New, tougher BEE rules are hitting SA companies hard

169
2193

The B-BBEE Amended Codes of Good Practice have resulted in increased costs for almost two thirds (65%) of South African businesses according to second quarter research from Grant Thornton’s International Business Report for 2016.

More than three quarters (76%) of the businesses that reported increased costs have had to employ outside consultants; 44% appointed an in-house B-BBEE team; and 41% enlisted specialist service providers to assist with procurement as well as enterprise development requirements.

“Our survey shows that many companies are now turning to specialist consultants to reach compliance, while a number have actually gone as far as to appoint internal specialists and transformation managers to monitor, target and track compliance internally,” said Jenni Lawrence, managing director: Verification Services at Grant Thornton Johannesburg.

The survey presents perceptions into the views and expectations of 400 SA privately held business executives regarding crime, service delivery, B-BBEE and political climate.

“The days of handing over responsibility for BEE compliance to an HR intern or procurement officer are over,” said Lawrence. “The BEE agenda has to be driven by those with authority to influence internal policy and spend.”

She noted that a key positive outcome here, though, is that businesses are clearly taking their B-BBEE compliance very seriously, and ensuring that it’s done properly.

Increased costs for business executives come from two main areas:

  • increase of spend targets under skills and procurement; and
  • increase of implementation costs in terms of specialists, service and solution providers, as well as internal capacity.

The cost of verification has also increased, mainly due to the increased complexity and additional procedures which verification agencies are required to implement under Amended Codes audits, Grant Thornton said.

“The cost of non-compliance, however, should not be underestimated, particularly for companies relying on BEE scorecards to tender or apply for dti grants,” Lawrence warned.

B-BBEE codes have affected SA business

More than half (55%) of local companies reported that the B-BBEE Amended Codes of Good Practice have affected their business in terms of tendering or proposing for new business with private or government related entities, while 38% said there was no change.

Very similar results were obtained when companies were asked if the Amended Codes had resulted in their company changing some suppliers to improve their overall BEE score, that is, to buy from 51% and over black-owned suppliers.

Fifty-five percent said yes, while 39% said no.

“The tougher scorecard will result in many companies dropping three or four levels and in some cases, becoming non-compliant under the Amended Codes,” said Lawrence. “This will reduce the points allocated for BEE status when scoring for a tender. However, smaller companies with a turnover of under R10 million, and particularly those with at least 51% black ownership, will now automatically comply with a higher BEE status.”

Lawrence said that the focus of the procurement scorecard has altered significantly towards purchasing from black-owned suppliers. Under the “old” codes, BEE spend was measured out of 20 points, with three of those coming from spend with companies that were 50% black-owned and two points from at least 30% black-owned suppliers.

“Under the amended codes, BEE spend is measured out of 25 points, with nine being allocated towards companies that are at least 51% black-owned and four points for suppliers with at least 30% black women ownership, an increase in emphasis of 27%.”

It has become crucial for businesses to get this right, particularly as procurement is now a newly-designated “priority element” which requires a 40% sub-minimum achievement to avoid a level drop.

“Changing supplier base is not an overnight process, especially for companies that are part of a larger group,” Lawrence warned.

“In certain industries, suppliers and components are mandated by multinational parent companies. Imported mandated items add additional complexity to procurement. The old codes allowed for the exclusion of most imports from the procurement target but this has been tightened up in the Amended Codes.”

“To exclude items that could be manufactured locally, companies are now required to create a localisation plan to show how they will eventually produce these items locally going forward.”

Proactive companies are taking a good look at their supplier bases and changing to black-owned suppliers for non-core items to create quick wins, Grant Thornton said.

“Stationery, security and cleaning companies are currently the big winners here,” noted Lawrence.

169 COMMENTS

  1. I just want to tell you that I’m new to blogging and really loved this blog. Most likely I’m going to bookmark your blog . You amazingly come with very good articles and reviews. With thanks for sharing your website page.

