1. What is the definition of Black Economic Empowerment?

Broad-Based Black Economic Empowerment (B-BBEE) is a South African government policy aimed at advancing economic transformation and enhancing the economic participation of Black people across a broad range of sectors and levels in the economy.

Formal Definition (from the B-BBEE Act, No. 53 of 2003 as amended):

"Broad-Based Black Economic Empowerment means the economic empowerment of all black people including women, workers, youth, people with disabilities and people living in rural areas through diverse but integrated socio-economic strategies."

 Key Objectives of B-BBEE:

• Increase the number of Black people who own, manage, and control enterprises and productive assets.
• Promote human resource and skills development.
• Achieve equitable representation in all levels of the workforce.
• Support entrepreneurship and access to finance for Black-owned businesses.
• Enhance procurement from Black-owned and Black-empowered businesses.
• Promote investment in communities and socio-economic development.

2. How do I apply for an Empowerdex Rating?

In order to apply for an Empowerdex rating, please feel free to call your local office to get more details.

Your local Client Relations Manager will assist, and provide you with the necessary information you might require. We will need to know which category your organisation falls into, in order to process or assist you with your application for a rating:

• Exempted Micro Enterprise (EME): annual turnover under R10 million per annum
• Qualifying Small Enterprise (QSE): annual turnover R10 million to R50 million per annum
• Generic Enterprise: annual turnover of R50 million and above

Once we are able to determine which bracket your organisation falls into, we can send you the relevant application pack in order for you to proceed with your rating. This application pack is filled with information on the next steps and how to obtain a rating with Empowerdex. Please contact your local office to proceed with your rating.

3. What does it cost to get rated?

The cost of the verification will be dependent on the complexity of the ownership structure, the number of employees, procurement budget, and number of operating entities. Please contact your local office to assist you further

4. What are the various rating scores that can be achieved and what status does this relate to (the below relates to the amended CoGP 2013)?

5. What is the rating process – how does it work?

The rating process; which is in line with methodology outlined by SANAS and the dtic. Click here to see an explanation.

6. How can I get an Engagement/Tender letter?

A Tender Letter will be issued at the start of the engagement and is valid for three months. Unfortunately, letters cannot be re-issued after expiry. Please contact your local office for more information.

7. What are the different types of ratings Empowerdex offers?

Our B-BBEE services include the full range of ratings, advisory, training, assurance services and research. 

8. Is Empowerdex SANAS accredited?

Yes, Empowerdex is SANAS accredited

9. How do I learn more about BEE, the rating process and the Codes of Good Practice? 

Empowerdex offers tailored training programmes designed to keep clients informed about the latest B-BBEE requirements. These programmes can be customized to suit the unique needs of each organisation, equipping them with the knowledge and tools to effectively implement and manage sustainable B-BBEE strategies and practices.

Our courses are regularly updated to ensure that organisations can confidently apply B-BBEE principles and work towards achieving optimal rating outcomes.

Our advanced training offering is the Certified Empowerment Technician (CET) course — a comprehensive workshop ideal for industry consultants, HR managers, transformation champions, CFOs, business owners, and anyone who deals with B-BEEE in any capacity within their organisation. For details on B-BBEE training, click here

10. I would like to use Empowerdex’s logo on my website or documents, in order to show we are Empowerdex rated – who do I contact?

Once verified, a company may only use the Empowerdex Certified Empowerment Contributor trademark logo, when referring to its verification status once it has obtained the written consent of Empowerdex.  The use of the Empowerdex logo is not permissible. Please consult our Standard Terms and Conditions of verifications, for the terms of utilising the Certified Empowerment Contributor logo.  It should be noted that use of the logo must be followed by the actual verified status achieved by the company, i.e.: ‘Empowerdex Level Four verified’ and NOT simply ‘Empowerdex verified’.  A company may not make use of the Empowerdex branding logo without permission in writing, from Empowerdex. Contact us on (011) 883 8548 for more details.

