BEE - Helping you and the Economy Grow

4Nov, 2024

November News: B-BBEE Updates and Our Big Move!

We’ve got some exciting updates for you this month, plus some important insights on B-BBEE compliance and fronting practices to keep you in the know!

Getting Real About B-BBEE Compliance

As a distinguished B-BBEE practitioner put it, “Fronting practices are deceptive actions that sidestep the purpose of the B-BBEE Act. While they may look like true B-BBEE initiatives, they actually block real transformation.” Fronting can take many forms, including:

Blocking Black Participation – Preventing Black employees from taking part in meaningful roles

Withholding Benefits – Claiming compliance while not passing on the real benefits to Black beneficiaries
Misleading Partnerships – Forming or colluding in “B-BBEE partnerships” without offering genuine economic benefits

The consequences? Businesses found guilty of fronting can face penalties, loss of state contracts, and even prison time for responsible individuals. (read this article about a group of directors that have been arrested for fronting).

Authentic transformation is at the heart of B-BBEE, and that is where we come in—helping you ensure compliance, protect your business, and promote meaningful change.

Heads-Up for ICT Sector Clients

If you’re in the ICT sector, don’t forget that annual contribution fees are due by December 1, 2024:

ICT Generic Entities (Turnover > R50M): 0.015% of NPAT or R2,500, whichever is higher

ICT QSEs (Turnover > R10M and < R50M): R1,250

ICT EMEs (Turnover < R10M): R650

We’ve Moved to Our New Home!

EconoBEE has a brand-new, permanent home! Our new space is designed to give us room to grow, serve you better, and create more impact. Feel free to stop by and check out the new place! We’re located at 25 Loots Road, Blairgowrie, Randburg.

Let’s Connect and Keep Things Compliant!

When B-BBEE gets too hectic, EconoBEE is always around the corner. Drop us a line, and let’s talk about keeping your business strong, compliant, and ready for the future.

Warm regards,
ECONOBEE TEAM

7Aug, 2024

Reflecting on National Women’s Day

Let’s Celebrate This Year’s National Women’s Day by

Empowering Women in Corporate South Africa

As we approach National Women’s Day this Friday, we wish to take a few minutes of your time to reflect on the incredible contributions and achievements of women in the corporate world. Women, especially young black women, continue to face significant challenges in the workplace or corporate, but their resilience and determination are driving meaningful change.

Partner with EconoBEE

We invite you to partner with us in this mission as we specialize in helping businesses transform and become more diverse. Our comprehensive B-BBEE consulting services are designed to support companies in achieving their transformation goals, fostering an inclusive workplace, and driving sustainable growth. We understand that every business is unique, and we tailor our services to meet the specific needs and challenges of our clients. From strategy development to implementation and compliance, we provide the expertise and support necessary to navigate the complexities of B-BBEE and achieve meaningful, long-lasting change.

Let’s work together to create a future where every woman has the opportunity to succeed and contribute to the success of our economy. Empower women, empower South Africa.

For more information on how we can assist your business in achieving its transformation objectives, please visit our website (www.econobee.co.za) or contact us directly at 011 483 1190.

Together, we can make the difference.

The Importance of Empowering Women

Empowering women is not just a matter of equality—it’s a catalyst for the needed transformation and growth. Companies that prioritize diversity and inclusivity see tangible benefits, from increased creativity to improved financial performance. When women are empowered, they bring unique perspectives and ideas to the table, this can lead to innovative solutions and approaches. Despite these advantages, many women still encounter barriers that hinder their professional development, including gender biases, lack of mentorship, and limited access to leadership roles. Overcoming these challenges requires a concerted effort from all sectors of society, including businesses, to actively promote gender equality and provide supportive environments where women can thrive.

Promoting Inclusion and Transformation

EconoBEE believes that true transformation starts with creating opportunities for women to thrive. By fostering an inclusive corporate culture, businesses can tap into a wider talent pool and promote a more dynamic and competitive environment. Inclusivity means more than just having women in the workplace; it means ensuring that women have equal opportunities for growth, are heard, and are valued for their contributions. This involves implementing policies and practices that support work-life balance, offer career development programs, and create safe spaces where women can voice their ideas and concerns without fear of discrimination. Companies that embrace these values not only benefit from diverse perspectives but also build a reputation as employers of choice, attracting top talent across the board.

