What is B-BBEE?
BEE is a government policy which is intended to increase participation and ownership in the economy by previously disadvantaged cultural groups including South Africans of African, Indian, Coloured and Asian ancestry. The goal of BEE is to create an economy and society where all South Africans are either employed or work for themselves, ensuring prosperity and stability for the country.
Despite the importance of BEE, there has been a fair amount of misunderstanding among some members of the business community about the intentions of this policy and how it will affect their businesses.
Preferential Procurement, whereby government departments and certain large corporations are required to deal only with suppliers who are BEE-compliant make it seem as if the BEE policy discriminates against white-owned businesses. However, for business owners who have taken steps to comply with the BEE policy the benefits are significant.
Benefits of BEE
Your business will not be negatively affected by the preferential procurement policy, protecting your revenue in the long term;
Your business will have the opportunity to expand its client base to include government departments and state-owned entities;
You will gain an advantage over other businesses which are not BEE-compliant, giving your business the edge when dealing with competitors;
Over the long term, more people will be active in the economy, creating a prosperous future where South Africans will be safer, wealthier, and pay less tax.
Most contractors and government tenders in South Africa will require you to have a BEE Certificate. When registering for a BEE Certificate you will receive a specific ‘Contribution Level Rating’ which is calculated with a sophisticated system. The entities which require a BEE Certificate from suppliers / service providers include: Telkom, Eskom, Transnet, Municipalities, Local Government, Construction industry, Banks and MANY more.
To register your business as BEE-compliant or check your BEE rating call Vivian our BEE specialist at LEAP: 011 449 7074