B-BBEE ENSight | 24 January 2018

Are you aware of your B-BBEE compliance obligations?

by Sanjay Kassen
Broad-based black economic empowerment (“B-BBEE”) is a policy of the South African government that is aimed at increasing participation by previously disadvantaged South Africans in economic activities. The Broad-Based Black Economic Empowerment Act, 2003 (the “B-BBEE Act”) is the primary legislation through which this B-BBEE policy is implemented. In terms of the B-BBEE Act, B-BBEE consists of measures and initiatives that are aimed at increasing levels of equity ownership by black people in businesses operating in South Africa, increasing the numbers of black people who participate in management roles in business, improving the skills of black employees, assisting small and medium businesses that are majority-owned by black people, procuring goods and services from businesses that are good contributors to B-BBEE, and promoting corporate social investment.

The B-BBEE Act, the B-BBEE Codes of Good Practice and the B-BBEE regulations promulgated thereunder are complex pieces of legislation that are often difficult to navigate. Non-compliance with the B-BBEE regulations has significant penalties, including up to 10-years' imprisonment for fronting.

It is becoming critical for South African businesses to clearly understand the B-BBEE legislative framework and the B-BBEE requirements and obligations imposed on them.

ENSafrica’s B-BBEE practice group offers various B-BBEE compliance training products and can assist South African businesses in becoming aware of the B-BBEE legislative framework and their B-BBEE obligations. These services include general B-BBEE information sessions, B-BBEE fronting training sessions and B-BBEE training to preferential procurement teams. 

Please contact ENSafrica’s B-BBEE practice group if you require any assistance with B-BBEE compliance.


Sanjay Kassen

corporate commercial | director
cell: +27 82 561 1509

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No information provided herein may in any way be construed as legal advice from ENSafrica and/or any of its personnel. Professional advice must be sought from ENSafrica before any action is taken based on the information provided herein, and consent must be obtained from ENSafrica before the information provided herein is reproduced in any way. ENSafrica disclaims any responsibility for positions taken without due consultation and/or information reproduced without due consent, and no person shall have any claim of any nature whatsoever arising out of, or in connection with, the information provided herein against ENSafrica and/or any of its personnel. Any values, such as currency (and their indicators), and/or dates provided herein are indicative and for information purposes only, and ENSafrica does not warrant the correctness, completeness or accuracy of the information provided herein in any way.



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