Issue Date: 
Monday, September 8, 2014

The new B-BBEE Codes of Good Practice

By Werner van Rooyen

www.how2tender.com

8 September 2014

If you are a business owner in South Africa and you haven`t heard of Broad-Based Black Economic Empowerment (B-BBEE) or if you haven`t given it some thought you are going to be left behind in the future.

This past week I was studying the new B-BBEE Codes of Good Practices again and I realized that the new Codes of Good Practice are going to change the business landscape forever. The simple reason is because the new Codes of Good Practice is far more stringent than the old Codes.

The importance of the new Codes of Good Practice lies in the fact that all businesses that are currently B-BBEE compliant with a decent B-BBEE Scorecard are going to struggle to maintain the same Level of Score if they do not have some kind of Black Ownership. The opposite will also be true in that Black Owned businesses will find it easy to score points on their B-BBEE Scorecard.

If you look at the table below, it indicates where businesses are going to end up with their B-BBEE Scorecard should they not have some kind of Black Ownership.


*Column 2 is if you achieve the same points that you have scored previously.
**Most Enterprises will not achieve the same points because of the Priority Elements.

The fact of the matter is that your business will need a good B-BBEE Scorecard to compete in the tender process. I will suggest that you start planning now to ensure that you achieve at least some kind of decent B-BBEE Scorecard to stay competitive when you respond to tenders.

In the new Codes of Good Practice, Qualifying Small Enterprises (QSE`s) must also comply with all the elements of B-BBEE. This is a far cry from the old Codes where QSE`s only had to comply with four of the seven elements. QSE`s make up the bulk of businesses in South Africa and I predict that there are going to be a bit of a flutter by QSE`s to comply with the new Codes of Good Practice.

Don`t get left behind!

Visit our website at www.how2tender.com for more information or buy our Tender Manual. Until next time, happy tendering.

Brand new Preferential Procurement Regulations 2017 for Tenders

The brand new Preferential Procurement Regulations 2017, has been finalized and was gazetted on 20 January 2017. There are some interesting changes and challenges that we will discuss during the coming months. This is the official media release from National Treasury:

The regulations were initially promulgated in 2001 and revised in 2011 thus making this the second revision since the initial promulgation.

The revision of the Preferential Procurement Regulations of 2011 was largely influenced by the need... Read More

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