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    24May, 2024
    B-BBEE Webinar Event – 07 June 2024

    Strengthen Your Business’ Compliance with Our Exclusive B-BBEE Webinar Event

     EconoBEE is excited to announce our upcoming B-BBEE workshop in a webinar format, an essential event designed to provide the latest insights and updates for professionals involved in B-BBEE compliance and implementation. This significant event will be held on 07 June 2024, from 09h00 to 10h30, and will take place online for your convenience.

    Our webinar is specifically tailored for a diverse audience, ensuring that all key stakeholders in your organization can benefit from the invaluable information and insights provided.

    Click here to book your seat. Event Details:

    Date: 07 June 2024

    Time: 09h00 – 14h30

    Venue: Live Online

    Cost: P.O.R.

     Who Should Attend? This event is ideal for:

    • Compliance Managers: Stay informed about the latest B-BBEE strategies and regulatory updates.
    • Industry Professionals: Gain a strategic edge in B-BBEE implementation and compliance.
    • HR Managers: Understand the impact of B-BBEE on employment equity and skills development.
    • Procurement Officers: Learn about the requirements for supplier and enterprise development.
    • Financial Managers: Enhance your knowledge of the financial implications of B-BBEE compliance.
    • Business Owners: Ensure your company meets B-BBEE standards and leverages growth opportunities.
    • Legal Advisors: Stay current with regulatory changes and compliance requirements.

    Why This Webinar Is Essential for Your Business:

    Stay Compliant: With B-BBEE regulations constantly evolving, it’s crucial to stay updated to ensure your business remains compliant. This webinar will provide the latest updates and changes, helping you navigate the complexities of B-BBEE compliance.

    Improve Strategy: By attending, you will gain valuable insights that can enhance your B-BBEE planning and execution. Effective strategies can lead to better outcomes and a more robust B-BBEE scorecard.

    Upskill Your Team: Equip your in-house consultants with the latest knowledge and skills. This empowerment will enable them to drive your B-BBEE initiatives more effectively, ensuring your business reaps the full benefits of compliance.

    Access Expert Knowledge: The webinar features leading authorities in B-BBEE, offering you expert advice and guidance. Their insights can help you understand intricate details and apply best practices within your organization.

    Gain Practical Insights: Discover actionable tips and best practices that you can implement immediately. Practical insights are crucial for improving your B-BBEE initiatives and achieving tangible results.

    This webinar is more than just an informational session; it’s an opportunity to elevate your business by extending your B-BBEE knowledge and empowering your team. Don’t miss this chance to stay ahead in the competitive environment of B-BBEE compliance and implementation.

     Click here to secure your spot and take a significant step towards ensuring your business thrives under the B-BBEE framework.

     

    8May, 2024
    Update on Transport and other Codes + Free Webinar!

    Welcome to our latest newsletter, join us as we explore the dynamic Transport Sector codes and briefly discuss the latest with the Property Sector codes.

    Consider this a warm-up to our free upcoming webinar on the 17th of May, where we’ll delve deeper into the state of Transport Sector Codes– want to Attend? Click here

    In the intricate tapestry of economic empowerment, sector codes stand out as guiding beacons, illuminating pathways towards inclusivity and growth within specific industries.

    At its core, the B-BBEE Transport Sector Code is a strategic blueprint, crafted to promote the inclusion of Black individuals and businesses across the multifaceted realms of transportation. From land to air, and sea, this code navigates through the diverse corridors of the industry, setting forth measures and targets aimed at unlocking opportunities and dismantling barriers to entry.

     

    Why is it important to maintain compliance with the sector codes?

    Many beneficial government contracts and procurement opportunities require B-BBEE compliance and companies failing to meet these standards or are non-compliant may be excluded from accessing significant market opportunities.

    Maintaining compliance enhances a company’s reputation and credibility, fostering trust among stakeholders and potentially leading to increased customer loyalty and investor interest.

    Additionally, compliance with B-BBEE regulations often involves initiatives aimed at skills development, employment equity, and workplace diversity, which can enhance employee engagement, retention, and productivity.

     

    Property Sector Codes: Government’s Focus Shifts to Real Estate Agents

    Reflecting on Dr. Muriel Mushariwa’s analysis from last year, the property sector’s slow transformation despite nearly three decades of democracy is evident. According to the Sanlam Transformation Gauge, the sector improved marginally to level 4 recognition in 2023. Dr. Muriel highlighted areas of progress, such as Enterprise and Supplier Development (ESD) and Skills Development, but underscored persistent challenges in ownership and management control. (Explore more insights here)

    The government is now focusing on real estate agents and “property practitioners” with regulations such as skills development filings and minimum points needed for certification. This is a change from earlier vague calls for transformation. Contact us for more information related to these important changes.

