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Jan Vermeulen | 19 August 2025 The Information and Communications Technology sector faces unique challenges that may impact companies’ ability to comply with the Department of Labour’s newly introduced employment equity targets. That is the warning from Capital Appreciation chairman Michael Pimstein in the company’s integrated annual report regarding employment quotas, which the department published on 15 April 2025. “South Africa’s tech industry is grappling with a critical talent shortage, particularly in specialised roles such as software engineering, cybersecurity, data science and machine learning,” Pimstein said. Adding to the shortage is that South African skills have become a prime target for international organisations looking for quality software engineering at a competitive cost. “The availability of qualified candidates from designated groups remains limited, necessitating more strategic planning and workforce development,” said Pimstein While the regulations assure that affected employers will not incur penalties or any form of disadvantage if there are reasonable grounds for not complying with the targets, it is unclear what “reasonable grounds” means. The labour department also stated that reasonable grounds will be determined based on the assessment of affirmative action compliance in a workplace. “We believe that workable solutions can be found through collaboration between the government, industry stakeholders and educational institutions to expand skills development programmes,” said Pimstein. “A phased implementation of the EE targets with periodic reviews, along with incentivising compliance through tax incentives, grants and subsidised training programmes, will encourage sustainable transformation.” “Designated groups” is a collective term and euphemism that the labour department uses to refer to black people, women, and people with disabilities. In this context, “black” means African, Coloured, and Indian. Curiously, the regulations do not mention people of Chinese descent. According to the B-BBEE Commission, Chinese people born before 1994 are considered black for the purposes of B-BBEE. To be considered part of a designated group, a person must also be a South African citizen by birth, descent, or naturalisation. People who naturalised must have done so before 27 April 1994. Those who naturalised after 26 April 1994 can qualify if they would have been entitled to naturalise before then but were precluded by apartheid policies. ICT sector employment quotas Although the regulations do not give the non-designated group a formal name, the department expressly states who is considered designated and who is not. “The 5-year sectoral numerical targets are not intended to add up to 100% as they exclude white males with no disabilities and foreign nationals as part of the workforce profile,” it explained. The regulations state that within five years, no more than 8.3% of skilled technical workers in information and communications technology (ICT) may be white South African men or foreigners. Similarly, the proportion of white men and foreigners permitted to be in middle management and professional qualified roles is restricted to 23.2%. The regulations set out specific racial and gender-based quotas for businesses across 18 industries in South Africa to achieve over the next five years. The ICT sector targets are summarised below. R2.7 million fines and job cuts The Department of Employment and Labour said its goal was to ensure the equitable representation of suitably qualified people from designated groups at all occupational levels in the workforce. However, analysts, civil society groups, and the Democratic Alliance have warned that the quotas will cause widespread job losses rather than achieving the department’s goals. Since the quotas only apply to “designated employers”, which are companies with 50 or more employees, they argued that many will consider cutting staff to fall below the thresholds. Larger businesses might consider restructuring and laying off people in certain demographics where they are over-represented. Law firm Wright Rose-Innes has warned that companies face stiff fines if they do not start complying from 1 September 2025. Failure to comply with the requirements could result in fines of up to R2.7 million, or 10% of their annual turnover. Wright Rose-Innes explained that companies must have updated Employment Equity Plans in place that span from 1 September 2025 to 31 August 2030. Designated employers must also submit annual reports on their progress to the Director-General. Compliance is not optional, especially for businesses hoping to work with the government. “All employers intending on conducting business with an organ of state will be required to, amongst other things, comply with the targets and implement their Employment Equity Plan,” Wright Rose-Innes said. “They must also obtain a compliance certificate, valid for 12 months, to avoid termination of their agreement with the state.” Sakeliga, the National Employers Association of South Africa, and the Democratic Alliance have launched legal challenges to the Employment Equity Amendment Act, saying it is flawed and unconstitutional. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/business/607401-warning-about-tech-industry-race-and-gender-employment-quotas-in-south-africa.html

The B-BBEE Commission has over the years continued to be inundated with requests from various stakeholders to confirm validity of B-BBEE Verification Certificates, Sworn Affidavits and CIPC EME B-BBEE Certificates, which process has resulted in the B-BBEE Commission issuing a number of advisory letters to the affected entities to advise of invalidity of such documentation and the need to withdraw the invalid B-BBEE Verification Certificates, Sworn Affidavits or CIPC EME B-BBEE Certificates.   Thus, the purpose of this Practice Guide  was to set out the approach for stakeholders to determine the validity of B-BBEE Verification Certificates, Sworn Affidavits and CIPC EME B-BBEE Certificates for consistency.   This Practice Guide  replaced Practice Guide 01 of 2018 as of 01 November 2022.   Certificate Collection Services  are available to in understanding the validity of B-BBEE Verification Certificates, Sworn Affidavits and CIPC EME B-BBEE Certificates.

