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 800: ICT Codes of Good Practice for Qualifying Small Enterprises (QSE's)

1. Statement 800: The Framework for QSEs and exempted Micro-enterprises

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1.1Objectives of this statement
1.1.1The objectives of this statement are to:
1.1.1.1specify the Elements of B-BBEE measurable under the Qualifying Small Enterprise (QSE) Scorecard;
1.1.1.2specify the QSE Scorecard;
1.1.1.3specify the principles in the Statements (100 - 700) applicable to Qualifying Small Enterprises.

 

1.2Eligibility as a QSE
1.2.1Any enterprise with an annual Total Revenue of between R5 million and R35 million qualifies as a QSE, if its qualification does not result from circumvention of the ICT Codes.

 

1.3The QSE Scorecard
1.3.1The following table represents the QSE Scorecard and contains the Elements of the scorecard and the weightings for each element:

 

Element

Weighting

Code Series 800

Framework


800

Ownership

25 points

801

Management control

25 points

802

Employment equity

25 points

803

Skills development

25 points

804

Preferential procurement

25 points

805

Enterprise Development

25 points

806

Socio-Economic Development Contributions

25 points

807

 

1.3.2A QSE must select any four of the seven Elements of B-BBEE for the purposes of measurement under the QSE Scorecard. If a QSE does not make a selection, its four best element scores will be used for the purpose of measurement.
1.3.3A QSE will be scored in proportion to the extent that it meets the compliance targets for those four elements.
1.3.4The Weighting points in respect of any element in the scorecard represent the maximum number of points possible for each of the criteria.
1.3.5Wherever a Standard Valuation Method applies to measuring an indicator, the same standard should apply, as far as reasonably possible, in all other applicable calculations in this statement.
1.3.6The Adjusted Recognition for Gender must be used for the purposes of calculating the Employment Equity, Skills Development and Management Control element of the QSE scorecard.
1.3.7The B-BBEE compliance of a QSE must be determined in accordance with code 000.
1.3.8Any matter concerning the application of the QSE scorecard that is not dealt with explicitly in this scorecard must be dealt with in terms of ICT Codes 100-700.
1.4Transitional period
1.4.1The ICT Sector Code shall come into effect from the date of gazette. Entities in the ICT Sector shall apply the ICT Sector Code for measurement of their B-BBEE status.