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SANAS accredited B-BBEE Rating Agencies evaluate compliance based on verifiable evidence, not declarations or statements. Each claim must be backed by traceable data for certain elements, such as payroll records, training invoices, or latest supplier B-BBEE Statuses valid for the Financial Year End being verified.   Common B-BBEE Verification challenges include mismatched initiatives for different Financial Years, missing supporting documentation, and incorrect classification of information.   Automating calculations & evidence management  using centralised data repositories and document tracking reduces audit findings and rework.   Membership Services  are available to assist Members in understanding the B-BBEE Management and Verification process.

VAT is a Total Measured Procurement Spend (TMPS) exclusion as per  Clause 6.1 of Statement 400 of the Amended Generic Codes of Good Practice :   “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government."   Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements.   Enterprise & Supplier Development Services  are available to assist Members in understanding the Preferential Procurement element.

The Construction B-BBEE Sector Codes of Good Practice differs from others as it does not incorporate Enterprise Development as an element. Therefore, what happens if an organisation is measured on the Amended General B-BBEE Codes of Good Practice, but its Enterprise Development Beneficiary is subject to the Construction B-BBEE Sector Codes of Good Practice?   There is no cross-implementation in Amended General B-BBEE Codes of Good Practice and Sector B-BBEE Codes of Good Practice; an organisation is measured on either/or. In this case, such an Enterprise Development Beneficiary will be subject to the definition laid out in the Amended General B-BBEE Codes of Good Practice if the Measured Entity is measured under this scorecard. Important to note is that where a matter is silent in any Sector B-BBEE Codes of Good Practice, it reverts to the Amended General B-BBEE Codes of Good Practice and not vice versa.   Enterprise & Supplier Development Services  are available to assist Members in hosting beneficiaries outside the ambit of the Sector B-BBEE Codes of Good Practice they are measured on.

Bizcommunity | 3 November 2025 King V, the latest version of the King Codes on Corporate Governance, was released on 31 October 2025. Replacing the King IV in its entirety, the King V will take effect for financial years starting on or after 1 January 2026, although earlier adoption is recommended. The review comes three decades after the first King Report was introduced (in 1994) to promote corporate accountability and ethical leadership in the new democratic South Africa. Named after Prof Mervyn King, the principle-based, voluntary framework has become a global benchmark for governance. It has undergone several revisions to remain fit for purpose: King II (2002), King III (2009), King IV (2016), and now King V (2025). The Institute of Directors in South Africa (IoDSA) owns the copyright of all King Reports. Why now? In the country’s turbulent, rapidly evolving business environment, committing to good corporate governance has become essential. “South African organisations needed an up-to-date, robust benchmark for ethical and effective leadership that equips them to respond swiftly to emerging risks, opportunities and stakeholder expectations, while maintaining strategic coherence and adherence to ethical standards,” says Ansie Ramalho, Chair of the King Committee on Corporate Governance. A changed local and global landscape in the nine years since the launch of King IV put a spotlight on the need for a Code to guide organisations in tackling governance challenges related to anything from the climate crisis, geopolitical conflicts and artificial intelligence, to remuneration governance and regulatory changes. Ramalho says, “Our revision had three overarching goals: i) to align the Code with evolving regulatory and governance developments; ii) to simplify and clarify its structure and content; and iii) to standardise disclosure in support of accessibility, transparency and consistency.” The final King V Report was released months after the King Committee, which consists of industry body representatives and independent experts, rigorously assessed the extensive public commentary received on the King V draft. What’s new? King V builds on the foundations of King IV, which simplifies the transition. The revised Code uses plain language and has minimised jargon wherever possible to make the technical content more user-friendly. In line with this, the principles that outline the desired governance objectives have also been simplified and consolidated (from 17 in King IV to 13 in King V). “Additional refinements include clearer considerations for determining the independence of governing body members and strengthened requirements for independent representation of members on risk and social and ethics committees,” says Ramalho. The King V Report has been deconstructed into four standalone documents for ease of reference: King V Code, King V Glossary, King V Foundational Concepts, and King V Disclosure Framework. “Each element is now directly accessible via a single webpage, eliminating the need to navigate through a lengthy consolidated document,” says Parmi Natesan, CEO of IoDSA. “The Disclosure Framework – which is now a requirement for any organisation that wishes to claim application of King V – is a gamechanger, as it standardises the form and content for corporate governance reporting and will improve transparency, consistency and comparability.” King V is also supported with guidance papers to assist with application and implementation. Together, the documents form a cohesive framework to shape corporate governance in South Africa. “We are very proud of this milestone, which is set to make a positive impact on how good governance, as espoused by King V, will be applied,” says Natesan. King V is available on the IoDSA website: https://www.iodsa.co.za/king-v ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/new-king-v-code-takes-the-throne-what-to-expect-848663a

