Trade and Industry Minister Dr Rob Davies has gazetted the threshold for major Broad-based Black Economic Empowerment (BBBEE) ownership transactions, lowering it to R25-million, from the previous R100-million.
“A Major BBBEE Transaction” means any transaction between entities or parties that results in ownership recognition in terms of Statement 100. Davies set the threshold which must be submitted to the BBBEE Commission in the Government Gazette on Friday.
All transactions with a value of R25-million or more must now be registered with the BBBEE Commission as per Code Series 100 of the Amended Codes of Good Practice. Previously, the threshold for BBBEE ownership transactions was R100-million.
The threshold for registering the transaction with the BBBEE Commission is based on the transaction value excluding administration, professional and legal fees.
The amended Codes of Good Practice for Broad-based Black Economic Empowerment came into effect on May 1, 2015, with a reduced number of elements to five: ownership, management control, skills development, enterprise and supplier development and socioeconomic development.
The Department of Trade and Industry (DTI) said transactions concluded before October 24, 2014, the date on which the BBBEE Act was promulgated, may be voluntarily registered with the BBBEE Commission.
- Links: Engineering News
More in NewsRead More »
- What the amended B-BBEE Sector Codes mean for your industry
- JG Afrika achieves Level 1 B-BBEE, affirms commitment to transformation
- Caterpillar to localise components as part of R1.3bn empowerment deal
- Redefine sells Delta stake to women-led BEE consortium in R1.45bn deal
- DTI spends R42m on Hammanskraal industrial park security upgrades