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

Amended Codes of Good Practice (2017)

Amended Code Series CSC100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC100: The General Principles for Measuring Ownership

Annexe CSC100 (E

4. Net Value
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4.1The "Net Value" points in paragraph 2.3.1 is the lower result of Formula A and Formula B below:

 

Formula A

 

Formula A

Where

 

A is the score under paragraph 2.3.1 of the Ownership scorecard

 

B is the Deemed Value for all Black Participants in the Measured Entity determined using Formula 3 above

 

C is the Time-Based Graduation Factor of the Economic Interest compliance target outlined below:

 

•     10% for the first year after the Current Equity Interest Date.

•     20% for the second year after the Current Equity Interest Date.

•     40% from the first day of the third year after the Current Equity Interest Date to the last day of the fourth year after the Current Equity interest Date.

•     60% from the first day of the fifth year after the Current Equity Interest Date to the last day of the sixth year after the Current Equity Interest Date.

•     80% from the first day of the seventh year after the Current Equity Interest Date to the last day of the eighth year after the Current Equity Interest Date.

•     100% from the first day of the ninth year after the Current Equity Interest Date to the last day of the tenth year after the Current Equity Interest Date.

 

D is the Target for Economic Interest of Black People (25%) as per the Amended Codes (Gazette 36928, 11 October 2013).

 

E is the Weighting  points allocated to the applicable measured Ownership indicator in paragraph 2.3.1 of the Ownership scorecard.

 

Formula B

Where

 

A is the score under paragraph 2.3.1 of the Ownership scorecard.

 

B is the percentage Economic Interest in the Measured Entity of Black Participants measured using the Flow Through Principle.

 

C is the target for Economic Interest of Black People (25%) as per the Amended Codes (Gazette 36928, 11 October 2013).

 

D is the Weighting points allocated to the applicable measured  Ownership indicator in paragraph 2.3.1 of the Ownership scorecard.

 

 

4.2If an Entity gains a score in the Formula above that is more than the Weighting points in paragraph 2.3.1, that Entity will only receive the Weighting points.