On 31 May 2019, South Africa's Department of Trade and
Industry gazetted certain amendments to the Broad-Based Black
Economic Empowerment ("B-BBEE") Codes of
Good Practice. These amendments will become effective on 31
November 2019.
The following are the key amendments to take note of.
EMEs and QSEs
The Amended B-BBEE Codes now clarify that Exempted Small
Enterprises ("EMEs") and Qualifying
Small Enterprises ("QSEs") are only
entitled to enhanced B-BBEE recognition if they are 51% or 100%
Black-owned on a direct flow-through basis. In other words, EMEs
and QSEs cannot benefit from enhanced B-BBEE recognition if they
measure their Black ownership using the modified flow-through
principle.