     

    About the anticipated new Integrated Transport Sector Codes

    The Department of Transport has recently announced its plans to introduce the Integrated Transport Sector Codes. The main goal is to encourage and monitor the involvement of black-owned businesses and individuals in the transportation sector, aiming to level the playing field and create more opportunities for historically disadvantaged players in the industry.

    With no transitional period planned for the implementation of the Sector Codes, companies in the transport sector need to familiarize themselves with these changes and work towards compliance to contribute to a more inclusive industry.

    In light of these developments, we’re excited to invite you to a special webinar where we’ll delve deeper into these changes and discuss their potential impact on the transportation industry. Join us on the 17th of May to learn more about how these changes could shape the future of transportation in our country!

    31Jan, 2024
    Uncovering Potential: Youth Empowerment at EconoBEE with the Y.E.S Initiative!

    Dive into the inspiring journey of Thabo Nkosi, a dynamic individual who has embraced the transformative power of the Youth Employment Service (Y.E.S) Initiative at EconoBEE.

     

    🌟 Introducing Thabo Nkosi: A Visionary from Alexandre, Johannesburg

    A 20-year-old ace from Alexandre, Johannesburg, whose experience at EconoBEE has been nothing short of inspiring.

    Now here’s how our short conversation went with Thabo:

    Q: What motivated you to join the Y.E.S Initiative program and work at EconoBEE? A: “I was motivated to join the Y.E.S Initiative program and work at EconoBEE because of the organization’s commitment to fostering youth empowerment. The program’s focus on providing opportunities for young individuals aligns with my desire to contribute meaningfully to the workforce and gain valuable experience in the corporate world. EconoBEE’s dedication to skills development and empowerment was a compelling factor that drew me to the initiative, plus I loved the fact that it was a 100% black-owned entity.”

    Q: How have your career aspirations evolved as a result of your experience (so far) at EconoBEE? A: “One significant experience that profoundly impacted both my personal and professional growth at EconoBEE was taking part in the workshop aimed at educating clients more about the benefits of being B-BBEE compliant. This project required collaboration across departments, honing my teamwork skills. The challenges encountered during this initiative taught me the importance of adaptability and effective communication.”

    Q: In what ways do you believe programs like Y.E.S can bridge the gap between education and employment for young talent in South Africa? A: “Programs like Y.E.S play a crucial role in bridging the gap between education and employment for young talent in South Africa. By providing practical work experience and exposure to real-world challenges, these initiatives equip young individuals with the skills and knowledge necessary for a successful transition into the professional arena. Additionally, Y.E.S fosters a culture of mentorship and guidance, further enhancing the development of young talent and preparing them for the demands of the workplace.”

    Q: What advice would you offer to other young individuals considering participating in programs like the Y.E.S Initiative? A: “To young individuals considering participating in programs like the Y.E.S Initiative, my advice is to embrace the opportunity wholeheartedly. These programs offer a unique chance to apply theoretical knowledge in a practical setting, develop essential skills, and build a valuable professional network. Be proactive, seek mentorship, and view challenges as opportunities for growth. The experiences gained through such initiatives can shape a fulfilling and successful career path.”

    🌟 A Heartfelt Thank You to Thabo Nkosi!

    We extend our deepest gratitude to Thabo Nkosi for his outstanding contributions to EconoBEE. Your dedication, hard work, and transformative experiences have not only shaped your own journey but have enriched the fabric of our Y.E.S Initiative. Thank you for being an essential element in our pursuit of youth empowerment and excellence!

    Interested in contributing to this transformative initiative? Partner with EconoBEE and be a catalyst for change!

    16Dec, 2023
    Looking towards 2024: A Year of Transformative Change


    As we stand on the threshold of bidding farewell to 2023, we want to express our heartfelt gratitude for the incredible journey we’ve shared with you. Your trust in EconoBEE has been the cornerstone of our success, and we’re excited to share some of the highlights from this exceptionally memorable year:

     

    Celebrating Success Together:

    During the course of 2023, EconoBEE had the privilege of supporting numerous clients in reaching new heights on their transformative B-BBEE journey. From small businesses to large enterprises, we take immense pride in the success stories that have unfolded throughout this year. Your unwavering commitment to economic empowerment and compliance has not only fortified your enterprises but has significantly contributed to the broader landscape of transformation within the business ecosystem.

     

    Empowering Through Workshops:

    All through the year, our workshops have been a vibrant hub of empowerment, bringing together a diverse array of business owners and professionals eager to delve into the intricacies of B-BBEE. The resounding success of these sessions, marked by positive feedback and enthusiastic engagement, has been a source of inspiration for us. Bolstered by this encouragement, we are thrilled to announce that our workshops will evolve even further in 2024, providing you with an enriched experience, replete with practical skills and comprehensive knowledge.