B-BBEE Transaction Analysis

Transaction impact analysis provides scenario analysis to forecast the impact of the transaction on the economic empowerment status of the acquirer and target firms. The service aims to reduce the potential risks associated with unsustainable empowerment structures. It aims to enhance the value of empowerment transactions to both entities.

The following forms of transaction analysis are available:

• Pre- or post- transaction analysis and advisory services to assess the compliance of a B-BBEE deal in terms of the latest B-BBEE legislative and regulatory framework. This includes an assessment of the deal's robustness and the economic benefits flowing to black shareholders
• Pre- or post-transaction analysis and advisory services to assess the impact of the sale of assets to BEE parties

Transaction analysis and advisory services can include a public opinion or statement by Empowerdex at the client's request. Over and above Ownership advisory we also offer implementation of the requirement of the amended BEE CoGP, including Sector Charters.

Empowerment Best Practice Analysis

The best practice analysis supports and guides companies in the design and implementation of empowerment initiatives. Empowerdex evaluates the proposed initiative against global and industry best practices and identifies any potential gaps. The findings from the analysis will highlight any risks and opportunities associated with the structure and will assist you in the effective and efficient implementation of empowerment initiatives.

B-BBEE Partnering

Empowerdex offers a BEE partnering service, tailored for medium-sized non-B-BBEE entities, wishing to expand the scope of their business and opportunities, as well as comply with the ownership element of the Codes of Good Practice, through the introduction of a B-BBEE partner.

For more information on these advisory services, contact Nomzamo Xaba on (011) 883 8548 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Empowering Supplier

On 11 October 2013, the Minister of Trade and Industry, Dr Rob Davies signed into law the Codes of Good Practice under S9(1) of the Broad-Based Economic Empowerment Act 53 of 2003.

These Codes came into effect immediately and with a transitional period ending on 10 October 2014.

In terms of these Codes, Companies operating in South Africa will need to show evidence of being Empowering Suppliers. This refers to B-BBEE compliant entities that comply with all the regulatory requirements of the country and meet the following criteria:

1. At least 25% of Cost of Sales, excluding labour cost and depreciation, must be procured from local
producers or local suppliers in South Africa, and for service industry enterprises labour is included
but capped at 15%.
2. Job creation – 50% of jobs created are for Black people provided that the number of Black
employees since the immediate prior verified B-BBEE Measurement is maintained.
3. At least 25% transformation of raw material/beneficiation which include local manufacturing,
production and/or assembly, and/or packaging.
4. Skills transfer – at least spend 12 days per annum of productivity deployed in assisting Black EME
and QSE beneficiaries to increase their operation or financial capacity.

The above criteria will be applicable to entities as follows:

• EME’s and Start-ups are automatically recognised as Empowering Suppliers
• QSE’s are required to meet at least 1 of the criteria
• Generic Enterprises are required to meet at least 3 of the 4 criteria.

Assuredex, together with Empowerdex is able to assist with the following:

1. Analyse your current status, to determine if you meet the requirements
2. Getting your company geared to meet the requirements for Empowering Suppliers
3. Analysing the gaps in your processes to be able to meet the Empowering Supplier
   requirements
4. Devising and implementing strategies to meet the requirements for Empowering Suppliers

South Africa’s first B-BBEE verification agency, Empowerdex, pioneered the empowerment verification methodology and was actively involved in drafting of the Codes of Good Practice. It is therefore perfectly positioned to guide your company through the complexities of B-BBEE and related legislation and regulations.

Empowerdex is a Level Two B-BBEE contributor and SANAS accredited.

• We provide a qualified analyst to take you through B-BBEE legislation while verifying your organisation.
• Empowerdex can help your organisation interpret the codes and understand exactly what is required (training).
• We assist you in understanding the newly amended B-BBEE Codes of Good Practice and what they mean for your organisation.
• Empowerdex offers pre-verification support.
• You will have access to an analyst who will help you compile and assess your B-BBEE compliance documentation.
• Empowerdex provides a standardised and user-friendly B-BBEE rating solution that has been used to measure over 6,000 companies.

Your organisation will receive a premier B-BBEE rating from the market leader in B-BBEE measurement. Contact your nearest office to make an inquiry.