Supporting Young Black Women

Young black women, in particular, face unique challenges in the corporate sector. Addressing these challenges requires a commitment to equity and a willingness to implement policies that support their professional journeys. This includes mentorship programs, leadership training, and creating pathways for career advancement. Providing access to resources and networks that young black women might otherwise find difficult to obtain is crucial in leveling the playing field. Mentorship can play a significant role in this regard, offering guidance, support, and role models who can inspire and motivate the next generation of leaders. By investing in the development of young black women, companies not only contribute to social justice but also gain from the fresh perspectives and talents these women bring to the table.

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!

28Mar, 2024

Game-Changing Seminar and more

Understanding the Transition from SETA to QCTO Qualifications

In our previous newsletter, we alluded to the significant shift from Sector Education and Training Authorities (SETAs) to the Quality Council for Trades and Occupations (QCTO). Established in 2010, the QCTO represents a pivotal change in South Africa’s education landscape, focusing on standardized qualifications across all sectors through the Occupational Qualifications Framework (OQF).

Unlike SETAs, which were sector-specific, the QCTO’s approach ensures mobility and recognition in the job market. Learnerships under the QCTO emphasize a structured approach, including knowledge components, practical training, and external assessments. With the transition already underway, learners have until June 30, 2027, to complete their existing programs.

Are you unsure of what this transition will mean for your business or existing learnerships? Give us a call!

Awaiting Clarity: Updates on Transport Sector Charter Changes

Since our update about the announcement of potential changes to the Transport Sector Charter (TSC), stakeholders have eagerly anticipated further details. Despite initial buzz, regulatory silence has left the industry in suspense. Speculations abound regarding the amendments, ranging from ownership calculations to employment equity initiatives.

The speculated changes hint at a transformative shift, emphasizing inclusivity and sustainable development within the sector. Businesses are poised for adaptation, recognizing the importance of staying abreast of regulatory shifts. As the industry awaits clarity, proactive engagement and strategic planning will be essential for navigating this evolving landscape.

Plus, Get Ready for Something Big: B-BBEE Seminar & Transport Sector Buzz!

Buckle up for some exciting updates! We’re bringing you the lowdown on our upcoming B-BBEE seminar and the latest buzz from the Transport Sector. We recently got the inside scoop on the QCTO transition, and we’re pumped to share the insights with you. But hey, we’re not stopping there—our seminar is gearing up to be a game-changer!

Picture this: A dynamic seminar packed with expert speakers, interactive sessions, and all things B-BBEE. From decoding the scorecard to uncovering growth opportunities, it’s all about empowering you to thrive. Plus, keep your eyes peeled for updates on the Transport Sector Charter—because change is on the horizon, and we’re here to help you navigate it like a boss.

So, mark your calendar, spread the word, and get ready to dive into the action. Whether you’re a B-BBEE newbie or a seasoned pro, this seminar is your ticket to success. Don’t miss out—join us and let’s make waves together!

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

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.

4May, 2023

ESD Interview with Dr Mushariwa and a brief look at MAC Sector Codes

ESD Interview with Dr Mushariwa

Dr Muriel Mushariwa from EconoServices and Zevoli Growth Partners sat down to discuss the challenges faced by companies in fulfilling Enterprise and Supplier Development programmes that are impactful and value adding.

EconoServices is committed to providing value-added assistance to our clients that fulfils the remit of Enterprise and Supplier Development programmes and Zevoli Growth Partners seeks to create a user-friendly app that assists companies to monitor and implement their ESD hassle free.

Contact us on 011 483 1190 or info@econobee.co.za to find out how we can assist you with Enterprise and Supplier Development.

Fireside Chat Episode 1

A brief look at MAC Sector Codes

As the meaning of Turnover in the Marketing, Advertising and Communications (MAC) codes is not the same as other sector codes, there is a debate on how we define cost of sales due to the very different ways in which MAC sector clients operates.

Turnover – is defined as total sales less cost of sales.