Darren Parker | 3 November 2025 Coal miner Exxaro Resources has announced the successful completion of the sale of its entire shareholding in Exxaro FerroAlloys to a consortium made up of FerroAlloys employees, FerroAlloys management and EverSeed Energy – through its wholly owned subsidiary EverSeed Metal Powders – for R250-million. “This divestiture marks another strategic milestone in Exxaro’s journey as we accelerate the delivery of our strategy, focusing on our strong coal base, growing energy solutions business and acquisitive growth ambitions in energy transition metals. “Our FerroAlloys management will continue to drive the . . . performance of the business, ensuring stability and stakeholder alignment. We are confident that EverSeed, alongside the management team and employees, will continue to build a . . . business that contributes meaningfully to South Africa’s industrial base and export potential,” Exxaro CEO Ben Magara said on November 3. EverSeed is a 100% black-owned investor and operator in the resources and energy sectors with a record for developing projects across Southern Africa, Europe and North America. FerroAlloys is a South Africa-based producer of ferrosilicon, serving an established domestic customer base and holding an active export licence. With international markets identified as the next growth frontier, the transaction positions FerroAlloys to expand its footprint into global supply chains. The transaction, which was finalised on October 31, was funded through a combination of buyers’ equity, commercial debt and vendor finance. The post-transaction ownership structure of FerroAlloys will see EverSeed owning 60%, FerroAlloys management owning 30% and the FerroAlloys employee share ownership plan holding the remaining 10%. This structure promotes broad-based black economic empowerment (BBBEE) and inclusive participation, which is aligned with Exxaro’s transformation agenda as outlined in the company’s Sustainable Growth and Impact Strategy. “The acquisition of FerroAlloys is squarely aligned with EverSeed’s long-term strategy to build and operate essential industrial businesses. The structure aligns interests across management and employees. With management and employees invested alongside us, we will deliver continuity for customers . . . and safe, disciplined and sustainable growth into the future,” EverSeed CEO Kerwin Rana said. With effect from the closing date, all contracts, obligations and commitments of FerroAlloys will remain in force in the interests of business continuity. Employees of FerroAlloys will remain employed by the entity, with all terms and conditions of employment transferring unchanged to the new ownership. “We are pleased to be taking this . . . business into the next phase of its sustainable growth and we are delighted to have on board our majority shareholder, EverSeed, who shares our aspiration for a leading, safe and efficient industrial business.” “With an active export licence in place, we are well positioned to expand our business into international markets, marking the next frontier of our growth journey,” FerroAlloys GM Thindo Nemavhola said.  ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/exxaro-completes-sale-of-its-ferroalloys-business-to-bbbee-consortium-2025-11-03

