores have to procure goods and services from suppliers with acceptable BEE scores.

Consumers
- There is increased consumer awareness around ethical trade requirements – especially in SA export markets.

The services we offer relating to support in the development and implementation of your BEE strategy can be divided into four distinct phases, illustrated below.

Appropriate and sustainable BEE implementation has to be based on a BEE strategy that is aligned with other business objectives.

BEE strategies have to be implemented by a well-informed management team that has been capacitated to effectively execute chosen action plans and record relevant activities and spending.

Directors and managers have to stay informed on changes to the regulatory framework related to BEE and the progress of the business toward stated BEE objectives.

The careful selection of a BEE verification agent and thorough preparation for BEE audits can enhance an entity’s performance in BEE verification exercises.