14 December 2006
Finalisation of BBBEE Codes of Good Practice
Cabinet has approved the Codes of Good Practice on Broad Based BEE, subject to further work being done on the statement dealing with the process of verification, how to deal with fronting practices as well as compliance reporting by complex structures. Gazetting of phases one and two of the Codes should take place in January 2007. The BEE Codes provide universal standards for the implementation of BEE initiatives and the measurement of such initiatives with the view of providing consistency, transparency and clear direction on BEE.
Thresholds for Qualifying Small Enterprises (QSE) have been increased substantially to range between R5million and R35million based on annual turnover. Thresholds for Exempted Micro Enterprises (EME) have been increased substantially from the original R300 000 to R5million based on the annual turnover. A single threshold based on turnover will determine QSE (rather than sector specific thresholds). Head count has been removed due to its unintended consequences of curbing employment in enterprises
<<< BACK TO 2006 ARCHIVE LIST
20 October 2006
Regulation hurts SMEs (The Reporter 20 October 2006, Gaborone)
Many small to medium enterprises (SMEs) become illegal because of excessive regulation, according to an expert with the South African-based Strategic Business Partnerships for Growth in Africa. Speaking at the Bifm/FinMark Trust Forum, Douglas Irvine said SMEs usually fly under the radar and operate hiding from the law and end up being harassed and becoming non-compliant. Irvine said that this excessive regulatory network is not good for business. Another speaker at the forum, Peter Hinton of the International Financial Services Centre-accredited company Enterprise Banking Group revealed that Botswana has SME potential. He said that effective support for SMEs is possible but it needs committed players. Hinton said that a recent study on SMEs in Botswana: "The under-banked market", revealed that 15% of the SMEs in Botswana are under-banked while 9% use government schemes. Only 13% used bank loans although there are still opportunities for the banks to finance the sector, while the study revealed that 69% needed training and mentoring.
<<< BACK TO 2006 ARCHIVE LIST
14 October 2006
Cost of compliance sends firms packing (Business Day)
The cost of the South African government's empowerment policies and rigid labour laws could drive manufacturers to move their operations to other countries, including neighbouring Lesotho. Michael Pimstein, the president of the Steel and Engineering Industries Federation of South Africa recently warned that the cost of compliance with empowerment requirements was onerous on the manufacturing industry, already reeling under cheap imports, a volatile exchange rate, rigid labour laws and a skills shortage. An internal study undertaken by one of Seifsa's members concluded that the cost of compliance with government’s black economic empowerment codes would be 14% of earnings. However, neighbouring countries such as Lesotho present an attractive alternative to companies that want to expand capacity or relocate.
<<< BACK TO 2006 ARCHIVE LIST |
<<< Current News & Media
2006 Archives
14 December 2006, Finalisation of BBBEE Codes of Good Practice
20 October 2006, Regulation hurts SMEs (The Reporter 20 October 2006, Gaborone)
14 October 2006, Cost of compliance sends firms packing (Business Day)!
|
