B-BBEE Codes to Change – Largely Impacts Ownership and Skills Development
- May 11, 2018
On 29 March 2018 the Department of Trade and Industry gazetted draft legislation which will impact companies’ B-BBEE scorecards. Key areas impacted include the following:
- The calculation method changes for 100% and 51% Black Owned large companies; the following calculation methods are not allowed: Modified Flow Through, Exclusions, Sale of Assets, Continued Recognition, B-BBEE Facilitators, Black Owned Private Equity Funds
- Enhanced level 1 and level 2 recognition for qualifying 100% and 51% Black Owned large companies
- The Skills Development scorecard, targets, points and methodology changes
- Introduction of B-BBEE recognition for job creation and the Youth Employment Service (Y.E.S.) initiative
A pro-active approach can mitigate the impact of the changes on your future B-BBEE level or even create opportunities for enhanced compliance and impact. Contact Alternative Prosperity to assist with any of the following:
- Overall scorecard and Skills Development baseline assessment and re-alignment of strategy
- Briefing session on changes
- Ownership evaluation of 51% and 100% Black Owned large entity’s using the new methodology.
- Ownership impact assessment for listed companies including Mandated Investments (using our Independent Competent Person’s Report).