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

Element

Weighting

Indicator Category

Indicator

Indicator

Weighting

Points

Target

Ownership

20%

Voting rights

Exercisable Voting Rights in the Enterprise in the hands of black people

3

25% + 1

vote

Exercisable Voting Rights in the enterprise in the hands of black women

2

10%

Economic

interest

Economic Interest in the enterprise to which black people are entitled

4

25%

Economic Interest in the Enterprise to which black women are entitled

2

10%

Economic interest in the Enterprise to which black designated groups,deemed participants in distribution schemes or employee schemes; participants in co-

operatives, are entitled

1

2.5%

Realisation

points

Ownership fulfilment

1

No

Restrictions

Net Equity Interest Achieved accordingly:(See CoGP)

10% of the Target (Year 1)

20% of the Target (Year 2)

40% of the Target (Year 3-4)

60% of the Target (Year 5-6)

80% of the Target (Year 7-8)

100% of the Target (Year 9-10)

7

25%

Bonus points

Involvement in the ownership of the Enterprise of black new entrants; black disabled people, black youth and black Deemed Participants of Broad-Based Ownership Schemes; or black Participants in Co-operatives

3

Bonus per

each level of

5%

Land

Ownership

20%

Commercial agricultural land transferred or sold to black people (The full detail of this matter can only be finalized once the legislative framework emanating from the current Land Reform Green Paper has been established. Until such time, the provisions of this Sector Code, read in conjunction with Statement 102, Recognition of Sale of Assets of the Codes of Good Practice, will be valid for measurement purposes).

20

30%

Bonus points

Contribution to achieving in excess of 30% land transfer.

Note: Given the need to transfer land in support of national objectives, the nature of farming and the need to support Black People in establishing viable commercial farming Enterprises on the land that they receive, Measured Enterprises are encouraged to sell land in accordance with the principles and criteria attached to Qualifying Transactions as outlined below. However, these criteria and principles will only apply for a period of 5 years following the sale of land, where after the Measured Enterprise will enjoy continued recognition for ownership contributions. This refers exclusively to title deed land transfer.

Further Black participation through ownership in the Agri-Industry by increasing the level of entitlement of Black People to participate in the Economic Interest and Exercisable Voting Rights in existing and new Enterprises. This includes the sale of equity in a Measured Enterprise, sale of assets through Qualifying Transactions and/or through share equity schemes and other forms of joint ventures with farm labourers and other Black entrepreneurs

Commercial agricultural land transferred or sold to black people (The full detail of this matter can only be finalized once the legislative framework emanating from the current Land Reform Green Paper has been established). In the interim those paragraph 5.1.3 of this Code shall apply. The provisions of this Sector Code, read in conjunction with Statement 102, Recognition of Sale of Assets of the Codes of Good Practice, will be valid for measurement purposes.

5

30% (Bonus point per each percentage of land transferred above 30% of total land)

Management

Control

10%

Board

Participation

Percentage of exercisable Voting Rights held by Members of the Board who are black people to the total of all Voting Rights exercised by all members of the Board

3

50%

Executive Members of the board who are black people

1

50%

Executive Members of the board who are black women

1

25%

Top

Management

Participation

Percentage that Senior Top Management who are black people constitute of the total number of Senior Top Management

2

40%

Percentage that Senior Top Management who are black women constitute of the total number of Senior Top Management

1

20%

Percentage that Other Top Management who are black people constitute of the total number of Other Top Management

1

40%

Percentage that Other Top Management who are black women constitute of the total number of Other Top Management

1

20%

Bonus Points

Percentage that black people who are Independent Non-executive Board Members constitute of the total number of Independent Non-executive Board Members

1

40%

Employment

Equity

10%

Black people with disabilities employed in by the Measured Enterprise as a percentage of all full-time employees

2

3%

Black people employed by the Measured Enterprise at Senior Management level as a percentage of employees at Senior Management level

2

60%

Black women employed by the Measured Enterprise at Senior Management level as a percentage of employees at Senior Management level

