B-BBEE DTI CODES

by Shaun Van Derr Walt | April 2023

B-BBEE, which stands for Broad-Based Black Economic Empowerment, is a policy in South Africa aimed at promoting economic transformation and inclusivity by advancing the economic participation of Black people, women, and other marginalized groups

The DTI Codes refer to the Department of Trade and Industry's codes of good practice, which provide guidelines for the implementation of B-BBEE If you are looking to engage with BBBEE, here are some key things to consider in regards to the DTI Codes:

Ownership: This refers to the percentage of the company that is owned by Black people, as well as the participation of Black people in the company's decision-making processes Look for companies that have a high level of Black ownership and involvement in decision-making

Management control: This measures the extent to which Black people are involved in the management and control of the company Look for companies that have a diverse management team that includes Black people and other marginalized groups

Skills development: This measures the company's investment in training and development of its employees, particularly Black employees Look for companies that have robust training and development programs that focus on advancing the skills and knowledge of Black employees

Enterprise and supplier development: This measures the company's efforts to support and develop small and Black-owned businesses through procurement and enterprise development initiatives Look for companies that have a strong commitment to working with Black-owned and small businesses

Socio-economic development: This measures the company's contribution to the social and economic development of the communities in which it operates. Look for companies that are actively engaged in community development initiatives that benefit Black people and other marginalized groups

Overall, when considering B-BBEE and the DTI Codes, it's important to look for companies that have a strong commitment to promoting economic transformation and inclusivity by advancing the economic participation of Black people, women, and other marginalized groups

Here are the requirements for some of the B-BBEE charters in South Africa:

Construction sector charter:

The Construction Sector Charter Council requires companies in the construction sector to comply with the following requirements to achieve B-BBEE compliance:

Black ownership: A company must have a minimum of 40% black ownership to achieve level 4

B-BBEE compliance and 51% black ownership to achieve level 2 B-BBEE compliance

Employment equity: Companies must implement employment equity policies to ensure fair representation of black people in their workforce

Skills development: Companies must invest in the training and development of black employees to enhance their skills and abilities

Preferential procurement: Companies must procure goods and services from B-BBEE compliant companies and black-owned businesses

Enterprise development: Companies must provide support and assistance to black-owned businesses to promote their growth and sustainability

Socio-economic development: Companies must invest in projects that promote socioeconomic development in their communities.

Construction sector charter: The Construction Sector Charter Council is responsible for overseeing the implementation of the Construction Sector Charter This charter aims to increase black ownership and participation in the construction industry

Financial services sector charter:

The Financial Sector Charter Council requires companies in the financial services sector to comply with the following requirements to achieve B-BBEE compliance:

Ownership: A company must have a minimum of 25% +1 vote black ownership to achieve level 4 B-BBEE compliance and 40% black ownership to achieve level 2 B-BBEE compliance

Employment equity: Companies must implement employment equity policies to ensure fair representation of black people in their workforce

Skills development: Companies must invest in the training and development of black employees to enhance their skills and abilities

Preferential procurement: Companies must procure goods and services from B-BBEE compliant companies and black-owned businesses

Enterprise development: Companies must provide support and assistance to black-owned businesses to promote their growth and sustainability

Socio-economic development: Companies must invest in projects that promote socioeconomic development in their communities

Mining sector charter:

The Mining Sector Charter Council requires companies in the mining sector to comply with the following requirements to achieve B-BBEE compliance:

Ownership: A company must have a minimum of 26% black ownership to achieve level 4 BBBEE compliance and 30% black ownership to achieve level 2 B-BBEE compliance.

