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ARTICLE · 21 JUNE 2019

Recent Amendments To The B-BBEE Codes

On 31 May 2019, South Africa's Department of Trade and Industry gazetted certain amendments to the Broad-Based Black Economic Empowerment Codes of Good Practice.

South AfricaGovernment, Public Sector

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.

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