BEE? BBBEE? South Africa? How are those two terms related? The Broad-Based Black Economic Empowerment program or abbreviated BBBEE was launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (Black Africans, Coloureds and Indians) economic opportunities previously not available to them. This policy is a pragmatic growth strategy that aims to realize the country’s full economic potential.
When it comes to the formation of your own business in South Africa, numerous things have to be thought about. Among those are the requirements and long-term consequences of BBBEE. But how to obtain a BBBEE rating? Which scorecard is applicable? How to interpret the diverse elements on the scorecard? And eventually, how to improve an existing BBBEE rating?
The BBBEE Act does not contain any compulsory regulations for private enterprises or private investors to put into practice. However, based on the “preferential procurement” system, a decent BBBEE rating has become quite important. Otherwise negative economic long-term effects will become obvious.
IBN explains the effects and requirements of the BBBEE regulations for your business. Furthermore, we are able to professionally advise you, based on our experience and cooperation with SANAS accredited verification agencies, concerning your BBBEE rating.