Posted: April 14, 2015
Launch of the B-BBEE Certification for Exempted Micro Entreprises
|As the department of Trade and Industry we have as our central mandate the function of regulating the economy towards a functional path of inclusive growth, competitiveness and dynamism. We pursue this task by generating numerous policy instruments that will set an industrial policy framework that helps the economy function with relative efficiency.
In the context of the transformation obligations of the democratic state, one of the key focus areas for policy regulation in pursuit of the objectives of economic inclusivity. Central to the pursuit of these objectives is the Broad-Based Black Economic Empowerment policy framework.
It is now common course that the Broad-Based Black Economic Empowerment framework serves as a strategic instrument for the integration of the historically marginalized sections of society into the central levers of the South African economy.
From the onset government understood that the B-BBEE framework is a dynamic policy instrument that will be adapted over time as different circumstances emerge. This change in circumstances owes both to successes in the earlier iterations in the policy as well as emerging insights on how to best approach regulation.
The key objective is to constantly evolve regulatory mechanisms that level the playing fields for all national groups and all sizes of business entities at the least inconvenience possible.
Amongst the timeous challenges that emerge are such regressive things as unscrupulous intermediaries, fraudulent certificates and unregulated fees in the process of BEE certification. These challenges impose the need for us to constantly improve our technical systems and registration process in a manner that averts these mostly criminal challenges whilst providing services in a convenient manner.
All of these challenges affect mostly small businesses that must ideally be exempt from many compliance measures but were now being affected by the unscrupulous incidents in the verification industry.
It is in this context that today we are hereby launching the B-BEEE certification for Exempted Micro Enterprises (EMEs). The central thrust of the process we are launching today is to systematically integrate the two processes of company registration and BEE certification. In this regard, this process will synchronize the work of the Department of Trade and Industry (the dti) in the area of BEE certification and the work of the Companies and Intellectual Property Commission (CIPC) concerning the registration of companies etc.
Essentially, this integration of the two functions is designed to make things easier for small businesses to perform all registration requirements simultaneously with ease. It will end the tedious requirement of hopping from one administrative building to another.
This,l.l is particularly true since we have signed a Memorandum of Understanding that empowers the CIPC to offer some services of the dti.
This service refers to affording Exempted Micro Enterprises (EMEs) and Black Owned SQEs in the long-term the opportunity to apply for B-BBEE certificates through the CIPC’s self-help service applications aligned with the dti’s strategy and objectives in terms of the B-BBEE Act and Amended Codes of Good Practice. The process will be disaggregated into two parts; firstly to serve the EMEs and secondly the Black Owned SQEs in the long-term.
As I said before, the dti strives to evolve effective regulatory instruments that nonetheless impose minimal burden on small businesses. This initiative is part of those efforts that we are developing to cu-off intermediaries and combining two critical services into one.
It is with great pleasure and humility that I be here today as part of this important launch. I must also urge that operators in the space of small business eagerly utilize this innovation to improve their operations.
I thank you!