Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentIntegrated Transport Sector CodesB-BBEE Sub-Sector Code for Public Sector - Transport6. Appendix B: Enterprise Development Enhanced Recognition Factor MechanismG. Measurement Matrix (MM) |
Item |
Criteria |
Previous Year |
Current Year |
% Growth |
Weighting |
Score |
A |
FINANCIAL |
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1 |
Annual turnover |
20 |
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2 |
No. of permanent employees |
20 |
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3 |
Total value of assets |
20 |
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B |
REGULATORY |
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4 |
Total credit facilities available for suppliers |
10 |
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5 |
Tax & other regulatory compliance |
10 |
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C |
OTHER |
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6 |
Operating & costing systems capacity |
10 |
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7 |
Skills Transfer |
10 |
EXAMPLE
DOI |
DOII |
DOIII |
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|
% GROWTH |
WEIGHT ING |
SCORE |
|
% GROWTH |
WEIGHT ING |
SCORE |
|
% GROWTH |
WEIGHT ING |
SCORE |
1 |
+ 10% |
X 20 |
= 2.0 |
|
+ 8% |
X 20 |
= 1.6 |
|
+ 12% |
X 20 |
= 2.4 |
2 |
+ 33% |
X 20 |
= 6.6 |
|
+ 0% |
X 20 |
= 0 |
|
+ 66% |
X 20 |
= 13.2 |
3 |
+ 6% |
X 20 |
= 1.2 |
|
+ 4% |
X 20 |
= 0.8 |
|
+ 15% |
X 20 |
= 3.0 |
4 |
+ 0% |
X 10 |
= 0 |
|
+ 0% |
X 10 |
= 0 |
|
+ 0% |
X 10 |
= 0 |
5 |
+ 15% |
X 10 |
= 1.5 |
|
+ 8% |
X 10 |
= 0.8 |
|
+ 3% |
X 10 |
= 0.3 |
6 |
+ 12% |
X 10 |
= 1.2 |
|
+ 4% |
X 10 |
= 0.4 |
|
+ 0% |
X 10 |
= 0 |
7 |
+ 20% |
X 10 |
= 2 |
|
+ 5% |
X 10 |
= 0.5 |
|
+ 5% |
X 10 |
= 0 |
|
|
|
|
|
|
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TOTAL SCORE |
14.5 |
4.1 |
|
|
18.9 |
Average Growth Rate = 14.5 + 4.1 + 18.9
3
Assume real GDP growth rate to be 10
= 12.5
12.5 > 10 i.e. Growth Rate Exceeds real GDP growth annualised by 25% 
multiplier factor is 1.125
Therefore if these 3 developing organizations together accounted for 15% of the CE discretionary spend in the year in question, out of a total 30% allocated by the CE for Sub-Sector Code requirements then the multiplier effect will be
1.125 x 15 = 16.875 x [the monetary value of discretionary spend from the entities]
i.e Discretionary spend = R20 million
30% = R6m
16.875% = R1.0125m
15% = R0.9m
CEs Scorecard Score R1.0125m = 16.875 x weighting = x