South-Africa’s first BEE verifications agency, Empowerdex, pioneered the empowerment verifications methodology and was actively involved in the drafting of the Codes of Good Practice. It is therefore perfectly positioned to guide your company through the maze of BEE and BEE-related legislation and regulations.
Empowerdex is a Level Two BEE contributor and SANAS accredited. It is also a founding member of the Association of BEE Professionals and is registered with the Independent Regulatory Board for Auditors.
Your organisation will receive a premier BEE rating from the market leader in BEE measurement. Contact your nearest office if you wish to make an inquiry.
We operate through a qualified team of 100 employees and we provide our services in every province. Our clients range from large, JSE-listed companies to Generic, QSE clients representing every industry in the country. Should you require a BEE certificate or further information on any of our services, please contact Empowerdex for more information.
Most Empowered Companies 2017We are pleased to present the results of the 2017 Most Empowered Survey which were announced at a Gala Dinner on 4th October 2017.This survey is published by Independent Newspapers’ Business Report and we would like to extend our congratulations to the participating companies and we wish them continued success in this empowerment journey. We look forward to even more participants next year as everyone settles into being assessed against the more challenging transformation requirements.The 2017 Most Empowered Companies lists can be found on the link below.For further queries, please contact the Research team on 011 883 8548.
A market leader in the field of economic empowerment research, Empowerdex produces quantitative and qualitative studies on issues related to all forms of economic empowerment and its impact. We also assess qualitative issues involving B-BBEE and its implementation.
Our research measures the impact of B-BBEE policies, regulations and legislation. In so doing it provides a foundation for the development and implementation of effective and sustainable policies, strategies and frameworks. It also identifies and quantifies empowerment risks and opportunities.
Based on this research, Empowerdex advisory services are based on global and industry best-practice analysis designed to support and guide companies and organisations in implementing successful empowerment initiatives.
Empowerdex has other services designed to assist to drive transformation. Please speak to us on how we can assist you with your unique circumstances.
The collation service is an offering whereby a separate team would assist your company in collating the correct information required for the rating process and compiling a rating to be presented to the rating team.
This will be similar to the rating process, but over and above collecting information and verifying it, an analysis of your current processes and systems will be done. At the end the process, a report will be formulated that will include the scorecard of the company (for internal use only), a processes analysis, as well as a gap analysis showing which areas the company falls short in, and which areas more effort is required.
The gap analysis can also be done after the rating, where the process is used to determine which areas require more attention, and what the possible score would be based on a few small changes.
Similar in basic processes to the formal rating, the Indicative Rating's difference lies in the fact that the scorecard information is not verified, but information supplied by the client is accepted on “face-value”.
It is of the utmost importance to note that this indicative rating process will NOT result in a rating certificate that may be used in the normal process of proving compliance. It is normally used as an internal “pre-rating” exercise to determine whether changes need to be made prior to rating, or whether the client is ready for the process. The value of this exercise lies in the much shorter turn-around time than the rating exercise, but still results in a deliverable which produces enough information to form the basis of the chronological next step, full rating.
With this we verify your ownership element only and provide you with a detailed certificate of your ownership. The normal verification process is followed and the end result will be a valid ownership certificate.
With this we will verify a unicorporated Joint Venture that was created between two or more companies for a specific project or as a temporary working together solution. We will assess the BEE certificate of all the involved parties against the share each of the entities has in the Joint Venture or Consortium. The end result will be a Joint Venture/Consortium certificate that is valid for 12 months.
Kindly contact your local Client Service Consultant in order to receive a quote on any of the above service offerings.
We've created this animation of Empowerdex's rating process for you to view. Read further to get more detail and understand how we can work together for best results.
If you wish to engage us please fax the following documentation:-
On receipt of the above you will be contacted to provisionally accept the verification, and to either set up a preliminary site visit date, or confirm the dates when the verification file will be received from the company.
Empowerdex file with all the requirements as per the Verification Questionnaire should be received. A verification site visit will be conducted after receiving the file once the analyst has chosen what items they will be sampling. Should the file be incomplete, the analyst will send a list of outstanding information that will be required on-site. The purpose of the site visit is to verify information, not to collect information. The analysis of the information must also happen prior to the site visit at the analyst's office, and not on the verification day. Therefore, if the list the analyst compiles is too long, or requests important material information, these will have to be sent beforehand to the office before a site visit date can be confirmed.
A verification site visit date will initially be set as soon as possible after the receipt of the verification file.
Empowerdex will perform a verification of the information presented, as well as any risk areas identified during analysis of the underlying information through the use of verification procedures, including the validation of supporting documentation, interviews with company representatives, employees, Enterprise Development and/or Socio Economic Development beneficiaries during the verification visits.
On completion of the analysis, Empowerdex will:
Hold a Preliminary Meeting after the verification to communicate the preliminary score and any problems experienced during verification.
The analyst will go back to the office, where the file will be reviewed and a preliminary report will be issued.
The client then has another 5 working-day window period, to appeal against the preliminary score received, should they wish to do so. For more information on the appeal process please consult the company’s 'appeals policy and procedure' document, or ask the client services department to explain the process to you.
Should there be an appeal and all handled satisfactorily, the final report will be issued within five days of acceptance of the preliminary report.
