Post 31 May 2019 Amended B-BBEE Codes of Good Practice: What You NOW Need Look Out For When Planning B-BBEE Verification and Spend


With the Department of Trade and Industry now having been combined with that of Economic Development, ex-Minister of Trade and Industry – Rob Davies – has been replaced with Ebrahim Patel. As one of his last official duties, Davies saw the Amended B-BBEE Codes of Good Practice being gazetted on 31 May. What the amended codes stipulate have substantial implications for your organisation’s B-BBEE strategic and planning processes.

It’s now not so easy to get B-BBEE points for learnerships

Under the previous codes, you could earn B-BBEE points (in other words, the so-called absorption bonus points) if you merely placed someone in a new learnership on completion of the old learnership. However, under the new codes if you want to earn these B-BBEE points you have to offer the learner a full-time employment contract after the learnership is finished.

The impact for organisations is that you will have to put more thought into what type of candidate you want – long term – in your organisation. You will have to offer a learnership to an appropriate candidate. This will necessitate your HR department being heavily involved in the learnership-recruitment process as they will have to put together a detailed job profile for you.

There have been other changes to the Skills Development Scorecard:

  • In terms of the Skills Development Expenditure on Learning Programmes that are specific in the Learning Programmes Matrix, if you spend 3.5% of the leviable amount you will earn six points.
  • If you spend 2.5% of the leviable amount on Skills Development Expenditure on Bursaries for Black Students at higher education institutions, you will earn four points.

The changed nature of Qualifying Small Enterprises and Exempted Micro Enterprises

It is required that Black Ownership – for Qualifying Small Enterprises (QSEs) and Exempted Micro Enterprises (EMEs) is now measured on a Flow Through Basis when making a call as to whether or not to use affidavits.

What’s changed in the Enterprise and Supplier Development Scorecard?

If organisations reach a 50% target spend on Empowering Suppliers, that are at least 51% black owned, they can earn 11 points instead of nine.

If you are a 51% black-owned, large company, you will now enjoy improved recognition:

  • If your company now exceeds R50 million, if you were first recognised as a beneficiary when your turnover was less than R50 million, your company can be recognised for Enterprise and Supplier Development. Such recognition is limited to 5 years from date of first recognition.
  • If you procure from a 51% black-owned generic company, this procurement can be recognised as procurement from an EME or QSE for five years after the initial procurement from an EME or QSE first took place.

Global Business Solutions is a leading Labour Law, Human Resources and Industrial Relations consultancy. One of our specialisations is Broad-Based Black Economic Empowerment. As such, we are well poised to solve any challenges that your business may face surrounding labour law-related issues in addition to HR and B-BBEE questions. To contact us, please visit our website on www.globalbusiness.co.za or contact Richard Ryding – our head of B-BBEE – on richard@globalbusiness.co.za.

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