What are the latest developments regarding Broad-Based Black Economic Empowerment (B-BBEE)?

Sector Codes

The implementation of specific B-BBEE Sector Codes continues. The Amended Information and Communication Technology B-BBEE Sector Code came into effect on 7 November 2016. (please click here for the full text). On 28 October 2016, the DTI published the Draft Amended Construction B-BBEE Sector Code for comment. Comments must be submitted in writing within 60 days. Please click here to read the Minister’s comments. On the same day, 28 October 2016, the DTI informed members of the public of its intention to develop a sector code for the Defence Industry. Interested parties are requested to interact with the South African Defence Industry Steering Committee addressed to the Secretariat on the e-mail address: admincharter@armscor.co.za. The notice can be found here

B-BBEE Commission

The newly established B-BBEE Commission (website) has issued its first two practice notes and first interpretive guide:

  1. The first serves as an interpretative guide for the recognition of Procurement Spend in terms of Statement 400 (Enterprise and Supplier Development). In brief, it deals with the recognition of procurement spend under Code Series 400 requiring the procurement of goods and services from an empowering supplier. An empowering supplier is a B-BBEE compliant entity who is required to meet various obligations outlined in the Generic Codes. Notably, these requirements may in some cases be difficult to attain. Some relief has been granted pursuant to the DTI's notice published on 28 October 2016, which states that all entities are automatically empowering suppliers, irrespective of compliance with the requirements of the empowering supplier provisions in the Generic Codes. The notice can be found here.
  2. The second serves as a guide with regards to the issue of B-BBEE Certificates for  exempted micro enterprises (EMEs) and qualifying small enterprises (QSEs). The practice note set outt the requirements for sworn affidavits for both categories who do not require B-BBEE verification certificates. The notice can be found here.
  3. The Explanatory Note deals with the procedure for requesting a non-binding advisory opinion from the Commission. The Explanatory Note can be found here.

Finally, on 8 November 2016, the DTI published a notice proposing that all major B-BBEE ownership transactions over R100 million, calculated by either combining the annual turnover of both entities or their asset values, must be registered with the B-BBEE commission. All major B-BBEE ownership transactions concluded on or after 24 October 2014 will need to be registered within 30 days of the final publication notice. All major B-BBEE ownership transactions concluded prior to 24 October 2014 can be voluntarily registered with the B-BBEE commission. Comments on the notice must be submitted in writing within 30 days. The Notice can be found here.