General
In terms of the New Codes of Good Practice on Broad-Based Black Economic Empowerment (B-BBEE), the compliance requirements for B-BBEE varies according to the size of your entity, as measured by your annual turnover.
Definition of “Black People”
As per the Broad-Based Black Economic Empowerment Act 53 of 2003 as Amended by Act No 46 of 2013 “Black People” is a generic term which means Africans, Coloureds and Indians –
(a) Who are citizens of the Republic of South Africa by birth or descent; or
(b) Who became citizens of the Republic of South Africa by naturalization-
(i) Before 27 April 1994; or
(ii) On or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalization prior to that date.
Black Designated Groups
are black people that are unemployed, youth, persons with disabilities and black people living in rural and under-developed areas.
Turnover Thresholds for Exempted Micro Enterprises
Your registered company is B-BBEE exempted if its turnover is below R10 million (increased from R5 million). It is classified as an Exempted Micro Enterprise (EME).
Turnover Thresholds for Qualifying Small Enterprises:
Your registered company is B-BBEE classified as Qualifying Small Enterprise or QSE if it has turn-over threshold of R10 – R50 million.
Turnover Thresholds for Generic Enterprise
If your registered company has a turnover of R50 million or more, that makes your registered company a Generic enterprise and, together with QSEs that have less than 51% black ownership, subject to all aspects of the new Codes.
Assessments of B-BBEE Elements are as follow:
There are five assessment elements (see table below) for Generics and QSEs to qualify from:
New Codes Scorecard
| No. | Element | Points GENERIC(5/5) | Points QSE(5/5) |
|---|---|---|---|
| 1 | Ownership* | 25 | 25 |
| 2 | Management Control | 19 | 15 |
| 3 | Skills Development* | 20 | 25 |
| 4 | Enterprise & Supplier Development* | 40 | 30 |
| 5 | Socio-Economic Development | 5 | 5 |
* = Priority elements
B-BBEE Points Scoring
The B-BBEE points scoring table in terms of new B-BBEE Codes, as set out below:
| BEE Status | Revised Qualification | Recognition Level |
|---|---|---|
| Level 1 | ≥100 points | 135% |
| Level 2 | ≥95 but <100 points | 125% |
| Level 3 | ≥90 but <95 points | 110% |
| Level 4 | ≥80 but <90 points | 100% |
| Level 5 | ≥75 but <80 points | 80% |
| Level 6 | ≥70 but <75 points | 60% |
| Level 7 | ≥55 but <70 points | 50% |
| Level 8 | ≥40 but <55 points | 10% |
| Non-Compliant | <40 points | 0% |
