The importance of working with a B-BBEE supplier



Broad-based black economic empowerment (B-BBEE) is a systematic model, implemented by the South African government in 2003, in order to equalise business opportunities for people of colour. B-BBEE was designed to distribute wealth more evenly in post-apartheid South Africa, which is why it is important to work with a B-BBEE supplier and business partner.


IWESCO is a Level 2 B-BBEE contributor, which means that our equity ownership and management structure is more evenly represented by black South Africans. The levels of the system are determined by a number of factors and companies are assigned a number between one and eight (one being the best, eight being the minimum compliance level).


How B-BBEE levels are assigned to companies


Businesses are given a score based on their employment ratios of previously-disadvantaged citizens. Companies are entitled to various benefits and government grants, according to their level of B-BBEE contribution. The following five categories determine the level assigned to a business:


  1. Ownership (25 points) - What percentage of the company is owned by non-white citizens?

  2. Management control (19 points) - What percentage of the management structure is from previously disadvantaged communities?

  3. Skills development (25 points) - Does the company improve the skills of its employees through training and learning initiatives?

  4. Enterprise and supplier development (40 points) - Does the company support small enterprises and suppliers that are also majority black-owned?

  5. Socio-economic development (5 points) - How does the company contribute to the socio-economic development of its employees, community and country?


Based on these five factors, businesses add up their scores (up to a maximum of 114 points) and an independent assessor assigns the B-BBEE level. These scores are outlined below, along with their resulting contribution level:


  • 100 points or more - B-BBEE Level 1

  • 85 to 99.99 points - B-BBEE Level 2

  • 75 to 84.99 points - B-BBEE Level 3

  • 65 to 74.99 points - B-BBEE Level 4

  • 55 to 64.99 points - B-BBEE Level 5

  • 45 to 54.99 points - B-BBEE Level 6

  • 40 to 44.99 points - B-BBEE Level 7

  • 30 to 39.99 points - B-BBEE Level 8

  • Less than 30 points - Non-compliant


Small businesses that have an annual turnover of less than R10-million are defined as exempt micro-enterprises (EMEs). As such, they are automatically assigned a B-BBEE Level 4, even if they are 100% white-owned. An EME with 51% black ownership is upgraded to Level 2 and if it is 100% black-owned, it is assigned Level 1.


IWESCO is a Level 2 B-BBEE contributor


IWESCO believes that industry transformation is a vital step towards improving the quality and performance of businesses. It will make the future better for employees and clients as skills development and training programmes will hold numerous benefits for both of these parties. Our staff is highly trained in the use of cleaning equipment and the conduct of specialised cleaning services.


Our customers benefit from a more professional service and a better result because our employees have the right tools and knowledge to perform their jobs in line with strict standards. We engage with our employees to ensure that they gain technical and management skills during their tenure with IWESCO. This helps to empower more employees and support more families.


It is important for businesses to incorporate other B-BBEE companies into their supply chains. This ensures widespread development, economic support and transformation across industries. Working with B-BBEE compliant companies can bring about many benefits, such as additional funding, access to government tenders and tax reliefs.


Transformation and B-BBEE compliance are highly important steps to securing the future for all South Africans. The more communities that have access to employment opportunities, the more prosperity and security for a wide demographic of citizens. B-BBEE helps to grow the economy and support local businesses, so all businesses should choose to work with compliant companies that invest in training, development and transformation.

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IWESCO offers specialised cleaning and waste control services to industrial and commercial customers in South Africa. These services are aimed at minimising our customers’ impact on the environment. Our services also include pest control, garden maintenance, fogging and disinfecting. Our staff are highly trained to offer the most professional services. IWESCO is a Level 2 B-BBEE supplier with ISO 14001 certification for environmental management.

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We are a one-stop shop for all your contract cleaning and waste control needs and have a national footprint. Our head office is located in Tshwane but we can provide services to any industrial and commercial client in the major metropolitan areas around South Africa, including Johannesburg, Cape Town, Durban, Port Elizabeth, Mbombela and more.

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212 Heinrich Avenue, Amandasig

Pretoria, Gauteng, 0118

info@iwesco.co.za

0861-005-902

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