Top 10 Scoring Opportunities on Amended BBBEE Codes
Most companies have now been assessed on the Amended BBBEE Codes and most are unfortunately not scoring well (Non-compliant to Level 7) due mainly to ineffective preparation for the challenging differences from the prior set of Codes. From our experience, we have summarised the list below to assist companies in implementing those tactics that have the most impact:
- Initiatives towards the 3 elements that carry the most points (Skills Development, Enterprise & Supplier Development[ESD], Socio-economic Development) must be implemented in the financial year that will be used for the verification. No random 12 month period is now allowed.
- The pre-requisites to obtain points on Skills Development and Management Control (annual WSP/ATR/Pivotal Reporting and Critical Skills implementation, and Employment Equity reporting to Department of Labour) are vital to obtain any points in these elements – for QSEs and Generic companies.
- At least 40% of points for the Priority Elements of Ownership, Skills Development and ESD must be obtained to avoid dropping 1 level on the Generic Scorecard, or Ownership and either 1 of the others for QSEs. If a company does not have black ownership, they should aim to achieve the highest level on the other elements to cater for this fall in level.
- For the DTI Codes, a 10% black ownership is the minimum requirement to avoid dropping a Level.
- Under Skills Development, training and development of any black person can be claimed – not just staff.
- Formal learnerships, internships and apprenticeships gain the most points under skills and there are many cost-effective ways of implementing these for any company. Contact us to find out more.
- Utilise the EME and QSE affidavits for suppliers that meet this profile, as these are easy to obtain and provide high levels that boost procurement scores.
- Be mindful of new requirements under Enterprise Development and Supplier Development eg limitation of early payment terms, bonus points, qualification of beneficiaries, etc.
- Maintain records of all initiatives as they are being done to reduce workload and risk at time of verification. If suitable evidence can’t be provided, points unfortunately cannot be awarded.
- Be aware of the specific requirements of Sector Codes should they be applicable to you. The Amended Codes for Forestry, Tourism, ICT, Property, MAC and Mining have already been gazetted while Transport, Construction, Finance and Agriculture are still in draft format but can be finalised at any time now.
Contact Xcelerate Verification Agency to guide you further on achieving your targeted BEE level – call us on 0861 505 555 or email email@example.com.