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BEE legislation

Overview of BEE legislation by SANAS-accredited BEE rating agency BEE Empowered

Overview of BEE and B-BBEE legislation Broad-Based Black Economic Empowerment (B-BBEE)

Broad-Based Black Economic Empowerment (B-BBEE) was introduced to accelerate the entry of black people’s entry into South Africa’s “first economy” and to address the shortcomings of the original “narrow-based” Black Economic Empowerment (BEE legislation). It is dealt with in the Broad-based Black Economic Empowerment Act No. 53 of 2003, which provides the legislative framework that allows for the development of the BEE Codes of Good Practice. The Codes provide a standard framework for the measurement of Broad-Based BEE across all sectors of the economy.

General principles of the BEE Codes of Good Practice

  • Section 9 of B-BBEE Act 2003 has authorised the Minister of the Department of Trade and Industry (the dti) to promulgate Codes of Good Practice governing BEE compliance measurement.
  • The Codes seek to redress the wrongs suffered by black people during apartheid – particularly in the forms of skills deficits as well as exclusion from entrepreneurial and managerial opportunities.
  • The Codes revolve around scorecards, which measure BEE compliance by reference to defined “elements”.
  • The Codes apply if no Sector Code exists.
  • The Codes are to be used as a guide in developing a Sector Code.

Rules vary according to the size and type of business. However, there are established Charters and Codes of good practice relating to all aspects of BEE compliance.

B-BBEE Codes of Good Practice

The Codes of Good Practice on Broad-Based Black Economic Empowerment were gazetted on 9 February 2007 in Government Gazette Nos 29617 (Main Codes), 29610 (Financial Sector Charter (1.5 MB) and 29616 (Construction Sector Charter (2 MB). Government Gazette No 29617 (Main Codes)

  • Pages 1 – 44 (1.5 MB) (Framework, Generic Scorecard and Ownership).
  • Pages 45 – 77 (1.1 MB) (Management Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio-Economic Development).
  • Pages 78 – 86 (388 KB) (Small Enterprises).
  • Pages 87 – 96 (508 KB) (Schedule 1, Interpretation and Definitions)

BEE Charters

2007 – Gazetted Charters under Section 12 of the BEE Act

Gazetted under the Mineral and Petroleum Resources Development Act
(Refer to the Department of Minerals and Energy)

2005 and 2006 – Charters for consideration

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