VWSA has been in the press of late discussing the difficulties of obtaining a reasonable or acceptable B-BBEE level under the amended codes. This has led to some comment:

  • It is our opinion that the APDP programme plays a significant role in the viability of the South African motor industry and the cost of the vehicles it produces.The dti has indicated that a compliant (level 8) certificate is required for companies to receive their APDP benefits. No B-BBEE certificate means no APDP payment which may lead to questions on continued operations. This could have dramatic consequences on the economy.

    If people believe there is no way a car manufacturer can close, let’s use the Australian car industry as an example: From mid-2017 there will not be an Australian car manufacturing industry, when there was a thriving Australian car manufacturing industry not so long ago. Car manufacturers and suppliers can and do close, and production is then moved elsewhere in the world.

  • This is also the first sign of a push back against the current B-BBEE codes. Business raised objections to some of the elements of the new Codes, especially surrounding the practicality of such, and not listening to inputs from the sectors driving the economy.Click here to read further.