  2. 100681 301088This website is truly a walk-through it truly will be the details you wanted concerning this and didnt know who to inquire about. Glimpse here, and youll completely discover it. 788749

  3. Hey very cool site!! Guy .. Excellent .. Amazing .. I will bookmark your website and take the feeds also…I am happy to find a lot of helpful information right here in the put up, we’d like develop more strategies in this regard, thanks for sharing.

  4. Wow! This could be one particular of the most helpful blogs We’ve ever arrive across on this subject. Basically Wonderful. I am also a specialist in this topic so I can understand your hard work.

  5. Somebody essentially lend a hand to make severely articles I might state. That is the first time I frequented your website page and thus far? I surprised with the research you made to make this particular put up amazing. Excellent task!

  6. I think this is one of the most important information for me. And i am glad reading your article. But want to remark on few general things, The web site style is ideal, the articles is really excellent : D. Good job, cheers

  7. Hello very cool web site!! Guy .. Excellent .. Wonderful .. I will bookmark your web site and take the feeds additionally…I’m happy to seek out so many helpful info here in the publish, we want develop more techniques on this regard, thank you for sharing.

  8. There are actually a number of particulars like that to take into consideration. That may be a nice level to convey up. I provide the thoughts above as common inspiration but clearly there are questions like the one you convey up the place crucial factor will probably be working in sincere good faith. I don?t know if greatest practices have emerged round things like that, however I am certain that your job is clearly recognized as a fair game. Both boys and girls feel the affect of only a second’s pleasure, for the remainder of their lives.

  9. I would like to thnkx for the efforts you’ve put in writing this web site. I’m hoping the same high-grade web site post from you in the upcoming also. Actually your creative writing skills has inspired me to get my own blog now. Really the blogging is spreading its wings fast. Your write up is a great example of it.

  10. Hello there! I know this is kinda off topic but I was wondering if you knew where I could locate a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one? Thanks a lot!

  11. I’m impressed, I have to say. Actually not often do I encounter a weblog that’s both educative and entertaining, and let me let you know, you may have hit the nail on the head. Your concept is outstanding; the problem is something that not enough people are talking intelligently about. I’m very blissful that I stumbled across this in my search for something referring to this.

  12. Terrific paintings! That is the type of information that are meant to be shared across the web. Disgrace on Google for no longer positioning this put up higher! Come on over and seek advice from my site . Thank you =)

  13. of course like your web site but you need to check the spelling on quite a few of your posts. Many of them are rife with spelling issues and I find it very bothersome to tell the truth nevertheless I’ll surely come back again.

  14. Thank you for every one of your effort on this site. Kim enjoys making time for investigation and it’s obvious why. A number of us hear all of the compelling means you produce useful strategies by means of the web blog and in addition foster response from people on this situation while my princess is undoubtedly being taught a lot of things. Take advantage of the rest of the new year. You’re the one doing a superb job.

  15. Thank you a buch for sharing this with all of us you really underwtand what you’re speaking about!
    Bookmarked. Kindly also seek advice from my web site =).
    We could have a liknk trade arrangement among us

  16. I’ve been surfing on-line greater than 3 hours as of late, but I never found any attention-grabbing article like yours. It’s lovely worth sufficient for me. In my view, if all webmasters and bloggers made excellent content as you probably did, the web will probably be a lot more helpful than ever before. “Oh, that way madness lies let me shun that.” by William Shakespeare.

  17. I enjoy you because of all your valuable work on this web page. My mother take interest in setting aside time for internet research and it is simple to grasp why. Many of us notice all relating to the lively means you render important thoughts by means of your blog and in addition foster participation from other individuals on this concern and our princess is now learning a great deal. Take advantage of the rest of the new year. You’re performing a tremendous job.

  18. I have been browsing on-line greater than three hours as
    of late, but I by no means discovered any fascinating article like yours.
    It’s pretty value sufficient for me. Personally,
    if all site owners and bloggers made just right content material as you
    probably did, the net might be a lot more helpful than ever before.

