BEE: Speaker Explains the Impact Of BBBEE at SAAFF Congress 2015
Recent Gauteng Business News
Reaction to the amendments to the 2013 BBBEE Codes of Good Practice have been mixed. This is the view of Anton Baumann, a Director of Transcend Capital and one of the speakers at the South African Association of Freight Forwarders (SAAFF) Congress 2015, which takes place from 14 to 16 October in Durban. Baumann will be speaking on Day 1 of the conference and presenting on ‘BBBEE and how it will Impact Your Business’.
Baumann says some have welcomed the developments. “The changes address some of the problems contained in the old framework, but white-owned businesses might feel that the compliance requirements have been made more onerous and there is pressure to do more.”
Baumann adds the 2007 Code and the amended Code, which came into effect on 1 May 2015, were two fundamentally different pieces of legislation. “Despite higher compliance requirements, many companies are willing to take a proactive role,” Baumann says. “Initiatives to implement Code requirements should not be seen as a cost, but rather as an investment into the growth of the company with a measurable return on investment. Business must see the commercial drivers within the Code.”
The revised Codes are much more difficult to comply with, Baumann said as it forces companies to comply with certain priority elements, which companies often have put on hold so far. “Company ownership in respect of BBBEE is a priority which some white-owned businesses have put on hold.”
Companies may have competed on product, price and BEE compliance, but for many businesses pure BEE compliance is no longer a point of differentiation, Baumann says. Companies must leave the realm of BEE compliance and identify the commercial drivers behind the BEE scorecard. “Where there is price and product parity, BBBEE compliance becomes very important, and if a company deals with the Government, compliance is of the utmost importance.”
The Enterprise and Supplier Development Scorecard provides the incentives and now has a higher weighting at 27 points, compared with the previous 20 points on the Scorecard.” Compliance might not be as important for a business that served only international clients, Baumann explains, but its licence to operate would be tied into compliance requirements.
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