Ensuring that you are compliant with the principles of Broad-Based Black Economic Empowerment (B-BBEE) is a vital component of doing business in South Africa. Though becoming compliant can be tough, there are a number of benefits that come as a result of being on top of your company’s B-BBEE requirements that make the process well worth your while.
“Becoming B-BBEE compliant can be a time consuming and expensive exercise, especially if you do not know what you’re doing,” says Angie Lanham-Love, CEO of Lanham Love Consulting. “When you do not employ a strategic approach, one that’s deeply based in extensive knowledge of current B-BBEE codes and practices, as well as how these align with your business as it stands, you run the risk of falling afoul of B-BBEE legislation, which can lead to a hefty fine, jail time, or even both.”
“That said, the benefits of B-BBEE compliance are immense,” says Lanham-Love. “Though the stick of failing to be compliant is a rather heavy one, the carrot is particularly juicy: for one, being B-BBEE compliant gives you a distinct competitive advantage. Businesses that are B-BBEE compliant are more likely to be considered for greater opportunities, as they are more attractive to customers who value B-BBEE compliance.”
“Further in regards to increased competitiveness is your business’s ability to attract and retain exceptional talent,” says Lanham-Love. “When implemented correctly, B-BBEE compliance can help you build your stable of talented employees from diverse backgrounds. This can serve to enhance your workforce, which in its turn will help to ensure your continued business success.”
“Another business benefit of your company’s compliance is that of tax benefits,” says Lanham-Love. “Programmes such as the Employment Tax Incentive (ETI), which offers an incentive for those who employ young, inexperienced workers, mean that you can, essentially, be paid by the government to upskill and develop your future workforce. There are also SETA Grants and Socio-Economic Development contributions that ensure that your business will benefit from a reduced tax rate as a result of being B-BBEE Compliant.”
“The amended codes have made B-BBEE a complex and expensive exercise,” says Lanham-Love. “As such, we believe that that the money you spend on B-BBEE compliance in your business should equate back to your company – in either such business benefits as those mentioned above, or points scoring across multiple elements of the B-BBEE Scorecard. By partnering with a firm such as Lanham-Love Consulting, you can be assured that you are, in fact, achieving maximum bang for your B-BBEE buck.”
Lanham-Love Consulting is perfectly positioned to ensure comprehensive B-BBEE compliance. Our expert consultants can guide you through every step of becoming compliant. Speak to us if you’re searching for peace of mind regarding B-BBEE fronting and compliance.