BEE and B-BBEE Certificates
What is BEE / B-BBEE?
BEE certificates or Broad-Based Black Economic Empowerment (B-BBEE) certificates are a result of a South African government policy. This policy has been designed to advance economic transformation and increase the economic participation of previously disadvantaged people. The Black Economic Empowerment program was introduced in 2003. A modified program called Broad-Based Black Economic Empowerment or B-BEE was introduced in 2007.
SA’s B-BBEE Act: Codes of Good Practice on Black Economic Empowerment (BEE) was published in the government gazette of 9 February 2007, to replace earlier editions of the Act. An Interpretive Guide followed in June 2007. The Codes cover Ownership, Management& Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development, Socioeconomic Development and Qualifying Small Enterprises. Further scorecards were gazetted (see section 12) which included Financial Sector Scorecard, Construction Sector Scorecard and Tourism Sector Code.
This legislation has taken more than three years to be gazetted since 2003. Many task teams have been involved and sector scorecards were given until March 2015 to submit sector charters.
Do I need BEE?
Under certain business conditions (i.e. in order to comply with the preferential procurement policies of the SA government or accredited medium/ large enterprises, to compete for tenders, contracts or bids, etc.), Black Economic Empowerment certificates typically form part of a set of standard requirements. These have in the past been updated so you need to find out what the latest is.