What you need to know about BEE Certificates
What is BBBEE
BBBEE stand for Broad Based Black Economic Empowerment
Who is Black in accordance with the ACT?
A Black person, is defined as all people who may have been disadvantaged under the apartheid govenment, and includes Black, Coloured, Indian or Chinese demographics. However the individual must have been a citizen before 1995.
Example : A Chinese imigrant who has only received citizenship in 2005 would not be considered 'Black' as defined by the act.
Does one have to be certified?
No, but you may find in the New South Africa, that more business oportunities are available to you if you are certified. If you are a supplier to the manufacturing, or retail industry, you might find that your buyer requests that you have certification. You have to be certified if you want to tender.
Is it hard to get a BEE Certificate?
The greater the turnover the harder and more expensive it becomes and the harder it is to do? For most companies (except architect and travel industries) whose turnover is less then 5 million, they only require a BEE Exemption certificate. This can be easily done by SwiftReg in a few days for R490.
For companies who have larger turnover, an office visit is required, where a government approved agent will test you concerning a variety of areas. If you have to do this the cost of a BEE Certificate rises very quickly.
What is SANAS and SANAS certification
SANAS is the government agency, who accredits companies to do BBBEE certification. There are only a few companies is South Africa that can issue SANAS approved certificates.
If you are not exempt from proper certification, (ie in most cases your turnover is greater the R5 million) then you will need a SANAS approved company to visit you and score you in accordance with the required prerequisites. They will then issue you with a SANAS approved certificate.
Is SwiftReg SANAS approved?
Yes SwiftReg has partnered with Grant Thornton Verification services, and is SANAS approved
Why are so many of your competition not SANAS approved ?
A company that desires to produce SANAS approved certificates has to pay over R200 000 a year. Subsequently many companies offer certificates without the SANAS stamp and this in turn causes you trouble when your certificate is rejected...
What is Level 3 and Level 4
Level 3 is better the level 4. Level 4 is intended by white owned companies, or companies where more then 50% of their shareholding is white. The mark for level 4 is 100%, and level 3 is 110%
Level 3 is the best option if you are majority Black Owned (see definition of Black above). In a nutshell if you have a level 3 certification, your quote might be 10% more costly then your Level 4 competition and you could still win the tender.
And Level 1 and 2
A new series of codes were released in October 2013, listing the new codes of Level 1 and 2 for companies who dont appear in specific sectors. This means that a Black Owned company could get a Level 1, which equates to 135% Bee Rating as an EME.
However not all of the countries departments are yet to recognise this level.
SANAS verification agencies are not yet releasing certificates, meaning that in printing Level 1 certificates, a risk of total rejection for their tender, could occur. Subsequently we are holding back on these levels until they have been accepted by the broader sector.
And what happens if I am white and call myself black
Manipulating the system is a legal offense. SwiftReg reserves the right not to certify a company who could be manipulating the system so as to gain greater certification.