Broad-based black economic empowerment (BBBEE)

Broad-based black economic empowerment (BBBEE) is a government initiative seeking to transform economic structures in South Africa. The main purpose is that black people can participate in the South African economy in a meaningful fashion.

‘Black people’ are Africans, Coloreds (as well as Chinese), and Indians as South African citizens.

Codes of practice

All companies and organizations are encouraged to comply with BBBEE Codes of Good Practice and they are required to demonstrate their BBBEE credentials based on measurable indicators and targets across seven scorecard elements. However, BBEE compliance standard and environment remains voluntary and self-regulatory.

Elements of the B-BBEE scorecard

The seven elements of the B-BBEE scorecard include the following:

• ownership
• management control
• employment equity
• skills development
• preferential procurement
• enterprise development
• socio-economic development

To obtain a copy as well as more information on the Department of Trade & Industry’s B-BBEE scorecard, please visit www.thedtic.gov.za