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How do companies get involved with the initiative?

There are two distinct categories for levels of involvement. 

Those are the businesses looking to develop their supply chain and those who want to become part of the supply chain.


We discover the current situation in each business through our BusinessFit audit process. If your business wants to develop their supply chain then, the first step is for the BusinessFit team to sit down with senior management of that organisation and assess the organisation’s needs revolving around supply change management, every organisation’s needs and solutions are unique.

Then we work through a comprehensive audit report with the business owner and assist the business owner in developing a roll-out plan to introduce best practice. In addition, companies will now have a better understanding of which of their suppliers requires assistance in becoming compliant.  They will be in a position to assist in ensuring that their suppliers address the areas in which they have shortcomings. We provide the support structures necessary to achieve the outlined targets. 

The crux of the matter is that by developing your supply chain through BusinessFit you can spend your own enterprise money with us to develop your own supply chain. 

It is a win-win situation for all involved. 

If you are a 51% black owned company, register your company’s details We will check your credentials because remember a company can’t claim points on their B-BBEE score card if you are not compliant if they use your goods or services. If your company needs help in becoming compliant our team of experts will assist because compliance is critical in plugging into the bigger picture of the supply chain. 


How to use BEE to increase your Bottom Line!  

The Basics of BBBEE

Whilst most business owners are scared off by BEE terminology, BEE is rather a simple government policy, which is mostly referred to as  Black Economic Empowerment. With the implimentataion of the newly Amended BEE Codes, companies will have to be pro-active in their approach to transformation in order to maintain a good BEE score.

It is important to know that BEE is not forced apon any entity by law. HOWEVER, any entity wanting to do business with the Government or any Organs of State has to be BEE Compliant First. The process of becomingBEE Compliant is known as the BEE Verification process.

This is a process where the entity has to come into contact with an SANAS Accredited BEE Verification Agency. Together with the BEE Agency  the entity has to undergo a partial or full audit to determine its BEE Compliancy Levels. 

This comprises three easy steps.

  1. Completion of Documentation and BEE Verification planning. 
  2. Gathering of Evidence according to the 5 elements of relevance. 
  3. Verification of Evidence and calculating BEE Compliancy.

Please note that the Amended Codes only apply to entities which do not fall under any Sector Code, as per the Codes if an entity does fall under a sector code it can only be measured in accordance with that sector.
Sector Codes are as follows:
AGRI – BEE
Financial Sector Charter
ICT Charter
Property Sector Charter
Chartered Accountancy Sector Code
Integrated Transport Sector Codes
Forest Sector Codes
Construction Sector Codes
Tourism Sector Codes

Please note that the Amended Codes has created 6 categories

  • EME Certificate (Old Codes) -                   (R 0 - R 5 Mill turnover pa),
  • EME Certificate (Amended Codes)-          (R 0 -  R 10 Mill turnover pa if Fin Year falls after 1 May 2015)
  • QSE Certificate  (Old Codes)-                    (R 5 Mill - R 35 Mill pa) or
  • Generic Certificate (Old Codes) -              (More than R 35 Mill pa)
  • Generic Cetificate (Amended Codes) -      (More than R 50 Mill pa if Fin Year falls after 1 May 2015)
  • Sector Codes e.g. Construction-                Old  Sector Code regulations apply

The Amended Code sonly apply to entities which do not fall under any Sector Code. As per the Codes if an entity does fall under a sector code it can only be measured in accordance with that sector. Sector Codes are as follows:

  • AGRI – BEE
  • Financial Sector Charter
  • ICT Charter
  • Property Sector Charter
  • Chartered Accountancy Sector Code
  • Integrated Transport Sector Codes
  • Forest Sector Codes
  • Construction Sector Codes
  • Tourism Sector Codes

 The BEE Scoring Levels under the Amended Codes  

Once this is done, a BEE Certificate of that specific entitys' BEE Compliancy and Procurement Recognition is then issued.  The  BEE scoring levels is explained below. This BEE certificate is then valid for one year from the date of issue. Below is a comparitive chart of the changes in scoring points of the Amended vs Old Codes.

BBBEE LEVEL

AMENDED CODES

 OLD CODES

1

≥ 100 points

≥ 100

2

≥ 95 but < 100 

≥ 85 but < 100

3

≥ 90 but < 95 

≥ 75 but < 85

4

≥ 80 but < 90 

≥ 65 but < 75

5

≥ 75 but < 80 

≥ 55 but < 65

6

≥ 70 but < 75 

≥ 45 but < 55

7

≥ 55 but < 70 

≥ 40 but < 45

8

≥ 40 but < 55 

≥ 30 but < 40

NON – COMPLIANT

< 40 points

< 30

Categories of BEE Companies under the Amended Codes  

When deciding whether your entity needs to be verified or not it is important to know and understand the three categories which a business may fall under. This determines the BEE planning process the entity needs to do, as well as the pricing of Accredited BEE Verification.

According to the Last Financial Statements i.e. the annual turnover, the following is categorised:

  • EME

Exempted Micro enterprise, this is when the natural turnover is less than 10 Mil. Please note that in other industries this may differ e.g. Tourism Industry the annual turnover needs to be less than 2.5 Mil. A full audit is not necessary, only relevant supporting documentation eg. Cipc Registration and Certified Copies of ID's of owners.

EME with more than 51% Black ownership can get a Level 2 score and 100 % Back ownership can obtain Level 1.

  • QSE

 The Qualifying Small Enterprise Scorecard has not been amended yet, thus when the annual turnover is less than 35 Mil but more than 5 Mil. An on site audit is done, this is where 5 elements are verified and a site verification is also conducted.    

  • GENERIC 

In case of a Generic, a full on site audit is necessary, this means that all 5 elements are verified as per the Generic Scorecard, a site verification as well as interviews are conducted.    

The 5 Elements of BEE Verification under the Amended Codes. 

During a BEE verification the verified entity has to submit physical proof of activity, spending and contributions in the five elements of empowerment.  The elements are:

  • OWNERSHIP 

Proof of shares in HDI hands. A share certificate for example will need to be submitted for this purpose. This is regarded as a priority element and failure to comply with the minimum target (40% of Net Value) will result in the Level as obtained above being discounted.

  • MANAGEMENT


Proof of HDI's (men/women) in top/senior/middle/junior management. Interviews will be held to confirm seniority, job description, salaryetc.Submission of a EE report and the involvement of PDI's in the organisation on different levels and categories.

  • SKILLS DEVELOPMENT


Proof of training spend on HDI's  employees or non employees and accredited programs such as apprenticeships, learnerships and internships and mentorship programs. This is regarded as a priority element and failure to comply with the minimum target of 40% will result in the Level as obtained above being discounted.

  • ENTERPRISE AND SUPPLIER DEVELOPMENT


Proof of purchases from current  and  suppliers that are BEE compliant and Empowering Suppliers as a percentage of total procurement spend. Aiding SMME's and emerging entities owned by HDI's to trade in the mainstream economy. An example is setting up a CC and contracting such an entity to provide products. This is regarded as a priority element and failure to comply with the minimum target 40% in all categories will result in the Level as obtained above being discounted.

  • SOCIO ECONOMIC DEVELOPMENT 


Social contributions towards own employees, employees families and communities such as paying employees children's school fees and contributions towards black sports teams.

 
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