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Why is it important for your business to be B-BBEE Compliant?

Article written by Salomé Griebenow (PayTime & B-BBEE Legal Advisor SEESA – Cape Town)

The objective of B-BBEE is to correct the inequalities of the past by promoting meaningful economic participation of black South African citizens. Although entities cannot be forced to comply with the Broad-Based Black Economic Empowerment Amendment Act 46 of 2013 (BBBEE Act) and the applicable Sector Codes, it is important to comply with the B-BBEE Act.

The main reasons why it is important to be B-BBEE compliant can be summarised as follows:

In order to engage with any government entity, your business has to be B-BBEE compliant. This means that in order to tender for any government-related entity in the public sector, your business will have to have a valid B-BBEE Certificate.

The Preferential Procurement element on the B-BBEE Scorecard encourages businesses to procure from other B-BBEE compliant businesses. In other words, businesses who want to improve their overall B-BBEE score or increase the points they receive for Preferential Procurement will be incentivised to procure goods or services from your business if you are also B-BBEE compliant.

The Preferential Procurement element might also cause you to lose business by not being BBBEE compliant. Existing or prospective clients might be deterred from purchasing large amounts of goods or procuring services from your business due to the fact that it will negatively impact them under the Preferential Procurement element on the B-BBEE Scorecard.

In terms of the B-BBEE Act, every Organ of State and Public Entities must apply the B-BBEE Act when considering the issue of a license.

Therefore, compliance with the B-BBEE Act and Codes plays a vital role in promoting the participation of previously disadvantaged groups in the South African economy. It can also be very beneficial to the sustainability of the economic growth of your business, as is apparent from the above mentioned reasons.

Contact your nearest SEESA office to assist your business with BEE related queries, alternatively “SMS” the word “SEESA” to 45776 and a professional Legal Advisor will contact you.

About The Author:
Salomé Griebenow is a PayTime and B-BBEE Legal Advisor at SEESA’s Cape Town Office. She is an admitted attorney of the High Court who completed her LLB Degree at the University of Stellenbosch.

Broad-Based Black Economic Empowerment Amendment Act 46 of 2013 [‘B-BBEE Act’]

Recognition for this article is also given to the author of an article that appeared on the Business Tech website ( titled “BEE Rules are getting stricter” on 3 April 2015

SEESA is a proud Partner of the NSBC