THE Cabinet has approved the revised broad-based black economic empowerment (BEE) codes of good practice, which will now be published for public comment.
At Wednesday’s post-Cabinet briefing, spokesman Jimmy Manyi said the revised codes would enhance the implementation of BEE in a meaningful and sustainable manner.
He said the revised codes also contained principles and guidelines that would facilitate and accelerate the implementation of BEE.
Among the key areas of refinement are that the generic scorecard has been reduced to five elements, with employment equity and management control consolidated, and preferential procurement and enterprise development merged to form a supplier development element.
The points awarded for ownership have been broadened to include designated groups, and the threshold for exempted micro enterprises and qualifying small enterprises has been adjusted.
Also introduced in the revised codes are priority elements of ownership, skills development and supplier development, and large enterprises will need to comply with all three of these elements.
The proposed codes state that 100% black-owned entities will qualify as level one, while those with 50% black ownership will be rated level two.
Last month, Trade and Industry Minister Rob Davies warned that BEE points would be deducted from businesses that did not invest in enterprise, supplier and skills development.
He voiced concern that too few companies were giving sufficient support to these areas in terms of the Broad-based BEE Act and the codes of good practice.
With Sapa
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