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Services › Multinationals
B-BBEE consultants · South Africa
International Clients and Multinationals
Entering the South African economy as a foreign multinational can be a daunting task.
- Advising South African businesses since 1998
Amidst the challenges, there are abundant opportunities and benefits if your strategy is implemented correctly.
Doing business in South Africa
South Africa, often referred to as the “business gateway to the continent,” boasts a well-developed economy and a globally renowned financial sector.
However, it is crucial to navigate the extensive and unique legislation and policies adopted by the government to drive changes in the racial construct of our economy. The government is resolute in transforming the flow of wealth within the country and is committed to an aggressive agenda to fundamentally reshape its economic drivers.
B-BBEE for multinationals
The Codes of Good Practice for Broad-Based Black Economic Empowerment (B-BBEE) have undergone extensive development over the past decade, with significant revisions in both 2013 and 2019. B-BBEE is not a new concept, and it is here to stay until the core objectives are achieved.
Operating in South Africa entails various dimensions that can influence business feasibility. It is crucial for interested multinationals to be well-versed in the challenges and opportunities to effectively manage risks.
Should acquiring a local company with an established client base, management team, and organisational structure be the most viable option, Gestalt Consult is here to assist multinational clients. We specialise in finding the right local business for acquisition, along with identifying the strategically-correct black-owned partner or business collaborator to facilitate the process of BEE compliance within the new local business.
Partner with Gestalt Consult to navigate the complexities of B-BBEE ownership for multinationals and foreign companies in South Africa. Our expertise and tailored solutions will ensure that your entry into the South African market aligns with compliance requirements and strategic objectives. Contact us today to explore the possibilities and seize the potential that South Africa holds for your business.
Frequently asked questions
Do foreign-owned companies need B-BBEE?
B-BBEE is not legally compulsory for most private businesses, but a South African operation needs a level to do business with government, public entities and many large customers require B-BBE compliance to trade. Foreign ownership does not exempt you from those requirements.
What is an EEIP?
An Equity Equivalent Investment Programme is an approved alternative to selling equity, available to qualifying multinationals. It lets a foreign company earn recognition by investing in South African development instead of transferring shares.
Can a multinational achieve a competitive BEE level without selling equity?
In many cases, yes. An approved EEIP can earn ownership recognition, and the rest of your scorecard can be managed through skills, supplier development and community investment. What is possible depends on your structure and sector.
Do we need a local partner?
Not necessarily. The options include selling equity to a partner, local partnerships and an EEIP. We compare them for your situation before you decide.
Where should we start when entering South Africa?
Start by understanding the level your customers and sector will expect, check whether equity equivalents could apply to you, and plan your scorecard before your first verification rather than after it.