In the realm of economic empowerment, Broad-Based Black Economic Empowerment (B-BBEE) stands as a cornerstone initiative aimed at redressing imbalances of the past and fostering inclusive growth. However, even with its noble intentions, there lies a persistent challenge: Fronting Practices. Fronting Practices refer to the practice of misrepresenting the true nature of B-BBEE compliance, often undermining its objectives and perpetuating economic inequality. At its core, B-B

Worker's Day will be celebrated on May 1 st, and it holds a profound significance. It commemorated the struggles and achievements of workers, particularly in their fight for fair labour practices and rights. Originating from the historic struggle against Apartheid, it is a reminder of the solidarity and resilience of the workforce. This day honoured the contributions of workers across industries, acknowledging their role in shaping our Country’s socio-economic landscape. It

Changes to B-BBEE Legislation in 2013 closed a loophole that allowed early payment terms for Black Owned businesses in exchange for Enterprise Development points. The amendments meant that an organisation may only claim early payment terms from Supplier Development Beneficiaries. Therefore, the following applies to an invoice on which a claim for early payment is going to be made: 1. The invoice payable for goods or services must appear in an organisation’s TMPS; 2. O

On 25 March 2026, the Legal Sector Charter Council issued a Notice to all Legal Sector Entities regarding the Submission of Annual Reports. The notice stated the following: 1. NOTICE TO LEGAL SECTOR MEASURED ENTITIES 1.1 This notice serves to remind all LSMEs and advocates that the annual reports required in terms of paragraph 13.8, read with paragraph 13.10 of LSC are due. 1 1.2 Attention is drawn to the relevant provisions of the LSC and Clarification Notice CN

Daily, during the procurement process, organisations are purchasing across sectors, whether they are paying for hotel accommodation, professional fees or other goods and services that support the delivery of their business offering. Similarly, an organisation measured on a specific B-BBEE Sector Code of Good Practice may make purchases from suppliers measured on other B-BBEE Sector Codes of Good Practice. In choosing a Supplier that is measured outside the B-BBEE Sector Co

Based on Statement 300 of the General Amended B-BBEE Codes of Good Practice , an organisation can only claim Skills Development Expenditure for Learnerships if an organisation incurred such an expense within their financial year. Evidence for a Learnership for a B-BBEE Verification under the Skills Development element include, however, are not limited to: A signed Learnership Agreement; Proof of the expenditure incurred by providing invoices and proof of payment; A certif

Clause 2.4.2 of Statement 400 of the Amended General B-BBEE Codes of Good Practice allocates Bonus Points for creating one or more jobs as a direct result of a Supplier Development or Enterprise Development intervention. The necessary evidence varies between B-BBEE Rating Agencies. Generally, however, a letter confirming job creation from the Beneficiary will serve as such evidence or a Signed Employee contract. The letter of confirmation must affirm that the intervention

The most significant risk to an organisation meeting its Preferential Procurement targets is fraudulent B-BBEE Statuses. They not only go against the spirit of B-BBEE, but they put an organisation at risk, as fraudulent B-BBEE Credentials generally only reveal themselves at the time of an organisation’s B-BBEE Verification. The B-BBEE Commission's website contains a List of known Fraudulent / Invalid B-BBEE Credentials currently in circulation. If any Members have suspic

At the time of a B-BBEE Verification, many organisations fail to produce updated B-BBEE Statuses from their suppliers especially those who are EMEs and QSEs with Enhanced Recognition. During a B-BBEE Verification, a B-BBEE Rating Agency will generally consider: Any B-BBEE status that is valid within the Measurement Period or thereafter; Most recent valid B-BBEE Status; and A B-BBEE status that is valid for at least one day in the Measurement Period due to differing Financi

A B-BBEE Verification is based on a sampling of evidence and an element of risk. In other words, the process of analysing less than 100% of the evidence supplied. The procedure provides a Verification Analyst with a reasonable basis on which to conclude that all evidence provided is true and accurate. However, posing a challenge is a Learnership claim where the Learner is no longer employed. If that particular Learner is chosen as part of the sample, the B-BBEE Rating Ag

The most critical element of an Enterprise Development Loan is that it is a loan and not a grant disguised as one. An organisation must record a loan in their Financial Statements to confirm its origin. The following is a non-exhaustive list of evidence necessary for a B-BBEE Rating Agency at the time of a B-BBEE Verification: Signed Loan Agreement including the type of loan and the terms of repayment; Proof of the valid B-BBEE status of the Beneficiary; Evidence that an org

At the time of B-BBEE Verification , a Measured Entity needs to produce all relevant evidence or documentation to substantiate their B-BBEE claims. From a Measured Entity perspective, it is often misunderstood that confidential documentation cannot form a part of the B-BBEE Verification whereas a B-BBEE Rating Agency would require this based on the procedures that they need to follow. Reference is made to clause 2.6 under Statement 000 of the Amended General B-BBEE Codes of G

The following rules apply when calculating Mandated Investments for under Statement 100 of the Amended General B-BBEE Codes of Good Practice : "Mandated Investments means any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds, pursuant to a mandate given by the owner to a third party, which mandate is governed by that legislation. Some examples of domestic mandated investments and the portions of those investme

The SANAS Website publishes information on all accredited B-BBEE Rating Agencies, which, apart from the contact details, includes: o The unique SANAS accreditation number; o The date of SANAS accreditation and the expiry; o The status of accreditation, which could include one of the following: Accredited | A B-BBEE Rating agency has successfully passed the SANAS accreditation process and applied to retain its status as a SANAS Accredited B-BBEE Rating Agency. Expired

From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials. This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It

Based on the recent Draft Amendments to Statement 400 of the General B-BBEE Codes of Good Practice, the Introduction of a Needs Analysis for Enterprise & Supplier Development initiatives are very much welcomed. Clause 4.15 of the Draft Amendments to Statement 400 of the General B-BBEE Codes of Good Practice states the following: Measured Entities who selects to comply with Enterprise Development and Supplier Development as well as those partnering with the Transformation

Staying competitive and innovative in today’s evolving business landscape demands more than just a solid product or service. It requires an empowered and capable workforce. Skills Development, the proactive investment in employee growth, has become an essential component of a business’s long-term strategy. While this often aligns with Broad-Based Black Economic Empowerment (B-BBEE) compliance, the benefits of Skills Development go far beyond regulatory requirements. Enhancing

The 5 Bonus Points for Skills Development in exchange for meeting Absorption targets can meaningfully impact an organisation’s overall B-BBEE Scorecard. At a B-BBEE Verification, an organisation will be measured against c lause 2.1.3 of Statement 300 of the Amended General B-BBEE Codes of Good Practice , which states: "Number of Black People absorbed by the Measured and Industry Entity at the end of the Internship, Learnership and Apprenticeship programme under Paragraph

The Employment and Labour Minister recently announced an increase in the National Minimum Wage (NMW) to R30,23 per hour as of 01 March 2026. The increment aligns with the NMW Act of 2018 . The policy framework of this Act is the floor, a level below which no employee should be paid. The Act dictates that it is illegal and unfair labour practice for an employer to unilaterally alter an employee's working hours or other Conditions of Employment due to the wage adjustment. No

The Drafts are not merely technical changes, they reflect a policy direction with practical implications for business transformation, compliance strategy, and economic participation. Some of the major areas that have been introduced are as follows: Introduction of a Transformation Fund A major proposal is the establishment of a Transformation Fund as an alternative compliance route to traditional Enterprise & Supplier Development (ESD) spend. Businesses could contribute a