Panic around the New BEE Codes will subside



WadeVRooyen.jpgThe New Codes is arguably the most hotly anticipated piece of legislation released in 2013. Industry experts gave delegates at the Smart Procurement World Western Cape Conference some insights into what the New Codes mean for industry, the economy and your organisation.

“Panic is an appropriate description of how the market is reacting. The stretch between the current Codes and the New Codes is greater than anticipated,” says Wade van Rooyen, Managing Director: Verification Services, Grant Thornton.

“But as the market begins to understand the strategy and intentions behind the revisions they will realise it is necessary to transform our economy”.

When charting a course for earning BEE scorecard points the question remains where do we begin? With which spend do we begin? The answer is still ‘on suppliers that influence your score the most’, says van Rooyen. But owing to the combined category of enterprise and supplier development offering a 40 point weighting under the New Codes, those suppliers are not the ‘easy fixes’; they are the suppliers that influence your strategic supply, such as industrialists.

“The revised Codes require you to take a long-term view of strategic suppliers and to develop new suppliers in collaboration with your current suppliers. In this regard, vertical integration is a possibility,” he advises.

He added that the old practice of ‘buying points’ cannot apply under the New Codes. Rather, the New Codes require a culture change throughout all departments.

“Government has sent a clear message; there is cohesion among the regulations. So don’t fight – support.”


ElelwaniPahlana.JPGThe New Codes are indeed a wake-up, says Elelwani Pahlana, Executive: Enterprise Development at Telkom.

“One can no longer merely tick the boxes and comply; organisations must revise their strategies: a strategy compiled under the old Codes is not sufficient - the New Codes require that enterprise development (ED) and supplier development (SD) must align with company objectives.”

Furthermore, the increased target for spend with black-owned suppliers means no more training for ‘training sake’; money must now be spent in a core-influencing way. “ED in the supply chain must talk to company objectives and must add value,” notes Pahlana.

The New Codes have been structured in such a way so that compliance with them will achieve transformation, she adds.

Makhosazana Seate, BEE Director for Procurement Transformation and Verification at the Department of Trade and Industry (dti) said it will take effort, but meeting the requirements of the New Codes will grow the South African economy and address job creation. “We will be smiling in the near future.”

She concluded with a remark that under the Codes, the drivers of change are the private sector; the dti is taking a leading role, but it is relying on the private sector to drive the change, spurred on by incentives.

Leave a comment

SmartProcurement Newsletter

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
* Country:
* Public / Private:



Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More