Since all businesses based at Riversands Incubation Hub are majority black-owned, our team is well versed in the requirements of the BEE scorecard.
Word on the street is that medium to large companies don’t need to concern themselves with their BEE scorecard as long as they can find black women-owned businesses to fulfil their procurement needs. This isn’t strictly true, because – while there are additional points to be allocated by procuring from a black women-owned business – only companies which have met the BEE requirements in the other four pillars can afford to think along those lines.
The pillar entitled ‘Enterprise and supplier development’ or ESD, has a total of 40 weighting points on offer on the scorecard – the highest number (Ownership pillar 25 points; Management Control 15; Skills Development 20; and Socio-economic Development 5).
In part, the 40 ESD points are spread across Qualifying Small Enterprises; Exempted Micro-Enterprises; 50% black-owned enterprises and 30% black women-owned, with the women-owned section attracting a total of four points.
The proliferation of BEE rating agencies in the South African market is largely a result of the complexity of the codes and these agencies fill a valuable role in identifying opportunities for companies to comply with the requirements.
At Riversands Incubation Hub, all businesses are majority black-owned with 55% female-owned and the variety of industries represented on the campus makes us the perfect partner for BEE procurement.
For more information download the pdf here