Cost of sales is restricted to third party costs that result in the execution of ideas on which agencies earn remuneration

An invitation notice to the public and interested stakeholders to provide inputs to review the current MAC Sector Code has been published in a previous government gazette – EconoBEE has answered this call and submitted our response to this notice and we will keep our clients informed of any new developments on this front. It is hoped that the MAC Sector Council will soon provide clarity on this issue.

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.

29Sep, 2022

Labour Law and Transformation: EconoServices does it all!

Running a successful business requires you, as the business owner, to not only manage your clients, but also your staff.

Labour law is a constantly evolving and changing area of staff management and it is crucial that companies put in place policies and procedures that are updated and aligned to the current law.

EconoServices has seen the need within our clients, to provide this HR service and so we are pleased to announce our new service offering!

We are now able to provide training and consulting services with regards to:

Basic Conditions of Employment Act
Labour Relations Act
Employment Equity Act
Compensation for Occupational Injuries Act.

So, please contact us today and let us help you with all of your transformation needs!

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.

15Mar, 2022

EconoBEE wins a YES Programme related Case for our Client!

The YES4Youth Programme is a fantastic initiative that is focused on eradicating the high unemployment rate amongst South African Youth. The programme encourages companies to provide unemployed Youth with 12-month work experience (that can be added to their CVs), as well as possible permanent placement within their ranks. However, as it relates to B-BBEE, there are still a few points that need to be cleared up:

Can accommodations be made for extenuating circumstances?

EconoBEE recently experienced a unique situation in that a company had embarked on their second year of the YES Programme as a QSE. They had met all targets identified on the QSE Scorecard in order to maintain their Level 2. However, after the financial year ended, the financial statements stated that this company’s turnover exceeded the QSE threshold, therefore making them a Generic. As a result, this company had not been able to maintain the Level 2 as planned.
This resulted in the verification agency not awarding the company their YES Benefit.
EconoBEE decided to take this scenario to the DTI on our clients behalf, we presented the evidence to show that had the company’s turnover stayed in their QSE threshold, they would have maintained the Level 2.

We won the case, and our client was able to add the YES Benefit to their scorecard!

Who qualifies to use the YES Programme and obtain B-BBEE Benefit?

First time companies must achieve a compliant B-BBEE Certificate in order for the YES Programme to be applied at audit stage.
If a company would like to continue with the YES Programme for a second year, said company would need to maintain (or improve on) their previous B-BBEE Level. Therefore, if you achieved a Level 4 in your first year using the YES Programme, you will have to maintain the Level 4 in the second year.
Should the previous level not be maintained after verification, the YES Benefit will not be awarded.

Does the YES Programme work according to a Company’s Financial Year (much like B-BBEE does)?

Like B-BBEE, the YES programme does rely on a company’s Financial Year, however this is only in relation to the payments and registration. All payments to the YES Programme (Company Registration Fees as well as Youth Registration Fees), must be paid to the YES Programme before the end of a company’s financial year.
In addition to this, all Youth should also be registered on the system within the same Financial Year.
The financial year referenced above, would be the same financial year that a company would be verified on for B-BBEE purposes, which is why these payments need to be made in the same year.

Duration of the YES Programme:

The YES Programme is a 12-month Programme and the B-BBEE benefit can only be awarded in the below instances:
Year 1: any company that is implementing YES for the first time can be awarded the B-BBEE benefit immediately, without the Youth needing to complete a minimum number of months.
Year 2 and Beyond: any company that continues on the programme from year 2, will need to ensure that the YES candidate complete a minimum of 8 months on the programme (each year) in order to be awarded the Yes benefit.

Contact EconoBEE now to help guide your company 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 1^st 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 15^th 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 6^th of April 2021 (which referenced a supporting SANAS email clarification dated the 14^th 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.

9Dec, 2021

Tis the season . . . for B-BEEE!

EconoBEE would like to wish our clients, suppliers and you, dear reader, a very safe, joyful and peaceful festive season and New Year.

We will be closing our offices on the 15^th of December 2021 and be back to championing B-BBEE, EE and SD for our clients on the 3^rd of January 2022. During this period, should you have any queries, please email us using: info@econobee.co.za

We have some exciting line-ups for 2022 . . . !!

