The Coega Development Corporation’s (CDC) Enterprise Competiveness / Compliance Programme (ECP) is helping Small Medium and Micro Enterprises (SMMEs) to break into the government supply chain by ensuring their compliance with the new Broad-Based Black Economic Empowerment (BBBEE) codes.
“At CDC we want to improve the chances of SMMEs qualifying for public procurement opportunities and see black-owned enterprises becoming competitive with big business,” says Andile Ntloko, CDC SMME Unit Head.
Nloko explains that the implementation of the new codes, which came into effect in May 2015, has created confusion for some black-owned enterprises tendering for goods and services at CDC. Some of these businesses have scored lower than their big business counterparts, due to the submission of invalid documentation under the new codes.
“The ECP, which forms part of the organisation’s Enterprise Development Programme, aims to educate the smaller business community on the new BBBEE codes, as well as how to ensure compliance during the procurement and tender process,” says Ntloko.
According to the revised codes, the Exempted Micro Enterprises (EME) turnover threshold has been reduced from less than R5 million to less than R10 million, while the Qualifying Small Enterprises (QSE) target has dropped from between R5 million and R35 million to between R10 million and R50 million.
“In addition, EMEs and QSEs that are 100% black-owned automatically qualify as a Level 1 BEE contributor and if more than 51% black owned, they automatically qualify as Level 2. The new codes also allow for a sworn affidavit to confirm black shareholding and turnover, rather than a BEE certificate from a verification agency,” explains Ntloko.
The Department of Trade and Industry (dti) further announced specific codes relating to industries will come into effect before the end of this financial year. These codes will be industry-specific with tailored compliance measures.
The CDC will be hosting future nationwide information sessions to demystify the new BBBEE codes.
“We hope to create awareness of the revised BBBEE legislation and help black-owned SMMEs navigate the changes in order to benefit from business opportunities available at the CDC,” concludes Ntloko.
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