Overcoming the Challenges of B-BBEE in Your Business

There can be no denying the benefits of doing Broad-Based Back Economic Empowerment correctly, both within the business environment and in terms of contributing to the South African Project as a whole. However, it is also worth noting that there are a number of challenges that can arise when you are implementing Broad-Based Black Economic Empowerment principles in your business.  

The cost of B-BBEE is one such example. “At Lanham-Love Consulting, we don’t so much consider the cost of doing B-BBEE as a cost, but rather as an investment if it’s done correctly,” says Angie Lanham-Love, CEO of Lanham-Love Consulting, which is a 73.57% Black Owned Level 2 BEE Exempt Micro Enterprise. “That said, the costs of skills development, for example, can be a substantial initial outlay, for which you will not necessarily see an instantaneous benefit. If you can recognise skills development as a longer-term investment which is guaranteed to pay off further down the road, however, it is an easy enough challenge to overcome.” 

Another challenge to the implementation of B-BBEE in your business is the overall complexity of the B-BBEE codes. “The reality is that these codes are rather technical,” says Lanham-Love. “Pursuing ‘business as usual’ and hoping for the best is not a strategy that we would advise. There is benefit of engaging an organisation such as Langham-Love Consulting, which has been a part of the South African Project for more than 20 years. Partnering with an experienced B-BBEE consulting firm that specialises in matching your business’s existing values, models, and systems to relevant aspects of the B-BBEE Scorecard will make this challenge entirely surmountable – sometimes it really is best to consult with the experts!” 

Considering the costs and complexity of B-BBEE, many companies can be tempted to engage in ‘Fronting’. “BEE Fronting practices have been criminalised in terms of the B-BBEE Amendment Act,” says Lanham-Love. “Fronting essentially is when you decide to circumvent BEE regulations and attempt to misrepresent your business’s compliance. In addition to being morally defunct, the consequences of fronting include fines and even jail time. The best way to circumvent this challenge is to not be tempted to do so in the first place.” 

“Lanham-Love Consulting understands that the amended codes have made B-BBEE a complex and expensive exercise,” says Lanham-Love. “We believe that monies spent should equate back to the company in either business benefit, or points scoring in multiple elements. We do this by creating solutions that result in additional benefits and increased compliance across multiple elements of the scorecard. Lanham-Love Consulting is perfectly positioned to ensure comprehensive B-BBEE compliance, as we are at the forefront of a change in methodology focused on creating B-BBEE flexibility, excellence and, ultimately, peace of mind regarding B-BBEE fronting and compliance.” 

If you want to be B-BBEE compliant and recognise the need for the experts to help you and your business become so meaningful way, contact Lanham-Love Consulting. We believe in innovatively embracing and integrating transformation to the point of business growth and development and can help you overcome the challenges of B-BBEE. 


LLC is perfectly positioned to ensure comprehensive B-BBEE compliance.

This means companies, B-BBEE consultants and B-BBEE Verification agents collaboratively need to change the way they operate in the B-BBEE environment. We believe we are at the forefront of this change in methodology which creates B-BBEE flexibility, excellence and ultimately “peace of mind regarding B-BBEE fronting and compliance”.