2

30%

Black people employed by the Measured Enterprise at Professionally Qualified, Experienced Specialist and Mid-management level as a percentage of employees at Professionally Qualified, Experienced Specialist and Mid-management level

2

75%

Black women employed by the Measured Enterprise at Professionally Qualified, Experienced Specialist and Mid-management level as a percentage of employees at Professionally Qualified, Experienced Specialist and Mid-management level

1

40%

Black people employed by the Measured Enterprise at Skilled Technical and Academically Qualified Workers, Junior Management, Supervisors, Foremen and Superintendents as a percentage of employees at Skilled Technical and Academically Qualified Workers, Junior Management, Supervisors, Foremen and Superintendents level

1

80%

Bonus point for meeting or exceeding the EAP target in each category above

3

Skills

Development

20%

Skills

Development

Spend

Skills development spend on black employees as a percentage of Leviable Amount. (85% of spend focused on core skills as identified by the enterprise and critical skills as identified and accredited by the relevant SETA. If the Measured Entity does not meet the 85% then the points scoring will be pro rated).

7

2.%

Skills development spend on black women as a percentage of Leviable Amount (85% of spend focused on core skills as identified by the enterprise and critical skills as identified by the relevant SETA. If the Measured Entity does not meet the 85% then the points scoring will be pro rated).

2

1%

Spend on black employees with disabilities as a percentage of Leviable Amount

1

0.2%

Recognised

Training

Programmes/

Learnerships

Number of black employees participating in training programmes/Learnerships that lead to recognised qualifications as percentage of total employees.

3

5%

Number of black women participating in training programmes that lead to recognised qualifications as percentage of total employees.

2

2.5%

Number of people who are members of Black Designated Groups participating in training programmes/Learnerships that lead to recognised qualifications as percentage of total employees.

3

1%

Number of Black employees participating in ABET Training as a percentage of total employees.

2

1%

Bonus points

Percentage of employees participating in ABET level 3 training as a percentage of total employees.

2

2%

Preferential

Procurement

20%

Preferential

Procurement

Spend

B-BBEE procurement spend from all suppliers based on B-BBEE Procurement Recognition levels as a percentage of Total Measured Procurement Spend

12

70%

B-BBEE procurement spend from Qualifying Small Enterprises suppliers based on B-BBEE Procurement recognition levels as a percentage of Total Measured Procurement Spend

2

15%

B-BBEE procurement spend from Exempted Micro Enterprises suppliers based on B-BBEE Procurement recognition levels as a percentage of Total Measured Procurement Spend

1

5%

B-BBEE procurement spend from Exempted Micro Enterprises suppliers that are 50% Black owned as a percentage of Total Measured Procurement recognition Spend

3

12%

B-BBEE procurement spend from Exempted Micro Enterprises suppliers that are 30% Black women owned as a percentage of Total Measured Procurement recognition Spend

2

8%

Enterprise

Development

10%

Enterprise

Development

Spend

Average annual value of all Enterprise Development contributions and Sector Specific Programmes made by the Measured Entity as a percentage of target

10

3% of NPAT

Bonus Points

Enterprise development contributions that directly increase employment levels in preceding year

2

One point for every 5% proven increase in permanent employment for black people on previous year's permanent employment

Socio-Economic

Development

10%

SED Spend

and/or Land

available to

farm workers 1

Average annual value of all SED contributions and Sector Specific Programmes made by the Measured Entity as a percentage of target and/or Land made available to farm workers measured from the commencement date of this Sector Code or the Inception Date over 10 years of the Code period. The Inception date chosen by the Measured Entity must not be earlier than 5 years before the commencement date of this statement, but binds the Measured Entity for the duration of this statement.

10

1,0% of NPAT

10% Land of the total land owned by the Measured Entity

Bonus Point

SED contributions benefiting black people in rural communities or geographic areas identified in government's integrated sustainable development programme and urban renewal programme

1

Lease of 20% of land or capital assets owned by the Measured Entity on a long term basis to black persons which meets the criteria of a qualifying transaction as outlined in paragraph 5.1.1.2

2

Lease longer than 10 years