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B-BBEE - New Codes Implementation

If your company has a financial year end of February and your company intends to continue to be verified for B-BBEE, the actions of this current financial period will be those that are verified for your first verification under the “New” Codes of Good Practice. Here are a few important points to remember!

Empowering Supplier Status

In order for your B-BBEE Certificate to be of use to any of your clients in calculating their procurement score, you will need to qualify as an empowering supplier. In order to do this you will need to comply with all regulatory requirements of the country and comply with the following criteria (1 for QSE and 3 for Generic Companies)

  • 25% of cost of sales procured locally

  • 50% of jobs created are for Black People

  • 25% transformation of raw material

  • 12 days of productivity assisting Black EMEs and QSEs

  • 85% of labour costs paid to South African employees – Service Industry entities only

Ownership and Management Control

These elements are verified as at the date of rating and so any changes to these elements after your financial year end need to be monitored to ensure that your score during verification does not drop below your expectations.

Skills Development, Enterprise Development, Supplier Development and Socio-Economic Development

If your BEE plan requires you to have implemented programmes in any of these areas, these programmes need to be implemented during your financial period. Any spend made after your financial year end will not be allowed to be counted during verification.

Preferential Procurement

As your procurement period is now basically complete, it is unlikely that any major spends can be made. Ensure that you know which of your suppliers are compliant and that you have a copy of their latest B-BBEE certificate.

For any queries regarding B-BBEE strategy, planning or implementation, contact Oriole Consulting on 011 346 2422 or

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