In terms of section 13F (3) Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013, the Broad-Based Black Economic Empowerment Commission, must increase knowledge of the nature and dynamics and promote public awareness of matters relating to Broad-Based Black Economic Empowerment   One of the ways in which the Broad-Based Black Economic Empowerment Commission delivers on the abovementioned mandate is by providing guidance to the public by issuing of non-binding opinions on the interpretation of any provision of the Broad-Based Black Economic Empowerment Act as directed by the provisions of section 13F(3)(b)(ii) of the same Act.   This Explanatory Notice  replaces Explanatory Notice 01 of 2016 effective from date of issue.   Technical Services  are available for Members who need assistance with understanding Advisory Opinions.

The Broad-Based Black Economic Empowerment Commission has published Explanatory Notice 01 of 2024 in August 2024.   This Explanatory Notice  is issued in terms of section 13F(3)(b)(i) of the Broad-Based Black Economic Empowerment Act to guide the parties/entities regarding the process and documents to be submitted in registering a Major B-BBEE transaction to comply with the requirements of the Broad-Based Black Economic Empowerment Act, including regulation 18 of the B-BBEE Regulations of 2016.   This Explanatory Notice  replaces Explanatory Notice 1 of 2017 effective from date of issue   Technical Services  are available for Members who need assistance with understanding Major B-BBEE Transactions.

Molefe Seeletsa | 17 August 2025 The US has reportedly set conditions to restore relations. Ministers for the two largest parties, ANC and DA, in the government of national unity (GNU) are said to be growing increasingly frustrated as the US continues to make more demands during ongoing tariff negotiations. South Africa is in talks with Washington in the hope of securing a deal that would see the steep tariffs imposed by the US reduced. Earlier this month, President Donald Trump’s administration introduced a 30% tariff on all South African exports to the US. Although Trump had initially delayed implementation for 90 days in April to allow for negotiations, the tariffs officially came into effect last week. The trade standoff comes amid broader tensions between the two countries. These include South Africa’s case against Israel at the International Court of Justice (ICJ), policies such as broad-based black economic empowerment (B-BBEE) and the Expropriation Act, as well as claims of the persecution of Afrikaners. US makes further demands to SA amid tariff talks In June, Freedom Front Plus (FF Plus) leader Corne Mulder travelled to the US and later returned claiming that the White House officials his party engaged with had set conditions to restore relations. The conditions allegedly set out by US officials included exempting US companies from B-BBEE, allowing land expropriation with compensation, a public condemnation of the “Kill the Boer” chant and treating farm murders as a priority crime. According to City Press , the US has further requested that South Africa grant visas to 30 Kenyans linked to Resettlement Support Centre Africa (RSC Africa), an organisation that has worked with the US for over two decades to assist prospective refugees. These individuals would reportedly help facilitate the resettlement of Afrikaners. This latest demand has added to South Africa’s frustration, with the government reportedly expressing its dissatisfaction informally. Ramaphosa’s administration is also displeased with delays in receiving responses to its trade proposals. However, the government has reportedly remained firm in its refusal to get rid of any of its policies. New trade proposal South Africa recently submitted a revised offer to Washington aimed at reducing the 30% tariff. The proposal builds on one put forward in May and specifically addresses issues raised by the US in the 2025 national trade estimates report. Deputy President Paul Mashatile also announced that another delegation will soon be sent to the US to push for better terms. Earlier efforts included a high-profile May visit to the White House led by President Cyril Ramaphosa and joined by Cabinet ministers, Cosatu President Zingiswa Losi, businessman Johann Rupert and professional golfers Ernie Els and Retief Goosen. Ramaphosa also recently held a phone call with Trump in an attempt to ease tensions. In addition, the government has introduced support programmes that will help offset the 30% tariff. Some of South Africa’s exports will remain exempt. These include products like copper, pharmaceuticals, semiconductors, critical minerals, stainless steel scrap and energy-related products. ‘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.citizen.co.za/news/us-tariff-negotiations-south-africa-afrikaners/

