Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Amended Codes of Good Practice (2013)

Amended Code Series 400: Measurement of the Enterprise and Supplier Development Element of Broad-Based Black Economic Empowerment

Statement 400: The General Principles for Measuring Enterprise and Supplier Development

Key Measurement Principles

3.2 Sub-Minimum and Discounting Principle
Purchase cart Previous page Return to chapter overview Next page

 

3.2.1A Measured Entity must achieve a minimum of 40% of each of the targets set out on 2.1, 2.2 and 2.3 excluding bonus points of the Enterprise and Supplier Development Scorecard.

 

3.2.2Non-compliance to the threshold targets will result in the overall achieved B-BBEE status level being discounted in accordance with paragraph 3.4 in statement 000.

 

3.3An Empowering Supplier within a context of B-BBEE is a B-BBEE compliant entity, which is a good citizen South African entity, comply with all regulatory requirements of the country and should meet at least three if it is a large enterprise or one if it is a QSE of the following criteria:
(a)At least 25% of cost of sales excluding labour cost and depreciation must be procured from local producers or local supplier in SA, for service industry labour cost are included but capped to 15%.
(b)Job creation - 50% of jobs created are for Black people provided that the number of Black employees since the immediate prior verified B-BBEE Measurement is maintained.
(c)At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.
(d)Skills transfer - at least spend 12 days per annum of productivity deployed in assisting Black EMEs and QSEs beneficiaries to increase their operation or financial capacity.

 

3.3.1Exempted Micro Enterprises and Start-Ups are automatically recognised as Empowering Suppliers.

 

3.4The Weighting points in the Enterprise and Supplier Development scorecard represent the maximum number of points possible for each of the criteria.

 

3.5If a Measured Entity procures goods and services from a supplier that is:

 

3.5.1A recipient of supplier development contributions from a Measured Entity under Code series 400 has a minimum 3 year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2;

 

3.5.2A black owned QSE or EME which is not a supplier development beneficiary but that has a minimum 3 year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2;

 

3.5.3A first time supplier to the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2.

 

3.6.Procurement of goods and services and any other activities that fall under 2.1 will not qualify for scoring under 2.2 and 2.3 and vice versa.

 

3.7Beneficiaries of Supplier Development and Enterprise Development are EMEs or QSEs which are at least 51% black owned or at least 51% black women owned.