Two bee advisers offer their thoughts on the implications of the new bee codes on south african business. Bee black economic empowerment or broadbased black economic empowerment bbbee as it is technically known is an initiative by the south. The amended broadbased black economic empowerment bee codes of good practice have moved the goalposts for. Nov 08, 2016 new bee code for south africas ict industry launched the details. We have never experienced the bee verification process in this manner before and have come to the realisation that cenfed are doing it correctly. It is imperative that companies measure themselves in terms of the revisions then plot their path to return to former levels. May 20, 2015 the biggest impact of the revised bee codes that came into effect on 1 may, will be on smaller companies. The revised codes are meant to become effective from the 1 st may 2015. The current generic codes of good practice codes were published on 11 october 20 and came into effect on 1 may 2015. Bbbee code of good practice bbbee commission department. Sector codes rsa leading bee verification agent bbbee wise. New bee code for south africas ict industry launched the. The establishment of the presidential bee advisory council 2009 recommendations to cabinet by presidential bee advisory council 2010.
Bee revised codes of good practice transitional period extended to end april 2015 share page the minister of trade and industry has amended the transitional period in respect of the new broadbased black economic empowerment codes of good practice, issued on 11 october 20. It signaled the commitment of government and the private sector to create a bold vision for the inclusive growth of tourism. Dr rob d vies, mp ministe of trade and industry dated 1. The minister may from time to time issue notices to clarify or guide the implementation of the act, and this is done through the government gazette. The purpose of the codes of good practice before the release of the strategy on broadbased bee1, there was no framework in existence for the measurement of broadbased bee. Our legislative mandate emanates from the act, which includes the regulations and the codes. It has also introduced revised generic bee codes of good practice the amended bee codes, which amend and replace the generic bee codes of good practice issued in 2007 the 2007 bee codes with effect from 1 may 2015. Certain amendments to the codes have been proposed by the minister of trade and.
Furthermore, if a qse has to report under the new codes it will have to develop a totally different mindset towards bee and our expert suggests that people affected by the new codes make sure that they gain the required knowledge of the new codes, either by way of a bee consultant, or by having an internal designated person who is. To date, the department has managed to conduct 46 workshops since april 2015. Under the new codes, the unified element is worth a total of 19 15 points plus four bonus. Broadbased black economic empowerment the revised bbbee. May 18, 2015 the new bee codes of good practice came into operation on 30 april 2015 new codes thereby replacing the existing bee codes of good practice old codes.
Codes were published on 11 october 20 and came into effect on 1 may 2015. Preparing your business for the new bbbee codes sme south. On 5 may 2015 the department of trade and industry published a notice regarding the implementation of the revised bee codes as well as the revised sector codes see attached. Minister davies says the refined codes symbolise a new beginning in the reorientation of the transformation.
Minister davies says the refined codes symbolise a new beginning in the reorientation of the transformation policy to focus more on productive bbbee and the growth of black entrepreneurs. The new bbbee codes will make it much harder to win business for companies that have not adapted. The main reason for amending the codes, according to the department of trade and industry, is to do away with the formalistic tickbox approach to bbbee. Bbbee and particularly the issue of ownership is very topical now. Confusion over new bee act causes business panic the mail. Codes of good practice new codes, which are expected to come into effect on 30 april 2015. Chapter 6 pdf of the new castle county code and its appendices pdf contain amendments to the adopted codes and is available for download. The amended codes of good practice for broadbased black economic empowerment that came into effect on 1 may 2015 will significantly reduce current compliance levels by two to three levels. Ongoing education campaign on the act and the codes. Trade and industry, department of handel en nywerheid. That means that when you obtain your new bee certificate after the end of april 2015, you will be measured against the revised codes. Enterprise turnover exempted micro enterprise less than r10m.
The latest bbbee codes see the merger of management control and employment equity into a singular element titled management control. Bbbee is governed by the broad based black economic empowerment bbbee act no. The revisions to broadbased black economic empowerment bbbee, or bee legislation that came into effect in may 2015 continue to cause confusion and anxiety among business owners in south africa. The minister, has announced the release of the revised broadbased black economic empowerment bbbee codes of good practice. Instead there are various codes for different types of.
The amended broadbased black economic empowerment bee codes of. In terms of section 14 1 of the broadbased black economic empowerment act, 2003 act 53. Cleveland, ohio 44114 phone 2168810015 toll free 8003214234 2015 02 electronic injectors for diesel engines. The new bee codes of good practice came into operation on 30 april 2015 new codes thereby replacing the existing bee codes of good practice old codes. Verification professionals are required to utilise the verification manual when verifying entities on the amended codes. President jacob zuma says black economic empowerment should not last forever but, to move beyond the need for empowerment, south africa needs to level the economic playing field and draw the black majority into all levels of the economy, including as owners and managers. It was important to amend the manual to include application methodology based on the 20 amended codes. Changes to definitions, procurement recognition rules and ed and sd. The ethiopian standards agency esa is the national standards body of ethiopia establishedin 2010 based on regulation no. The amendments to the generic codes which come into effect from 1 may 2015 significantly change the manner in which a firms bbbee status or level will be calculated, as the number of bbbee points required to achieve a particular bbbee level has been increased. The original bbbee legislation comprised the broadbased black economic empowerment act, number 53 of 2003, and its supplementary, detailed codes of. Substantial changes are suggested in the revised codes, which will require companies revise their current bee strategies to insure future. The codes place a lot more emphasis on black ownership and control and all companies should consider the codes carefully as there are different applications in the general code for different categories of enterprises.
