03 Mar Why were the BEE Codes Revised?
Initially Governments Revision of BBBEE codes created much panic and discussion. The B-BBEE Amended Codes of Good Practice came into effect on 11 October 2013. Some Businesses felt that it would be difficult to score on.
The Department of Trade and industry stated that the reason that BBBEE was initially created was to ensure
“an integrated and inherent socio-economic process, that directly contributes to the transformation of South Africa and brings about significant increases in the number of black people that manage, own and control the country’s economy, as well as significant decreases in inequalities.”
The main purpose was to promote the building of the middle class. This resulted in no substantial change to those that were poverty stricken. The Country has seen many challenges and changes since the first codes came into effect and with this, Government felt that change to the codes was necessary.
Just a few of the challenges faced at present are high unemployment, crime, poor education and economic instability. The most notable parts of the revised codes is that there must be an increased spend with BEE or Black owned Suppliers along with ownership, the continuation of skills development, Management control and employment equity. Exempted Micro Enterprises must now have an annual turnover of less than R10 million. This was initially Less than 5 Million. Many businesses have found that they have dropped by 2 or 3 levels and have thus had to find measures for change.
It is hoped with the Revised BEE Codes that there will be in an environment of equality as well as the promotion of economic growth for the county and its citizens. Business can certainly benefit getting assistance with BBBEE Verifications, Strategy Planning and BBBEE training.