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

Element

Weighting

Code Series Reference

Management Control

20 Points

200

Skills Development

25 Points

300

Enterprise and Supplier Development

50 Points

400

Socio-Economic Development

5 Points

500

Localisation

10 Points

Paragraph 16.5 of this Code

Total

110 Points

Measurement Category and Criteria

Weighting Points

Compliance targets

Year 1

Year 2

Year 3

Board Participation

Exercisable voting rights of black board members as a percentage of all board members

2

50%

60%

70%

Exercisable voting rights of black female board members as a percentage of all board members

1

25%

30%

40%

Black Executive Directors as a percentage of all executive directors

2

50%

60%

70%

Black female Executive directors as a percentage of all executive directors

1

25%

30%

40%

Other Executive Management

Black executive management as a percentage of all executive management

2

60%

65%

70%

Black female executive management as a percentage of all executive management

1

30%

40%

40%

Senior Management

Black employees in senior management as a percentage of all senior management

2

60%

65%

70%

Black female employees in senior management as a percentage of all senior management

1

30%

40%

40%

Middle Management

Black employees in middle management as a percentage of all middle management

2

75%

80%

85%

Black female employees in senior management as a percentage of all middle management

1

38%

40%

45%

Junior Management

Black employees in junior management as a percentage of all junior management

2

88%

90%

90%

Black female employees in junior management as a percentage of all junior management

1

44%

50%

55%

Employees with Disabilities

Black employees with disabilities as a percentage of all employees

2

2%

3%

5%

Total

20 Points

Category

Skills Development Element

Weighting Points

Compliance targets

Year 1

Year 2

Year 3

Skills Development Expenditure on any programme specified in the Learning Programme Matrix for Black people as a percentage of the Leviable Amount

Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for Black people as a percentage of Leviable Amount

7

6%

6%

6%

Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black employees with disabilities as a percentage of Leviable Amount

3

0.3%

0.3%

0.3%

Skills Development Expenditure on Learning Programmes for Black Military Veterans

2

2%

2%

3%

Learnership, apprenticeships and internship

Number of Black people participating in learnerships, apprenticeships and internships as a percentage of total employees

6

2.5%

2.5%

2.5%

Number of Black unemployed people or students participating in training specified in the learning programme matrix as a percentage of number of employees.

7

2.5%

2.5%

2.5%

Bonus Points

Number of Black people absorbed by the Measured Entity and Industry at the end of the learnership/apprenticeship or internship programme

5

100%

100%

100%

Total

25 Points

Criteria

Weighting  Points

Compliance targets

Year 1

Year 2

Year 3

Preferential Procurement

B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Level as a percentage of Total Measured Procurement Spend

5

80%

80%

85%

B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

4

15%

15%

20%

B-BBEE Procurement Spend from all Exempted Micro-Enterprise based on the applicable B-BBEE procurement Recognition Levels as a percentage of Total Measured Procurement Spend

5

15%

15%

20%

B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% Black owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

11

40%

40%

45%

B-BBEE Procurement Spend from Empowering Suppliers that are at least 30% black women owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

5

12%

12%

12%

Bonus Points

B-BBEE Procurement Spend from Designated Group Suppliers that are at least 51% black owned

2

2%

2%

2%

Supplier Development

Annual value of all Supplier Development Contribution made by the Measured Entity as a percentage target

15

2% of Net Profit After Tax (NPAT) or 0,2% Annual Revenue/Allocated budget/Gross receipts/Discretional spend

2% of Net Profit After Tax (NPAT) or 0,2% Annual Revenue/Gross receipts/Discretional spend

2% of Net Profit After Tax (NPAT) or 0,2% Annual Revenue/Gross receipts/Discretional spend

Enterprise Development

Annual value of all Supplier Development Contribution made by the Measured Entity as a percentage target

5

1% of NPAT or 0.1% Annual revenue/Allocated budget/ Gross receipts/ Discretional spend

1% of NPAT or 0.1% Annual revenue/Allocated budget/Gross receipts/ Discretional spend

1% of NPAT or 0.1% Annual revenue/Allocated budget/ Gross receipts/ Discretional spend

Bonus Points

Bonus point for graduation of one or more Enterprise Development beneficiaries to graduate to the Supplier Development level

1

Bonus point for creating one or more jobs directly as a result of Supplier Development and Enterprise Development initiatives by the Measured Entity

1

Total

50 Points

Weighting Points

Compliance target

Year 1

Year 2

Year 3

Annual value of all Socio- Economic Development contributions by the Measured Entity as a percentage of the target

5

1% of NPAT OR 0,1% Annual Revenue/ Allocated budget/ Gross receipts/ Discretional spend

1% of NPAT OR 0,1% Annual Revenue/ Allocated budget/ Gross

receipts/Discretional spend

1% of NPAT OR 0,1% Annual Revenue/ Allocated budget/ Gross receipts/Discretional spend

Total

5 Points

B-BBEE

Element

Description

Weighting Points

Compliance  Target

Year 1

Year 2

Year 3

Localisation

Procurement of Defence Matériel produced and/or manufactured in South Africa by Local Enterprises

6

60%

60%

60%

Procurement from local enterprises that introduce new locally developed technology in the SADI that is not older than 24 months

2

60%

60%

60%

Procurement of technologies that are developed in South Africa by Local Enterprises from intellectual property owned by such Local Enterprises or technologies that are developed in South Africa by Local Enterprises from intellectual property licensed thereto by Local or Foreign Enterprises

2

60%

60%

60%

Total

10 points