Once you have gone through the verifications process, you will be awarded a verification report with a verification certificate. The overall verification score will be issued as per guidelines in the Codes of Good Practice, e.g.: Level 3 Contributor.
Should you require an in-depth report, especially for board presentation, this can be arranged at an additional fee. Please contact us to discuss this in more detail.
PROCUREMENT RECOGNITION LEVEL
Level One Contributor
≥ 100 points on the Scorecard
Level Two Contributor
≥ 95 But < 100 points on the Scorecard
Level Three Contributor
≥ 90 But < 95 points on the Scorecard
Level Four Contributor
≥ 80 But < 90 points on the Scorecard
Level Five Contributor
≥ 75 But < 80 points on the Scorecard
Level Six Contributor
≥ 70 But < 75 points on the Scorecard
Level Seven Contributor
≥ 55 But < 70 points on the Scorecard
Level Eight Contributor
≥ 40 But < 55 points on the Scorecard
< 40 points on the Scorecard
The Indicative Rating Process:
Joint Venture/Consortium Certificate:
Section 9 of the Broad-Based Black Economic Empowerment Act No. 53 of 2003 (BEE Act) legally provides for the issuing of Codes of Good Practice on broad-based black economic empowerment. Besides the dti's Strategy for Broad-Based Black Economic Empowerment and the BEE Act, drivers of transformation charter processes to date, have lacked a standard BEE framework from which to develop charters. Furthermore, some charters were developed even before the BEE Act and the Strategy document were released. Consequently, there exists substantial incomparability amongst charters, with respect to content as well as criteria for measurement. This results in entities in certain sectors with stricter measurement criteria being unfavourably disadvantaged when competing for business with entities in sectors with more lenient measurement criteria.
Transformation Charters may either be gazetted in terms of section 9 of the BEE Act, or in terms of section 12. Code 000 contained in the Codes of Good Practice includes a Statement on transformation charters as well as guidelines on the gazetting of charters.
A transformation charter gazetted in terms of section 9 of the Act means that the charter has been gazetted as a Code of Good Practice and that it therefore has the same status as the Codes. This effectively means that the charter becomes legally binding on organs of state and public entities.
A transformation charter gazetted in terms of section 12 of the Act expresses an industry's commitment to transformation but is not legally binding on organs of state and public entities.
In cases where transformation charters have not been gazetted as Codes, government will make use of the Codes of Good Practice as a means of BEE measurement
If the majority of the measured entity's turnover is derived as a result of gazetted sector related activities, then the relevant sector code will apply to such measured entity.
Summary of the 2013 new codes.The amended Codes of Good Practice for Broad-based Black Economic Empowerment that came into effect on 1 May 2015 will significantly reduce current compliance levels – by two to three levels. It is imperative that companies measure themselves in terms of the revisions then plot their path to return to former levels.
The revisions were gazetted in 2013 but are being implemented now and represent a further wave in the BEE legislation of the Department of Trade and Industry. Initially, narrow-based empowerment (ownership and management only) was followed by broad-based empowerment, which incorporated seven elements: ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.
Now the number of elements is being reduced to five: ownership, management control, skills development, enterprise and supplier development and socio-economic development.
The main difference though is that the revisions go a step further by identifying priority elements on which companies should concentrate: ownership, skills development and enterprise and supplier development. Failure to comply with a 40% sub-minimum in any of these priority elements leads to an automatic reduction of one level in your contribution level.
There is a sharp focus on the human resource aspects of the scorecard, with real emphasis being placed on employment equity and skills development – with black females now carrying their own, separate measurement indicators. Both elements also use the Economically Active Population racial split to ensure that there is equitable representation based on these statistics. Skills development now takes into account the training of employees as well as unemployed people who could then be employable.
The procurement element is heavily weighted towards procuring from black-owned businesses as opposed to the highest-rated businesses. Because there are relatively few black businesses that service other businesses, there is an expectation that most companies will score poorly on this element. We have also noted a trend of companies working on new ownership transactions to ensure that they become black owned and thus be counted in the procurement scorecards of their clients. Finally, socio-economic development contributions are now fully focused only on support that facilitates income-generating activities in the hands of the beneficiaries.
The “Certified Empowerment Technician” (CET) course is an advanced programme that can be done in isolation by any person who does not get involved in the collation of information during the company’s preparation for BEE Site verification. The CET course is attended in person, at a venue in your area, or can be done at your premises, depending on the amount of people attending. It covers BEE and transformation in a broader sense and the amended Codes of Good Practice and the measurement of the 5 elements. This programme takes a comprehensive look into the theoretical aspects of the codes that would be required by any person looking to develop a BEE Strategy. The course has been running with great success to date and we've received much positive feedback from organizations and consultants. The successful completion of the training programme on offer includes a full evaluation of understanding, methodology and required competency and will result in the issuing of a “Certified Empowerment Technician” certificate.
In order to attend the course, we require an individual to be in possession of a matriculation certificate. The duration of the programme is 1.5 days.
A sliding scale will apply if more than one delegate is booked from the same company:
We also do internal training and workshops customised to your organizations needs and sector code in which your organisation trades. Please speak to your regional office in order to discuss your needs in more detail. Attending BEE training will empower your organisation in strategising around BEE and preparing for your audits respectively - giving you the competitive edge. Please contact us to schedule your place in our next training session. We look forward to hearing from you.