  19. I’m really impressed together with your writing skills and also with the layout to your weblog. Is this a paid subject or did you modify it your self? Anyway stay up the excellent high quality writing, it is uncommon to peer a nice weblog like this one today..

  20. Thank you a lot for sharing this with all of us you actually recognise what you are speaking approximately! Bookmarked. Please also talk over with my web site =). We could have a link trade arrangement between us!

  21. I think this is among the most significant information for me. And i am glad reading your article. But want to remark on some general things, The website style is great, the articles is really nice : D. Good job, cheers

  22. Thank you, I have just been searching for information about this topic for ages and yours is the greatest I’ve came upon till now. However, what in regards to the bottom line? Are you positive about the supply?

  23. Oh my goodness! an amazing article dude. Thanks Nevertheless I’m experiencing challenge with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting an identical rss downside? Anybody who is aware of kindly respond. Thnkx

  24. Cheapest player speeches and toasts, or maybe toasts. continue to be brought about real estate . during evening reception tend to be likely to just be comic, witty and therefore instructive as effectively. best man speeches free of charge

  25. Good day! This post couldn’t be written any better! Reading this post reminds me of my old room mate! He always kept chatting about this. I will forward this article to him. Pretty sure he will have a good read. Thanks for sharing!

  26. What’s Going down i’m new to this, I stumbled upon this I’ve discovered It positively useful and it has helped me out loads. I’m hoping to contribute & help other users like its aided me. Good job.

  27. You are so awesome! I do not think I’ve rewd through anytrhing like that before.

    So wonderful tto discover another person with a ffew unique thoughts oon this topic.
    Really.. manny thanks for starting this up.Thiss site is one thing that’s needed on the
    web, someone with some originality!

  28. After going over a handful of the blog articles on your
    web page, I really like your technique of writing a blog.
    I bookmarked iit to my bookmark site list and will be
    checkibg back soon. Take a look at my web site too andd tell me hhow you
    feel.

  29. This iis very interesting, You’re a very skilled blogger.
    I hav joined your rss feed and look forward to seeking molre of
    your great post. Also, I’ve shared your web site
    in my social networks!

  30. Do you have a spam problem on this website; I also am a blogger, and I was wanting to know your situation; we have created some nice procedures and we are looking to exchange strategies with others, why not shoot me an e-mail if interested.

  31. Appreciating the hard work you put into your site and detailed information you provide. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed information. Great read! I’ve saved your site and I’m including your RSS feeds to my Google account.

  32. Usually I don’t read post on blogs, but I would like to say that this write-up very compelled me to take a look at and do so! Your writing taste has been surprised me. Thank you, quite great article.

  33. There are some interesting points in time in this article but I don’t know if I see all of them center to heart. There is some validity but I will take hold opinion until I look into it further. Good article , thanks and we want more! Added to FeedBurner as well

  34. It’s really a great and helpful piece of information. I’m happy that you shared this helpful information with us.
    Please keep us informed like this. Thanks for sharing.

  35. I must express my thanks to you just for rescuing me from such a incident. Just after surfing around throughout the internet and finding strategies which were not pleasant, I believed my entire life was well over. Existing without the answers to the issues you have solved through the post is a serious case, as well as those which could have badly affected my career if I hadn’t noticed your web site. Your own understanding and kindness in maneuvering everything was vital. I don’t know what I would have done if I hadn’t discovered such a point like this. It’s possible to at this point relish my future. Thank you very much for your expert and sensible help. I will not hesitate to propose your web page to anyone who will need guidance on this matter.

  36. Woah! I’m really loving the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between usability and appearance. I must say you have done a superb job with this. In addition, the blog loads extremely fast for me on Opera. Exceptional Blog!

  37. I absolutely love your blog and find almost all of your post’s to
    be what precisely I’m looking for. Do you offer
    guest writers to write content available for you? I wouldn’t mind creating a post
    or elaborating on a few of the subjects you write in relation to here.

