South Africa’s recent regulatory updates require lawyers and estate agents to comply with Broad-Based Black Economic Empowerment (B-BBEE) sector codes. The Legal Practice Act and Estate Agency Affairs Act emphasize transformation, are now aligning with B-BBEE objectives.
Key Requirements for Lawyers
- Ownership and Management Control: Meet specific targets for B-BBEE compliance.
- Skills Development: Invest in training programs for black employees.
- Supplier and Enterprise Development: Use black-owned suppliers and support enterprise development.
New Requirements for Estate Agents
- Obtain a minimum Level 8 B-BBEE compliance rating to secure a Fidelity Fund Certificate (FFC).
- The Property Practitioners’ Regulatory Authority will enforce these requirements.
Verification and Compliance:
Firms must undergo audits by accredited agencies to obtain B-BBEE certificates.
Non-compliance risks exclusion from government tenders and reputational harm.
Exemptions and Thresholds:
- Exempt Micro Enterprises (EMEs): Companies with less than 50 employees and annual turnover below R10 million are exempt.
- Qualifying Small Enterprises (QSEs): Mid-sized firms face simplified requirements but must still meet priority elements.
Compliance is critical for business sustainability, particularly for firms engaging with government or large corporates. Proactive adherence positions firms as contributors to South Africa’s economic transformation.
We at Skills College would like to collaborate with you on creating a strategy to make the most of your B-BBEE Skills Development Expenditure. We invite you to visit our website at https://skillscollege.co.za/ or contact me at jacques@skillscollege.co.za to arrange for a personal connection.