Nicola Mawson | 31 October 2025 With youth unemployment above 60 percent, IT leaders stress the urgent need for strategic skills development, mentorship programmes and anti-fragile organisational thinking. South African organisations must adopt more strategic approaches to skills development and embrace anti-fragility to navigate an era of rapid technological change and economic uncertainty, industry leaders said during a session at the recent IT Indaba. With youth unemployment exceeding 60 percent in South Africa, the urgency for action has never been greater, yet many businesses still lack the strategic frameworks needed to address the crisis. Ebrahim Rahman, head of IT at Epson, noted that mentorship and skills development in business is vital. “Mentorship programmes are extremely important and should be formalised within business,” Ebrahim said. He noted that many programmes exist in pockets without a strategic approach and don’t link skills development to performance metrics or bonuses. There is also a gap in accountability, said Ebrahim. He asked: “How many of you have got a KPI that talks to skills development as an IT leader?” With youth unemployment exceeding 60 percent in South Africa, Ebrahim stressed the need for targeted action. Aligning graduate roles “We should actually have the most aggressive plan to address this, but we don’t have it at that strategic layer as yet,” Ebrahim said. At Epson, a practical approach has been to reinvest savings into hiring graduates, aligning their roles with long-term roadmaps. The focus, Ebrahim argued, should be on people rather than technology. “With youth unemployment being so high, we need to have plans, and we need to find ways to solve this problem.” Warren Hero, product lead for Sars architecture design, emphasised the importance of diversity and inclusion. “Diversity is being asked to the dance. Inclusion is having the opportunity to dance. So, making sure that somebody gets onto the dance floor and that they actually dance,” he said. Head of operations and partnerships at non-profit Digital Skills Africa, Jezeiyn Naidoo, said that there are gaps in digital literacy. He noted that not everyone has a fundamental baseline of education in digital skills, while stressing that AI isn't just for technical teams but also for operational staff. Digital Skills Africa, present in Nigeria, Kenya, Ghana and South Africa, provides access to industry certifications at no cost to marginalised communities while also facilitating mentorship opportunities. Organisations can prepare for future skills needs by integrating emerging roles into teams, educating leadership, and creating a curriculum that provides “a fundamental understanding” of AI for the workforce, said Jezeiyn. A role of the future Jezeiyn added that an emerging role in the US, which is entering Africa, is that of a go-to-market engineer. This role is one in which the employee makes sure data, tools and workflows all work together to drive growth. Their work gives sales, marketing and product teams a shared foundation from which to execute.  Jezeiyn said the role illustrates that “skills are not siloed”, with individuals needing knowledge across AI, cloud and cybersecurity to support organisational growth. Another topic that Warren brought up was the idea that organisations need to be anti-fragile, a concept introduced by Nassim Taleb in his book, Antifragile: Things that Gain from Disorder . “It is not enough for organisations to be robust, what we’re looking for is for organisations to be anti-fragile.” Unlike fragile items, like a porcelain cup that breaks when dropped, or even robust tools that eventually wear out, anti-fragile systems thrive under disorder, said Warren. “The idea of anti-fragility is this understanding that what we want is for organisations to gain from randomness, to gain from disruption.” Drawing on management thinking, Warren highlighted that “the problem in times of disruption isn’t the disruption, it’s the fact that we think with tomorrow’s or yesterday’s logic”. Organisations can leverage capabilities connecting their business and operating models, particularly in digital contexts, to generate what Warren termed “digital dividends”, which allow companies to move from “linear performance to exponential performance”. By linking capabilities to the business model, organisations can unlock digital dividends to thrive in an unpredictable environment, Warren said. “A loyal customer is the result of an engaged employee. Purpose, play and potential are the things that we have to bring to bear.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://cio-sa.co.za/articles/skills-development-anti-fragility-key-to-thriving-amid-disruption/

Darren Parker | 29 October 2025 The National Empowerment Fund (NEF), an agency of the Department of Trade, Industry and Competition (dtic), has announced a combined funding commitment of R51-million to advance transformation in South Africa’s legal and professional services sectors. The announcement was made by NEF CEO Mziwabantu Dayimani at the Legal Sector Codes Summit, in Sandton, on October 23. The summit was conceptualised by the NEF and convened in partnership with the Legal Sector Charter Council to unpack the implications of the Legal Sector Codes (LSC), gazetted by Trade, Industry and Competition Minister Parks Tau in September 2024 in terms of Section 9(1) of the Broad-Based Black Economic Empowerment Act and to punt the transformation agenda. Alleging ongoing exclusion of black professionals in the legal profession, Dayimani announced an initial R1-million contribution to the Legal Sector Transformation Fund (LSTF), which is provided for in the LSC. The LSTF will be used for skills and enterprise development initiatives for black legal practitioners in specialised areas of legal practice, helping them compete for valuable contracts from both the private sector and government. Dayimani said the pledge reflected the NEF’s belief that transformation required investment in addition to policy directives. “Transformation of the legal profession cannot be achieved through regulation alone. It requires resources, partnerships and intentionality. This R1-million allocation is a catalytic gesture, a call to action for others to join in expanding this fund so that transformation in the legal sector moves from principle to practice,” he said. He added that the NEF would work with partners to mobilise additional resources from organisations responsible for the skills development mandate, ensuring that the LSTF grew into a national vehicle for inclusion. “We are treating this as an initial allocation. The need is far greater, and transformation must be financed with the same urgency as it is legislated,” Dayimani said. Alongside the skills development initiative, the NEF also launched the R50-million Professional Services Fund (PSF) to provide working capital and growth finance to black-owned law firms and other professional service providers. Dayimani said capital remained the greatest barrier to growth for black firms. “Law firms and other professional firms often struggle with cashflow and access to working capital. This prevents them from increasing their job creation potential and their capacity to absorb young entrants into the profession,” he said. The PSF will provide funding from R250 000 to R5-million a firm, with financial instruments such as term loans, bridging finance, and revolving credit facilities; investment decisions based on the strength of mandate letters or contracts; back-office support for financial statements at no cost; and mentorship, turnaround services, and market linkages to help firms scale and thrive. The LSC introduce specific and time-bound transformation targets over a period of five years, which would effectively force: 50% black ownership and 25% black women ownership within five years; 50% management control representation for black practitioners; 3.5% skills development spend on training black candidates, particularly women, youth, people with disabilities, and those from rural areas; 60% target for briefing of black advocates of which 30% for black women advocates; and 80% target for procurement of legal services from black firms and advocates for the public sector. Several large law firms, such as Bowmans, Webber Wentzel and Werksmans, are currently involved in litigation to have the LSC set aside. Concerns cited include that it does not recognise how large law firms operate in practice; that it sets unrealistic ownership targets; that it disregards the transformation initiatives undertaken by large law firms; that it excludes non-lawyers when evaluating the management composition of large firms; that it focuses too narrowly on what firms spend on briefing black advocates while ignoring what is spent on other black-owned service providers; and that it fails to take into account the role that large law firms play in attracting foreign direct investment. Critics have also contended that the LSC applies to less than 5% of law firms, thereby excluding the majority of firms from its transformational requirements. This, it is argued, undermines the core purpose of the LSC. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/nef-commits-r51m-to-drive-transformation-in-the-legal-sector-2025-10-29

