Navigating the B-BBEE Bottleneck

October 25, 2017 | by Mikalyn Achary CA(SA)

Achieving a competitive advantage over your competitors has been inherent in business strategy since the dawn of time.


However, in South Africa, apart from the standard factors one needs to navigate when creating a successful business strategy, there are additional factors such as erratic labor force issues, the fluctuating Rand and of course B-BBEE (Broad Based Black Economic Empowerment).


31 December 2016 marked the end of an era. After this date, companies eligible for B-BBEE verification could no longer opt to use an IRBA accredited verification agency for their B-BBEE certificate. The only option now, is to engage with a SANAS accredited agency.


These changes directly impact a company, as the pool of verification agencies have decreased, creating a potential bottleneck. This, coupled with potentially new dealings with SANAS accredited agencies, new processes and Codes could make it an interesting period. Directors must consider the above when formulating their strategic approach for their company’s roadmap for growth and sustainability in the following financial year.


The impact of these effects for Companies is as follows:


  • Delayed verifications due to the process now being potentially longer in comparison to that of the past process;

  • Delays due to closure for Christmas of both verification agencies and companies;

  • Challenges in engaging a SANAS accredited agency timeously due to the decreased pool of verification agencies;

  • Uninformed decision making due to a possible lack of knowledge as a result of directors possibly being unaware of all the changes and having not realised a new SANAS accredited verification agency is required and not fully understanding the new company information requirements;

  • Inefficiencies in the verification process due to financial and verification information not being timeously collated or available as a result of Companies having to undergo their verification earlier to suit availability of verification agency.


These potential delays or inefficiencies could result in an organisation not having a valid B-BBEE certificate. This could in turn result in the company losing out on lucrative deals and competitors possibly achieving a competitive advantage by merely obtaining a SANAS approved B-BBEE certificate timeously.


Strategy and sustainability must always take into account fundamental changes in the regulatory environment. Directors be aware and ensure if your previous B-BBEE Certificate was not done by a SANAS agency, they take steps to understand the requirements and are not caught in a situation that could result in loss of work due to invalid certificates.



Mikalyn Achary CA(SA), MDP B-BBEE

Managing Director and Technical Signatory


Izala Verificators is a Level 1 Designated Group Company

and a SANAS Approved B-BBEE Verification Agency.

If you find yourself needing a SANAS approved B-BBEE verification, contact Izala Verificators.


Start your B-BBEE verification journey  by completing our verification information form (click here) or alternatively email us.