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)?
|
EMPOWERDEX |
CONTRIBUTION LEVEL |
QUALIFICATION 2013 Codes |
QUALIFICATION 2007 Codes |
PROCUREMENT RECOGNITION LEVEL |
|
AAA+ |
Level One Contributor |
≥ 100 points on the Scorecard |
≥ 100 points on the Scorecard |
135.00% |
|
AAA |
Level Two Contributor |
≥ 95 But < 100 points on the Scorecard |
≥ 85 but < 100 |
125.00% |
|
AA |
Level Three Contributor |
≥ 90 But < 95 points on the Scorecard |
≥75 but <85 |
110.00% |
|
A |
Level Four Contributor |
≥ 80 But < 90 points on the Scorecard |
≥ 65 but < 75 |
100.00% |
|
BBB |
Level Five Contributor |
≥ 75 But < 80 points on the Scorecard |
≥ 55 but < 65 |
80.00% |
|
BB |
Level Six Contributor |
≥ 70 But < 75 points on the Scorecard |
≥45 but <55 |
60.00% |
|
B |
Level Seven Contributor |
≥ 55 But < 70 points on the Scorecard |
≥40 but < 45 |
50.00% |
|
C |
Level Eight Contributor |
≥ 40 But < 55 points on the Scorecard |
≥ 30 but < 40 |
10.00% |
|
D |
Non-Compliant Contributor |
< 40 points on the Scorecard |
< 30 points on the Scorecard |
0.00% |
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.
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.