Admin is not a favourite exercise for most people in creative industries, but the advantages of getting B-BBEE certified far outweigh the hassle, and it’s cheaper than you think! Beyond the moral argument for, and reputational association gained from demonstrating that your company is committed to equality and transformation, there are concrete business benefits to achieving your certification.
The primary advantage is being able to conduct business with corporates, government sectors and public entities. The chances of being awarded a tender increase with your B-BBEE level – of which there are 8, with Level 1 being the most desirable. Similarly, all JSE-listed companies are required to undergo a B-BBEE verification and report to shareholders and the B-BBEE Commissioner on their compliance status, so being verified affords you a better chance of securing contracts with the larger enterprises.
There are opportunities here for jewellers to supply bulk orders to state-run tourism retail outlets and for government and corporate events, as well as their gifting needs, including incentive packs to employees for performance in the workplace, and year-end or retirement presents. Basically all entities operating in South Africa are encouraged to do business with B-BBEE compliant companies, and your B-BBEE certification can also be used in the promotion of your business and marketing material.
The introduction of the B-BBEE Codes have made it very easy for small businesses to comply.
As summarised in the table below, if your business has a turnover below a certain threshold you can use the DTI prescribed Affidavit to achieve at the very least a Level 4 certification. If you’re sharing this information please note that the affidavits do not apply to the construction, financial or transport sectors. Unfortunately this does not change the situation for South African manufacturing jewellers, all of whom must comply with the Mining Charter legislation that requires them to sell 26% of their business to a B-BBEE candidate if their turnover is over R1 million. The JCSA is working to address this legislation on behalf of its members. All qualifying manufacturers and retailers may take advantage of the affidavit system however, in order to reap the business benefits of B-BBEE certification.
| BEE Category | Annual Turnover | Requirement | B-BBEE Level |
|---|---|---|---|
| Exempt Micro Enterprise (EME) link to download | Less than R10m | Complete the DTI affidavit template.
Signed in front of a Commissioner of Oaths. |
Automatic Level 4 Level 2 if at least 51% black owned Level 1 if 100% black owned |
| Qualifying Small Enterprise (QSE) link to download | Between R10m and R50m | Suppliers with more than 51% black ownership complete the QSE Affidavit.
Suppliers with less than 51% black ownership must undergo full BEE verification and submit a QSE certificate |
QSE Affidavit Level 2 if at least 51% black owned QSE Affidavit Level 1 if 100% black owned QSE BEE certificate level dependent on scoring of each element |
| Generic | Over R50m | Full BEE verification and submit a BEE certificate | BEE level dependent on scoring of each element |
This is especially pertinent for all 100% black-owned businesses, many of whom are unaware that Level 1 certification is as easy as completing the affidavit that applies to their annual turnover (under R50m)
The Broad-based Black Economic Empowerment Act and Codes of Good Practice issued by the DTI are aimed at transforming the country to be more equitable to all South Africans, empowering the previously disadvantaged to participate in the economy. By complying with the B-BBEE Codes you will not only expand your business opportunities, but also demonstrate that your company is committed to making a positive difference in society.
Especially now that it’s so easy, what’s holding you back?
CPM has been working with a consultant that we can personally recommend:
Kim Burgess from Plus Quo has been in the field for ten years, and has extensive practical knowledge and experience in drafting and implementing sustainability strategies. Plus Quo offers tailored solutions to help you achieve meaningful and sustainable Broad-based Black Economic Empowerment compliance that keeps your business in your hands and enriches South Africa and its people. Talk to Kim about:
- BEE Scorecard Assessments to establish baselines and status
- BEE Compliance Plans and Strategies
- BEE Project Management
- BEE Training and awareness
- BEE verification file preparation
- Environmental and Social Responsibility strategies and project management
For more information on navigating any of the above, please get in touch with Kim Burgess on 072 518 6330 or kburgess@plusquo.co.za.