    Again, awesome web site!

  38. Hello just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Chrome. I’m not sure if this is a format issue or something to do with web browser compatibility but I figured I’d post to let you know. The design and style look great though! Hope you get the problem fixed soon. Thanks

  39. Thanks a lot for sharing this with all of us you really recognise what you are talking about!
    Bookmarked. Kindly additionally discuss with my web site =).
    We can have a hyperlink exchange arrangement between us

  40. You could certainly see your skills in the paintings you write. The world hopes for even more passionate writers such as you who aren’t afraid to mention how they believe. At all times go after your heart. “A simple fact that is hard to learn is that the time to save money is when you have some.” by Joe Moore.

  41. Fantastic goods from you, man. I’ve understand your stuff previous to and you are just extremely fantastic. I really like what you’ve acquired here, certainly like what you are saying and the way in which you say it. You make it entertaining and you still care for to keep it wise. I can not wait to read far more from you. This is really a wonderful web site.

  42. Thanks for your marvelous posting! I quite enjoyed reading it, you happen to be a great author.I will be sure to bookmark your blog and definitely will come back in the foreseeable future. I want to encourage you to definitely continue your great posts, have a nice afternoon!

  43. Pretty section of content. I simply stumbled upon your weblog and in accession capital to say that I get actually enjoyed account your weblog posts. Any way I will be subscribing to your feeds and even I achievement you get admission to constantly quickly.

  44. My brother recommended I would possibly like this website.
    He used to be totally right. This put up actually made my day.

    You can not consider simply how much time I had spent for this info!
    Thanks!

  45. Awesome blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog jump out. Please let me know where you got your design. With thanks

  46. Howdy! I could have sworn I’ve been to this blog before but after checking through some of the post I realized it’s new to me. Anyways, I’m definitely delighted I found it and I’ll be book-marking and checking back frequently!

  47. The attractiveness of those blogging engines and CMS platforms could be the lack of limitations and ease of manipulation that makes it possible for developers to put into action prosperous content and ’skin’ the site in such a way that with genuinely tiny function 1 particular would never ever discover what it truly is generating the internet site tick all devoid of limiting material and effectiveness.

  48. みんな、こんにちわ。負債もちのひとは結構多く、みなさん負債した金をかえす為にしほうしょしを使いたいとおもってます。負債した金を解決するコトを債務整理と言いますが、取り敢えずウェブでむりょうで見積もりが出来るのをしってますか?借金のげんじょうは、個人によって大きく違ってきます。ですので、niceなな負債した金の解決の糸口は相談してみなければ分かりません。借りた金が約半分にへったひと、また払い過ぎとして金がもどってきた主婦、自分のおうちを手放さずに済んだ人々、一杯のかたがウェブで相談をしたことで、goodな方向へとシフトした部分が多いのも特徴です。借り金を身内に知られてほしくないという発想から放置している方々が多いのですが、相談するケースで解決出来たひとが沢山います。わたしのwebでも、債務整理のしゅるいから、どんな感じの場面があるのか、他にもどこに頼むべきかなどを、ボクの知識の基、くわしく解説しています。ぜひ管理人のブログをご利用いただければと思います。少しでもお役に立てる内容を書いて参りますので、よろしくお願いします。

  49. Nice post. I was checking constantly this weblog and I’m impressed! Very useful information particularly the remaining part :) I care for such information much. I was looking for this particular info for a very long time. Thanks and best of luck.

  50. Oh my personal goodness! An article dude that is amazing. Thank you so much nevertheless i’m having problems with ur rss . Don?t know why Unable to subscribe to it. Could there be any person getting rss problem that is identical? Anybody who understands kindly respond. Thnkx

  51. Thank you for one more outstanding article. Exactly where else could anybody get that kind of data in this kind of a perfect way of writing? I have a presentation subsequent week, and I’m to the appear for such info and facts.

