KwaZulu-Natal Broad-Based Black Economic Empowerment

1. What is B-BBEE?(Broad Based Black Economic Empowerment)Black Economic Empowerment is a process of empoweringpreviously disadvantaged individuals to enable them tomeaningfully contribute to the economy of South Africa.2. Who should be involved and comply withB-BBEE?The businesses which fall in one of the categories in the tablebelow must be verified for exemption or compliance in termsof the type of scorecard they fall in.3.2 Qualifying Small Enterprises (QSE)The businesses that make an annual turnover of betweenR5 and R35 million must choose four (4) of the seven (7)elements as listed in 3.1 above to report on. That means thatthey will be verified on the four elements they selected forB-BBEE Certificate to be issued.3.3 Exempted Micro Enterprises (EME)The exempted micro enterprises (EME) are businesses thatmake an annual turnover of less than R5 million. The EMEs arerequired to provide B-BBEE Status Level Certificates issued bya registered auditor, accounting officer in the case of CloseCorporation or an accredited Verification Agency.4.1 What is a B-BBEE Verification certificate?The B-BBEE verification certificate is a verified report on thebusiness’s current status as a B-BBEE contributor accordingto the DTI Codes of Good Practice (released 9 February 2007)or relevant Sector Codes. The businesses that need topossess B-BBEE Certificates are those falling within categories2.1, 2.2 and 2.4 above except for category 2.3 which isexplained below.4.2 Exempted category (EME)The businesses with a turnover of R5m and less (falling incategory 2.3 above) automatically qualify for level 4 in termsof B-BBEE compliance. .BEE Status Points on scorecard BEE Procurementrecognition level(%)Level 1 > 100 points 135Level 2 > 85 but < 100 125Level 3 > 75 but 65 but < 75 100Level 5 > 55 but < 65 80Level 6 > 45 but 40 but 30 but