BEE threshold lowered to include small and medium entities, Davies explains
Trade and Industry Minister Rob Davies has explained why the threshold for the registration of black economic empowerment transactions with the Broad-Based Black Economic Empowerment (BEE) Commission was lowered from the initially proposed R100m to R25m. The minister’s explanation came by way of a written response to a parliamentary question by DA spokesman on trade and industry Dean Macpherson. The R100m threshold was published in the Government Gazette last year and was based on the combined annual turnover and/or combined asset value of the parties to the transaction. "Amongst others, the rationale for the R100m was that it will ensure that all transactions by mainly large entities (those with annual revenue greater than R50m) in terms of the codes (of good practice) are covered," Davies said. The drawback of this proposal however was that it would exclude small and medium entities which had a combined annual turnover below R100m.