Please click here to download the Revised Government Procurement Regulations and BEE Certificate Requirements
Empowerdex certifies that Shanduka Black Umbrellas is fully compliant with requirements of the Broad-Based Black Economic Empowerment (B-BBEE) Act and its accompanying Codes of Good Practice Codes and all relevant criteria therein for the recognition of Enterprise Development Contributions at a factor of 1.25.
Arguably, one of the most significant pieces of legislation affecting business today, the Broad-Based Black Economic Empowerment (B-BBEE) Act and its accompanying Codes of Good Practice clarify the government’s transformation objectives, tying them in with ambitions of higher economic growth. The Codes of Good Practice for the first time demonstrate how Broad-Based Black Economic Empowerment (B-BBEE) is tied to the economy, proving that B-BBEE is not just vital for the country’s prosperity but a catalyst for growth.
The Codes provide a standardised means of measurement with the aim of ensuring consistency and harmony in the implementation of B-BBEE while establishing the foundation for a more integrated, more transparent transformation process. Whilst remaining only regulatory guidelines, the Codes are aligned with key pieces of legislation including the Employment Equity Act, the Preferential Procurement Act and the Skills Development Act.
The nature of Shanduka Black Umbrellas’ business, places them in a unique position to support the country’s transformation objectives via a full-service incubation facility which supports small, black-owned enterprises.
Code 600, dealing with the measurement of the Enterprise Development Element of Broad-Based Black Economic Empowerment seeks to measure the extent to which enterprises carry out initiatives aimed at contributing to Enterprise Development. The Enterprise Development Element also aims to address certain key challenges facing Qualifying Small Enterprises and Exempted Micro Enterprises and more specifically black-owned entities that struggle to take their businesses from survivalist and/or micro level to a level of sustainability and profitability.
Empowerdex has certified in their report that the operations of Shanduka Black Umbrellas seeks to achieve this. Click here to download the Shanduka Black Umbrellas Enterprise Development Compliance Verification Report.
Shanduka Black Umbrellas is thus fully compliant with requirements of the Codes and all relevant criteria therein for the recognition of Enterprise Development Contributions.
This is due to the verification that all beneficiaries of the Shanduka Black Umbrellas initiative are Category A beneficiaries. Therefore the full value of contributions made to Shanduka Black Umbrellas by donor entities may be recognised at a factor of 1.25 when calculating the donor entity's Enterprise Development Contributions.
Shanduka Black Umbrellas has been granted Section 18A Tax Exemption by SARS, thus donations of cash or quantifiable assets are deductible for tax purposes within the limits prescribed in terms of Section 18A of the Income Tax Act.
Shanduka Black Umbrellas is committed to sound governance - it plays an integral part of our ethos and organisational philosophy. With the advent of the King Report on Governance for South Africa 2009 (King III), the Shanduka Black Umbrellas Board was tasked with distilling the salient features thereof and assimilating those into the operational and financial aspects of the organisation as well as the Board structure. We are proud to announce that we have identified a number of aspects within Shanduka Black Umbrellas that will be adapted or introduced to comply with the principles as embodied in King III.
Amongst those are:
- The restructuring of the Board, over time, to accommodate more independent (non-executive) directors.
- The identification of key operational and sustainability risks and the formulation of a risk management framework.
- The formulation of sub-committees to attend to remuneration as well as finance and risk.
- The promotion of a culture, amongst the SMMEs, that embodies the principles of sound ethics and compliance with the regulatory regime of South Africa.
- Improved stakeholder communication.