DO GOOD. DO WELL.
Broad-Based Black Economic Empowerment (B-BBEE) is a South African socio-economic development initiative which aims to redress socio-economic inequalities of the past by bringing ‘Black’ people into mainstream economic activities.
A business’s participation in B-BBEE is measured across five elements that measure optimal socio-economic participation. These elements are :
• Management Control
• Skills Development
• Enterprise and Supplier Development (ESD)
• Socio-Economic Development
Of these five elements, three are identified as priority elements on which companies should achieve a minimum level of compliance: Ownership, Skills Development and ESD. Large Enterprises (with annual turnover exceeding R50 million) need to achieve a sub-minimum of at least 40% compliance against the set targets for all three priority elements to prevent a discounting of one level down from their B-BBEE status level. Qualifying Small Enterprises (with annual turnover between R10 million and R 50 million) need to comply with the sub-minimum for Ownership and either Skills Development or ESD.
Ownership participation by Black people in businesses is identified as the most important of the priority elements.
Invequity harnesses the rules for Private Equity Funds provided in the B-BBEE Codes to offer investors and their companies the opportunity to achieve their Black Ownership objectives while at the same time investing in high impact companies that are directly Black owned.