The ongoing success and growth of the BEE codes is generally in the encouragement of companies to apply BEE principles in their own procurement policies as this will affect most private companies throughout the supply chain.
ZE Financial Services recognises that B-BBEE is perceived as a compliance requirement. In order for our clients to receive the best possible advice and guidance, we joined forces with a Verification Partner which has been involved in the BEE environment from the inception of the Draft Codes of Good Practice.
ZE Financial Services has been offering this service to clients countrywide and we have had great feedback regarding our speedy service. What we can offer is a Bee Certificate within 24 hours from when we receive your list of requirements.
B-BBEE in Brief
B-BBEE (Broad Based Black Economic Empowerment)is essentially a growth strategy to redress the disproportion of wealth distribution in South Africa’s economy. It is a Government initiative to help and support designated groups in South Africa which has suffered from a disadvantage prior to 1994. This initiative is driven by legislation and regulation. The BEE Act of 2003 was used as framework for the Codes of Good Practice issued by the Department of trade and industry to encourage and measure Broad Based Black Economic Empowerment within all government bodies, public and private organizations. These include Ownership, Management, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio-Economic Development.
The Codes of Good Practice measures a companies’ empowerment progress in seven areas:
- Direct empowerment through ownership and control of enterprises and assets
- Management at senior level
- Human resource development and employment equity
- Indirect empowerment through
- Preferential procurement
- Enterprise development
- Corporate social investments
The codes are binding on all state of bodies and public companies, and the government is required to apply them when making economic decisions on:
- Licensing and concessions,
- Public-private partnerships
Broad Based Black Economic Empowerment
The objective of B-BBEE is to broaden the country’s economic growth, accelerate job creation and eradicate poverty. The purpose is therefore to build a stronger economy where all South Africans can participate and benefit.
Definition of a Black Person for BEE
The definition includes Africans, Indians and Coloureds who are citizens of the Republic of South Africa by birth or descent; or are citizens by naturalisation:
Occurring before the commencement date of the constitution of RSA act of 1993 or occurring after the same date, but who, without the Apartheid policy, would have qualified for naturalisation before then.
Who must comply with BEE
The only organisations that are compelled to apply the Codes are organs of state and public entities.
While voluntary for the private sector, companies conducting business with government will be obliged to provide their B-BBEE status and compliance is therefore encouraged.
What can a BEE Certificate be used for?
Entities use their Bee Certificate to claim procurement consumed and thus the more an entity use BEE suppliers that are compliant, the higher the chance to get a high level Bee Certificate.
For anyone currently operating a business in South Africa, it is crucial to have a Bee Certificate and that’s why we decided to create this website, to offer this valuable service and information on this Certificate.
Documentation and Requirements for a BEE Certificate
We will require the following documents:
- ID documents of all the shareholders and directors
- Your up-to-date CIPC registration documents
- Documented proof of shareholding
- Documented proof that your yearly turnover is less than 5 Million Rand.
- CIPC Annual Return
- BEE Certificate Overview
- BEE Overview
- Company Registration
Renew your BEE Certificate
So why is it so important to renew your BEE Certificate? The Biggest reason is that you have to keep your BEE Certificate up to date to make sure that your status is correct up to that year.