What is BBBEE?
BBBEE stands for Broad-Based Black Economic Empowerment. It is a government program designed to promote economic transformation in South Africa by promoting the involvement of black people in the economy. The program works by identifying and recognizing companies that are actively involved in creating opportunities for black people through employment, procurement, equity ownership and other initiatives. Companies are then awarded certificates based on their level of compliance with these criteria.
Benefits Of A BBBEE Certificate
Having a BBBEE certificate can be very beneficial for businesses as it can open up access to certain incentives offered by the government such as preferential procurement or tax exemptions. Additionally, having a valid certificate may also be required when applying for contracts or tenders with state owned entities or private companies operating within South Africa. Furthermore, customers may prefer to invest with certified businesses as they have undergone scrutiny and been deemed compliant with standards set out in the BBBEE Act (53 of 2003).
How To Get A BBBEE Certificate?
Getting your business certified requires you to get an accredited verification agency (such as SizweNtsalubaGobodo VAC) assess your company’s performance against various criteria which include ownership structure, management control and employee development among others. After assessing your company’s performance they will issue you with either a Level 1-4 B-BBBE certification letter depending on how well you met all the requirements outlined in the legislation applicable at that time:
- Level 1 Contributor: Your business achieved 100 points out of 110.
- Level 2 Contributor: Your business achieved 90 – 99 points.
- Level 3 Contributor: Your business achieved 75 – 89 points.
- Level 4 Contributor : Your business scored between 0 – 74 points.
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Once you receive your B-BBBE certification letter from an accredited verification agency, you must submit this document along with several other documents such as ID documents and financial statements before registering online on www.bbbeeonlineregistrationportal .coza website where it will be reviewed by SAQA who will issue your final B-BBBE certificate if everything checks out correctly..
Conclusion
The process of getting certified can take some time so make sure that you start working towards obtaining one early enough if necessary due to any upcoming tenders/contracts requiring proof thereof from potential suppliers/service providers etc., but ultimately having a valid B-BBBE certificate could open up many opportunities not just locally but also internationally should conditions permit travel again soon!
