B-BBEE Amended Codes 2024: Proposed Changes Explained

Background: The 2013 Amended Codes Still in Force

As of mid-2024, the Amended Codes of Good Practice gazetted under Government Gazette Notice 36928 (11 October 2013) and effective from 1 May 2015 remain the operative measurement framework. All B-BBEE verifications are conducted against these codes unless a sector code with a later commencement date applies.

The key changes introduced by the 2013 Amended Codes included: consolidation of 7 elements into 5; introduction of priority elements and sub-minimums; higher minimum targets for ownership and ESD; stricter fronting penalties; and the mandatory B-BBEE Commission.

Proposed 2024 Amendments: Ownership Measurement

The dtic has indicated a review of how ownership is measured, particularly addressing concerns about the durability and depth of empowerment transactions. Proposed changes under consultation include tightening the Modified Flow-Through Principle to prevent multi-layer dilution, strengthening Net Value measurement requirements, and requiring that empowerment transactions demonstrate genuine control and economic benefit rather than mere shareholding.

There is also discussion of whether the Net Value phase-in schedule should be accelerated to require fuller unencumbered ownership within shorter timeframes.

Proposed EME and QSE Threshold Revisions

Given inflation since 2015, there are proposals to increase the EME threshold above R10 million and the QSE threshold above R50 million. A revised EME threshold of R15 million or R20 million has been discussed, which would provide more businesses with access to the simplified affidavit route. No revised thresholds have been gazetted as at the time of this publication.

Businesses approaching current thresholds should monitor gazette notices, as any threshold increases would take effect from the date of gazette publication.

Skills Development Revisions

The 2024 consultations have identified Skills Development as an area where the link between B-BBEE spend and actual employability outcomes needs strengthening. Proposed changes include higher recognition for programmes leading directly to employment, greater weighting for apprenticeships in artisan trades (a critical skills shortage area), and revised PIVOTAL definitions to emphasise priority occupations.

Staying Current with Code Changes

B-BBEE code changes are published in the Government Gazette and then communicated by the dtic. Subscribe to dtic updates at thedtic.gov.za and monitor the B-BBEE Commission website at bbbeecommission.co.za for enforcement notices and interpretive rulings that clarify how current codes are applied.

Work with a SANAS-accredited verification agency or B-BBEE specialist consultant who monitors code developments continuously. Last-minute code changes can significantly affect compliance strategies if not identified early.

Frequently Asked Questions

Related Guides

• B-BBEE Explained
• Scorecard Explained
• Sector Codes