     

    Teasing 2024:

    As the proverbial curtain gracefully descends on the stage of 2023, we find ourselves eagerly setting our sights on the promising horizon of 2024. Within the corridors of EconoBEE, a hive of excitement is buzzing as we meticulously prepare to unveil a tapestry of new services and expanded workshops, meticulously crafted to elevate your experience and fortify your journey towards economic empowerment.

     

    Anticipating Industry Shifts:

    While we anticipate a year filled with growth and empowerment, it’s crucial to be vigilant about potential industry shifts. In the dynamic landscape of B-BBEE, we’re closely monitoring significant updates within the Transport sector. The Council, in conjunction with the Department of Transport, has initiated B-BBEE Alignment sessions, proposing resolutions that could potentially reshape the industry. Draft Codes are expected to be released for public comment by January 2024, signifying a transformative era.

     

    Navigating Change Together:

    We encourage companies, especially those within the Transport industry, to be on the lookout for these potential changes. The proposed resolutions aim to bring about much-needed transformation, emphasizing Skills Development, Enterprise and Supplier Development, and a re-evaluation of ownership structures. As we venture into 2024, EconoBEE remains dedicated to guiding you through these changes, ensuring your journey towards economic empowerment is successful.

     

    Happy Holidays and a Prosperous New Year:

    And so, as the holiday season unfolds, we want to take a moment to express our gratitude for the privilege of working with you throughout the year. Your trust and partnership have been the cornerstones of our success, and we are truly thankful for the opportunities we’ve shared. In the spirit of the season, we extend our heartfelt wishes for a Merry Christmas and a New Year filled with prosperity, good health, and continued success.

     

    Here’s to a joyful holiday season and a prosperous New Year!

     

    3Sep, 2023
    Exciting News! – We’re thrilled to announce a significant milestone in our journey

    Our unyielding commitment to transformation has led us to achieve a remarkable B-BBEE Level 1 status. But that’s not all – we have even more fantastic news to share. We’re excited to inform you that EconoBEE is now proudly 100% black-owned, marking a monumental shift towards greater transformation & inclusivity. To celebrate these achievements, we would like to invite our valued clients, esteemed consultants, visionary business owners, and dedicated B-BBEE compliance professionals to an exclusive and enriching workshop. Join us at our offices in Johannesburg for a dynamic – and complimentary – seminar where we’ll delve into the intricacies of B-BBEE and its pillars.

    This event aims to refresh and enhance your understanding of B-BBEE dynamics, equipping you with invaluable insights to navigate the evolving landscape. Let’s continue shaping a more inclusive and empowered business environment together. RSVP now for this not-to-be-missed opportunity to grow and learn together.

    Now a little bit about our 3 directors:

    Allan Maphanga

    Allan is an accomplished entrepreneur and corporate manager who has cultivated significant skills through hard work and dedication. Since joining the business in 2016, Allan’s career has soared to greater heights, progressing from junior ranks within the EconoBEE structure to assuming a directorial role within the firm. As an experienced B-BBEE Consultant with adept people management skills, he specializes in coordinating and overseeing various teams and activities within the company.

    Mr. Maphanga possesses a profound understanding of the South African B-BBEE ecosystem and provides consultation to diverse clients across the entire B-BBEE spectrum. Over time, he has emerged as a thought leader on B-BBEE legislation and its interpretation. Moreover, he maintains excellent relationships with the Department of Trade and Industry (DTI) and the B-BBEE Commission, positioning him at the forefront of advising and guiding some of South Africa’s largest firms in their pursuit of achieving B-BBEE goals. As an added value to the company, Allan offers on-the-job mentorship and training to junior consultants within the EconoBEE business.

    Dr Muriel Mushariwa

    Muriel is a highly qualified and experienced academic who has spent many years in formal academia, both in research as well as lecturing. Armed with a Phd in Law (Affirmative Action) and a Master’s degree in law, Muriel has made a successful transition into the corporate and business world having joined EconoBEE in February 2019. She is one of the leading minds in South Africa within the B-BBEE and transformation industry and has provided independent opinions in respect of several B-BBEE related rulings. She further provides strategic business and management consulting to small, medium and large corporates on various aspects relating to Black Economic Empowerment, transformation and inclusivity. This includes Employment Equity, Skills Development, B-BBEE Strategy, B-BBEE Legislative Codes as well as B-BBEE Consultation and Verification. Muriel also lectures at Wits University on the subject of B-BBEE and transformation and has been featured in various media publications as well as appearing on television to discuss the critical importance of B-BBEE, its various applications across the different business sectors and the practical implementations required to transform the business landscape of South Africa.

