Broad-Based Black Economic Empowerment
South Africa's first democratic government was
elected in 1994, with a clear mandate to redress the inequalities
of the past in every sphere: political, social and economic. Since
then, government has embarked on a comprehensive programme to
provide a legislative framework for the transformation of South
Africa's economy. In 2003, the Broad-Based Black Economic
Empowerment (B-BBEE) Strategy was published as a precursor to the
B-BBEE Act, No. 53 of 2003. The fundamental objective of the Act
is to advance economic transformation and enhance the economic
participation of black people in the South African economy.
The Act provides a legislative framework for
the promotion of BEE, empowering the Minister of Trade and
Industry to issue Codes of Good Practice and publish
Transformation Charters, and paving the way for the establishment
of the B-BBEE Advisory Council.
In order to fulfil the legal mandate as
outlined in the Act, President Jacob Zuma appointed members to the
B-BBEE Advisory Council on 3 December 2009, as contemplated in
Section 6(1)(c) and (d) of the Act. The B-BBEE Advisory Council
aims to provide guidance and overall monitoring of the state of
B-BBEE performance in the economy, with a view to making policy
recommendations to address challenges in the implementation of
this transformation policy.
The B-BBEE Codes of Good Practice emerged in
February 2007 as an implementation framework for B-BBEE policy and
legislation. After the implementation thereof, institutional
mechanisms were established for the monitoring and evaluation of
B-BBEE in the entire economy.
In an effort to comply with the B-BBEE policy,
companies have employed the services of Verification Agencies
(VAs). Due to verification practices having varied from agency to
agency, resulting in confusion in the market, certain revisions
were required. Consequently, in the interests of harmonising
accreditation and verifications practices, the dti and the
South African National Accreditation System (SANAS) have put in
place a process of phasing out certificates issued by
non-accredited VAs.
As a result of the above, from 1 February
2010, certificates issued by VAs - those which are accredited and
those that are not yet accredited but which have received a valid
pre-assessment letter from SANAS - will be acceptable in the
market. These certificates will be valid for a period of twelve
months.
