Broad-Based Black Economic Empowerment is, at its most base level, intended to transform the economic structure of South Africa into one that is inclusive of those who were previously excluded from it. It seeks to redress the wrongs of South Africa’s past by encouraging business and enterprise to include Black South Africans in the economy in a meaningful way – one which is truly transformative.
“Simply put, B-BBEE supports job creation, global competitiveness and economic growth,” says Angie Lanham-Love, CEO of Lanham-Love Consulting. “It also has the potential to reduce the burden on entrepreneurs and help to create a more skilled workforce. The South African government has outlined five key areas of business through which this can be done, namely: Ownership, Management Control, Skills Development, Enterprise Development and Socio-economic Development.”
However, three of these key areas are considered to be priority elements, the ‘bread-and-butter’ of B-BBEE, if you will. “If you are wanting to focus on those elements of B-BBEE that are going to achieve the greatest impact for your B-BBEE investment, Lanham-Love Consulting would recommend prioritising your spend on Ownership, Skills Development and Enterprise and Supplier Development. When you examine the B-BBEE Scorecard, it’s easy to see why: of the 120 achievable points (including bonus points), 25 are allocated to Ownership, 25, , are available for Skills Development, and a grand total of 44 (including bonus) points are accredited to Enterprise and Supplier Development.”
“It is possible to qualify as a Level 3 B-BBEE Contributor by focusing on these elements alone,” says Lanham-Love. “That gives you a 110% procurement recognition level, which in turn influences your company’s likelihood of being selected to do business Your higher B-BBEE level will affect the extent to which your customers can claim for the Enterprise and Supplier Development aspect of their own B-BBEE Scorecard.”
“Ensuring that you receive maximum impact for your B-BBEE spend is a core principle of what we do at Lanham-Love Consulting,” says Lanham-Love. “We seek to create solutions that result in additional benefits and increased compliance across multiple elements of your scorecard. We believe that the money you spend on B-BBEE should equate back to your company, in either business benefit or points scoring in multiple elements.”
“B-BBEE, when implemented correctly, should benefit all involved,” says Lanham-Love. “Covering the basics of B-BBEE is an excellent way to ensure that this is in fact what happens when you choose to invest in B-BBEE.”
At Lanham-Love Consulting, we pride ourselves on innovatively embracing and integrating transformation to the point of business growth and development. If you are seeking a B-BBEE Consulting firm well equipped to help you on your B-BBEE journey, speak to our consultants today. We are perfectly positioned to ensure comprehensive B-BBEE compliance.