Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Amended Codes of Good Practice (2017)Amended Code Series CSC500: Measurement of the Preferential Procurement and Supplier Development Element of Broad-Based Black Economic Empowerment in the Construction SectorStatement CSC500: The General Principles for Measuring the Socio-Economic Development Element3. Key Measurement Principles |
| 3.1 | General principles: |
| 3.1.1 | Measured Entities receive recognition for any Qualifying Socio-Economic Contributions that are quantifiable as a monetary value using a Standard Valuation Method. |
| 3.1.2 | Qualifying Socio-Economic Contributions of any Measured Entity are recognisable annually |
| 3.1.3 | No portion of the value of any Qualifying Socio-Economic Contribution that is payable to the beneficiary after the last day of the Measurement Period can form part of any calculation under this statement. |
| 3.2 | Socio-Economic Development Contributions: |
| 3.2.1 | Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating sustainable access to the economy for targeted beneficiaries. Measured Entities are encouraged to prioritise communities in areas where they operate. |
| 3.2.2 | The full value of Socio-Economic Development Contributions made to beneficiaries is recognisable if at least 75% of the value directly benefits Black People. |
| 3.2.3 | If less than 75% of the full value of Socio-Economic Development Contributions directly benefits Black People, the value of the contribution made multiplied by the percentage that benefits Black People, is recognisable. |
| 3.2.4 | Any portion of the contribution that benefits Black People with Disabilities will be recognised at an enhanced factor of 1.25. |
| 3.2.5 | The following is a non-exhaustive list of Socio-Economic Development Contributions: |
| 3.2.5.1 | Grant contributions to beneficiaries of Socio-Economic Development Contributions; |
| 3.2.5.2 | Guarantees given or security provided for beneficiaries; |
| 3.2.5.3 | Direct costs incurred by a Measured Entity in assisting beneficiaries; |
| 3.2.5.4 | Overhead costs of a Measured Entity directly attributable to Socio-Economic Development Contributions; |
| 3.2.5.5 | Developmental capital advanced to beneficiary communities; |
| 3.2.5.6 | Preferential terms grants by a Measured Entity for its supply of goods or services to beneficiary communities; |
| 3.2.5.7 | Contributions made by the Measured Entity to third parties to perform Socio-Economic Development on the Measured Entity’s behalf. For the avoidance of doubt such contributions are regarded as having been initiated and implemented once they become payable to the third party; |
| 3.2.5.8 | Provision of training or mentoring to beneficiary communities which will assist them to increase their financial capacity; |
| 3.2.5.8.1 | Such contributions are measurable by quantifying the cost of time (excluding travel or commuting time) spent by staff or management of the Measured Entity in carrying out such initiatives; |
| 3.2.5.8.2 | A clear justification must support any claim for time costs incurred, (commensurate with the seniority and expertise of the trainer or mentor). |
| 3.2.5.9 | The maintenance by the Measured Entity of a socio-economic development unit which focuses only on support of beneficiaries and beneficiary communities; |
| 3.2.5.9.1 | Only that portion of salaries and wages attributable to time spent by the staff in, and the other expenses related to, promoting and implementing socio-economic development, constitute contributions. |