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BBBEE Amended Codes Presentation – Qualifying Small Enterprises
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Definitions
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• Exempted Micro Enterprise (EME) < R10m• Qualifying Small Enterprise (QSE) R10m – R50m• Generic >R50 million• Amended Codes effective 1 May 2014• Priority Elements – Ownership (compulsory) and Skills Development or
Enterprise Supplier Development. 40% sub-minimum requirement
Current Element vs New Elements
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Ownership Management Control Employment Equity Skills Development Procurement Enterprise Development Socio-Economic
Development Choose best 4 of 7
Ownership Management Control Skills Development Enterprise- and Supplier
Development Socio-Economic Development
Use all 5 elements
BBBEE Level Amended Codes Current Codes
1 ≥100 points ≥100
2 ≥95 but <100 points ≥85 but <100
3 ≥90 but <95 points ≥75 but <85
4 ≥80 but <90 points ≥65 but <75
5 ≥75 but <80 points ≥55 but <65
6 ≥70 but <75 points ≥45 but <55
7 ≥55 but <70 points ≥40 but <45
8 ≥40 but <55 points ≥30 but <40
Non-Compliant <40 points <30
BEE Recognition Levels
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QSE Scorecard Weightings
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Element Weighting
Ownership 25 points
Management Control 15 points
Skills Development 25 points
Enterprise & Supplier Development 30 points
Socio-Economic Development 5 points
Total 100 points
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Ownership 25 points COMPULSORY PRIORITY ELEMENT
Description Weighting
points Compliance Target
1. Voting rights:
Exercisable voting rights in the enterprise in the hands of black people. 5 25% + 1 Vote
Exercisable voting rights in the enterprise in the hands of black women. 2 10%
2. Economic interest :
Economic interest of black people in the enterprise 5 25%
Economic interest of black women in the enterprise 2 10%
New entrants or Black Designated groups 3 2%
3. Realization points :
Ownership fulfillment 1 No restrictions
Net value 8 25%
Total 25
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Management Control 15 points Not priority element
Description Weighting
points Compliance Target
Executive Management :
Black representation at Executive Management 5 50%
Black Female representation at Executive Management 2 25%
Non-Executive Management:
Black representation at Non-Executive Management 6 60%
Black Female representation at Non-Executive Management 2 30%
Total 15
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Skills Development 25 points Priority element
Description Weighting
points Compliance
Target
Skills Development expenditure on learning Programmes specified in the learning matrix for black people as a percentage of leviable amount
20 3%
Skills Development expenditure on learning Programmes specified in the learning matrix for black females as a percentage of leviable amount 5 1%
Total 25
Sub-minimum Requirements
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• Workplace Skills Plan, and
• Annual Training report, and
• Pivotal Report which are SETA approved
• Implementation of Priority Skills Program
Nolene Fuhri – 074 263 7653
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Enterprise and Supplier Development 30 points Priority Element
Description Weighting
points Compliance
Target
1. Preferential Procurement
B-BBEE procurement spend from all Empowering Suppliers based on the B-BBEE procurement recognition levels as a percentage of total measured procurement spend
15 60%
B-BBEE procurement spend from Empowering Suppliers that are at least 51% black owned based on the B-BBEE procurement recognition levels as a percentage of total measured procurement spend
5 15%
Total 20
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Enterprise and Supplier Development 30 points Priority Element
Description Weighting
points Compliance
Target
2. Supplier Development
Annual value of all Supplier Development Contributions made by the measured entity as a percentage of the target
5 1% of NPAT
3. Enterprise Development
Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the measured entity as a percentage of the target 5 1% of NPAT
Total 30
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Empowering Supplier DefinitionQSE’s need to meet at least one of the criteria
• At least 25% of cost of sales excluding labour cost and depreciation must be procured from local suppliers in RSA; for service industry labour costs are included but capped to 15%.
• Job creation – 50% of jobs created are for black people provided that the number of black employees since the immediate prior verified measurement is maintained.
• At least 25% transformation of raw material which include local manufacturing must be done inside SA.
• Skills Development – spend at least 12 days per annum of productivity deployed in assisting black EME’s and QSE’s to increase their operational and financial capacity.
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Socio-Economic Development 5 points Not priority element
Description Weighting
Points Compliance
Target
Annual value of all Socio Economic Development contributions as apercentage of the target
5 1% of NPAT
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Contact Details
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