Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Amended Codes of Good Practice (2017)Amended Code Series CSC000: Framework for Measuring Broad-Based Black Economic Empowerment in the Construction SectorStatement CSC000: General Principles and the Large Enterprise Scorecard4. Eligibility to Qualify as an Exempted Micro Enterprise (EME) |
| 4.1 | For the purposes of measurement in terms of the Revised Construction Sector Codes, an enterprise will qualify as an exempted Micro Enterprise (EME) under the following circumstances: |
| 4.1.1 | For Contractors - Any enterprise with a total annual revenue of R10 million or less |
| 4.1.2 | For BEP’s - Any enterprise with a total annual revenue of R 6 million or less. |
| 4.2 | An Exempted Micro-Enterprise with the black ownership levels in 4.2.1 to 4.2.4 calculated applying the flow through principle is deemed to have the following B-BBEE Status: |
| 4.2.1 | If less than 30% Black Owned then "Level Five Contributor” having a B-BBEE recognition level of 80% under paragraph 8.3; |
| 4.2.2 | If at least 30% Black Owned but less than 51% Black Owned then “Level Four Contributor” having a B-BBEE recognition level of 100% under paragraph 8.3; |
| 4.2.3 | If at least 51% Black Owned but less than 100% Black Owned, then “Level Two Contributor” having a B-BBEE recognition level of 125% under paragraph 8.3; |
| 4.2.4 | If 100% Black Owned then “Level One Contributor” having a B-BBEE recognition level of 135% under paragraph 8.3; |
| 4.3 | Enhanced B-BBEE Status Level for an Exempted Micro-Enterprise: |
| 4.3.1 | Despite paragraphs 4.2, an EME that is less than 100% black owned, is allowed, should they so wish, to maximise their points and move to a higher B-BBEE recognition level through one of the following three means: |
| 4.3.1.1 | Obtain measurement in terms of the QSE Scorecard as a whole and apply the B-BBEE Status Level and B-BBEE Recognition Level so determined; or |
| 4.3.1.2 | Obtain measurement in terms of the Skills Development expenditure category in paragraph 1.1 of Statement CSC603 of the QSE Scorecard, and/or only if full points (excluding the bonus points) are achieved for this category the B-BBEE Status Level and corresponding B-BBEE Recognition Level of the EME will be enhanced by one level, or |
| 4.3.1.3 | Obtain measurement in terms of the Supplier Development Expenditure category of the QSE Scorecard (paragraph 2.1 of Statement CSC604) only, and only if full points are achieved for this category the B-BBEE Status Level and corresponding B-BBEE Recognition Level of the EME will be enhanced by one level. |
| 4.3.2 | For the avoidance of doubt, where an EME used both the mechanisms in 4.3.1.2 and 4.3.1.3 its B-BBEE Status Level will be enhanced by one or two levels in aggregate. However, an EME that chose enhancement by electing to be measured in terms of the entire QSE Scorecard cannot further enhance its B-BEE Status thereafter by means of the mechanisms in 4.3.1.2 and 4.3.1.3. |