ABOUT B-BBEE

The Amended Codes of Good Practice, gazette No 36928 has come into effect on the 1st May 2015. B-BBEE verifications conducted using the financial year ending on or before 30 April 2015 can be verified using the old Codes of Good Practice, gazette No 29617 and B-BBEE verifications conducted using the financial year ending on or after the 1st May 2015 can be verified using the Amended Codes of Good Practice, gazette No 36928 with the exception of the Sector Codes.

Turnover Thresholds

Category Preceding Codes Revised Codes
EME’s R0 – R5m R0 – R10m
QSE’s R5m – R35m R10m – R50m
Generic > R35m > R50m

 

B-BBEE SCORECARD

PRECEDING CODES REVISED CODES
Ownership Ownership
Management Control Management Control
Employment Equity Skills Development
Skills Development Enterprise & Supplier Development
Preferential Procurement Socio-Economic Development
Enterprise Development
Socio-Economic Development

 

*A QSE will now have to comply with Ownership as a compulsory element and can elect either Skills Development or Enterprise & Supplier Development. The significance of this is that these three priority elements have a 40% sub-minimum requirement for points obtained*

 Exempt Micro Enterprises

  • 100% Black owned = Level 1
  • 50,1% to 99% Black owned = Level
  • ≤ 50% Black owned = Level 4

For Black Owned Exempted entities sworn affidavit confirming:

  • Annual total revenue is less than R10 million
  • Level of Black Ownership

 

Qualifying Small Enterprises

Turnover between R10 million to R 50 million per annum

Measure all 5 elements

Comply with at least 2 priority of the following elements:

  • Ownership (compulsory) and
  • Enterprise and Supplier Development or Skills Development

*Entities which do not meet priority element thresholds the overall score will be discounted by 1 level.*

Enhanced recognition for black owned QSE’s:

  • 100% Black owned = Level 1
  • 51% or more black owned = Level 2

Qualifying Black Owned QSE Requirements:

Sworn affidavit confirming:

  • Annual total revenue is less than R50 million
  • Level of black ownership

Generics

  • Turnover = or more than R50 million per annum
  • Measure all 5 elements
  • Have to comply with priority elements, Ownership, Skills Development and Enterprise and Supplier Development.

* Entities who do not meet priority element thresholds the overall score will be discounted by 1 level *

 

B-BBEE Recognition Levels

Preceding B-BBEE Scorecard Revised B-BBEE Scorecard
B-BBEE Status B-BBEE Points B-BBEE Recognition B-BBEE Point B-BBEE Recognition
Level One >=100 135% >=100 135%
Level Two >=85 & < 100 125% >=95 & < 100 125%
Level Three >=75 & < 85 110% >=90 & < 95 110%
Level Four >=65 & < 75 100% >=80 & < 90 100%
Level Five >=55 & < 65 80% >=75 & < 80 80%
Level Six >=45 & < 55 60% >=70 & < 75 60%
Level Seven >=50 & < 45 50% >=55 & < 70 50%
Level Eight >=30 & < 40 10% >=40 & < 55 10%
Non-Compliant <30 0% <40 0%