    Ndivhuwo (“Ndi”) Rambau

    Ndi’s journey with EconoBEE commenced in 2015, joining as a junior team member in the data management and client consulting division. With a qualification in Financial Management and an unwavering ‘can-do’ attitude, Ndi embarked on a remarkable trajectory within EconoBEE, steadily ascending the corporate ladder over the years. This remarkable progression culminated in Ndi’s current roles as the Operations Director and Chief Operations Officer at EconoBEE. In these capacities, Ndi dedicates his time to collaboratively working with fellow executives and senior management, charting strategic growth objectives for the company. His responsibilities encompass a wide spectrum, including conducting strategic financial analyses, managing technical strategies, and ensuring efficient operational implementation.

    Ndi boasts a profound comprehension of the intricacies within the South African B-BBEE ecosystem, coupled with an acute awareness of the essential B-BBEE requisites that our clients need to adhere to.

    6Aug, 2023
    Transforming the Property Sector: Insights from Dr. Muriel Mushariwa

    “The property sector is one of the least transformed sectors almost 30 years into democracy,” says Dr. Muriel Mushariwa, our esteemed Executive Director at EconoBEE, a management consultancy specializing in B-BBEE, skills development, and employment equity.

     

    Dr. Mushariwa’s valuable contributions to the 2023 Sanlam Gauge Report shed light on critical areas for improvement. While the property sector has made some progress, there remain challenges in achieving true transformation. Read her comments here

     

    Join Dr. Muriel Mushariwa and the EconoBEE team as we call for increased empowerment and opportunities for historically disadvantaged individuals in the property sector. Together, let’s work towards a future where the industry is inclusive, diverse, and representative of all South Africans.

     

    Stay tuned for the full report on our website, where Dr. Muriel Mushariwa’s insights and contributions will be highlighted (on page 75 and 76 of that report). Let’s take steps towards a truly transformed property sector that benefits the entire nation. #TransformationMatters #EconoBEE #PropertySectorTransformation #SanlamGaugeReport #EmpowermentInProperty

    2Aug, 2023
    Excerpts from the 2023 Sanlam Gauge Report

    “The property sector is one of the least transformed sectors almost 30 years into democracy, says Dr Muriel Mushariwa, MD of EconoBEE, a management consultancy specialising in B-BBEE, skills development and employment equity”

    See all excerpts from the 2023 Sanlam Gauge Report in which the Property Sector Codes, the new Property Practitioners Act and the potential impact on transformation in this sector is discussed here

    See the full report here

    5Jul, 2023
    Empowering Your Business Through B-BBEE Workshops and Training

    Today, we want to shed light on the importance of B-BBEE (Broad-Based Black Economic Empowerment) workshops and training, and why partnering with EconoServices for comprehensive training can drive transformative change within your organization.

     Why B-BBEE Workshops and Training Matter:

    B-BBEE is a crucial framework for promoting economic transformation and equality in South Africa. It serves as a powerful tool to address historical inequalities and promote meaningful participation and empowerment of previously disadvantaged individuals and communities. To fully grasp the legislation, codes of good practice, and compliance requirements, it is essential for businesses to invest in workshops and training programs. This knowledge equips your team with the tools to navigate the complexities of B-BBEE effectively and contribute to a more inclusive economy.

    At EconoServices, we understand the significance of staying up-to-date with B-BBEE requirements. Our workshops and training programs are designed to provide comprehensive knowledge and practical insights that will enable your organization to implement successful B-BBEE strategies and achieve your transformation goals.

     Benefits of Choosing EconoServices for Training:

    • Comprehensive Training
    • Customized Approach
    • Expert Facilitators
    • Empowered Pillar Champions
    • Enhanced Compliance
    • Competitive Advantage
    • Ongoing Support

    For more information on benefits and other pertinent please click here

    In conclusion, partnering with EconoServices for comprehensive training will equip your team with the knowledge, skills, and confidence to drive positive change, meet compliance requirements, and gain a competitive advantage.

    Take the first step toward empowering your business today. Reach out to us on 011 483 1190 to learn more about our tailored training programs and how EconoServices can support your B-BBEE journey. Together, we can make a difference and contribute to a more equitable and prosperous South Africa.

    30Nov, 2022
    Recent Constitutional Court Ruling and what this means for B-BBEE in 2023!

    The Constitution of South Africa is the highest law in the land. The Constitution places an obligation on the State in terms of section 9 (the equality clause) to specifically “redress the inequalities of the past.” This is the aim of all transformative legislation from the Employment Equity Act to the Skills Development Act and Broad-Based Black Economic Empowerment Act, amongst others.

