Black economic empowerment (BEE) is a vital instrument to help improve economic growth in South Africa, says BEE verification manager Sharon Rossouw.
Rossouw, from verification agency MSCT BEE Services, says BEE is more than just a moral obligation for big businesses.
Instead, she says, it's a tool to help fight unemployment and grow the economy.
In May, the Department of Trade and Industry (DTI) published amendments to the BBBEE Codes of Good Practice.
These amendments will come into effect on 31 November and will affect businesses around the country.
Rossouw says companies must assess whether they can afford not to have BBBEE compliance.
She says businesses need to evaluate their market and the importance of broad-based BEE (BBBEE) to their enterprise, particularly if they work with the government or need a competitive advantage.
The biggest benefit of BEE is to strengthen our economy— Sharon Rossouw, Verification manager - MSCT BEE Services
If there is a risk to your enterprise, then you need to decide what risk that is and how BBBEE speaks to that risk and how to avert it.— Sharon Rossouw, Verification manager - MSCT BEE Services
Rossouw explains that the amendments encourage the upskilling of black employees and describes what they entail.
The idea behind it is to encourage entities to spend on bursaries.— Sharon Rossouw, Verification manager - MSCT BEE Services
Listen to the full discussion on Today with Kieno Kammies:
This article first appeared on CapeTalk : BBBEE will help boost SA's economy, says verification expert