Justice Molafo | 29 October 2025 The Portfolio Committee on Communications and Digital Technologies has raised serious concerns about the slow pace of transformation and weak progress in broad-based black economic empowerment (B-BBEE) across the information and communications technology (ICT) sector. This follows a briefing the committee received on Tuesday from the B-BBEE ICT Sector Council, which painted a troubling picture of discretionary compliance and limited enforcement among industry players. According to the sector council, overall compliance with sector reporting requirements stands at a mere 0.003%. Many companies reportedly exploit loopholes in the non-punitive legislative framework by filing under the Generic Amended Codes of Good Practice (2019) instead of the ICT Sector Codes, which are meant to take precedence. The ICT Sector Code is designed to measure transformation across several critical areas, including ownership, management control, employment equity, skills development, preferential procurement, enterprise and supplier development and socio-economic development. While the sector council reported modest gains in management control – achieving around 60% of the target – progress in ownership remains particularly poor. The sector performed relatively well in enterprise and supplier development, reaching about 40% of the 50% target, but skills development efforts have stagnated. In 2021, skills development investment fell to between 54% and 61% of payroll, down from the previous year’s 60% to 61%, suggesting a slowdown in workplace training initiatives. The committee noted with concern the B-BBEE ICT Sector Council’s financial challenges. Under Statement 003 of the B-BBEE Act, sector charter councils are required to be jointly funded by the private sector and the relevant government department. However, the Department of Communications and Digital Technologies has not fulfilled this obligation, aside from providing initial start-up funding during the fourth administration. Members warned that the lack of sustainable funding hampers the council’s ability to conduct verification and audit processes, particularly in relation to the Equity Equivalent Investment Programme for multinational companies. The committee emphasised that consistent and adequate funding is vital for the council to effectively fulfil its mandate of monitoring transformation across the sector. To address the matter, the committee plans to engage the Department of Trade, Industry and Competition next month to gain a broader understanding of the obstacles and to explore potential policy interventions. Committee Chairperson Ms Khusela Sangoni Diko said the committee remains deeply concerned about the slow pace of meaningful transformation in the ICT industry. “True economic empowerment in the ICT sector is fundamental to achieving inclusive growth and innovation. We cannot allow transformation to stagnate while technology continues to shape the country’s economic future. The sector must demonstrate genuine commitment to equity and accountability,” Ms Diko said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.parliament.gov.za/news/communications-committee-slams-slow-pace-transformation-and-poor-b-bbee-compliance-ict-sector