    In terms of section 217 of the Constitution, the Constitution requires procurement by organs of state and statutory institutions to be fair, equitable, transparent, competitive and cost-effective and implemented in a manner which seeks to protect or advance previously disadvantaged persons. S 217 (2) allows organs of state to implement procurement policies, providing for categories of preference to advance or protect persons disadvantaged by unfair discrimination (“HDIs”). S 217 (3) provides for the enactment of legislation to prescribe a framework within which the procurement policy referred to in S 217(2) must be implemented.

    The ruling by the Constitutional Court has forced the government to review both the PPFA Act and its regulations to ensure alignment with the Constitutional mandate stated above and the B-BBEE Act. This does not invalidate the B-BBEE act. The framework of the B-BBEE and how it’s practicable is clear and therefore not affected by the recent constitutional ruling.


    This is not the end of B-BBEE as debated in the media recently    . The Constitutional mandate to transform the economy still remains! The Public Procurement Bill is set to be introduced in 2023: This will provide a new framework of government procurement, with each department creating its own procurement framework work that must still be in line with the Constitutional mandate and the B-BBEE Act.

    It does not mean B-BBEE is no longer important but rather the setting of new objectives, and so companies should still be compliant to the B-BBEE Act and its objectives. We continue to advise our clients to remain compliant in terms of the specific codes applicable to them, until greater clarity is given on the framework within which public procurement specifically will change. Procurement between private companies is still driven by the objectives of the B-BBEE Act.

    The key here, is to implement activities that make business sense! Do you see B-BBEE as a grudge purchase? Or do you want to make a genuine difference in South Africa and still grow your business? Contact us now to show you how our revolutionary managed service has helped thousands of clients implement sustainable B-BBEE activities in a way that makes perfect business sense!

    Being one of the oldest B-BBEE consultancies, we have seen all the changes to the legislation and been there through it all. With success stories of skills development and enterprise & supplier development, we know that we can give you strategic advice that can be implemented within your business.

    Looking forward to growing our economy and your business, one step at a time in 2023!!

    5Nov, 2022
    Amended Construction Sector Codes Affidavits Explained

    As per the Amended Construction Sector Code, gazetted on 1 December 2017 under Gazette no. 41287, an entity that qualifies for measurement under the Construction Sector Code, is measured either as a BEP (Built Environment Professional) or a Contractor in respect of targets, weightings and methodology.

    The qualification criteria for an Exempt Micro Enterprise (EME) and a Qualifying Small Enterprise (QSE) are different for BEP’s and Contractors:

    Contractors:

    • EME – Enterprise with a total annual revenue of R 10 million or less.
    • QSE – Enterprise with a total annual revenue of more than R 10 million but less than R 50 million.

    BEP (Built Environment Professionals):

    • EME – Enterprise with a total annual revenue of R 6 million or less.
    • QSE – Enterprise with a total annual revenue of more than R 6 million but less than R 25 million.

    Only EME’s with an annual revenue of less than R 3 million (for Contractors) and less than R 1.8 million (for BEP’s) are not required to have a SANAS accredited B-BBEE Verification Certificate and may present an Affidavit or Certificate issued by CIPC in respect of their Ownership & Annual Revenue.

    A company must ensure that they use the correct Affidavit template when completing an Affidavit, as there are numerous templates for each sector.

    The entity must identify where more than 50% of their revenue is generated and according to the outcome, they can determine whether they qualify as a BEP (Built environment Professional) or Contractor.

    The EME’s as mentioned above are not subject to the discounting principle and therefore do not have to comply with the 40% sub-minimum requirements for the QSE Skills Development element.

    EME’s with an annual turnover of more than R 3 million but less than R 10 million (for Contractors) and more than R 1.8 million but less than R 6 million (for BEPs) must obtain a SANAS Accredited B-BBEE Rating Certificate and are subject to the QSE Skills Development element (40% sub-minimum requirement).

    An Entity that qualifies as an EME, with the Black Ownership percentages as indicated below, is deemed to have the following B-BBEE Status Levels:

    • If less than 30% Black Owned, Level 5 B-BBEE Status.
    • At least 30% Black Owned but less than 51% Black Owned, Level 4 B-BBEE Status.
    • At least 51% Black Owned but less than 100% Black Owned, Level 2 B-BBEE Status.
    • If 100% Black Owned, Level 1 B-BBEE Status.
    • EME’s with less than 100% Black Ownership can enhance their B-BBEE Status by way of one of the following three criteria:
    • Obtain measurement in terms of the QSE Scorecard.
    • Obtain measurement in terms of the Skills Development expenditure category of the QSE Scorecard and only if full points (excluding the bonus points) are achieved, the B-BBEE status level will be enhanced by one Level.
    • Obtain measurement in terms of the Supplier Development expenditure category of the QSE Scorecard and only if full points are achieved, the B-BBEE status level will be enhanced by one Level.

