Transitional Period for BBBEE Codes Extended

Department of Trade and Industry

Businesses may use either the amended codes of good practice or the generic scorecard for a while longer.

The trade and industry department has extended the transitional period for the Broad-Based Black Economic Empowerment (BBBEE) Codes of Good Practice for six months.

The extension notice was published in Government Gazette 37453.

The revised codes were published in the Gazette in October last year.

The revised codes were approved by cabinet in August 2012.

The cabinet statement issued at the time listed some of the areas that have been refined.

Some of these include:

•    5 elements in generic scorecard
•    Ownership points broadened to include designated groups in the main points
•    Exempted micro-enterprises and qualifying small enterprises thresholds adjusted
•    All companies to comply with five elements
•    Revised qualification points for BBBEE recognition
•    New priority elements- ownership, skills development and supplier development
•    100% black owned-level 1
•    50% and above black owned-level 2
•    BBBEE employment equity elements aligned with Employment Equity Act
•    Qualifying small enterprises to comply with all five elements

The codes contain principles and guidelines designed to speed up and facilitate the implementation of BBBEE.

“The purpose of the codes is to assist and advise both the public and private sectors in their implementation of the B-BBEE Act”.

The codes provide a standard framework for the measurement of BBBEE across all sectors of the economy.

The codes contained a paragraph on a transitional period which allowed companies to make use of the two options for a year after the publication of the revised codes.

The transitional period now runs until 30 April 2015.

Sabinet Cape Town Office