The South African Department of Trade and Industry (DTI) has introduced the concept of a BBBEE (broad based black economic empowerment) scorecard in order to measure a company's progress in developing BBBEE programs for their companies.

A BBBEE rating will reflect all seven pillars of the s/card including ownership, management control, employment equity, skills development, enterprise development, CSI, (corporate social investment) and preferential procurement (procurement with other BEE companies).

It is the DTIs intention that all levels of government, parastatals, would use balanced s/cards in awarding tenders and contracts. Through this Balanced s/card, the DTI aims to reverse the current practice of awarding contracts largely or solely based on the degree of black ownership of the companies submitting tenders.

Companies are actively aligning themselves to develop BBBEE plans, which will be effective and achievable, in order to give equal opportunity to all and help stamp out fronting and fraud.

Why Go BEE
Black owned companies may ask why should they obtain a rating seeing that they are black owned and everybody they deal with knows that. (If a company is 100%, black owned they are sure of only 20% out of 100% on the generic scorecard)

A BBBEE rating will also measure a company's contribution towards the other pillars of the s/card other than ownership and management, they want to see what a company's contribution is towards skills development, enterprise development, CSI, (corporate social investment) and preferential procurement (Procurement with other BEE companies, would in other words be transparent.) The only way to do that is to obtain a rating done by a rating agent, which will be accredited by SANAS.

Companies are advised by sector charters to familiarise themselves with the DTIs draft policy strategy on BBBEE and to examine the Codes of Good Practise.

How to Go About it
This is a process, and all parties concerned are encouraged to be patient, as different charters for industries will be implemented over a period of time. This will give everybody including government entities, so-called organs of state and parastatals as well as the private sector, enough time to align themselves according to DTIs requirements, on all sectors of the s/card.

Many companies have already obtained a rating and are constantly advised by DTI and charters on how to go about the whole process of becoming Black Empowered. This is admittedly a slow process but most companies are aware that this is the way forward and that government is putting structures in place to ensure equal opportunity for all.

The South African Motor Industry and BEE The Retail Motor Industry(RMI) has established a BBBEE work group that is formulating the criteria that will eventually become the Automotive Sector scorecardcharter, however this process is being delayed by the relatively slow progress in publication, by DTI, of the code 1000, which determines the 'rules of the game' for all qualifying small enterprises. As the RMI membership of 7500 consists of 93.8% SME businesses, it is pointless continuing the process until there is some sign of Code 1000. Mr. Jeffrey Ndomu of DTI has assured the Retail Motor Industry that they are expediting the publication of the SME code 1000 and hope to have it up and running before Christmas. If this is indeed the case, the RMI working group will immediately re-commence with the process of drawing the Automotive sector scorecard and will publish same as soon as possible.