Broad–based black economic empowerment (BEE) is an economic transformation advancement policy to ensure the meaningful participation of black people in the economy of South Africa. The objective of the BEE plan is to control enterprises and assets through direct empowerment, address the issues of unemployed South Africans, and provide employment equity. For qualifying for the BEE, a person has to be an African, Indian, or South African citizen.
Here are five tips for building a BEE plan for your company’s transformation:
1. SKILLS DEVELOPMENT AND IMPROVING SCOREBOARD
- Identify skillful candidates for promotional opportunities and improve overall management score. Even 15% net contribution with a well-planned strategy can result in 90% of the points.
- Implement a proper strategy that includes the training and skills development of unskilled Africans.
2. REVIEW THE SCOREBOARD BEFORE THE END OF NEXT FINANCIAL YEAR
- Review the scoreboard after filing it in.
- Complete the overall review of verification certficate ( find alternative plans in case you miss any point).
- Choose skillful staff that meets your demands. Be proactive and spare time to optimize the strategy
- Align B-BBE goals and objectives with the interests of your company to improve the scoreboard.
- Understand how B-BBE works and make a framework of three to five years profit and payroll.
3. PROPER PLANNING AND MANAGEMENT
- Implementing a successful plan with budget approval is key to the company’s transformation
- Line managers play a key role in implementing the B -BEE strategy
- Create plans to achieve the goals regarding the five pillars of the BEE Scorecard (1) Direct Empowerment (2) Indirect Empowerment (3) Socio-Economic Development (4) Skill Development (5) Preferential Procurement
4. AVAIL YOUTH EMPLOYMENT SERVICE INITIATIVE:
- Youth employment initiative provides the golden chance to companies to increase the ratings of their scorecard by one to two levels
- It can be an alternative if the YES program best serves the interests of your company
5. BLACK OWNERSHIP FOR SME’S
- Developing black ownership is very beneficial for SME’s and helps attain sustainable growth, drive industrialization, provide services and jobs, and improve the country’s overall economic growth.
- Securing 51% black ownership will immediately qualify you as a level 2 contributor