Many people have asked, “What is BEE?”
Well, it is an acronym for Black Economic Empowerment.
The initiative champions equal business opportunities for all people of colour.
A group of people from different races in a boardroom. Photo: pexels.com, @Christina Morillo (modified by author)Source: UGC
BEE and BBBEE are acronyms that often confuse people.
The latter stands for the Broad-Based Black Economic Empowerment.
BBBEE provides a legal framework for the implementation of BEE.
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Learn more about it below.
What is BEE?
Black Economic Empowerment (BEE) is a government policy in the Republic of South Africa.
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The policy promotes racial inclusiveness in the business industry.
The government of South Africa created BEE to redress the inequalities brought by the apartheid era.
What is the meaning of BBBEE?
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BBBEE stands for Broad-Based Black Economic Empowerment.BBBEE is the legal frameworkfor the implementation of BEE.
The BBBEE Act of Parliament was amended and became operational on 24 October 2014.
As a result, they got the best of everything.
Two men in official wear having a conversation. Photo: pexels.com, @RDNE Stock projectSource: UGC
Black empowerment in SA means restoring the dignity of Black people.
Itmeans givingthem equal opportunities with Whites and people of other colours.
BEE levels explained
BEEcompliancedepends on the scoreand procurement recognition a business gets.
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100% owned black businesses are level 1 compliant and have a 135% procurement recognition.
Check out the other levels below.
TheBEE scorecardis an important element in any business in South Africa.
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Business owners are advised to understand the scoring for their own good.
The higher your BEE score, the higher the chances of your business gaining from different opportunities.
The scores are given based on different weighted elements.
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The new BBBEE levels explored came into effect in 2013.
Although there are slight variations, the basics remain the same.
What are the benefits of BEE certification?
A group of Black woman having a conversation. Photo: pexels.com, @Christina MorilloSource: UGC
All South African businesses are encouraged to understand the BEE policy and follow it.
There is an emphasis on a high BEE score, and here are the benefits of obtaining BEE certification.
How does BEE work for different businesses?
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It is worth noting that the implementation of the BEE policy differs depending on the size of the business.
Companies or large firms that buy from small businesses can claim BEE points.
Below is a look at the various business classifications as guided by the BEE policy.
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This category refers to businesses with an annual turnover of below R10 million.
A business could increase its score to 135% if it is Black-owned.
In the past, QSEs must have had an annual turnover of between R10 million and R50 million.
M&Ls must meet all the five elements on the scorecard to be rated.
They must also turn over R50 million per annum.
Equity ownership is about the voting rights and shareholding and it accounts for 25% of the weighting.
When calculating the score, black ownership is generally considered, especially ownership by black women.
Skills development accounts for 20% weighting with a 5% bonus based on specific criteria.
Enterprise development takes up 40% weighting with a 4% bonus for certain criteria.
This focuses on the extent to which small, black-owned companies receive support and arehelped to develop.
Socio-economic development accounts for 5% of the weighting.
This one focuses on the extent to which a company carries out social investment initiatives.
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What do the BEE levels mean?
What does Level 1 BEE status mean?
Level 1 BEE status means a business has scored 100 and above and 135% procurement recognition.
What is the purpose of the B-BBEE in South Africa?
What is a BEE deal in South Africa?
A BEE deal in SA means a business is complying with the BEE policy.
BEE is a policy of the South African government.
It aims to facilitate broader participation in the economy by Blacks.
What is the difference between BBEE and BEE?
BEE stands for Black Economic Empowerment, while BBBEE stands for Broad-Based Black Economic Empowerment.
BEE is a policy that reduces the racial inequalities in the business world because of apartheid.
On the other hand, BBBEE provides a legal framework for the implementation of BEE.
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What is the meaning of a B-BBEE certificate?
Black Economic Empowerment is an initiative by the SA government to promote equality for Black people in the businessworld.
Any business owner who wants to increase their chances of getting business deals should work on being BEE-compliant.
Briefly.co.za recently published details of the bestcheap container housesin South Africa.
She has a Bachelor of Commerce & IT from the University of Nairobi and joined Briefly.co.za in November 2019.
The writer completed a Google News Initiate Course.
you could email her at perisrodah254@gmail.com.
She holds a Diploma in Mass Communication and a Bachelors degree in Nutrition and Dietetics from Kenyatta University.
Cyprine joined Briefly.co.za in mid-2021, covering multiple topics, including finance, entertainment, sports, and lifestyle.
In 2023, she finished the AFP course on Digital Investigation Techniques.
She received the Writer of the Year awards in 2023 and 2024.
In 2024, she completed the Google News Initiative course.
Email: cyprineapindi@gmail.com
