BEE Scorecard Explained

Overview

The Broad-Based Black Economic Empowerment (B-BBEE) generic score card is made up 5 elements.

The purpose of the score card is to determine your B-BBEE preferential procurement level and to give you a guideline on how to raise your current level.

The score card has a total of 100 points and once you points are calculated you will land up with a score out of 100 and that will determine your level.

The score card is made up 5 elements, each element has a certain weighting (points) attached to it.

The elements are: Ownership, Management Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Social-Economic Development.

Tshuletsa can assist your company with Skills Development, Enterprise Development and Social-Economic Development.

Scorecard Element’s

Ownership

 

Mandatory rating for all business’

 

Enterprise and Supplier Development (ESD)

Supporting small businesses, pro-active investment Enterprise and Supplier Development.

Management Control

 

Support people with disabilities, youth, rural and elderly.

 

Skills Development

Increasing local production

Social-Economic Development

Increase in Skills Development emphasis

Enterprise Types:

In terms of the Codes of Good Practice on Broad-Based Black Economic Empowerment, the compliance requirements for B-BBEE varies according to the size of your entity, as measured by your annual turnover.

Exempt Micro-Enterprise: Turnover of R 10 million per annum and below:

This means that you are classified as an Exempt Micro-Enterprise (EME), you are classified as a Level 4 Contributor to B-BBEE, that means your clients can claim at least 100% of their procurement spend with your company which then counts towards their own B-BBEE scorecard. You could also be classified as a level 3 Contributor if more than 50% owned by black people. You can be measured in terms of the Qualifying Small Enterprise (QSE) score card if you want to move to the next procurement recognition level.

Qualifying Small Enterprise: Turnover of R 10 million per annum to R 50 million:

This means that you are classified as a Qualifying Small Enterprise (QSE). Although the scorecard consists of seven sections, you are only measured on the best four or the four you choose to be measured on.

Enterprise (Generic scorecard): Turnover of R 50 million per annum and above:

This means that you need to comply with the Generic scorecard, which consists of all seven elements.

Scorecard Element’s Weighting

ElementCodes of Good Practice
2007 - Weighting Points
Codes of Good Practice
2007 - Target
Amended Codes of
Good Practice 2013 - Weighting points
Amended Codes of
Good Practice 2013 - Target
Total100 109
Ownership 2025% + 1 Vote 2525% + 1 Vote
Management & Control1050%1950%
Employment Equity 1580%--
Skills Development153% of Payroll206%
Preferential Procurement2070%--
Enterprise Development153%--
Enterprise & Supplier Development--4080%
Socio-Economic Development51%51%