The Black Economic Empowerment rating system, also known as BEE, came into creation once the South African government understood that the state can only move forward and change its discriminatory past once blacks, colored and Indians were able to participate fairly in the economy. BEE became a solution to the injustice of the apartheid, being an affirmative action program meant to give black people from the country the chance to become incorporated in different sectors of the South African state.
The BEE was enacted in 2003, small changes being made along the years. The program, as I mentioned earlier, works according to the structure of scorecards and rules associated with getting BEE points. Points are scored by a company of by a business once they buy or do business with companies with valid BEE certification delivered by maxbee.co.za. There are different ratings to be received, a specialized environmental agency being in charge of assessing companies and their performance.
The certificate has to be renewed every other year in order to remain valid, and South African economic actors do their beat in order to improve their score with every passing year. The bigger their score and their rating, the more solid is their position in the South African economic world. Another aspect worth mentioning is the fact that a business without a BEE certificate cannot do business with the state. They are not allowed to enter public auctions started by the state and they cannot sign any contract. You can imagine that having this major disadvantage can cripple an entire business and that no self-respecting business person would ever afford to take such a risk.
On the other hand, having a BEE certificate and a good rating gives a company that upper leg needed in order to outperform the competition. This is the reason why companies are trying their best to improve their score and to prove the fact that they are active actors in making sure that previously discriminated against population is being encouraged to become part of South Africa’s economic life.
As I mentioned, the results of the program are clear, more and more black people finding jobs in businesses and companies, not to mention that more and more black people have become business owners themselves. The program has proven that the financial incentive is enough to propel the country in the right direction, and we can only imagine that the future will come with more great BEE results.