Amended Codes – SAACI Network Breakfast

*BBBEE AND YOU

*Turnover Thresholds

*Weightings

*Contribution levels

*General Amendments

• 7 elements reduced to 5

• Management Control and Employment Equity consolidated into Management Control

• Preferential Procurement and Enterprise Development consolidated into Enterprise and Supplier Development

• 3 Priority Elements with 40% sub-minimum targets:

* - Ownership

* - Skills Development

* - Enterprise and Supplier Development

• Large Enterprise to comply with all 3 Priority Elements to avoid 1 level discounting

• QSE to comply with Ownership and either SD or ESD to avoid 1 level discounting

*General Amendments Cont..

• EME less than 51% black-owned automatic level 4

• EME and QSE 51% or more black-owned only need to obtain a sworn affidavit confirming turnover and black ownership; no verification required; automatic level 1 (100%) or 2 (51%+)

• QSE less than 51% black-owned need to comply with all 5 elements subject to discounting – verification is required similar to Large Enterprise

• Adjusted Recognition for Gender removed

*Latest Government Gazettes

• Effective 1 May 2015

• Extension of old codes – “Financial year end” April 2015 allows us to use and issue certificates on the old codes until 31 October 2016 (18 months)

• Sector Codes (old codes) extended e.g. Tourism to 31 October 2015

• During the Inaugural year of the amended codes all valid certificates will be treated as empowering suppliers for the measurement of preferential procurement

• EME’s and Startup Companies will automatically be deemed Empowering Suppliers. An Empowering Supplier is a BEE compliant entity which demonstrates that it is a “good citizen South African entity” complying “with all regulatory requirements of the country”.

• Task team deployed after outcry:

* - Employee Share Ownership Programmes

* - Broad-based Ownership Schemes

* - Co-operative