Central News | 17 August 2025 Nelson Mandela Foundation Chairperson Naledi Pandor highlights challenges facing women in South Africa, stressing the need for more female entrepreneurs and access to economic power as she reflects on the legacy of the 1956 Women’s March. Johannesburg – Nelson Mandela Foundation Chairperson Dr Naledi Pandor says women in South Africa face many challenges that need to be addressed. Speaking alongside her daughter in a reflective discussion on the ongoing struggles of women, even after the historic Women’s March on 9 August 1956, Pandor pointed out the lack of economic power for women and called for greater support for female entrepreneurs. This comes amid broader concerns about gender inequality in the country, where women continue to battle poverty, limited education, and rural isolation. Pandor further highlighted that women do not enjoy access to economic power. She says the country needs more female entrepreneurs to provide support to women who wish to be in business. Pandor and her daughter were reflecting on the challenges that women still face even after the Women’s March on 9 August 1956. Pandor elaborates, “I think sadly, African women, Black women in particular, continue to face the triple challenges that we used to speak of when we were theorising the economics of apartheid: that they are Black, they are without skills, they are without high-level education, and they live primarily in rural areas. Those triple challenges impact negatively on women. I speak from the perspective of business as an entrepreneur; there is still a lot of work that needs to be done to support women who are building businesses.” Historical Context of the 1956 Women’s MarchThe Women’s March of 1956 remains a cornerstone of South Africa’s fight against apartheid and gender oppression. On 9 August that year, over 20,000 women from all races marched to the Union Buildings in Pretoria to protest against pass laws that restricted Black women’s movement and employment. Led by figures like Lilian Ngoyi, Helen Joseph, Rahima Moosa, and Sophia Williams-De Bruyn, the march symbolised unity and resistance. It paved the way for National Women’s Day, celebrated annually on 9 August, to honour women’s contributions to democracy. Pandor’s reflections tie directly to this legacy, noting how the “triple challenges” – race, lack of skills and education, and rural living – echo the apartheid-era barriers that the march sought to dismantle. Despite 30 years of democracy, these issues persist, with Black women bearing the brunt. Statistics from Statistics South Africa show that female unemployment stands at 35.5%, higher than the national average of 32.9%, and women in rural areas face even steeper hurdles, with limited access to jobs, education, and healthcare. Persistent Challenges for Women in South AfricaPandor’s comments shed light on deep-rooted inequalities that affect women across the country. Economic exclusion is a major barrier, with women owning only about 21% of businesses, according to the Commission for Gender Equality. This lack of economic power limits their ability to escape poverty cycles, support families, or invest in communities. Rural women, who make up a large portion of the population, often lack basic infrastructure like reliable water, electricity, and transport, which hinders business growth and education. Gender-based violence (GBV) adds another layer of hardship. South Africa has one of the highest rates of femicide in the world, with over 2,700 women murdered in 2023 alone, as per police data. Pandor, a former Minister of International Relations and Cooperation, has long advocated for women’s rights, drawing from her experience in global diplomacy where she pushed for gender equality in forums like the United Nations. Her role as foundation chairperson since 2024 allows her to focus on Mandela’s legacy of social justice, including empowering women. Education and skills gaps remain critical. While more girls enrol in school than boys, dropout rates are high due to teen pregnancies, poverty, and family duties. Only 23% of women hold tertiary qualifications compared to men, limiting their entry into high-paying fields like technology and engineering. Pandor, an academic with a background in education policy, stressed the need for targeted programmes to build skills and promote entrepreneurship among women. Call for More Female Entrepreneurs Pandor’s push for more female entrepreneurs aligns with national efforts to boost women’s economic participation. Initiatives like the Women Economic Assembly, launched in 2021, aim to connect women-owned businesses with supply chains in sectors like agriculture and manufacturing. However, challenges like access to funding persist – women receive just 10% of venture capital in South Africa, per a 2024 report from the African Development Bank. She urged society to support women in business, noting that successful female entrepreneurs can mentor others and create jobs. Examples include women-led cooperatives in rural KwaZulu-Natal producing crafts and food products, which have lifted communities out of poverty. Pandor’s daughter, joining the conversation, shared personal insights on navigating these barriers, adding a generational perspective to the discussion. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://centralnews.co.za/nelson-mandela-foundation-chairperson-naledi-pandor-highlights-challenges-facing-women-in-south-africa/

