The number of black economic empowerment verification agencies and BEE consultants is expected to double, even quadruple, in the next few months as the Association of BEE verification industry gets off the ground, EmpowerDEX noted.

This follows the Department of Trade and Industry's (the DTI) approval of the formation of a BEE verification industry watchdog — the Association of BEE Verification Agencies (Abva) — to accelerate the accreditation of ratings agencies.

Accreditation of BEE ratings agencies is a requirement of the Broad-Based Black Economic Empowerment (BBBEE) Codes of Good Practice released by the DTI last year.

"This is a momentous step in the implementation of BEE," said Vuyo Jack, chief executive of BEE research and ratings agency EmpowerDEX.

According to Jack, Abva would introduce transparency as well as uniformity in the measurement and reporting of black empowerment.

"Regulating the standards of the BEE verification process will give rated companies the assurance that their rating is valid and legitimate and by providing further clarity on the standardisation of BEE measurement as contained in the Codes, it should go some way towards allaying local and international fears about BEE being an imperative for doing business in South Africa," Jack added.

Abva's eight founding members are EmpowerDEX, Empowerlogic, Exceed, NERA, On Track, Sasda, Tokiso BEE and Verify Solutions.

It is envisioned that the accreditation process will get underway in March with the first accreditation awarded by June.

These agencies are expected to help the government deal with so-called fronting — a practice that falsifies BEE credentials. The potential cost of fronting is so severe that government has threatened to withdraw accreditation should an agency fail to identify fronting.

BEE rating, while not compulsory, is essential for any firm aiming for government and private sector contracts in the future.