The B-BBEE Act and Codes of Good Practice on Black Economic Empowerment drive a number of decisions in business to ensure the sustainability of your business by supporting the prescribed principles in terms of the following five elements:

  • Ownership
  • Management Control
  • Skills Development
  • Enterprise and Supplier Development and
  • Socio-Economic Development.

The new Codes (initially effective 1 May 2015) change the way a business/company’s B-BBEE status is calculated. These changes have a major impact on companies whose customers require a minimum B-BBEE status from their suppliers with contractual or other obligations.
Companies starting up or with a total annual income of R10 million or less are regarded as Exempted Micro-Enterprises (EMEs) and enjoy Level 4 B-BBEE status.
To be deemed as a Qualifying Small Enterprise (QSE), an annual income of between R10 and R50 million is required and their B-BBEE status is measured in terms of the five B-BBEE elements.
In terms of the new Codes, EMEs and QMEs that are 100% black-owned will have Level 1 B-BBEE status while those that are 51% black-owned will be rated as Level 2.
A Large Enterprise with an annual income exceeding R50 million needs to comply with all five elements. The corporate will automatically be downgraded by a level if it fails to comply with the following three minimum requirements:

  • 40% of the ‘net value’ targets for the Ownership element
  • 40% of the total weighting points for Skills Development
  • 40% for each of the three sub-categories of Enterprise and Supplier Development (ESD) – namely Preferential Procurement, Supplier Development and Enterprise Development.

Preferential Procurement (25 + 2 bonus points)

  • A supplier to an entity that is measured in terms of B-BBEE must be an empowering supplier to contribute towards the corporate’s Preferential Procurement score. To qualify as an Empowering Supplier you need to be B-BBEE compliant, complying with all regulatory requirements and meeting at last three requirements that include local procurement, job creation and skills transfer.
  • EMEs and start up enterprises are regarded as empowering suppliers.
  • There is a greater value points for spending with Black Owned and Black Women Owned empowering suppliers.
  • Extra recognition for expenditure with first time suppliers and QSEs or EMEs or Supplier Development beneficiaries that are tied in with a three year contract.
  • Bonus points are awarded for spend with suppliers that are owned by designated groups that are at least 51% black owned.

Supplier Development
(10 points) and Enterprise Development (5 points)

  • Beneficiaries of Supplier Development and Enterprise Development can only be EMEs or QSEs that are at least 51% Black Owned.
  • Enterprise Development contributions in the form of shorter payment period is limited to 1.5 of the 10 points.
  • Two Bonus points can be awarded for job creation through Supplier and Enterprise Development initiatives.

This means that the purpose of ESD is to ensure that large corporations procure their goods and services from black-owned and managed enterprises and assist them to grow, to empower them to play a meaningful role in the economy.
We assist you by identifying black businesses that can provide accommodation to your travellers to contribute to your score. RSC is a vehicle to assist these small black owned companies that is driven to ensure growth, providing skills transfer, skills development, and job creation to ensure sustainability. You will also have the ability to outsource some of your competencies to these businesses through the investment of time or money.

RSC provides the opportunity to grow your B-BBEE rating and invest in EMEs and QMEs through:

  • Increasing preferential procurement through supporting small businesses that are rated as Level 1 to Level 4 entities
  • Contributing to the equal distribution of trade in the country
  • Potentially collaborating on training initiatives of upcoming black-owned guest houses and the loyalty programme to support sustainability by investing time and money
  • Ability to monitor spend through receipt of detailed reports
  • Central access to the member’s B-BBEE certificates when needed.

B-BBEE assessment tool:

We have a unique reporting tool that will enable you to calculate indicative B-BBEE scores in accordance with the latest B-BBEE Codes backed up by the valid B-BBEE certificates of all members.