The Benefits of B-BBEE Verification for Small and Medium Businesses

The Benefits of B-BBEE Verification for Small and Medium Businesses

While B-BBEE language may intimidate some company owners, it is a clear government policy. B-BBEE, or Broad-Based Black Economic Empowerment, is the government’s attempt to ensure economic justice among race groups. This topic typically leaves business owners feeling pressed to get verified while also questioning how it will benefit their company and how they can get started. Furthermore, BBBEE certification can be time-consuming and challenging, leaving many people wondering if it is worth it. The BBBEE Verification Process The BBBEE verification process entails receiving a score, ranging from one to eight, with one indicating the highest level of BBBEE compliance...

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B-BBEE for business owners in South Africa 

B-BBEE for business owners in South Africa 

It can be hard to process the different BBBEE standards and compliance considerations as a business owner. That is what this article aims to illustrate to you. What is BBBEE? Broad-Based Black Economic Empowerment is referred to as BBBEE. The government of South Africa has implemented BBBEE to build an equal-opportunity economy. BBEEE’s mission is to give formerly disadvantaged or discriminated people the tools they need to reclaim territory lost due to prejudice. It is crucial to remember that the primary purpose of the BBBEE programme is to build the best possible economy for the country. Naturally, this can happen through...

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The fundamental concepts of broad-based black economic empowerment.

The fundamental concepts of broad-based black economic empowerment.

What is the need for BEE in South Africa? Broad-based black economic empowerment (B-BBEE) is a government programme aimed at accelerating economic change and increasing the financial participation of Black South Africans (African, Coloured, and Indian individuals). The Republic of South Africa Constitution, 1996, provides every South African the right to equality and establishes a foundation for equal treatment. Despite the equality policy, not everyone is born into the same circumstances. Due to South Africa’s past, there is an economic and opportunity imbalance based on race, and many black people in the country do not get the same opportunities as the rest...

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Broad-Based Black Economic Empowerment and corporate financial growth.

Broad-Based Black Economic Empowerment and corporate financial growth.

Broad-Based Black Economic Empowerment (B-BBEE).  In 1994, South Africa entered a new era when a democratic one replaced the apartheid state, and freedom for all citizens looked possible for the first time. Eighty per cent of black business owners believed that their foundation was unstable at the end of apartheid and could not compete fairly with white individuals. One suggestion to address the issue was introducing legislation to promote Black Economic Empowerment. Several laws were promulgated in South Africa to promote racial equality, the most significant being the Employment Equity Act (No. 55 of 1998) and the Broad-Based Black Economic...

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The impact of BBBEE on Small and medium enterprises’ access to funding in South Africa.

The impact of BBBEE on Small and medium enterprises’ access to funding in South Africa.

Broad-based Black Economic Empowerment. Broad-Based Black Economic Empowerment (BBBEE) and its antecedent Black Economic Empowerment (BEE) was created to eliminate black people’s poverty by enabling them to participate in the mainstream economy by owning and managing businesses in South Africa. Under the Broad-Based Black Economic Empowerment Act 53 of 2003, the Codes of Good Practice were published in early 2003. The Act is a pragmatic growth plan aimed at realising the country’s total economic potential while facilitating the integration of the black majority into the mainstream economy. The goal of BBBEE is to reach a large number of people, ultimately...

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Shared understanding necessary for success

Shared understanding necessary for success

As South Africa’s mining industry enters 2021, the key role-players remain fragmented in terms of ambition and purpose. As a result, many operations are in slow decay and on course for premature closure, with unnecessary and avoidable loss of mineral resources, jobs and opportunities to follow. Countries, communities and corporations that excel are those that share an overarching priority; one that, [while] sensitive to varied and conflicting interests, resonates so strongly in each of the interested parties, that the mere notion of violating it is unimaginable. DRDGOLD CEO Niël Pretorius Preventing the premature closure of a mine could and should...

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We will work tirelessly to end unemployment caused by COVID-19: Ramaphosa

We will work tirelessly to end unemployment caused by COVID-19: Ramaphosa

In November, Statistics South Africa revealed that South Africa’s unemployment rate increased by 7.5% points to 30.8% in the third quarter of 2020. African National Congress (ANC) President Cyril Ramaphosa says they will work tirelessly to end poverty, inequality and unemployment caused by the COVID-19 pandemic. This is amongst the decisions taken at their virtual three day ANC NEC Lekgotla over the weekend. The meeting was attended by ANC deployees in government, alliance partners and members of civil society and traditional leaders. Both former presidents Thabo Mbeki and Jacob Zuma as well as the party’s former deputy president Kgalema Motlanthe...

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How South Africa’s ‘game-changing’ transformation law will work

How South Africa’s ‘game-changing’ transformation law will work

Parliament’s Portfolio Committee on Employment and Labour has called for public comment on the Employment Equity Amendment Bill. The bill promises a shake-up of the country’s existing employment equity laws and will give the minister of Employment and Labour the power to speed up transformation in specific business sectors. It does this by empowering the minister to set sector-specific employment equity targets across most of South Africa’s major industries. Under the legislation, the minister will first have to publish a notice in a gazette, identifying the national economic sectors which will be impacted. After consulting the individual sectors – and...

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B-BBEE could be used to unlock job creation

B-BBEE could be used to unlock job creation

As the second wave of Covid-19 scours South Africa, it is more evident than ever that even the most astute financial modelling will not be able to predict the long-term economic and social effects of the pandemic. The pandemic and the extended lockdown have resulted in massive disruption with devasting numbers of small businesses shutting shop, pushing hundreds of thousands of workers into unemployment while millions more may be working, but for fewer hours and lower wages. Rajan Naidoo, MD of EduPower Skills Academy, says the economic outlook for South Africa has never been worse. “The pandemic has caused huge...

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Tourism Minister studying legal letter about the funding of applications

Tourism Minister studying legal letter about the funding of applications

Department of Tourism The civil rights group, AfriForum, and trade union, Solidarity, accuses government of racism in the criteria to be used when awarding funds to applicants hit hard by the Covid-19 pandemic. A letter has been issued to the department by both parties demanding confirmation by no later than Tuesday that the operationalisation of the TEF be suspended. The parties claim “it is exclusive on the basis of race, and discriminates without any legal or justifiable basis”. Tourism spokesperson Hlengiwe Nhlabathi-Mokota says Minister Kubayi-Ngubane is currently considering the letter and will respond in due course. “We wish to emphasize...

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