    If an EME achieved full points for both Skills Development & Supplier Development as mentioned above, the company can be enhanced by two B-BBEE status levels.

    An Entity that qualifies as a QSE, must be rated on all 5 elements as per the Amended Construction Sector QSE Scorecard.

    A QSE can qualify for enhanced recognition if the following Ownership percentages are achieved (calculated by applying the flow-through principle):

    • At least 51% Black Owned but less than 100% Black Owned, Level 2 B-BBEE Status.
    • If 100% Black Owned, Level 1 B-BBEE Status.
    • A QSE entity that is at least 51% Black Owned or 100% Black Owned must comply with the QSE Skills Development element (40% sub-minimum) or that company will be discounted by one Level.

    It is important to note that the Black Ownership as stated above, must be calculated by applying the Flow-Through Principle to qualify for the automatic B-BBEE status levels as indicated above.

    As for the EME’s, a QSE Entity with at least 51% Black Ownership can be enhanced by one level if they achieve full points (excluding bonus points) for Skills Development as per the QSE Scorecard or achieves full points for the Preferential Procurement & Supplier Development element as per the QSE scorecard.

    Want more information about the amended construction sector codes and what this means for your B-BBEE Scorecard? Contact EconoBEE now to help guide you with cost effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.

    29Jul, 2022
    EconoServices Welcomes B-BBEE Advisory Council and the Drafted Legal Sector Code is out!

    EconoServices welcomes the introduction of the newly instituted Broad-Based Black Economic Empowerment Advisory Council

    The President of South Africa has recently appointed a diverse and representative group of people with sector expertise to serve as members of the Broad-Based Black Economic Empowerment Advisory Council and to guide government on intensified transformation of the economy. The President has appointed 14 Council members in terms of Section 6(1) (d) of the Broad-Based Black Economic Empowerment Act (Act No 53 of 2003). The appointments are for a period of five years.

    The Council is made up of a diverse group drawn from business, trade unions, community-based organisations and academia. We trust that the Council will bring much needed clarity and stability in terms of interpretations of the Broad-Based Black Economic Empowerment Act.

    In other news, Cabinet has approved the publication of the Draft Legal Sector Code (Draft LSC) for public comment, currently the legal profession does not have a sector specific code to guide them in addressing the imbalances and inequalities in the profession. It is important that Law firms familiarize themselves with the draft codes and prepare for when the Legal Sector code is promulgated.

    If you are a law firm needing assistance on how best to navigate the impending codes, please reach out to us on 011 483 1190 (or on email info@econoservices.co.za) for assistance in strategy planning.

    7Jun, 2022
    Penalties for Employment Equity Contraventions!

    Penalties for Employment Equity Contraventions!South African companies are currently facing penalties for failing to meet the targets set in their Employment Equity (EE) plans. We are now seeing the Department of Labour ramping up its auditing and has stated that the majority of companies with March 2022 year-end, have missed the mark in terms of complying with EE legislation.

    One of the reasons for companies being fined and penalised is that their EE plans are not conforming with the goals and numerical targets set by the designated employers and therefore not projecting rational progress towards transformation. It is therefore prudent that companies avoid setting targets in their EE plans that are not attainable.

    EconoBEE specialises in Employment Equity Services and is therefore well-equipped to assist companies accurately when it comes to compliance in terms of EE plans.   

    EconoBEE also hosts and runs workshops on Employment Equity in which we advise companies and their relevant staff members on how they can comply with EE legislation

    For more information on our EE assistance and training and workshop offerings, please contact us on 011 483 1190 or email info@econobee.co.za

     

    24May, 2022
    Calling for YES Implementation Partners and a quick look at Preferential Procurement in 2022

    Calling for YES Implementation Partners!

    Does your company need extra staff, but there isn’t any budget to accommodate this need? Contact us on 011 483 1190! We are looking for companies who want to host and provide quality work experience for youth as part of the YES initiative, for a 12-month basis. You will not be required to pay a stipend as this will be provided for.

    Youth unemployment is one of South Africa’ s greatest scourges, keeping millions of youth disenfranchised, desperate, and disillusioned about their future. Through the YES Initiative, youth from across the country are able to get that first chance at playing an active role in resetting the economy.

    Become an Implementation Partner and part of a national initiative that is creating youth work opportunities and changing the lives of our young people for the better!

     

    Is Preferential Procurement gone forever? Let’s find out…

    On Wednesday, 16 February 2022, the Constitutional Court handed down judgment in the application for leave to appeal against a judgment and order of the Supreme Court of Appeal. This application was brought by the Minister of Finance against Afribusiness, with concerns of the validity of the Preferential Procurement Regulations, 2017 (Procurement Regulations) decreed by the Minister on 20 January 2017 in terms of the Preferential Procurement Policy Framework Act (Procurement Act).