Employment equity: Companies must implement employment equity policies to ensure fair representation of black people in their workforce

Skills development: Companies must invest in the training and development of black employees to enhance their skills and abilities

Preferential procurement: Companies must procure goods and services from B-BBEE compliant companies and black-owned businesses

Enterprise development: Companies must provide support and assistance to black-owned businesses to promote their growth and sustainability

Socio-economic development: Companies must invest in projects that promote socioeconomic development in their communities

Tourism sector charter:

The Tourism B-BBEE Charter Council requires companies in the tourism sector to comply with the following requirements to achieve B-BBEE compliance:

Ownership: A company must have a minimum of 30% black ownership to achieve level 4 BBBEE compliance and 51% black ownership to achieve level 2 B-BBEE compliance

Employment equity: Companies must implement employment equity policies to ensure fair representation of black people in their workforce

Skills development: Companies must invest in the training and development of black employees to enhance their skills and abilities

Preferential procurement: Companies must procure goods and services from B-BBEE compliant companies and black-owned businesses

Enterprise development: Companies must provide support and assistance to black-owned businesses to promote their growth and sustainability

Socio-economic development: Companies must invest in projects that promote socioeconomic development in their communities.

Each charter has its specific requirements and targets that companies in the relevant sector must meet to be considered compliant

Financial services sector charter: The Financial Sector Charter Council is responsible for overseeing the implementation of the Financial Services Sector Charter This charter aims to promote access to financial services for previously disadvantaged individuals and increase black ownership and participation in the financial services industry

Tourism sector charter: The Tourism B-BBEE Charter Council is responsible for overseeing the implementation of the Tourism Sector Charter This charter aims to promote transformation in the tourism industry by increasing black ownership and participation in the industry

Information and Communication Technology (ICT) sector charter: The ICT Sector Council is responsible for overseeing the implementation of the ICT Sector Charter This charter aims to promote black ownership and participation in the ICT industry

Property sector charter: The Property Sector Charter Council is responsible for overseeing the implementation of the Property Sector Charter This charter aims to promote transformation in the property sector by increasing black ownership and participation in the industry

Mining sector charter: The Mining Sector Charter Council is responsible for overseeing the implementation of the Mining Sector Charter This charter aims to promote black ownership and participation in the mining industry

Each charter has specific requirements and targets that businesses operating in that sector must meet to be considered compliant with B-BBEE legislation. It's essential for businesses to understand and comply with the requirements of the relevant charter for their sector to promote economic empowerment and avoid legal consequences for non-compliance

B-BBEE (Broad-Based Black Economic Empowerment) affidavits are legal documents used in South Africa to verify a company's compliance with B-BBEE legislation While preparing a BBBEE affidavit, there are some common mistakes that people make, and it's essential to be aware of them to avoid any legal consequences Here are some common mistakes on B-BBEE affidavits:

Inaccurate information: The information provided in a B-BBEE affidavit must be accurate and truthful Any false information can result in legal consequences

Lack of supporting documentation: B-BBEE affidavits must be supported by the necessary documentation, such as financial statements and proof of ownership Failing to provide the necessary documentation can result in the affidavit being rejected

Not updating the affidavit regularly: B-BBEE compliance is an ongoing process, and affidavits must be updated regularly to reflect any changes in the company's ownership, structure, or operations

Not obtaining a sworn affidavit: A B-BBEE affidavit must be a sworn affidavit, which means it must be signed in front of a commissioner of oaths. Failing to obtain a sworn affidavit can result in the affidavit being rejected

Not following the correct format: B-BBEE affidavits must be in the correct format, as prescribed by the Department of Trade and Industry. Failure to follow the correct format can result in the affidavit being rejected

Not complying with the B-BBEE codes: B-BBEE affidavits must comply with the B-BBEE codes, and failing to do so can result in the affidavit being rejected

Not understanding the B-BBEE legislation: It's essential to have a good understanding of the BBBEE legislation to prepare an accurate and compliant affidavit Failing to understand the legislation can result in the affidavit being rejected or non-compliant

In conclusion, preparing a B-BBEE affidavit can be a complex and detailed process, and it's essential to ensure that it's accurate and compliant with the legislation Avoiding the common mistakes mentioned above can help you prepare a valid and acceptable affidavit