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

EXAMPLE FOR DETERMINING LIMITATION OF AM, CM, IM, AF, CF and IF

The example below illustrates how the limitation of the Target for each of the race sub-categories is determined with respect to the ‘Black People’ indicator of Senior Management (par. 2.3.1):

Step 1: Determine the profile of the overall national EAP distribution* per race and gender as per the CEE Report

* In this example the overall national EAP statistics are used. It could just as well have been the overall provincial EAP statistics if the Measured entity selected so in terms of paragraph 3.2 of Annexe CSC200 (B).

Step 2: Calculate the total Black People* component of the EAP as per the CEE Report in step 1

*If one were calculating the limitation applicable to the female sub-race groups if one were measuring the ‘Black Female’ indicator of Senior Management, then Step 2 would reference the Black female sub-race groups only.

Step 3: Calculate the proportion each Black race and gender sub-group constitutes of the total Black People component determined as per Step 2

Step 4: Apply the proportion calculated in step 3 to the Target for Senior Managers (par. 2.3.1) i.e. 60%

For calculating the score for par. 2.3.1 of the Management Control Scorecard AM, CM, IM, AF, CF and IF are therefore limited to the percentages as calculated per Step 4 above.