Businesses in South Africa are increasingly turning to B-BBEE procurement as a means of meeting their compliance requirements and driving economic transformation. The Broad-Based Black Economic Empowerment (B-BBEE) initiative was introduced in 2003 with the aim of redressing the inequalities created by apartheid and transforming South Africa’s economy into one that is more equitable for all citizens.
The concept behind B-BBEE procurement is simple: businesses must purchase goods or services from companies owned by black people, women, people with disabilities, youth or other designated groups when possible. This helps to create jobs within these communities and provides them access to capital which can be used for further development projects such as education initiatives or infrastructure improvements. Additionally, it encourages entrepreneurship amongst previously disadvantaged individuals who may not have had access to resources before now.
For businesses looking at implementing a successful B-BBEE strategy there are several steps they should take: Firstly they need to understand what type of supplier qualifies under this scheme – typically suppliers must meet certain criteria such as having majority ownership held by an individual from a designated group; secondly they need ensure that their current supply chain meets the required standards; thirdly if necessary changes should be made so that any new suppliers comply with these standards; finally ongoing monitoring needs to take place both internally within their organisation but also externally through audits conducted on behalf of government agencies responsible for ensuring compliance requirements are met .
By taking advantage of this programme businesses can help drive positive change throughout society while simultaneously meeting legal obligations set out in legislation like the Employment Equity Act 1998 (as amended). It also gives organisations greater visibility over where money is being spent which allows them better control over costs associated with procuring goods/services while still contributing towards social upliftment programmes throughout South Africa - ultimately leading us closer towards creating an equal playing field across our entire nation!