To address our socio-economic inequities, South Africa developed an economic development process entitled Broad-Based Black Economic Empowerment (B-BBEE) in 2007. The goal is to directly contribute to the economic transformation of South Africa, by increasing the number of black people that actively participate in the country’s economy thereby leading to the diminishment of income inequalities.
The B-BBEE ‘Codes of Good Practice’ (outlined in the BEE Act) provide the structures for the BEE Scorecard and outline the rules and requirements for claiming BEE points. A good BEE Score ensures a favourable procurement climate. If your company has a BEE Certificate then your customers will be able to claim BEE points on their BEE Scorecard for buying from your business.
Your BEE Certificate will indicate a BEE Level (from level 8 to level 1) depending on how you have scored in the 5 areas where you can gain points. The better the score on your BEE Certificate, the more BEE points your customers can claim.
“The Wot-if? Trust provides programmes and initiatives that comply and ensure points on the BEE Scorecard in the areas of Socio-Economic, Enterprise and Supplier Development.
SOCIO-ECONOMIC, ENTERPRISE AND SUPPLIER DEVELOPMENT
Socio-Economic Development (SED) is defined as “facilitating sustainable access to the economy for beneficiaries,” The contribution to gain 5 points for SED is 1% of NPAT. At least 75% of the value of these contributions must directly benefit black, South African participants.
The new BEE codes group Enterprise Development, Supplier Development (ESD) and Procurement into one section, which totals 40 points. 25 points are allocated to Procurement and 15 points to Enterprise and Supplier Development.
ESD is primarily aimed at making sure that large companies, as far as it is possible, procure their goods and services from black-owned and managed businesses. Supplier Development has the aim of ensuring that companies procure from small black-owned businesses, while Enterprise Development seeks to assist these companies to grow their businesses so that they can play a meaningful role in the economy
Companies are required to make Supplier Development contributions of 2% of NPAT and 1% of NPAT for Enterprise Development (investments made in businesses outside of their supply chain) in order to earn the full 15 ESD points on their B-BBEE scorecard.
The Wot-If? Trust is committed to genuine transformation by developing targeted beneficiaries to access and participate in the economy to ensure their best possible future. We partner with like-minded organisations who want to invest their Socio-Economic and Enterprise and Supplier Development funds into programmes and small enterprises that are compliant with the BEE Codes. Sustainable, substantial and meaningful development is what we care about!
We manage a number of programmes based on expressed community needs established during stakeholder engagement and consultation. The key focus is on developing women and youth, nurturing education and cultivating a spirit of entrepreneurship, to ensure the creation of sustainable opportunities.