Gcwalisile Khanyile | 18 August 2025 More than three decades into democracy, South African women are still earning 35% less than men for the same work, with voluntary government interventions falling short in compelling companies to close gender pay gaps. According to recent data from the World Economic Forum and other sources, in South Africa the gender pay gap in 2025 shows women earn 23% to 35% less than men for the same work. This translates to women earning roughly R72,44 for every R100 earned by men. A significant portion of this gap is attributed to women working in lower-paying companies and industries. Stellenbosch University experts in their paper titled, Gender pay transparency mechanisms: Future directions for South Africa , say that despite various pieces of legislation aimed at preventing gender discrimination in the workplace, South Africa has a stagnant median gender pay gap of between 23% and 35%. The average global gap is about 20%, according to the International Labour Organisation (ILO). Professor Anita Bosch, Research Chair for Women at Work at Stellenbosch Business School, and Shimon Barit, a Research Fellow at Stellenbosch Business School, said that the difference in wages between men and women for the same type of work or work of equal value is a stumbling block in achieving gender equality in South Africa.  The gender pay gap seems to affect women in the middle and upper wage bands the most. This is where pay transparency, which is making gender differences in wages known to employees, government, and the public, can compel employers to remunerate fairly and equally, Bosch and Barit said. Teboho Thejane, spokesperson for the Department of Employment and Labour, said Sections 6(4) and 6(5) of the Employment Equity Amendment Act, No. 47 of 2013 (EEA, 2013), including regulations 2 to 7 of the EE Regulations, 2025; and the Code of Good Practice on Equal Remuneration/ Pay for Work of Equal Value, 2015, already regulates the implementation of the principle of equal pay for work of equal value by all employers in the South African labour market.  “In relation to the enforcement of this equal pay principle, sections 10 and 11 of the EEAA, 2013, the Commission for Conciliation, Mediation and Arbitration (CCMA) and the Labour Court (LC) have legal powers to provide dispute resolution and remedies for equal pay disputes referred to them. Therefore, thus far, there have not been any rationale or grounds to initiate proposed amendments to strengthen these equal pay provisions,” Thejane said.    He added that employers with 50 or more employees are required in terms of section 27 of the Employment Equity Act, 1998 (EEA) as amended to annually submit the Income Differential Statement (EEA4 form) to the National Minimum Wage Commission (NMWC) on their workplace income or pay differentials and the measures taken to address these income/pay/wage disparities.  “The EEA4 form was amended to align with the recent amendments to the Companies Act and was published as part of the EE Regulations, 2025. The aim of the amendments was to improve the quality of Income Differential data submitted by designated employers.  “Employers will only start submitting the Income Differential data utilising the amended EEA4 form from 1 September 2025 until 15 January 2026 (midnight) through the EE Online Reporting platform. Subsequently, the NMWC will analyse the data and submit a report to advise the Minister on a way forward as per Section 27 of the EEA as amended,” he said. Thejane added that all employers, irrespective of their size, are required by law to comply with these provisions of equal pay, including the EE Regulations and the Equal Pay Code from August 2014.  This means that if any employer is found to be contravening these provisions and an aggrieved employee refers an equal pay dispute to the CCMA and the Labour Courts, the legal recourse process must be followed as per sections 10 and 11 of the EEA, he said.    “Furthermore, the labour inspectors when they conduct their Director-General Reviews as per sections 43-45 of the EEA (i.e. substantive assessment of compliance process) have powers to analyse the EE Plans of the designated employers and determine if there are any workplace remuneration policies in place and what measures are undertaken by the company to address any wage or pay disparities, if any.  “Under the DG Review process, if there is non-compliance, the DG Recommendations will be issued to the company with timelines to comply. However, labour inspectors have no legal powers to enforce in terms of compliance orders; the CCMA and the Labour Courts have powers to enforce and issue remedies on disputes of equal pay,” Thejane highlighted. He said that in most instances, people working in the informal economy are mostly self-employed as a form of survival and self-sustainability because of a lack of jobs in the formal economy. However, if there is an employer-employee relationship between the person selling on the street and the supplier of goods to be sold, the labour laws provide legal protection to those employees or workers, including women.  “It appears as if there are elements of exploitation and vulnerability due to the nature of operations and working relations in the informal economy, which require extensive deliberations by NEDLAC Social Partners (i.e., organised business; organised labour; government and community constituencies) to address these challenges emanating from the informal economy. The Department plays an advisory role. Advocacy is provided to sensitise employers not to discriminate against any employee based on the listed grounds, as well as on any arbitrary ground,” he said. Employers are informed of the repercussions if found to have committed discrimination on any ground, and employees are advised and assisted to refer matters of alleged discrimination," Thejane said. Gugu McLaren-Ushewokunze, Head of Economic Inclusion and Social Transformation at the National Business Initiative (NBI), a voluntary coalition of South African and multinational companies, said that the NBI has developed a free, secure online Gender Pay Gap (GPG) tool to help member companies measure and visualise their gender pay gaps. “The NBI emphasises that while South African legislation, particularly Section 27 of the Employment Equity Act (EEA) and the 2014 EEA Regulations on Equal Pay for Work of Equal Value, requires designated employers to report pay differentials to the Department of Employment and Labour, this is not public reporting. Public disclosure remains voluntary. "We encourage companies to go beyond compliance by voluntarily disclosing pay gap data. Voluntary public reporting demonstrates transparency, accountability, and genuine commitment to gender equity,” McLaren-Ushewokunze said. She said that the key challenges are the reluctance of businesses to disclose sensitive pay information publicly and challenges in anonymising and securely processing payroll data at an organisational level. There is also fear of external backlash if significant gaps are disclosed without an accompanying improvement plan, and many companies stop at fulfilling EEA requirements without embracing voluntary transparency. “The 2021 pilot report explicitly recognises that occupational segregation where women are disproportionately represented in lower-paying or unskilled roles is a major structural driver of the pay gap. Companies are encouraged to analyse pay gaps by occupation and role level and use these insights to guide targeted recruitment, skills development, and promotion strategies that actively disrupt patterns of workplace segregation,” she said. Bosch and Barit said that employers should be penalised for non-compliance. “It is recommended that a financial penalty be levied for unjustifiable and stagnant gender pay gaps among the employees of the same employer, one that is sufficient to act as a deterrent to non-compliance,” the experts said. They noted that the EEA mainly addresses pay discrimination at the individual job level. “It is recommended that companies discuss equal gender pay, including pay audits, during collective bargaining. The effectiveness of this measure depends on the development of collective bargaining in a specific sector,” they 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://iol.co.za/elevate-her/2025-08-18-addressing-the-gender-pay-gap-in-south-africa-the-call-to-penalise-employers-for-non-compliance/

