Page 4 - KZN Business Sense 9.4 - Shadrach Karien (Cover)

DOES MY COMPANY NEED TO BE B-BBEE COMPLIANT?

Johan van Deventer, report annually to the Financial they are B-BBEE compliant.
KZN Regional Sector Transformation Council Currently there are no specific
Manager, LabourNet (FSTC) on its progress made in requirements on having Black
implementing the provisions Ownership and as such, even
of the 2017 Amended Financial a non-compliant certificate is
he Services Sector Code. Non- deemed sufficient.
question, submission with this reporting
T“Does requirement, results in the entity The ICT Sector
my company being deemed non-compliant and
ICASA’s “Regulations on the
really need to impacts the outcome of their next limitations of Control and
be B-BBEE B-BBEE Verification whereby
compliant?” their overall B-BBEE Level will Equity ownership by Historically
is asked by automatically be discounted by Disadvantaged Groups and the
many business one level. application of the ICT Sector
owners irrespective of the size of Code” issued on 31 March 2021
their company or the industry in The Gambling Sector specifically refer to Individual &
which they operate and remains a As the National Gambling Class Licenses as defined in the
valid question to this day. 2005 Electronic Communications
Board is involved in the process Act. For Class Licenses, licensees defined in section 1 of the Act (EMEs) and Qualifying Small
Though being B-BBEE of ensuring that the entire will need to have a Level 4 and include all entities within the Enterprises (QSEs) using the
compliant has its benefits in being gambling industry achieves at B-BBEE status whereas for real estate sector. Section 2 of the DTIC or CIPC affidavits.
able to apply for government least a Level 2 B-BBEE status as Individual licenses, licensees Act stipulates that the Act will The above shift in focus is a
tenders and giving you a leg per the 2013 General Amended will need to comply with the apply to all activities pertaining clear indication of how B-BBEE
up on your competitors, one Codes, the Provincial Gambling following: to property such as marketing, requirements are changing and
cannot ignore the fact that Boards are also requiring some promotion, managing, sale, more importantly, that being
during the past few years there form of B-BBEE compliance from ■ Obtain or maintain a Level 4 letting, financing and purchasing B-BBEE compliant is critical in
has been a major shift in focus licensees in order to maintain B-BBEE Status with 30% Black of immovable property, and order to receive or renew one’s
regarding transformation. or renew their licenses. These ownership using the flow- to any rights, obligations, trade or operating licences. 
B-BBEE compliance is becoming prerequisites, unfortunately through principle and interests, duties or powers
a prerequisite for all businesses though implemented with good ■ If in a 24-month period, there associated with or relevant to
irrespective of their dealings with intentions, have a negative are any changes which will such property. As per Section Should you need assistance in becoming
compliant with B-BBEE legislation, kindly
the South African government. impact on new or international decrease Black shareholding 50(a)(x) of the Act “(a) any contact LabourNet.
As such for the following companies who are finding it or ownership with 5% or person who is not in possession
sectors, B-BBEE compliance is difficult to enter the local South more or which will decrease of a valid BEE certificate” is T: +27 (0)31 266 6570
a prerequisite for companies to African gambling market Black People’s voting rights, the disqualified as a PP and cannot C: +27 (0)82 786 7480
E: johanvd@labournet.com
obtain or maintain their trading Individual licensee needs to be issued with a Fidelity Fund W: www.labournet.com
or operating licenses: The Alcohol Sector notify ICASA. Certificate”. Currently there
Entities operating within this is no specific B-BBEE level or
The Finance Sector sector who are applying for a new The Property Sector percentage Black ownership
Each entity conducting trade license, liquor distribution The 2019 Property Practitioners required and though the Act may
business in the South African license or a renewal of a current Act is applicable to property be vague, this should also apply
financial sector is required to liquor license must ensure that practitioners (PPs), who are to exempt micro enterprises

KZN FUTURE FUELLING VIBRANCY IN AN ECONOMY
50 CAMPAIGN

iscover the key drivers to thrive. Access to capital is consumers. Their ability to provided valuable insights on
behind a vibrant essential for businesses of all reach a wide customer base building a robust economy.
Deconomy as discussed sizes as it enables them to invest and operate on a large scale Here are some key takeaways:
on a recent Money Show in research and development, drives economic growth and ■ Take initiative and don’t wait
insert with Pavlo Phitidis and upgrade infrastructure, and stability. for external forces to improve
Bruce Whitfield. This insert expand their operations. 2. Medium-Sized Businesses: your circumstances. Start
highlighted the crucial factors Adequate funding also plays Play a crucial role in new pursuing your entrepreneurial
of competition, innovation, a vital role in attracting and market development. Their ambitions now
funding, and talent and their retaining top talent. agility and flexibility allow
role in shaping economic ■ Medium-sized businesses are
landscapes. Here we delve into Talent as the Engine of them to explore emerging the bridge from the large
Pavlo Phitidis the main takeaways from the Success: Talent is a critical driver markets, identify untapped to small enterprises. They
show, exploring how individuals of success for any enterprise. opportunities, and pioneer can maintain their agility
ECR Breakfast and business and businesses can contribute to Skilled individuals with expertise innovative solutions. These by embracing smart strategies
growth specialist Pavlo Phitidis building a thriving economy. and creativity propel businesses businesses drive economic and leveraging contracting and
are celebrating local businesses forward. Whether large expansion by adapting to consulting opportunities.
with the KZN Future 50 Competition Drives corporations or small startups, evolving market trends.
campaign. This weekly profile Progress: Competition is the attracting and retaining top talent ■ Set a single destination and
of a forward-focused business driving force behind growth is crucial for driving innovation 3. Small Businesses: Contribute to adopt a focused approach to
shows how their growth brings and progress in any economy. and achieving sustainable the economy through navigate challenges and seize
a better future to us all. All When businesses compete, they growth. Nurturing talent within innovation at the edges. They opportunities. Learn from past
KZN businesses are invited to are motivated to constantly an economy is vital for long-term bring fresh ideas, niche experiences, take ownership of
apply and get free exposure. improve their products prosperity. products, and specialised decisions, and leverage acquired
and services. This healthy services to the market. Their knowledge.
competition fosters innovation Roles of Different-Sized ability to swiftly adapt and ■ Uphold ethical practices, avoid
and encourages companies to Businesses experiment fosters diversity theft, late payments, and
develop groundbreaking ideas Understanding the roles played and resilience within the animosity towards competitors.
and solutions that address by businesses of different sizes business ecosystem. Small Foster collaboration and
SCAN market needs. is key to fostering economic businesses often serve as continuous learning as part
THIS QR Innovation and Funding vibrancy. incubators for innovative of a healthy business
concepts that can eventually
CODE TO for Success: Innovation is the 1. Large Corporations: Focus on scale up and benefit the broader environment. 
LEARN lifeblood of success in today’s distribution, leveraging their economy. For more information contact Johan:
fast-paced business world. It
MORE requires adequate funding extensive networks to efficiently 4. Building an Economy: Key E: johan@aurik.co.za
bring products and services to
W: www.aurik.com

Insights: The radio show
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