B-BBEE Consultation

Black Economic Empowerment

Background

In the near future companies will advertise their Black Economic Empowerment status level before announcing products and price!

• Incorrect information communicated to businesses has resulted in feelings of apprehension with regard to B-BBEE. Being a B-BBEE company ourselves, we realise the benefits of B-BBEE compliance and therefore view B-BBEE in a very positive light. B-BBEE is a business tool that leads to growth.

• Most businesses focus on the elements of ownership and management on the B-BBEE Scorecard. This narrow based approach has unfortunately led to a bad image of B-BBEE and has given rise to fear that transformation is all about giving away shares.

• We will assist you to utilise the other elements on the scorecard to your benefit. These elements are Skills Development, Socio-Economic Development, Enterprise Development, Procurement and Employment Equity. The elements mentioned here will ultimately make a difference to South Africa’s growing economy.

What Is B-BBEE?

The Department of Trade and Industry (DTI) Strategy Document defines B-BBEE as “an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the numbers of Black people that manage, own and control the country’s economy, as well as significant decreases in income inequalities”
The document further states: “No economy can grow by excluding any part of it’s people, and an economy that is not growing cannot integrate all of it’s citizens in a meaningful way.”
The most compelling rationale for B-BBEE is economic growth!
B-BBEE is a government programme intended to improve the inclusion of Black African, Indian, Coloured and Chinese people into the mainstream economy.
It allows companies to receive recognition for involving Black people in all levels of business:

• The B-BBEE Programme measures the involvement of Black people in the following areas:
  • Exempted Micro Enterprise (EME) – (turnover R5m or less);
  • Qualifying Small Enterprise (QSE) – (turnover between R5m and R35m);
  • Generic Business – (turnover more than R35m);

Benefits Of B-BBEE verification

• B-BBEE compliance will enhance your competitive advantage.
• Businesses will get preferential procurement from government, parastals and the private sector.
• B-BBEE is part of South Africa’s economic growth strategy.
• B-BBEE is essential for government licensing eligibility or licensing renewals.
• Businesses can submit tenders and supply a B-BBEE Scorecard as required.
• Small companies can compete against big companies as suppliers.
• Productivity and profit increase as well as a vital contribution to the growth of skills and social capital in South Africa.
• Access to government incentives and business support.
• Businesses earn B-BBEE points when they do business with other        B-BBEE compliant businesses.
• B-BBEE compliance is a vital tool for businesses to secure their market position.

Key Features

In addition to the B-BBEE Consultation Service, DITASA will offer the following:

• Regular communication on changes in the legislation, interpretation, court cases and policy changes. This will provide you with information to regularly refine your B-BBEE strategy.
• Guidance and support to structure a learnership with the relevant SETA as part of the social responsibility.
• Advice on workplace skills plans, skills levies and the structure of development programmes.
• Feedback from the verification agency on critical matters relating to the B-BBEE scorecard.

The Consultation Process will involve:

• Analysing the B-BBEE status of the client;
• Identifying and restructuring existing B-BBEE initiatives of the client;
• Drafting a client specific B-BBEE plan (including available options with reference to cost, time and financial implications) and project plan;
• Providing advice on new B-BBEE initiatives;
• Monitoring the implementation of the B-BBEE plan;
• Assisting and guiding clients on implementing a B-BBEE plan and on Enterprise Development and Socio Economic Development initiatives in particular;
• Compiling progress reports and B-BBEE scorecard for the client;
• Compiling a verification pack of the client;
• Liaising with verification agencies;
• Submitting representations and appeals to verification agencies;
• Submitting representations and appeals to verification agencies on behalf of clients;
• Managing a client database; and,
• Managing a B-BBEE verification certification database.

Verification:

As part of our complete solution to you, DITASA is in partnership with a credible verification agency to conduct B-BBEE verification.

Contact details:
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www.ditasa.co.za
(012) 682-9580