Africa.com | 14 August 2025 The Technology Innovation Agency (TIA), an entity of the Department of Science, Technology, and Innovation (DSTI), has launched the Disability Technology and Innovation Programme (DTIP) at the Central University of Technology (CUT) in Bloemfontein on Monday, 4 August 2025. The launch marked a pivotal moment in South Africa’s commitment to inclusive innovation. The event brought together government officials, youth, innovators, disability rights organisations, academia, and members of the public symbolising a united call to action for accessible, barrier-breaking innovation. The DTIP is a first-of-its-kind programme that places disability inclusion at the centre of South Africa’s innovation agenda, ensuring that persons with disabilities are not only participants, but also leaders and innovators in a rapidly changing technological age. This strategic programme is a targeted programme to address exclusion of disability in the technology and innovation space by promoting development of disability innovations and technologies and enhancing full and equal participation of Persons with Disabilities in the innovation-entrepreneurship process with a focus on scaling innovations developed by and for persons with disabilities, many of whom are youth with lived experience. “The launch of this programme reflects TIA’s strategic commitment to embedding inclusivity across the National System of Innovation,” said Dr. Anitha Ramsuran, Manager: Transformation and Innovation for Inclusive Development. “Persons with disabilities have been systemically excluded from participating meaningfully in South Africa’s innovation space. With DTIP, we are not only creating access, but we are also enabling leadership, ownership, and equity for innovators with disabilities and users alike.” The launch of the programme occurred in parallel to the Deputy Minister of Science, Technology, and Innovation, Ms Nomalungelo Gina’s official launch of four locally developed designed to enhance the lives of persons with disabilities in South Africa.  These were previously supported by TIA through the GIP and TADF, some of these technologies were developed by innovators with disabilities. Ka-Dah Device – A wearable system allowing visually impaired users to operate smartphones through audio commands. Virecom – A video remote interpreting service that provides real-time access to South African Sign Language at public service points. WeSignIt – A QR-code powered app that translates written content into South African Sign Language. ShazaCin – An audio-described storytelling app that enables blind users to engage with films and tourist experiences. TIA Board Member and disability rights advocate, Ms. Sebenzile Matsebula, highlighted the systemic gaps that DTIP is addressing. “For too long, innovation has not spoken to the realities of people with disabilities. With DTIP, we are not just opening doors, we are redesigning the entire space to make sure those doors exist in the first place. This programme ensures that innovation is not only accessible but led by those it seeks to serve.” she said. “As a woman with a lived experience of disability, I understand first-hand the power of inclusive technologies to transform lives and unlock opportunities.” TIA also announced that a national database of disability technologies has been developed and will be used to upscale these technologies through  support for further technology development and  commercialisation. In addition, a dedicated Centre for Innovation and Entrepreneurship for Rural Assisted Devices, funded by TIA and operated by Shonaquip, will serve as a national testing site for inclusive products for persons with disabilities. The launch aligns with South Africa’s leadership in the G20 Disability Inclusion Working Group, affirming the country’s role as a global advocate for Diversity, Equity, Inclusion and Accessibility (DEIA). The timing also follows Psycho-Social Disability Awareness Month, amplifying public consciousness and policy action. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://africa.com/tia-launches-disability-technology-and-innovation-programme-to-transform-inclusive-access-to-innovation-in-south-africa/

