What is B-BBEE?

The Black Economic Empowerment Strategic Framework is aimed at the development and growth of the South African economy by bringing black people into the main stream of economic activities. By doing so, the economy will develop and expand sufficiently to provide adequate jobs, to curb growing unemployment and poverty, and address the social needs and security of all South Africans.

Legislative framework

The Department of Trade and Industry has released the final Codes of Good Practice for black economic empowerment (BEE), which will end uncertainty over empowerment deals while boosting South Africa’s economic growth.
The release of the codes follows the Broad-Based Black Economic Empowerment Act of 2003 and the BEE Strategy Document drawn up by the Department of Trade and Industry (DTI). That document gave an outline of the broad-based BEE scorecard, together with weightings, but didn’t detail measurement principles and how the scorecard was to be applied.
The Codes of Good Practice contain frameworks for the determining BEE, including the generic scorecard, guidelines and BEE agencies, as well how the different parts of the scorecard are to be measured in companies.

BEE elements

The BEE-Act and Code provide a scorecard for businesses to be
measured by the following elements as opposed to ownership only:

  • direct empowerment through ownership and control of enterprises and assets;
  • human resource development and employment equity;
  • indirect empowerment through preferential procurement and enterprise development.

The total score will be calculated by totalling the sum of the individual component scores and will be reflected as a percentage score.

Ranking enterprises using the scorecard

Government will use the total score to rank enterprises according to their progress in achieving broad-based black economic empowerment, as follows:
Level 1 TO 9 BEE Status Qualification


Contribution Level

BBBEE score range

Recognition level

Level One Contributor

≥ 100 points

R1.35/R1 spent

Level Two Contributor

≥ 85 points but < 100 points

R1.25/R1 spent

Level Three Contributor

≥ 75 points but < 85 points

R1.10/R1 spent

Level Four Contributor

≥ 65 points but < 75 points

R1/R1 spent

Level Five Contributor

≥ 55 points but < 65 points

R0.80/R1 spent

Level Six Contributor

≥ 45 points but < 55 points

R0.60/R1 spent

Level Seven Contributor

≥ 40 points but < 45 points

R0.50/R1 spent

Level Eight Contributor

≥ 30 points but < 40 points

R0.10/R1 spent

Non-Compliant Contributor

< 30 points

R0/R1 spent

 
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