BEE BLACK was created to meet the demand for supplier and enterprise development and to assist clients of these companies to mitigate the risk of contracting suppliers that could be subject to increased demand whilst their capacity and business acumen is not up to standard.

Businesses are currently subject to the DTI BEE Codes and mines to the 2017 Mining Charter as well. Although the BEE codes and Mining Charter have different targets for Procurement, Supplier Development and Enterprise Development, it is clear that the intention of both codes are that companies in general should procure from and support more of the following types of businesses, namely:

  • Black owned companies (51%)
  • Black women owned companies (51%)
  • Black owned youth companies (51%)
  • 26% Black owned companies with at least a Level 4 BEE Status. (Mines only)

These targets are set to transform the economy of SA, but unfortunately there are many risks that stem from the radical economic transformation strategy.

Risks associated with suppliers who have 51% or more black shareholding

The demand for the services and products from suppliers who have more than 51% black shareholding will increase as a result of the BEE points allocation dedicated to Preferential Procurement, Supplier and Enterprise Development in terms of support for these types of businesses.

For some of these suppliers the demand for their services or products could grow exponentially which may put them at risk due to the inability to cater for and deliver on the increased demand. Exponential growth without sufficient capacity and business acumen has been the downfall of many a business.


Each of the entities identified above need to determine the nature and extent of the risks they face and need to develop an appropriate risk mitigation strategy. For all of these entities their risk mitigation strategy would require a relook at their key performance indicators, business model, business strategy, business processes and systems as well as their business development funding strategy.

If they do not come to terms with the risks they will face as a result of the BEE codes they will most probably experience a multitude of business constraints and shortcomings in the near future that might be their downfall.

Businesses, who select black owned suppliers without doing their own risk analysis, may also be at risk if they contract suppliers who cannot deliver on contracts (or have the potential to do so).

The BEE codes and Mining Charter however make it possible for black owned businesses to receive the required assistance from their clients in the form of BEE points awarded if supplier and enterprise development is made available by the client to their suppliers and selected enterprise development beneficiaries.


Dr. Willem Mostert (D.Soc.Sc.) is the Managing Director of BEE BLACK Pty (Ltd), a 51 % black owned consulting company (BEE Level 2).

BEE Black Consulting specialises in developing black owned suppliers to corporate businesses.

Willem has redesigned many businesses in South Africa, Botswana and Zimbabwe over the last 35 years. He specialises in business design and transformation, process re-engineering and management competency development.

He has started various businesses and has a flair for new business development. He consulted in most business sectors, but for the last 10 years mostly in the mining sector.

He is a proponent of Black Economic Empowerment with a strong focus on Black Female development and SMME development.

BEE Black Consulting makes use of a consortium of consultants who has extensive experience in business development. The consortium consists of 8 lead consultants and at least 10 support consultants who have many years of experience in business architecture, business improvement, people development and organizational development and transformation.