Stacey & J Sbu | 12 August 2025 South Africa's unemployment rate increases to 33.2% in Q2 2025, with only 19,000 new jobs created despite 159,000 more people entering the workforce. The latest Quarterly Labour Force Survey (QLFS) from Stats SA has cast a gloomy shadow over South Africa's economic prospects, revealing a concerning increase in the unemployment rate to 33.2% in Q2 2025.  This upward trend is a stark reminder of the country's persistent struggles with job creation and labour market instability. According to a report by BusinessTech, 159,000 more people entered the workforce between April and June 2025 but only 19,000 were employed, while 140,000 were unemployed. The youth unemployment rate remains a pressing concern, with 62.4% of those aged 15-24 without jobs, highlighting the need for targeted youth employment programmes. Long-term unemployment is rampant, with 76.5% of unemployed persons having been without work for a year or more, emphasising the importance of addressing skills erosion and psychological impacts. Gauteng (95,000) and Eastern Cape (89,000) saw significant employment increases, while Western Cape (-117,000), KwaZulu-Natal (-86,000) and Northern Cape (-28,000) experienced notable decreases. The unemployment crisis demands a unified response from government, business and labour. Policymakers must prioritise job creation, skills development and social support systems to mitigate the effects of unemployment and stimulate economic growth. ‘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.ecr.co.za/shows/stacey-jsbu/sa-unemployment-soars-33-youth-face-staggering-jobless/

More often than not when organisations enter into a relationship with an Enterprise Development or Supplier Development Beneficiary , it wants a guarantee that their investment will be successful. Hence, many choose to incorporate accountability clauses to secure their investment. However, Clause 4.12 in Statement 400  of the Amended General B-BBEE Codes of Good Practice states:   "4.12 Measured Entities are encouraged to develop and implement an Enterprise Development plan and Supplier Development plan for Qualifying Beneficiaries. The plan should include:   4.12.1 Clear Objectives; 4.12.2 Priority Interventions; 4.12.3 Key Performance indicators; and 4.12.4 A concise implementation plan with clearly articulated milestones".   Placing accountability conditions on Beneficiaries may be punitive without taking into account all factors in clause 4.12.   Enterprise & Supplier Development Services  are on hand to guide organisations before entering into a contractual agreement with a Beneficiary, as Sector Codes may have differing requirements.

The below Q & A was published on the dtic  Website under the B-BBEE FAQs regarding B-BBEE Sworn Affidavits for EMEs and QSEs with more than 51% Black Ownership in a complex ownership structure involving a Black Private Equity Fund.   Q |  Can an organisation apply enhanced recognition for ‘Black’ private equity fund managers, in other words recognise it as true ‘Black’ Ownership?   A |   Statement 100 point 3.10.1 allows an organisation to treat ownership arising from private equity funds as if that ownership is held by 'Black' People, where the private equity fund meets specific criteria points 3.10.1.1 through to 3.10.1.3 stipulate.   Ownership Services are available to assist members in implementing complex Ownership transactions.

Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend  and can be a complex calculation. The formula is (A – B = TMPS) broken down as (Not Limited to):    A |          Cost of sales- adjusted for opening and closing stock; Operating expenses; Other expenses; and Capital Expenditure   B |          Salaries, wages, remunerations and emoluments; Empowerment-related procurement; Supplier-specific exclusions: Taxes and levies; Imports, providing they meet the criteria; Organ of state / public entity that enjoys a statutory/regulated monopoly in the supply of such goods or services; Pass through third-party procurement; Accounting-related exclusions: Depreciation and amortisation; Fair value adjustments; and Forex transactions.   Enterprise & Supplier Development Services  are available to assist members with understanding the TMPS calculation.