    In a nutshell, the Procurement Regulations, amongst other things, introduced pre-qualification criteria to be eligible to tender. Under the Regulations, if an organ of state elects to apply the pre-qualification criteria, any tender that does not meet the criteria is an “unacceptable tender”. These qualifying criteria advance certain designated groups and provide that only certain tenderers may respond, including: tenderers having a stipulated minimum Broad-Based Black Economic Empowerment (B-BBEE) status level; exempted micro enterprises (EMEs) or qualifying small enterprises (QSEs), and tenderers subcontracting a minimum of 30% to EMEs and QSEs which are at least 51% black owned. If feasible to subcontract for a contract above R30 million, then the organ of state must apply subcontracting to advance the designated groups.

    The preferential procurement act allows for all entities to tender and only during the selection process will the pre-qualifications be considered on the basis of affording small black owned entities to gain access into main stream economy due to being previously disadvantaged.  The Department of Health amongst other government departments have confirmed that the suspension of the preferential procurement is a temporary adjustment and changes can be made. Although it is not known how long this suspension will be, we urge all entities to always be ready for anything and ensure that their B-BBEE Compliance status have met the pre-qualification.

    Want more information about what this means for your business? Contact EconoBEE now on 011 483 1190 (or email info@econobee.co.za) to help guide you with cost-effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.

