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

Industry Charters

Information and Communication Technology (ICT) Charter

ICT Sector Code for Black Economic Empowerment

Code Series 700: Measurement of the Socioeconomic Development Elements of Broad-Based Black Economic Empowerment

Statement 700: The General Principles for Measuring the Socioeconomic Development Element

2. The SED scorecard

2.1	The NPAT or average target applies unless:

2.1.1

the company does not make a profit last year or on average over the last five years

2.1.2

the net profit margin is less than a quarter of the norm in the industry.

2.2	If the Turnover is to be used, the target will be set at:

2.2.1

1.5% x Indicative Profit Margin (NPAT/Turnover) x Turnover

2.2.2

Indicative profit margin is the profit margin in the last year where the company's profit margin is at least one quarter of the industry norm.

2.3	The following table represents the criteria and method used for deriving a score for Socio-Economic Development under this statement:

Criteria	Weighting Points	Compliance Target
Average annual value of all Socio-Economic Development Contributions by the Measured Entity as a percentage of the target	12	1.5% of NPAT

2.4	The weighting points in the SED scorecard represent the maximum number of points possible for each of the criteria.

2.5

The ICT sector recognises that bridging the digital divide requires enterprises to undertake certain obligations in terms of access to ICT’s so as to improve the lives of the people. Such programmes could be in the form of providing ICT's in education, health and programmes aimed at enhancing the lives of black communities or people. Consideration will also be to enterprises operating within the regulated sub-sector, to the existing license obligations placed on these enterprises.