Complying with the amended B-BBEE codes in 2016

Petra Rees

The inaugural year of South Africa’s revised B-BBEE Codes of Good Practice ends on 30th April 2016. While many businesses have implemented changes to comply with the amended codes, those corporates that haven’t face the risk of dropping one or more levels on their scorecard. Lean Enterprise Acceleration Programmes (LEAP) has developed The Business World – an online business portal aimed at assisting corporates with complying with one of the priority elements being Enterprise and Supplier Development that deals with procurement requirements from suitable suppliers. 

“This is a year of change for the South African B-BBEE scorecard,” says Petra Rees, managing director of LEAP – a subsidiary of the PLP Group. Whilst the adjustments should be lauded for their transformative benefits and their long-term economic returns, the codes are more difficult to comply with and businesses will find themselves at a disadvantage if they are not properly prepared. Corporates must be prepared that as much as 25 points on the Scorecard is for preferential procurement activities linked to buying from small businesses and businesses that are more than 51% black owned with a strong black female focus as well. As much as BEE procurement recognition level is still important the big shift is now towards procuring from companies with black ownership.

Rees continues, “At LEAP we understand that corporates now have an imperative to transform their supply chains, localise labour costs and activities especially with black businesses, assist in skills transfer as well as increase the procurement activities with small businesses.” 

The Business World (www.businessworld.co.za) is an easy-to-search, large database of verified and reliable small businesses, aimed at increasing and simplifying corporate procurement from SMEs, designated groups, and black and black female-owned businesses. The access to the portal is absolutely free for SMEs and corporates! The portal makes it possible for buyers to search geographically, ownership, BEE level, industry and size of the companies. This results in giving suppliers in smaller local communities increased visibility and ability to tender for jobs and projects. All businesses are able to increase their online presence by creating mini-websites, uploading their documents like brochures, BEE certificates etc. They can then bid for opportunities and submit proposals, making it easier to connect with other businesses especially corporate buying teams.

Job creation is further facilitated by the business to business opportunities that The Business World generates. By incorporating the portal into their preferential procurement strategies, large businesses are able to post opportunities to the database, whilst also being responsible for cultivating an environment where small businesses are able to communicate with and post jobs to each other.

“B-BBEE policies in South Africa have put large businesses at the forefront of addressing socio-economic and economic transformation, however many companies have done little to comply with the complex new codes,” explains Rees. “Through The Business World we can assist our clients in achieving their more stringent B-BBEE goals. This compliance has assisted in addressing unemployment, promoting black and black-female ownership, diversifying supply chains and, most importantly, making meaningful investments in skills development and developing smaller South African businesses,” Rees concludes.