    9Feb, 2022
    Transformation of the Property Sector
    The Property Practitioners Act (No 22 of 2019) (PPA)  seeks to ensure the transformation of the property industry by facilitating the inclusion of previously disadvantaged South Africans within the property sector. The Act also provides that once it commences, the Property Sector Transformation Charter will apply to all Property Practitioners. The Act was signed into law by President Cyril Ramaphosa in 2019 and came into effect on the 1st of February 2022. Section 20 of the PPA states that when procuring property-related goods and services, all organs of state must utilise the services of property practitioners who comply with the Broad-Based Black Economic Empowerment and Employment Equity legislation and policies. Furthermore, the Property Sector Transformation Fund (PSTF) has been established to offer grants to further transformation within the property industry.  Are you a property company committed to transformation? Unsure of how the Property Sector Transformation Charter and the Property Practitioners Act will affect you or your company? Please contact us on 011 483 1190 and let us help you become compliant, navigate PPA / PSTC, and implement cost-effective, B-BBEE solutions and strategies that make business sense!  
    21Jan, 2022
    “Clarity” Regarding SANAS Letter
    Any verification undertaken from the 15th of August 2020, should be done so in such a manner that it does not exceed a period of 12 months from the most recent Financial Year – End. This was the subject of the SANAS clarification letter dated the 6th of April 2021 (which referenced a supporting SANAS email clarification dated the 14th of August 2020 and attempted to “clarify” said email). Unfortunately, this letter did not shed light on how companies should address the following real issue that several companies have and may still face: what happens if a company is in the middle of a verification and their current financial year, ends? Does the measured entity continue to finalize their verification or must the entity stop the verification immediately? You may say, that company should have planned the verification to start (and end) sooner! However, as consultants, we know that in certain instances, getting a company verified (and completing the verification quickly) is not always as easy as that, for instance:
    • In this “new normal” we find ourselves in, companies may have employees working from home and not always easily accessible.
    • Integral people to the verification may get sick and therefore be unable to provide information.
    • Loadshedding, internet connectivity and other factors also contribute to delays.
    It is therefore necessary for SANAS to provide a comprehensive statement so that there is no uncertainty for measured entities, verification agencies or consultants. Failing that, consultants should also be given access to ask SANAS questions or perhaps there should be one body that regulates all consulting firms and who can then provide more guidance in terms of the clarification(s)? When it comes to understanding the B-BBEE legislation and implementing the interpretation thereof, EconoBEE is dedicated to coming up with innovative transformation strategies for our clients that make business sense. Please feel free to reach out to us on 011 483 1190 or info@econobee.co.za if you would like to hear more.
    18Jan, 2021
    Are you being sold a dubious B-BBEE share option scheme? Hear what the B-BBEE Commission has to say……..
    Firstly, compliments of the season to you all and here’s to wishing everyone a good 2021! I hope you have all managed to remain safe and hopefully had a decent break! Onto interesting business matters now……. Towards the latter part of 2020 we had a non-compliant QSE client come to EconoBEE and explain that they had a consultancy offer them an ownership option, which would make them an automatic B-BBEE level 2 (via the 51% affidavit route), and they wanted our view on it. We vehemently disagreed with the structure that was being “sold” to this client, and explained why, but we committed to get clarification from the B-BBEE Commission. Background:
    • The client is a QSE company (under R50m t/o) and they are non-compliant.
    • They were advised to set up a separate company that would have 100% black shareholders (either black employees or an NGO) and this company would have a 51% share option in the main company, which would mean that they receive an automatic B-BBEE level 2 (via the affidavit route) and would therefore also not be audited by a verification firm!
    • The devil’s in the detail and the detail here is the clarification of the “share option”!
    • The 51% share option showed a lack of real ownership and control, a lack of economic interest and lacked the authority to appoint the majority of the Directors in the main company.
    • At the end of the 5 year share option period, the owner would still be able to retain control of the company and the share option would fall away.
    • The B-BBEE Commission advised that where a “measured entity in an effort to comply with the B-BBEE ownership requirements, will establish share option structure not aligned to the requirements of the B-BBEE Act, such must be reported to the B-BBEE Commission” and this could lead to a serious fronting fine and/or criminal charges.
    To read the full view of the B-BBEE Commission, please click here To listen to one of our Legal Directors discussing B-BBEE fronting issues on eNCA tv, please click here To peruse our 2021 Online Workshop List, please click here EconoBEE has been at the forefront of guiding some of South Africa’s largest generic firms to obtain their B-BBEE goals, and we are extremely adept at putting together the best, most cost-effective, B-BBEE solutions for your business. Why not give us, at EconoBEE, a call on 011 483 1190 or email us and let us help simplify and expedite your transformation journey!
    25Nov, 2020
    Has the ruling by the Supreme Court of Appeal in relation to the PPPFA changed B-BBEE ?
    EconoBEE was recently asked to participate in a live, televised interview by eNCA in relation to the Supreme Court of Appeal’s ruling on the PPPFA (preferential procurement policy framework act). Headlines such as “Court rules BEE pre-disqualification in public procurement invalid, unconstitutional” got many interested parties talking about B-BBEE. Our Legal Director Dr Muriel Mushariwa, who is one of the top minds in the country when it comes to B-BBEE and lectures at Wits University on this and other transformational subjects, provided a detailed insight into this topic which you can view by clicking here EconoBEE has been at the forefront of guiding some of South Africa’s largest generic firms to obtain their B-BBEE goals, and we are extremely adept at putting together the best, most cost-effective, B-BBEE solutions for your business. Why not give us, at EconoBEE, a call on 011 483 1190 or email us and let us help simplify and expedite your transformation journey!  
    10Nov, 2020
    B-BBEE Fronting Indicators: Are you committing fraud?
    Fronting is a form of fraudulent misrepresentation in an attempt to circumvent the BEE codes. There are various forms of fronting indicators listed in legislation. In consulting, we have come across some glaring examples which we would like to point out:
      1. The black people identified by an enterprise as its shareholders, executives or management are unaware or uncertain of their role within the enterprise.
    One such example is the reported case where the BEE commission issued a final finding of fronting after it received a grievance from the companies’ former employee. It transpired that she was formerly employed as a receptionist but that she left the company after discovering that she had been listed as a 33% shareholder, without her approval or knowledge, and without receiving any dividend in respect of her shareholding. Such fronting is usually uncovered during verification of the measured entity when verification agencies interview the identified “owners” in the business. However, in instances where the measured entity is an EME or QSE and such entities are usually not audited, this becomes problematic.
        1. The black people identified by an enterprise as its shareholders, executives or management have roles of responsibility that differ significantly from those of their non-black peers.
    One such example is a QSE company creating another company which will solely be owned by employees. This company then “buys a stake” in the QSE company to the value of 51% making it an automatic level 2 without an audit.
        1. The black people who serve in executive or management positions in an enterprise are paid significantly lower than the market norm, unless all executives or management of this enterprise are paid at a similar level.
    One such example was where a white director was earning more than the black director with a ratio of 1:20. This was genuinely concerning to the verification analyst as the black director had been in the same position for over two years, with the same salary, and was also a shareholder. The analyst concluded that this disparity in salary did not make the black shareholder a director, as it went against the principle of equal pay for work of equal value. Let EconoBEE assist you in ensuring that you are not fronting in your pursuit to be BEE compliant. Employment Equity Submissions The year is fast coming to an end and the Employment Equity deadline is looming! Have you completed your Employment Equity submission? Now is the time to do it! Why don’t you call EconoBEE on 011 483 1190 and let us help you with all your Employment Equity, as well as your Skills Development and B-BBEE needs! Online Workshops EconoBEE is hosting online workshops for both our existing clients and for anyone interested in attending. For our BEE Managed Services clients, all BEE half-day workshops are free and our full-day workshops are half-priced! Please see our website for more information on our workshops. To book, or to tailor-make a workshop for your company, please email info@econobee.co.za or call 011 483 1190.