We are launching our bespoke online / virtual and face-to-face workshops on Broad-Based Black Economic Empowerment, Employment Equity and Skills Development, tailored to your individual or corporate needs! We will provide more information regarding this in subsequent newsletters, in the meantime and should you have any queries, you are most welcome to give us a call on 011 483 1190 or email us using: info@econobee.co.za

9Nov, 2021

Happy News to end off 2021

It is with great pleasure that we announce that EconoBEE is officially 51% Black owned and is the leading Black Economic Empowerment (BEE) Strategy and Management Consulting firm in South Africa.

Founded in 2000, EconoBEE is a highly specialised, niche corporate advisory business that specialises in providing companies with Research, Advice and Structuring services in the areas of Corporate Regulatory Compliance within the Broad-Based Black Economic Empowerment (B-BBEE), Employment Equity (EE), Transformation, Enterprise and Supplier Development (ESD) and Skills Development (SD) ecosystem. As a 51% Black Owned EME, EconoBEE is a Level 2 BEE compliant company with a total recognition score of 125%. As a visionary organisation within the South African BEE context, the company’s strategic goal is to ease the legal, compliance and administrative burdens and legislative shortcomings of its clients, whilst assisting in their growth endeavours. EconoBEE makes use of highly sophisticated, state-of-the-art technology software to analyse their client’s corporate ownership structures. This is further bolstered by an in-depth set of Gap Analyses in the formulation of scorecards that essentially measure the success of their clients’ strategic endeavours and corporate goals. Our team is made up of a team of consultants with a mixture of legal and commercial qualifications. EconoBEE’s revolutionary consulting concepts and analytical management methodologies has resulted in the business, as well its brand, becoming one of the most recognized in the areas of Transformation and Broad-Based Black Economic Empowerment in South Africa.

We look forward to growing EconoBEE to greater heights as we begin this new journey.

13Oct, 2021

Yes, Fronting is a Criminal Offence!

A recent ruling by the B-BBEE commissioner has brought into sharp focus the misunderstanding with regards to the legitimate beneficiaries of B-BBEE. https://www.bbbeecommission.co.za/vicky-adey-consulting-cc-withdraws-from-government-panels-and-surrenders-for-cancellation-its-cidb-grading-for-misrepresentation-of-b-bbee-status/ For B-BBEE purposes, the definition of black is very specific and in terms of the Broad-Based Black Economic Empowerment Act (B-BBEE Act) the definition of “black people” is given as follows: “Black people is a generic term which means Africans, Coloureds and Indians–

Who are citizens of the Republic of South Africa by birth or descent; or
Who became citizens of the Republic of South Africa by naturalization-
- Before 27 April 1994; or
- On or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalization prior to that date.”

In the Vicky Adey consulting case, the facts were as follows: Vicky Adey Consulting CC claimed to be 100% black owned however, the alleged black ownership actually included a Nigerian national (40%), who does not qualify to benefit under the B-BBEE Act, if one considers the definition of black people in section 1 of the B-BBEE Act, as mentioned above. The B-BBEE Act specifically defines black people to exclude any non-black South African citizens, foreign nationals and those black people that acquired citizenship by naturalisation after 27 April 1994. Hence it is critical to track the background of an entity’s owner(s) in order to determine compliance with and status within the B-BBEE Act. Further, based on the information, it appears that Vicky Adey Consulting CC may have accessed opportunities within the government on the basis of the misunderstanding and this company is now bound by the consequences of that ruling. The B-BBEE commission is clear Including foreign nationals in ownership as black violates the B-BBEE Act, is contrary to the objectives of the B-BBEE Act and amounts to misrepresentation which is a form of fronting in terms of the B-BBEE Act. Another instance where the legitimate beneficiaries of B-BBEE may be confused is when two foreign nationals – who both have permanent residence – are married and have a child in South Africa. In terms of the above definition, the child is not a citizen of South Africa and would thus not be a beneficiary of B-BBEE. In summary Is fronting a criminal offence? Yes! Under the B-BBEE Codes of Good Practice, fronting is now recognised as a criminal offence. If found guilty, businesses could face a fine of up to 10% of their annual turnover or up to 10 years in prison. Want more information about ownership 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.

29Sep, 2021

What is Socio-Economic Development and why is it different to Corporate Social Responsibility?