We have dealt with numerous bee verification agencies and have found that cenfed has a proper procedure that they stick to. The new codes require that 80% previously 70% of a companys spend should be with beerated suppliers but this earns only five points previously 12 points. The amended codes of good practice for broadbased black economic empowerment that came into effect on 1 may 2015 will s. The new codes will replace the existing bee codes of good practice when they come into operation in october 2014. Published schedule of the amended codes of good practice, gazette number 38765 6 may 2015 notice of clarification for the amended bbbee codes of good practice, government gazette number 38764 5 may 2015 irba communique. Aug 12, 2017 the broadbased black economic empowerment codes of good practice aim to level the playing field for all operating in the south african economy by providing clear and comprehensive criteria for the measurement of broadbased bee. Without proper planning you will be placing your business at risk. Esa is established due to the restructuring of quality and standards authority of ethiopia qsae which was established in 1998. May 04, 2015 the new codes require that 80% previously 70% of a companys spend should be with beerated suppliers but this earns only five points previously 12 points. Amendments to the bbbee act and the codes explained is the source. The strategy provided the outline of a broadbased scorecard, together with weightings, but did not contain detail on measurement principles and. Generic code of good practice the minister, has announced the release of the revised broadbased black economic empowerment bbbee codes of good practice. Amended bbbee verification manual issued for comment by 30. The strategy provided the outline of a broadbased scorecard, together with weightings, but.
The ict sector council, which was first formalised in 2015, has been tasked with broadening the meaningful participation of blacks, women, youth and people with disabilities in the ict sector not just as consumers but also as entrepreneurs and content producers. Application impact of amended 20 codes of good practice on the south african standard on assurance engagements sasae. Foreword by the minister of tourism an exciting new era for the tourism sector began in 2009 when the tourism broadbased black economic empowerment sector code was gazetted. New bee code for south africas ict industry launched the details. Bee journey beeommission report c in 1998 economic development, social transformation and political buyin bbbee strategy of 2003. Dti unpacks amended bee codes to soften blow for business. The amended broadbased black economicempowerment codes of good practice come into effect on may 1 2015. Previously, management control and employment equity were worth 11 and 18 points on the bbbee scorecard respectively. Implementation of these gazetted changes is within 6 months from date of gazette.
The positive impact is that the dti have extended the effective date of the revised codes for all businesses with a financial year ending before 30 april 2015. It will be very difficult unless you are at least 51% black owned to obtain a high rating level due to the thresholds that were significantly increased. Codes of good practice phase 2 bbbee codes of good practice gazette no. Amended bbbee code of good practice may 2019 update bee. Sharing information with members of the construction industry, appropriate ministries and soes, verification agencies, cidb, etc. Dr rob davies, p minister of trade and industry march 2016.
The codes of good practice may be issued under the bbbee act and such codes may be sector. The bbbee codes of good practice the codes came into effect on 1 may 2015. If your financial year is after may 1 you must be verified using the new codes. It comes three years after government amended the bee act and generic codes. Development and distribution of best practice notes, which provide guidance on construction specific transformation issues. Electronic injectors for diesel engines interstate mcbee. Draft agribee codes of good practice 20 november 2015 amended agribee codes of good. This gazette lists a number of changes made to the bbbee code of good practice. How to earn maximum bbeee points through skills development. It signaled the commitment of government and the private sector to create a bold vision for. Jun 04, 2019 on 31 may 2019, the dti released gazetted changes to the bee codes, a new version of the preferential procurement, enterprise and supplier development element, skills development element, general principles, as well as updates on interpretations and definitions. The biggest impact of the revised bee codes that came into effect on 1 may, will be on smaller companies. On 11 october 20 the minister of trade and industry dti, dr rob davies, gazetted the revised broadbased black economic empowerment bbbee codes. Having initiated the process of developing the bee code for the ict sector.
Many changes are not in force from 31st may but become effective from 01 december 2019 and measured entities can choose to use them now. Revised bee codes and new sector charters postponed south. The codes of good practice for bbbee came into effect on 1 may 2015. On 31 may 2019, the dti released gazetted changes to the bee codes, a new version of the preferential procurement, enterprise and supplier development element, skills development element, general principles, as well as updates on interpretations and definitions. The public was invited for comment and following that, a transitional period was given to businesses to familiarise themselves with the new codes before they are implemented on 30 april 2015. The original bee codes date from 2007 and the new 20 codes came into effect this week after an 18month transition period. Cliffe dekker hofmeyr bee revised codes of good practice. Amended bbbee code of good practice may 2019 update. Black economic empowerment codes of good practice brand. Copies of the icc codes may be purchased from the department of land use. This means that those business owners whose bee certificates have expired will now have to renew it under the new codes and.
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