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

Codes of Good Practice on Black Economic Empowerment

Code Series 500: Measurement of the Preferential Procurement Element of Broad-Based Black Economic Empowerment

Statement 500 : The General Principles for Measuring Preferential Procurement

7. Measurement of B-BBEE Procurement Spend
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7.1)B-BBEE Procurement Spend is the value of the procurement falling within paragraph 5 and not excluded by paragraph 6. If a supplier falls within a category of supplier listed in paragraph 3.3 or 4, the value of procurement from that supplier is multiplied by the applicable factor listed in paragraph 3.3.

 

7.2)B-BBEE Procurement Spend can be measured in terms of formula "A" in Annexe 500(A).

 

7.3)The B-BBEE Procurement Spend for a Measured Entity in respect of a supplier is calculated by multiplying the spend contemplated by paragraph 5 (and not excluded by paragraph 6) in respect of that supplier by the supplier's B·BBEE Recognition Level.

 

7.4)A Measured Entity's Total Procurement Spend is the total of all amounts calculated in terms of paragraph 7.3.