In recent months, there has been some confusion surrounding the activities relating to Socio-Economic Development (SED) from a B-BBEE perspective, and Corporate Social Responsibility (CSR). Let’s look at the definition of each of these elements. Socio-Economic Development (SED) is defined in the B-BBEE Codes, as monetary or non-monetary contributions implemented for communities, natural persons or groups of natural persons, where at least 75% of the beneficiaries are black people. The objective of SED is the promotion of sustainable access to the economy for the beneficiaries. The most common contributions under SED are as follows:

Development programmes for black women, black youth, black disabled people as well as black people living in rural areas.
Support for education programmes, resources and materials at primary, secondary and tertiary education levels, as well as bursaries and scholarships.

Corporate Social Responsibility (CSR) is a self-regulating business model that helps a company become more conscious of the impact that they can have on all aspects of society, including economic, social and environmental. This means that in the ordinary running of a business, a company should operate in ways that enhance the society and the environment in positive ways. From the above definitions, it can be seen that while there can be an overlap in some of the activities for CSR and SED, it does not mean that these are the same initiatives. The focus of SED is to uplift specific black people and communities through targeted contributions that will provide the beneficiaries with access to the economy, through either Skills Development, Healthcare, or Early Childhood Development Programmes. While the focus of CSR is to be a good corporate social citizen. This includes running the company in an environmentally friendly manner, providing assistance in the form of donations to NPOs as well as hosting social events which raise awareness to social issues. While some of the contributions made under CSR can qualify as SED, we must not get these initiatives confused. These are two very different initiatives and in order to not lose out on B-BBEE points, SED activities must be aligned with what is outlined in the B-BBEE codes. To find out if your CSR is aligned to SED as defined by B-BBEE, please don’t hesitate to contact us at EconoBEE.

17Aug, 2021

The ICT Sector: the complexity of definitions

The relatively new Information and Communication Technology (ICT) sector is made up of the manufacturing and services sectors whose main activities are linked to development, production, commercialisation, and intensive use of new technology. This sector is the fastest-growing sector within South Africa, however, there does exist a scarcity of participation of Black female-owned entities. The Amended ICT Sector draft codes were gazetted on the 27^th of October 2015 and, subsequently, the finalized Amended Sector Code was published in the Government Gazette on the 7^th of November 2016. However, the most alarming fact about the Amended ICT Codes is that a lack of definition exists within it. Hence, in the areas where the Amended ICT sector is silent, we refer to the DTI Codes. This has sparked several debates as the DTI (Amended Codes of Good Practice) were again amended on the 31^st of May 2019. A few examples of areas in contention include:

The SDF calculation
The absorption definition
The 2.5% learnership indicator

We had a meeting with the ICT council to discuss the above issues of debate and we were able to get an acceptable consensus on these and other issues.

Do you fall under the ICT codes? Would you like to have guidance on the above in terms of the priority element of skills development and in other matters?

Contact us and we can help you maximise your scorecard with minimal fuss!

3Aug, 2021

No “one size fits all” at verification

Verification is an audit process that is required in order for you to be issued with a B-BBEE certificate. All five elements of the scorecard are verified with supporting evidence. Verification happens through a SANAS accredited agency which is empowered through legislation to issue you with a valid B-BBEE certificate. There is a code of conduct and checklist that verification agencies need to abide by before issuing a valid B-BBEE certificate. There is definitely no “one size fits all” process at verification due to different interpretations of the codes by verification agencies. Due to our close relationship with six of the top verification agencies in the country, we know the different interpretations out there in order to guide our clients appropriately. We will detail below what we have learnt through the 20 years of verification experience, the “must-do list” to ensuring a stress-free verification process. Planning

You need to have a verification project plan to guide the process of verification.
You need to track your turnover and NPAT every month to ensure are you still a QSE or Generic as this will impact your score due to the different targets between a QSE and Generic scorecard. Any discrepancy with your NPAT will negatively impact the score.
Verification planning is a year-long project. You need to have your verification file ready two months before your planned verification (also keeping it in line with when your current certificate will expire). Leaving it to the last minute is problematic.

Format of information

Due to the checklist that verification agencies have, we can tell you before your verification what information will be required from you to claim points. However, the information will be required in a specific format to meet the standard of the verification agency. For example, an ID copy must be certified.

