Understanding Statement 102 Within South Africa's B-BBEE Framework

The Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003 (the Act) is an important part of the South African legal landscape. One aspect of the Act used to measure compliance with the Act is how businesses are classified according to their B-BBEE level, ranging from the highest, Level 1, to the lowest, Level 8 (or worse, non-compliance). A point system is used to adjudicate a business' compliance with the Act and allocate a B-BBEE level.

Businesses receive points through several means, ranging from the shareholder or ownership makeup of the business, how the business procures services and products from previously disadvantaged suppliers to how skills development occurs in a service agreement or commercial relationship. For large businesses operating in South Africa, foreign and domestic, a clear understanding of how the B-BBEE points system works and the best ways it aligns with overall business strategy can create exciting commercial opportunities within