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Impact of the Amended Broad-Based Black Economic Empowerment (B-BBEE) Codes on the Chemicals Market in South Africa

Impact of the Amended Broad-Based Black Economic Empowerment (B-BBEE) Codes on the Chemicals Market in South Africa

Broad-Based Black Economic Empowerment (B-BBEE) is a specific government policy aimed at addressing the legacy of Apartheid by enhancing the participation of Black people in the South African economy. This transformational and legislative framework was first introduced in 2003 as the Broad-Based Black Economic Empowerment Act (No. 53 of 2003) and has since undergone various iterations. The study investigates the most recent amendments to understand what changes have been made to the B-BBEE framework and how these impact the chemicals industry in South Africa.


  • Executive Summary
    • Key Findings
  • Study Overview
    • Introduction
    • Market Definitions
    • Abbreviations and Acronyms
  • Amendments to the B-BBEE Codes
    • Amendments to the B-BBEE Act
    • Emphasis on Priority Pillars
    • Emphasis on Priority Pillars-Ownership
    • Emphasis on Priority Pillars-Enterprise and Supplier Development Element
    • Reducing the Number of Scorecard Elements
      • Table Impact of Amended B-BBEE Codes: Current and Previous Element Contributions, South Africa, 2015
      • Table Impact of Amended B-BBEE Codes: Amended Weighting for Measuring QSE Status, South Africa, 2015
    • Scorecard Point Reallocation
      • Table Impact of Amended B-BBEE Codes: Recognition Level Calculation Comparison, South Africa, 2015
    • Other Amendments
    • Compliance Remains Voluntary
    • Generic versus Sector Codes
  • A Closer Look at QSEs and the Amended Codes
    • Highlighted Changes to QSE Elements
  • Industry Insights into the Amended Codes
    • The Companies of Interest
    • B-BBEE Scorecards for the 6 Listed SA Chemicals Companies
      • Table Impact of Amended B-BBEE Codes: B-BBEE Scores for 6 Chemical Companies, South Africa, 2015-2016
    • Current versus Anticipated B-BBEE Status
    • Maintaining B-BBEE Status-Empowering Suppliers
    • Maintaining B-BBEE Status-51% Black Owned and 30% Black Women Owned Companies
    • Growth Challenges-Supplier Perspective
    • What is the Value of a High B-BBEE Accreditation?
  • Preferential Procurement-Old versus Amended Codes: Case Study Approach
    • Preferential Procurement Scorecard-Old Codes
      • Table Impact of Amended B-BBEE Codes: Old Codes-Preferential Procurement Scorecard, South Africa, Pre-2015
    • Enterprise Development Beneficiaries and Value-Adding Suppliers-Old Codes
    • Preferential Procurement Scorecard-Amended Codes
    • Estimation of the Procurement Targets-Old versus Amended Codes
      • Table Impact of Amended B-BBEE Codes: Old Codes - Estimated Spend for Each Sub-Element to Score the Full Weighting Points, South Africa, 2015
      • Table Impact of Amended B-BBEE Codes: Amended Codes - Estimated Spend for Each Sub-Element to Score the Full Weighting Points, South Africa, 2015
      • Table Impact of Amended B-BBEE Codes: Comparison of the Procurement Spends based on the Old and the Amended Codes, South Africa, 2015
  • Conclusions and Strategic Insights
    • B-BBEE-A Potential Competitive Advantage
    • Enterprise and Supplier Development is Key to Attaining Attractive B-BBEE Scores
    • B-BBEE Downgrades Compounded by Supplier Downgrades
    • Enterprise and Supplier Development-Opportunities for Supply Chain Alignment or Integration

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