Sampled evidence

Certain evidence will be requested at verification stage that is not known until the verification agency has sampled under the elements of management control, procurement and skills development. This means you need to have the information ready and on hand depending on which staff members are sampled under management control. As some companies are working virtually this can waste time at verification if information is not readily available when sampled.

Software

It’s important to have a mock scorecard before you go for verification so you know what your likely level will be.
We are able to easily pick up when points have not been adequately awarded as we use similar software to verification agencies. Unless you know where to look, you can lose out on valuable points and your desired level. The verification agency is not under an obligation as an auditor to show you where you can earn more points, consultants are needed to fight for your points.

Are you preparing for verification? Let us help you to generate a mock scorecard to show you the level you are likely to get. We can also assist you in the preparation of a verification file to submit to the verification agency.

19Jul, 2021

Have you read: The 21st CEE Report?

The 21^st Commission of Employment Equity Report has been issued and it shed light on some Employment Equity developments. These are also in line with the Draft Amendment Bill that is still being reviewed in parliament. As expected, the report has updated EAP targets which are useful in the quantitative analysis of each management level. These have changed slightly from last year:

The commission has consulted most of the business sectors to set sectorial targets. The finance and business sector has finalised the discussions. Based on these developments, all designated employers should be proactive and review their EEA12 and EEA13 to be prepared. More changes are yet to come; give us a call to find out how best you can stay compliant with Employment regulations. Did you Know?

You don’t have to sell your company shares in order for you to earn points on the ownership scorecard. The B-BBEE codes allow for various means in which to earn points on ownership.
There are tax benefits that you can claim through specific forms of skills development. Let us show you how.
Long term strategies for enterprise and supplier development ensure you will earn points over several years regardless of unexpected changes to your NPAT.
The Amendment to the Employment Equity Act, which was recently released, has far stricter penalties for employers who don’t take EE seriously. Employers that don’t comply can expect strict enforcement and harsher penalties – fines of up to R2. 7mil or 10% of annual turnover.
You can maximize on the skills development scorecard without having to meet the target spend.
For absorption points you do not have to absorb all the learners trained to claim your skills development. Let us show you how this can be achieved.

POPIA Compliance We take both your privacy and the POPI Act seriously, and would like to inform you that EconoServices will continue to ensure that all measures are taken to safeguard your personal information. We have put in place measures to ensure compliance with the requirements of the POPI act to prevent and stop the following:

No unauthorized access to personal information
No damage, accidental loss, misuse or destruction of any personal information on our records

This will allow us in turn to continuously improve our systems in use and ensure we operationally continue within the legal framework of the act. Should you however, feel you would like to change your consent or information on record please feel free to contact our information officer Dr Muriel Mushariwa. You have the right to the following options in terms of your personal information:

Provide any updates such as address changes or contact details
To delete or remove your information
To inform us to stop contacting you

Should we not hear from you by 23 July 2021, we will take it that permission has been given to us to continue to retain the information and to continue to communicate with you. Regarding our mailing list: No action is required if you are happy to stay on our mailing list and it will be accepted that you have consented to staying on. If you change your mind at any time in the future, you will always have the option to unsubscribe. Best wishes and keep safe. The EconoServ Team

5May, 2021

MAY MADNESS!

During the month of May, EconoBEE will be running specially tailored full-day and half-day B-BBEE workshops with an added twist! Our Directors will be unpacking extra information which includes, but is not limited to, the following:

How the new measured period will impact measured entities
The debate around sale of assets and how it impacts ownership points
The B-BBEE Commission’s changes to non-compliant company reports
Recent rulings by the B-BBEE Commission around share option schemes
SANAS’s take on how to calculate the indicative profit margin
Communication from the ICT council with regard to the private contribution model
Annual fees that need to be paid to the ICT council
Discussion around the new absorption definition
Continued recognition complexities and how it impacts ownership points
ICT disability training and EAP targets

Please contact us on info@econobee.co.za or 011 483 1190 to hear more!

