BBBE Code Amendments

Amended B-BBEE Code

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As of the 01st of December 2019, verified companies will be audited based on the newly amended BBBEE Code. These amendments highlight the governments’ emphasis on the country’s zero-tolerance policy around non-compliance. 

These B-BBEE Code amendments were proposed on the 31st of May 2019 and have looked to address outstanding issues and reduce Gazetting costs. 

Key Amendments to Note:

  • Procurement spend with 51% black-owned businesses – Points increased from 9 to 11 and the target from 40% to 50%
  • The multiplier of 1.2 (for first-time suppliers) is removed and replaced by a 1.2 recognition boost for purchasing from 51% black-owned or black woman-owned suppliers.
  • Under Skills Development is that of absorption; which no longer includes further education and training and affects the 5 Skills Development bonus points. The points available under Skills Development and bursary expenditure now sit at 10 (up from 8) while the combined target remains at 6%
  • Double counting of initiatives under Skills Development expenditure and bursaries are not permitted and that 40% sub-minimum for Priority Element compliance is clarified at 8 points
  • Formal Skills Development expenditure is extended to include Category A bursary students, so companies can claim stipend expenditures for categories A, B, C &D learners which will prove beneficial. 
  • Training Manager’s salary cannot exceed 15% of your Skills Development Expenditure.

B-BBEE Compliance is no longer nice to have; if a business does not comply, it will feel the pinch. These amendments can significantly impact scoring and businesses that do not comply are at risk of lowering or losing their score, which decreases their chances of doing business in their respective markets.

The Transformation Legacy offers corporate companies opportunities to improve their B-BBEE score through the development of entrepreneurs. Contact us to get involved in our Enterprise & Supplier Development Programs and Skills Development initiatives.

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