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Broad Based Black Economic Empowerment (BBBEE)

Presented by: Philip Prinsloo

What is BBBEE

• “An integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the number of black people that manage, own and control the country’s economy , as well as significant decreases in income inequalities ” (

the dti

, 2003)

Section 1 of the BEE ACT

“… a generic term which means Africans, Coloureds, Chinese and Indians who are:” citizens of the republic of South Africa by birth or descent; …

BEE Legislative Framework

Broad-Based BEE Act Broad-Based BEE Strategy and Scorecard The Codes of Good Practice Industry Charters (To be negotiated)

Enabling framework for the promotion of BEE

Empowers Minister to issue Codes of Good PracticeEstablishes the BEE Advisory Council

Defines Government’s Broad-Based Strategy

Provides the generic balanced-scorecard • Further interpretation of the BEE Act • Determines criteria for BEE measurement • Details of scorecard verification •

Outlines industry-specific BEE weightings and targets

Standardises industry BEE initiatives and reporting

7 Pillars Of Broad Based BEE (Codes of Good Practice)

Applicable Categories

Generic Qualifying Small Enterprises Exempted Micro Enterprise (EME)

• •

Annual Turnover > R35m Measured on all seven elements

• • • •

Annual Turnover > R5m up to R35m QSE Scorecard: Select four of the seven elements All elements weigh 25% Choose 4 out of 7 elements

• • •

Annual Turnover of R5m and less "Level Four Contributor” > 50% Black owned - "Level Three Contributor"


The BBBEE Scorecard

The BEE Scorecard measures overall BEE Contributions out of 100 points allocated in terms of the weightings and targets.

Criteria Ownership Management Employment Equity Skills Development Preferential Procurement Enterprise Development Socio-Economic Development Total Generic 20 10 15 15 20 15 5 100 QSE 25 25 25 25 25 25 25 100 (best 4)

Alignment of PPPFA Regulations and B-BBEE


Strategic Objectives

 Strategic Objective One (SO1) 

“Creating opportunities for growth and jobs”

 Economic Empowerment unit’s Strategic Objective: 

“To create an enabling environment for sustainable economic empowerment through the promotion of procurement opportunities to local businesses.”

Economic Empowerment Unit Supplier Development Program Access to Business Finance & Incentive Schemes


Procurement Promotion, Advocacy & Awareness

Procurement Promotion Strategy

Supplier Development Programme

(Access to Market Opportunities) • • • Incubation Match-Making Black Supplier Database

Access to Business Finance & Incentive Schemes

• • • • • • • NEF & ED Fund Khula SAMAF IDC NYDA the Dti Banks

Procurement Promotion & Stakeholder Relations

(Youth, Women, PLWD, Rurally located) • • • Tender Website Municipalities Chambers of Commerce


☎ 0861 888 126 ☒ [email protected]


Thank You

Philip Prinsloo ☎ 021 483 9238 ☒ [email protected]