The Creation of Smart Value: Adding to ESD Initiatives

The Creation of Smart Value: Adding to ESD Initiatives

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Though the 2013 General Amended Codes and the 2019 Amendments have brought about significant changes in how companies approach and regard B-BBEE compliance, “keeping it simple” still works.


The Supplier- and Enterprise Development sub-elements best explain how “keeping it simple” can be beneficial for implementing your B-BBEE strategy going forward and may assist you in improving your overall B-BBEE status.


When considering the type of contribution to be made, it is important to note that a once-off cash grant alone, is not the only contribution type that qualifies for B-BBEE points on the above sub-elements. Feasible, lucrative, and budget-friendly options do exist and these to qualify as value-adding initiatives that are recognised for B-BBEE points.


The key to identifying these types of initiatives is firstly looking at your company’s current position, i.e.:

  1. The location of your offices,
  2. The nature of your business,
  3. The welfare of your employees and
  4. Your relationship(s) with suppliers and/or clients.


For instance, if your offices are located in an industrial or remote area and if there are no suitable, kosher food outlets within your vicinity, creating an onsite canteen may be an option as any overhead costs (i.e., free rent, water, and electricity, phone lines, etc.) and direct costs (i.e. cutlery, crockery, food stuffs, etc.) can be claimed for current and future B-BBEE points.


If your business makes use of fleet vehicles or if company cars are made available for use by management members and sales staff, creating an onsite car wash may be an option as any overhead costs (i.e., the use of demarcated parking bays, water, and electricity, etc.) and direct costs (i.e. cleaning materials, etc.) can also be claimed for B-BBEE points.


Adding to the above, if you have a good open relationship with some of your clients and/or suppliers, suggesting a “quid pro quo” initiative may be best, as the following initiatives also qualify for B-BBEE points:

  1. Offering discounts in addition to your normal business discount, and
  2. Offering extended credit terms.


For more information on cost-effective value-adding initiatives, don’t delay – contact LabourNet today!


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