Lunga Mzangwe | 28 October 2025 The Democratic Alliance (DA) federal chair, Helen Zille, on Tuesday, argued that black people receive the best service delivery where the DA governs. “They get the best opportunities, best public access through transport and various other things. It is far better for a poor person to end up in DA administration because they can get on the ladder of getting out of poverty,” Zille said. “That is why the DA policies benefit the vast majority of poor black people and turn off the taps to the corrupt ANC elite who rob the poor to enrich themselves, to enrich the party and to illegally put into elections after they flee the state.” These sentiments, however, have not been shared by the black communities that the DA governs. This includes the Western Cape, where the party has been accused of prioritising affluent suburbs and neglecting townships where black people primarily reside. The sentiments were shared by Tshwane residents, where the party was in charge of the municipality for eight years. Last week, the DA announced that it would table a motion in parliament to scrap the broad-based black economic empowerment policy and replace it with its Public Procurement Inclusive Bill. It said it would lobby other parties, including its government of national unity partner, the ANC, to vote to support its bill. Still, the ANC has described the scrapping of the BBBEE as “mad”, “nonsense” and “unconstitutional”. The broad-based BEE policy allows for preferential treatment in government procurement processes for businesses that contribute to black economic empowerment, as measured by criteria including partial or majority black ownership, hiring black employees, and contracting with black-owned suppliers. On Tuesday, the DA unveiled its billboard in Johannesburg, which is calling for BBBEE to come to an end. Zille argued that the BBBEE legalities are corrupt. At the same time, the party’s deputy federal chair Ivan Meyer described BEE as state-sponsored corruption, theft and fraud by “cadres”, designed to enrich only a few politically connected people. “Are we saying black people are corrupt by tackling BBBEE? The answer is absolutely no. Every company that wants to invest in South Africa has to give out a third of its company to the ANC elites before they can even begin,” Zille told journalists in Randburg on Tuesday. She argued that this does not empower anyone but those who have been empowered over and over again. She said the policy then results in the investment not coming at all, adding this is why there has been no investment in mining, as people are not prepared to cooperate with corruption. “If you pass a law that says contracts of the state must go in this way to a particular colour of people, then people will make sure that they can rig the system to benefit their friends and allies to get a big kickback in the process.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/politics/2025-10-28-zille-poor-black-people-are-better-off-in-da-governed-area/

Nokukhanya Mntambo | 27 October 2025 Fikile Mbalula said it would not sell out on its longstanding transformation agenda to appease US President Donald Trump’s administration. African National Congress (ANC) Secretary-General Fikile Mbalula has likened calls by the US for South Africa to abandon its transformation policies as closing shop. Mbalula made wide-reaching comments on geopolitical tensions, diplomatic ties and domestic politics at a party branch general meeting in Liliesleaf in Rivonia on Sunday. This included ongoing pressure by Washington for Pretoria to reverse the controversial BEE laws and land expropriation. Mbalula said it would not sell out on its longstanding transformation agenda to appease US President Donald Trump’s administration. "They say to us, these Americans of President Trump, that we must do away with BEE. I said: 'You are asking us to close shop'. If you say BEE, BBBEE, affirmative action, you are saying to us we must kill redress. That’s why we are ANC. You are saying then, we must secede power to the DA. We are not them." Mbalula said the ANC was paying a high price in the Government of National Unity (GNU), making concessions to other political parties on some decisions. "Even they force us to take decisions that are wrong, that we don’t support. Why? Because as individuals, let the truth be told, our pockets are lined up – we stand to gain if so and so is elected or is appointed in a particular position. The ANC can’t say no. Comrades, the revolution will punish us, not even the masses." ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/ancs-mbalula-likens-us-calls-for-sa-to-abandon-transformation-policies-to-asking-us-to-close-shop/

As per the B-BBEE Act, Section 10, Paragraph 1 – Status of Codes of Good Practice states the following: 1.      Every organ of state and public entity must apply any relevant code of good practice issued in terms of this Act in- a) Determining qualification criteria for the issuing of licences, concessions or other authorisations in respect of economic activity in terms of any law; b)   Developing and implementing a preferential procurement policy; c)   Determining qualification criteria for the sale of state-owned enterprises; d)   Developing criteria for entering into partnerships with the private sector; and e)  Determining criteria for the awarding of incentives, grants and investment schemes in support of Broad Based Black Economic Empowerment.   As per the B-BBEE Act, Section 10, Paragraph 2 – Status of Codes of Good Practice states the following: a)      The Minister may, after consultation with the relevant organ of state or public entity, exempt the organ of state or public entity from a requirement contained in subsection (1) or allow for deviation therefrom if particular objectively verifiable facts or circumstances applicable to the organ of state or public entity necessitate an exemption or deviation. b)     The Minister must publish the notice of exemption or deviation in the Gazette   B-BBEE Strategy Services  are available to Members to understand Section 10 of the B-BBEE Act.

The Financial Sector Transformation Council (FSTC) issued a Formal Notice  calling for the submission of B-BBEE Reports for the issue date between 01 January 2025 and 31 December 2025. Submission Platform: All reports should be submitted electronically via email to reporting@fstc.org.za  with the subject: FSTC 2025 Reporting – (name of entity). Submission Deadline: All required documentation must be submitted no later than the close of business on Friday, 27 February 2026.Should you have any inquiries or require further assistance regarding the submission process, please contact the FSTC at reporting@fstc.org.za  or call (087) 062 5950.   Members are also welcome to engage with the BEE Chamber if anything further clarification is needed.