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WHAT ARE THE KEY CHANGES TO THE B-BBEE CODES?

Turnover thresholds for each category have changed

Discounting of scorecard for non-compliance with the threshold for priority elements

5 official elements instead of the previous 7

QSE’s must now comply with 5 elements

Procurement is now based on Empowering Suppliers

Skills Development has increased to 6% of leviable amount and now includes non-employees

The status levels have changed to higher qualification scores to reach B-BBEE Recognition Levels

Adjusted Recognition for Gender falls away

Weighted average recognition is now based on number of Black, Coloured and Indian employees as per EE Regulations

WHAT ARE THE CLASSIFICATION THRESHOLDS

In terms of Act 53 (2003) Codes of Good Practice for Black Economic Empowerment all enterprises in South Africa are divided into one of three categories:

B-BBEE

Classification Thresholds

old codes

new codes

EME

Exempted Micro Enterprises

Turnover <R5 Million

Turnover <R10 Million

QSE

Qualifying Small Enterprises

Turnover >R5 Mil and <R35 Mil

Turnover >R10 Mil and <R50 Mil

GENERIC

Generic Enterprises

Turnover >R50 Million

Turnover >R35 Million

DISCOUNTING PRINCIPLES

Introduced 40% Sub-Minimum Requirements for Priority Elements:


OWNERSHIP

 

SKILLS DEVELOPMENT

ENTERPRISE & SUPPLIER DEVELOPMENT

QSE

to comply with Ownership, and one other Priority Area

GENERIC

to comply with all 3 Priority Areas

Non-compliance with Sub-Minimum targets will result in Generic & QSE B-BBEE level to be discounted by one level

 

WHAT ARE THE 5 OFFICIAL ELEMENTS OF THE SCORECARD?

SCORECARD SUMMARY
ELEMENT QSE
OLD
POINTS
GENERIC
OLD
POINTS
ELEMENT QSE
NEW
POINTS
GENERIC
NEW
POINTS
Ownership 23 28    Ownership 25 25
Management Control 11 27 Management Control 19 19
Employment Equity 18 27
Skills Development 15 25 Skills Development 25 25
Preferential Procurement 20 25 Enterprise & Supplier Development 44 30
Enterprise Development 15 25    
Socio-Economic Development 5 25 Socio-Economic Development 5 5
Total 107 182 Total 118 104

 

QSE’s MUST COMPLY WITH 5 ELEMENTS

 

QSE
Ownership  25 Points
Management Control  19 Points
Skills Development  25 Points
Enterprise & Supplier Development 30 Points
Socio-Economic Development 5 Points

 

GENERIC
Ownership  25 Points
Management Control  19 Points
Skills Development  25 Points
Enterprise & Supplier Development 44 Points
Socio-Economic Development 5 Points
Banner_Image_B_BBEE

WHAT IS AN EMPOWERING SUPPLIER?

Before you get started on the B-BBEE journey you have to qualify as an Empowering Supplier. For a large enterprise this means that you have to qualify in 3 out of the 5 categories listed below. For a QSE (Qualifying Small Enterprise) you have to qualify in 1 out of the 5 categories. If you choose Skills Development, we have some innovative ways of bringing companies together on courses, sharing best practices, and cross pollinating with exceptional supervisors and coach supervisors from other companies. The opportunity also exists for you to open your factory or business to other businesses for a productivity tour. The more you engage and open yourself up to the opportunity of B-BBEE the more connected you will become to your employees, other businesses and industries that together can share best practices and in so doing take South Africa forward.

Screen Shot 2015-07-30 at 3.39.02 PM

SKILLS DEVELOPMENT IS A FOCUS

 

QSE
Ownership  25 Points
Management Control  19 Points
Skills Development  25 Points
Enterprise & Supplier Development 30 Points
Socio-Economic Development 5 Points

 

GENERIC
Ownership  25 Points
Management Control  19 Points
Skills Development  25 Points
Enterprise & Supplier Development 44 Points
Socio-Economic Development 5 Points
 

B-BBEE RECOGNITION LEVELS?

Screen Shot 2015-08-05 at 4.21.05 PM

WHY SHOULD
YOU CARE
ABOUT B-BBEE?

Sustainability of your Company

Competitive Advantage

Growing pressure from your customers

DTI Grants

Active participation in the rebuilding of South Africa

Non-compliance, especially if you need a business license

HOW TLC CAN HELP YOU?

We are:

Level 2

B-BBEE company

51.4%

Black Women owned

Internationally

SETA Accredited

At TLC we guarantee that you will achieve the best level preferential procurement when you choose us as your training partner. In addition our status as 51% black women owned company qualifies us as one of the few enterprises and suppliers that can be developed to ensure maximum points on your scorecard. We are committed to first understanding your business needs and we offer a free Training Needs Analysis and Training Spend Plan per race group for you so as to maximize your Skills Development Spend. TLC takes a long term view on Management Control and will help you develop the right people in the right positions. We also specialize in internships in Leadership and Productivity (which also enable your employees to obtain Lean and Six Sigma international certification) so that you can maximize your impact with minimum spend and tackle problems experienced in your business simultaneously.

If you want to develop a generation of problem solving leaders, then TLC is the partner of choice.

CONNECT WITH US

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