Legal Framework of B-BBEE
B-BBEE (BEE) is legally based on the law Broad-Based Black Economic Empowerment Act No. 53 of 2003, which became effective in January 2004.
The subsequently issues Codes of Good Practice address the practical implementation of the general B-BBEE Act, which does not contain any compulsory regulations for any private enterprise or private investors. International investors do not have to “give” shares in their local entity away. However, a decent B-BBEE rating has become quite important for anybody who is doing business in South Africa and is mostly achievable without loosing control or ownership to empowered parties. The Codes of Good Practice, which fill out the general provisions of the Act, have been revised and amended and are in force since 1 May 2015.
For certain industry sectors, sector charters had been published, which override and amend certain terms and conditions of the Codes. All previous Sector Charters have been abolishes and are currently – step by step – being replaced by new Sector Codes in the following sectors only:
- Integrated Transport (8 Sub-Codes)