The Broad Based Black Economic Empowerment’s (“BBBEE“) Code of Good Practice (“the New Codes”) was published for public comment towards the end 2012. However, companies are still not completely familiar with the New Codes and some companies struggle to get increased ratings now that the rating requirements have been decreased from 7 to 5.
Large industries in South Africa such as the mining industry are not yet compliant with the requirements of the BBBEE Act or the New Codes.
The Department of Trade and Industry has announced that the transitional period for Companies to get in line with the BBBEE Act and the New Code has now been extended to 30 April 2015. This means that any entity that undergoes verification after 30 April 2015, irrespective of its financial year end, must apply the New Codes. Any verification between now and 30 April 2015, will have the option of either choosing to be rated un the 2007 Codes of Good Practice or the New Codes.
Sector codes are required to align to the New Codes by 11 October 2014 and thereafter allow entities another 6 (six) months transitional period (until April 2015), to align themselves to the changes in these sector codes to achieve the desired levels.