23Apr, 2021

SANAS Clarity on measured period

The governing body of verification agencies, the South African National Accreditation System (SANAS), have sent a letter of clarification to all verification agencies in relation to the issue of the measured period. The letter is as follows: “I refer to the correspondence issued by Mr Yuneal Padayachy on 14 August 2020 in respect of the above-mentioned matter.(clarity on measured period) We reiterate that the latest financial year end records must be verified for B-BBEE Verification purposes. The Verification Manual makes provision for the use of financial statements which are not audited and details the additional testing or requirements to be taken into consideration in reducing the risk to an acceptable level. These processes had been agreed to with the dtic and are not new requirements. If the intention of the legislature had been to allow for audited financial statements only, then it would not have allowed for the alternative testing or requirements on unaudited Financial Statements. As a consequence of that communication, all verifications not done in line with that guidance, effective 15 August 2020, should be corrected. SANAS assessors will sample to determine if the guidelines had been followed by all Rating Agencies” The impact of this communication is as follows:

Measured entities will not be allowed to use a measured period different to their financial period.
Management accounts need to be aligned to the financial period, therefore an unaligned rating period will not be used.
A measured entity is now required to use its most current financial information for a BBBEE audit. For example in 2021, a measured entity with a year end of February will need to use the financial information from March 2020 to February 2021. The measured entity being audited in 2021 will not be allowed to use the financial information of March 2019 to February 2020.

Talk to us about how this communication may impact you going forward.

30Mar, 2021

The Big Debate: Sale of Assets

Ownership in the B-BBEE codes is by far one of the most complex elements to get right. Some entities feel bringing in new shareholders might impact the strategic direction of the entity as a whole; some just want to sell a stake but keep it minimal. Sale of assets, as an option, provides the convenience of getting ownership points without selling shares, but instead selling “a qualifying asset”. At present, there is a big debate over how many points should be allocated in this scenario! One school of thought holds that a measured entity should get full points from this arrangement. The other school of thought feels the points should be capped at 40% of the scorecard because this is indirect ownership. EconoBEE has engaged the BEE Commission and the DTI on this matter to gain clarification.

Not only do we know how to set it up for you, but we also know the right side of this debate.

Send us an email or give us a call and find out what we know!

April Online Workshops

Date	Workshop Title	Price
06 Apr 2021	Skills Development Workshop	R1 550.00
08 Apr 2021	Half-Day Employment Equity Workshop	R1 550.00
13 Apr 2021	Half-Day B-BBEE Workshop	R1 550.00
15 Apr 2021	ICT Sector Code Workshop	R1 550.00
20 Apr 2021	FSC Sector Code Workshop	R1 550.00
22 Apr 2021	2-Hour YES Workshop	R750.00
29 Apr 2021	Full-Day B-BBEE Workshop	R3 700.00

16Mar, 2021

Are YOU being paid out your Mandatory and Discretionary Grants?

There are 2 types of Grants that are awarded to companies to assist with Training and Upskilling. These are the Mandatory Grants and Discretionary Grants. Let’s look at the difference between these Grants and the benefits of each: Mandatory Grants This Grant is payable to all levy paying companies upon submission and approval of the WSP/ATR Report. This is only paid after the WSP/ATR Report has been approved, which ensures that the SETA’s Quality Standards have been met in the submission. All submissions must be made before the deadline on 30 April, otherwise the Mandatory Grant will not be awarded. This Grant will award companies 20% of the total annual levies that are paid by the employer each month. These pay-outs are made quarterly. Discretionary Grants Discretionary Grants are awarded, as the name indicates, at the discretion of the SETA. Companies will need to apply for this grant when the window opens, which is usually a few weeks after the WSP/ATR submission. The application process is fairly lengthy, as each company will need to specify what type of training will be implemented, the training provider that will be used, and the details of the course will need to be provided. The total cost of this training will need to be provided, including the stipend amounts that will be paid to Learners (where applicable). Companies need to ensure that the training progammes chosen in the Discretionary Grant, address the Scarce and Critical skills shortages in their respective SETA. A complete list of these Scarce and Critical Skills can be obtained from the SETA’s websites. Successful Discretionary Grant applicants can get up to 49.5% of the total levies paid back annually. This grant must be used to pay for the training that was specified in the application. This grant will be paid out quarterly, and in order for payment to be made, companies must provide progress reports for each of the learners sent on training. Who can apply for Discretionary Grants:

NGOs and cooperatives in the Sector
A public education and training institution
A levy paying employer, who has submitted the WSP/ATR Report
A non-levy paying employer, within the jurisdiction of the SETA.

