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A quick guide to B-BBEE ownership transactions in South Africa

The element of ownership is regarded as one of the most important elements of the broad-based black economic empowerment (B-BBEE) scorecard, as set out in the Codes of Good Practice issued in terms of the Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (Codes). The ownership element is a key driver of a company’s B-BBEE level and, in some cases, a mandatory requirement for certain sectors of the economy, which are governed by bespoke sector charters (such as in the mining industry) that prescribe minimum ownership thresholds. It is also often a critical consideration in contracting, particularly in public procurement processes.