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If you have not yet taken a step along the BEE path, it is essential to understand the potential implications it may have on your company's ability to trade in the South African market in the future.

Current legislation such as the Employment Equity Act and the BEE Act (Broad-Based Black Economic Empowerment Act No. 53 of 2003) together with the Codes of Good Practice and the ongoing development of the various industry sector Transformation Charters and scorecards, will severely impact companies that ignore BEE.

It is abundantly clear that for most companies it will be imperative to embrace BEE in order to do business in an unrestricted manner in the local market. Procurement from BEE companies accounts for up to 20% of the points on a scorecard, and it is often one of the easiest ways to enhance a company's empowerment status.

Apart from empowerment being a legal imperative, efforts to bring about an environment of social upliftment of people that were previously disadvantaged are vital for the sustained development of the country.

It is very important to be aware that it is not necessary to "give away" shareholding in your company to become an empowered organisation. Approximately 20% of the scorecard points are allocated to share ownership and the balance of 80% can be scored in areas such as is reflected in Government's generic scorecard below.

Element		Weighting
Ownership		20
Management Control		10
Employment Equity		15
Skills Development		15
Preferential Procurement		20
Enterprise Development		15
Socio-Economic Development		5	100

Businesses with annual turnover levels of below R35 million are afforded an easier version of this scorecard, with under R5 million qualifying as exempt. Contact Dijon de Jager or Sibu Mbuli at 011 486 4814, for more information about obtaining an Exemption Certificate.