  52. I like the helpful information you provide in your articles. I will bookmark your blog and check once more here regularly. I’m relatively sure I will be informed plenty of new stuff proper here! Best of luck for the following!

  53. Its such as you read my mind! You seem to know so much approximately this, such as you wrote the e book in it or something. I think that you could do with some percent to force the message home a little bit, but other than that, that is fantastic blog. An excellent read. I’ll definitely be back.

  54. Hi there! This post could not be written any better! Reading through this post reminds me of my old room mate! He always kept talking about this. I will forward this write-up to him. Pretty sure he will have a good read. Many thanks for sharing!

  55. I wish to express my appreciation to the writer for bailing me out of this situation. Just after researching through the world-wide-web and finding solutions which were not powerful, I believed my life was over. Existing devoid of the approaches to the problems you’ve sorted out all through your entire short article is a serious case, as well as those that would have in a wrong way damaged my career if I had not discovered your blog post. Your own personal understanding and kindness in maneuvering all the stuff was valuable. I don’t know what I would’ve done if I hadn’t come upon such a subject like this. It’s possible to at this point look ahead to my future. Thanks for your time so much for the professional and sensible guide. I will not hesitate to endorse your blog to anyone who would need guidance on this situation.

  56. Howdy just wanted to give you a quick heads up.
    The text in your content seem to be running off the screen in Ie.
    I’m not sure if this is a format issue or something to do with internet browser compatibility but I figured I’d post to
    let you know. The layout look great though!
    Hope you get the problem solved soon. Many thanks

  57. Thanks for the sensible critique. Me and my neighbor were just preparing to do a little research on this. We got a grab a book from our area library but I think I learned more clear from this post. I am very glad to see such magnificent info being shared freely out there.

  58. I haven’t checked in here for some time since I thought it was getting boring, but the last several posts are good quality so I guess I’ll add you back to my everyday bloglist. You deserve it my friend :)

  59. I’m not sure exactly why but this web site is loading extremely slow for me. Is anyone else having this issue or is it a issue on my end? I’ll check back later on and see if the problem still exists.

  60. La magie existe je vous le confirme, je vous conseille de visiter Blackma qui est un plateforme africain réunissant plusieurs marabouts, chefs spirituels, médiums et voyants pour aider des gens comme vous et moi dans tous ces problèmes du quotidien que nous rencontrons. Je vous conseille de visiter leur site http://www.blackma.be

  61. Vous ne trouvez pas l’amour, vous avez une difficulté de réaliser vos projets, de trouver un boulot ou vous gagnez de l’argent mais n’arrivez pas à réaliser quoique ce soit dans la vie ou vous avez des problèmes pour tomber enceinte, visiter BlackMa un plateforme de grands maîtres spirituels Africains qui sauront vous apporter des réponses et des solutions rapides. http://www.blackma.be

  62. Hey there! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the same niche.
    Youur blog provided us beneficial information to worfk on. You have done a extraordcinary
    job!

  63. Blackma est le meilleur endroit pour rencontrer des marabouts reconnu, mediums et voyants Africain sérieux réuni pour vous proposer des solutions à vos besoins de voyance, de médium. Ils sont capable de tout faire et croyez moi je parle par expérience. visitez leur site : http://www.blackma.be

  64. Thank you so much for giving everyone an exceptionally pleasant possiblity to read articles and blog posts from here. It is usually very sweet and as well , full of a great time for me and my office peers to search your web site at the very least three times a week to find out the latest stuff you will have. Not to mention, I’m so usually motivated concerning the unique hints you give. Certain two facts on this page are absolutely the most efficient we’ve had.

  65. i am setting up A web portal for my business. and i want to know the copyright guidelines, specifically the legality of copying other articles from other websites. in other words, is it ok to copy an article from another site and paste it in my site ( of course, i will be putting the reference source or link it in to my site)? need hard core data please. if possible a weblink. thanks..

LEAVE A REPLY