Do you need assistance with these Grants? EconoBEE is happy to help you understand these Grants and assist with these applications. The window for Mandatory Grants is now open for most SETAs.

Online Workshops – To peruse our 2021 Online Workshop List, please click here

2Mar, 2021

IMPORTANT changes to companies’ B-BBEE annual reports!

The B-BBEE Commission has recently sent out a notice that it may publish the reports of non-compliant companies! Please read the below to understand the context of the notice. JSE listed companies, public companies or organs of state and SETAs must submit annual compliance reports to the B-BBEE Commission in the prescribed FORM B-BBEE 1, within 30 days of the approval of such audited financial statements and annual report. JSE listed companies specifically, can submit to the B-BBEE Commission within 30 days of the approval of such audited financial statements and annual report or 90 days at the end of the financial period. SETAs must submit a report to the B-BBEE Commission annually on the skills development spending and programmes within 30 days of the approval of such audited financial statements and annual report or 90 days at the end of the financial period. In 2017, the B-BBEE Commissioner issued an explanatory notice requiring all reporting entities to provide additional information as outlined in a compliance report matrix required by the B-BBEE Commission. Companies faced challenges in reporting on the information required in the reporting matrix. In 2019 the B-BBEE Commission found that 18.1 percent of all B-BBEE certificates submitted, were rated as non-compliant for B-BBEE and, of the 161 listed entities that reported, 4.97 percent had no data for analysis.

The B-BBEE Commission issued another explanatory notice on the 3^rd of February 2021 which will take effect on the 1^st of April 2021, in an attempt to provide clarity on the matter in which to complete the reporting matrix.

Companies that are found to be non-compliant will be given 30 days to rectify their status. The B-BBEE Commission may publish the reports in a manner that it deems appropriate of companies that are not compliant.

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! Online Workshops – To peruse our 2021 Online Workshop List, please click here

16Feb, 2021

The deadline for the annual submission of the WSP is 30 April 2021!

The law states that a company with a payroll that exceeds R500 000 per annum must be registered to pay the Skills Development Levy (SDL). All companies with 50 or more employees need to establish a Skills Development Committee and consult with the Committee prior to the submission of the skills report. All companies need to appoint a suitably qualified Skills Development Facilitator (SDF) to facilitate the training needs within the organisation and liaise with the SETA. The WSP (Workplace Skills Plan) plays a significant role in the execution of education, training and development initiatives in the organization. An employer needs to establish a WSP, which is a strategic document that details how the employer will address the needs for development and training in the workplace. Remember to link this to your succession plan! This should be in line with the core and critical skills identified by the SETA. The ATR (Annual Training Report) is accurate documentation of all the training that has taken place in the reporting period in the organisation i.e.: the ATR is the past information and the WSP is the future planned training. Benefits of Submitting your Skills Development Reports:

The Skills Development Act aims to develop the skills of the South African workforce, thereby improving the quality of life for workers and giving them more prospects of work. It also aims to improve productivity in the workplace, the competitiveness of employers and to promote development.
The Skills Development Levies collected by the SETA are channelled towards skills development. This levy can be claimed back by an employer if they submit their WSP, ATR and Pivotal training report and achieve the goals set out
You can claim up to 20% of the SDL you pay by submitting your WSP and ATR in time
In order to maximise your B-BBEE points for skills development, you need to submit your skills development report to the SETA on time
You are able to access SETA grants to assist in training your employees

When skills development is structured in the best way, and core and critical skills are identified, implementation becomes sustainable and ends up saving you money. Learnerships are a key strategy to achieving your goals as well as enabling you to take advantage of the tax allowances, employee tax incentives and seta grants which reduces your overall cost. ECONOBEE is hosting a number of workshops on SKILLS DEVELOPMENT! Delegates will gain a better understanding of the requirements of the SD Act and SDL Act and will have more knowledge on how to submit your documents and how to maximise your skills development spend. We will explain how targeted skills development can actually save you money, via tax incentives, and maximise your B-BBEE skills development recognition. Can’t attend? Please contact us on 011 483 1190 and we can tailor a solution for you.

Tag Archives: BEE