Ayear ago almost to the day, I wrote in this newspaper about the draft amendments to the generic broad-based BEE (BBBEE) codes and some of the weird changes proposed. My biggest concern was the notion that big companies could essentially get level 1 or level 2 based purely on their black shareholding. As we know, this never saw the light of day, and while my deep-seated ego would like to think this was due to someone important reading this column, it is more likely that our regulators are getting smarter about this BBBEE thing and beginning to realise that business reacts to regulation, not prompts to do the right thing.

When the draft changes were first introduced they contained an "enhanced recognition" clause that would automatically score all 100% black-owned businesses as level 1 BBBEE contributors and those with black shareholding above 51% as level 2.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.