HomeHome SearchSearch MenuMenu Our productsOur products

Did your B-BBEE rating drop with the new amendments? Here's the quickest, easiest way to get the maximum points!

by , 18 February 2016
So you know there have been big changes to the B-BBEE Act and Amended Codes which you need to put in place. You don't want to miss out on any business opportunities because you didn't meet the B-BBEE requirements, and I'm sure you want to know the best way to maximise your points too.

And with the new amendments, the whole scorecard has changed!

There are 5 elements on the scorecard where you earn points... But today I only want us to have a look at the area of business that has the highest points. So you can use them to boost the points for your rating in the quickest time possible...

***Editor recommends***
 
The Complete Guide to B-BBEE Amended Codes: How to keep your company's competitive edge

Now that the B-BBEE amended codes are in effect, is your company still BEE compliant? Do you know how to calculate the new codes? Can you still do business with BEE compliant companies?
 
These are questions racing in the minds of many business owners and managers like you. And rightfully so. Because let's face it, if you depend on your BEE status to do business, and you find that you no longer score at the required BEE level, you won't be able to keep your business running for much longer.
 
You could lose out on existing business contracts, you won't be able to renew some contracts and worse, you won't be able to propose for business tenders with the government.
 
But don't fret! We have exactly what you need to ensure you keep your company's competitive edge even after the changes.

***
 
Enterprise and Supplier development… Responsible for 38% of your B-BBEE scorecard

Before we get into how you can earn the most points, let's look at the changes to enterprise and supplier development:

1. Preferential procurement and enterprise development from the old scorecard, merged to form enterprise and supplier development (ESD).

2. Out of all the elements, you'll earn the most points with ESD. You can earn up to 40 points (plus 4 bonus points) in this element.

3. If you're a supplier, you must be an empowering supplier (this used to be value-added suppliers) to earn points on the scorecard. Basically, this means you must be a BEE compliant entity that complies with all regulatory requirements of the country.

Now, let's look at how you can earn the most points in this area…

Preferential procurement:
Firstly, what is preferential procurement? In its simplest form, it measures the extent to which you buy qualifying goods and supplies from B-BBEE compliant suppliers. You can get the B-BBEE scorecard rating from the supplier.
  • You'll earn 5 points if 80% of your procurement spend is from empowering suppliers. In other words, if you spend 80% or more with suppliers and companies who are BEE compliant, then you'll get the points.You'll earn 3 points if 15% of your procurement spend is from Qualifying Small Enterprises. This is on the basis of the procurement recognition levels as a percentage of total measured procurement spend. Basically, you'll get the points if you spend 15% with Qualifying Small Enterprises. These are companies with a turnover of between R10 million and R50 million per year.
     
  • You'll earn 4 points if 15% of your procurement spend is from Exempted micro enterprises (EME). This is on the basis of the procurement recognition levels as a percentage of total measured procurement spend. An EME's turnover is less than R10 million per year.
     
  • You'll earn 9 points if 40% of your procurement spend is from empowering suppliers who're 51% black owned.
     
  • You'll earn 4 points if 12% of your procurement spend is from empowering suppliers who're 30% black women owned.
***Advert***
 
 
Easily implement all 26 Employment Equity Act amendments with the Employment Equity Act Compliance Toolkit

Because the information you'll discover in the Employment Equity Act Compliance Toolkit is so urgent and vital for your business right now, I want you to get your hands on it as soon as possible. So I've thrown my weight around as the publisher to give it to you for the special price of just R799.

But you must hurry... My group publisher, Annabel Koffman has already warned me that I can't give it to you at this price forever!

Don't hesitate. Order your copy of the Employment Equity Act Compliance Toolkit at the special low price of R799 today!

***
Enterprise and supplier development:
Basically, you'll get the points by helping other companies develop and grow …
  • You'll earn 10 points if the annual value of your supplier development contributions is 2% of net profit after tax.
     
  • You'll earn 5 points if the annual value of your enterprise development contributions and sector specific programmes are 1% of net profit after tax.
So… To sum it up - the more suppliers you can get a BEE certificate from the better your score. I'm not saying you must ignore the other 4 elements, I just want you to get started with the easiest area you can get the most points, and use it to your advantage!

And with this area making up 40 of the 105 points on the scorecard, it really is one of the quicker-win areas.

We recently update the Practical Guide to Human Resources Management with everything you need to maximise your B-BBEE scorecard!
 

Vote article

Did your B-BBEE rating drop with the new amendments? Here's the quickest, easiest way to get the maximum points!
Rating:
Note: 5 of 1 vote


Related articles




Related articles



Related Products