Broad-Based Black Economic Empowerment Act

Question 1

Purpose of BBBEEA

Answer 1

Spread wealth more widely
across all population groups
targeting inequality in South
Africa.

Question 2

Positive Impact of BBBEEA

Answer 2

A higher BBBEE score will,
improve a business’s image
and attract investors &
suppliers and can get government tenders.

Question 3

Negative Impact of BBBEEA

Answer 3

Implementation is time-
consuming, expensive and
administration-intensive,
especially to achieve BBBEE
scorecard ratings.
Can lead to corruption /
nepotism / cronyism if not
monitored.

Question 4

Compliance with BBBEEA

Answer 4

Use BBBEE compliant
providers.
Sell shares to more black
individuals inside and outside
the business.

Question 5

Punitive Measures with BBBEEA

Answer 5

Can receive jail time for
fronting practices
State can decide not to
renew business licenses.

Question 6

Discriminatory Conduct/Act against BBBEEA

Answer 6

Refusal to award government
tenders to BBBEE compliant
suppliers.