We operate through a team of qualified professionals and provide services in every province. Our clients range from large, JSE-listed companies to generic and QSE clients across various industries. If you require a B-BBEE certificate or further information on our services, please contact Empowerdex.

Key projects

• Empowerdex worked with the National Empowerment funding, for a comparative analysis of B-BBEE funding instruments and Empowerdex performed an annual review of funding mechanisms in the South African market aimed at facilitating and furthering B-BBEE Ownership.
• Empowerdex currently researches the most empowered companies (previously Top Empowerment Companies), an analysis is done for Most Empowered Companies, and all the results are published on the section of the independent newspaper and on the Empowerdex website.
• Empowerdex works closely with the Chamber of Mines and its members in addressing the transformational challenges in the industry through a codes aligned Generic Sector Code.

Historical Key projects

• Empowerdex was part of the team that consulted to the Department of Trade and Idustry with respect to the development od the Codes of Good Practice for broad-based black economic empowerment.
• Empowerdex was actively involved with the Department of Agriculture is the updating of its AgriBEE initiative; it conducted a benchmark study, aligning the sector's draft transformation charter with the guidelines set out in the Codes of Good Practice and conduced countrywide briefings to farmers in both rural and urban areas.
• Empowerdex completed a sector audit for the Department of Minerals and Energy to determine private sector compliance against Petroleum and Liquid Fuels Charter.
• Empowerdex was appointed by the Department of Communication as a consultant to measure the level of economic empowerment in the ICT sect and was part of the research team which supported the ICT sector steering committee in the development of the first three drafts of the ICT sector charter.
• Empowerdex was appointed by the Department of Environmental Affairs and Tourism (DEAT) to create a comprehensive BEE index for the tourism sector. It also consulted to the DEAT in developing a BEE scorecard for the tourism sector, as well as developing a BEE procurement tool for the department.
• Empowerdex worked closely with SAPIA on a strategy for approaching the 2013 Codes Alignment process as it relates to the development of an industry code for the petroleum sector of South Africa.

Key clients

Purpose of the Codes

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 B-BBEE Act, drivers of transformation charter processes to date, have lacked a standard B-BBEE framework from which to develop charters. Furthermore, some charters were developed even before the B-BBEE 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.

Status of Charters in Relation to the Codes

Transformation Charters may either be gazetted in terms of section 9 of the B-BBEE 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 B-BBEE measurement

Sector Codes gazetted under Section 9(1):

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.

With the Broad-Based Black Economic Empowerment as the framework, various other pieces of legislation shape the implementation and measurement of Broad-Based Black Economic Empowerment. These include the amended Codes of Good Practice, Charters and Sector Codes, Qualifying Small Enterprises, Generics, the Codes Process and the dti’s framework for Broad-Based BEE. Please find below a list of currently gazetted codes and new draft sector codes.

       2024

• Legal B-BBEE Sector Codes of good practice

       2021

• BEE Act
• Amended Codes
• 2015 QSE Codes of Good Practice
  
  2018
• Newly Released Mining Charter for Public Comment
• Draft Schedule 1 of 2018 for 60 Day Public Commentary
  
  2017
• Amended Foresty Sector
• New Agri Sector Code
• Amended Sector Codes for the Construction
• Financial Services sectors
  
  2016: Important Notices and Gazettes
• Notice to Repeal Sector Code
• Draft Amended ICT Sector Code
• Transport Sector Gazette
• Draft Amended FS Code
• MAC Sector
• Broad-Based Black Economic Empowerment
• B-BBEE Facilitators Status Industrial Development Corp
• Draft Preferential Procurement Regulations
• BEE Commission Practice Guide One
• BEE Commission Practice Guide Two
• Most Empowered Companies 2016
• Empowering Supplier Notice 31Oct2016 
• IDC B-BBEE Facilitator Status Implementation
  
  2015
• 2015 Tourism Sector Code
• AgriBEE Sector Code
• Amended Sector Codes
  
  2013
• 2013 Codes
  
  

Verification Manual: 1-15, 16-27, 28-32, 33-38, 39-54, 55-80