Frequently Asked Questions
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WHAT IS BLACK ECONOMIC EMPOWERMENT (BEE)?
This is an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about both significant increases in the number of black people that manage, own and control the country’s economy as well as significant decreases in income inequalities.
WHAT IS "BROAD-BASED BLACK ECONOMIC EMPOWERMENT (BBBEE)"?
This 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 that include but are not limited to :
- increasing the number of black people that manage, own and control enterprises and productive assets
- facilitating ownership and management of enterprises and productive assets by communities, workers, cooperatives and other collective enterprises
- human resource and skills development
- achieving equitable representation in all occupational categories and levels in the workforce
- preferential procurement – investment in enterprises that are owned and managed by black people
DO I HAVE TO GIVE AWAY MY SHARES IN ORDER TO OBTAIN A GOOD B-BBEE RATING?
No. Depending on the size of your entity, your score may not even take into account the element of “Ownership”. You can also sell a part of your shares at a market related price in order to get ownership points.
WHAT IS THE PURPOSE OF THE BBBEE ACT?
- To establish a legislative framework for the promotion of black economic empowerment;
- To empower the Minister to issue codes of good practice;
- To publish transformation charters;
- To establish the Black Economic Empowerment Advisory Council
WHO ARE SEEN AS BEING PART OF "BLACK DESIGNATED GROUPS"?
“black designated groups” means:
- black workers;
- black unemployed people;
- black youth;
- black aged people;
- black people with disabilities; and
- black people living in rural areas
WHO IS REFERRED TO AS "BLACK" ACCORDING TO THE CODES OF GOOD PRACTICE?
“black people” is a generic term which means African, Coloured or Indian persons who are natural persons and:
- are citizens of the Republic of South Africa by birth or descent; or
- are citizens of the Republic of South Africa by naturalisation before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or
- became citizens of the Republic of South Africa after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, but for the Apartheid policy that had been in place prior to that date, would have been entitled to acquire citizenship by naturalisation prior to that date;