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

Industry Charters

Financial Services  Charter

Code Series FS500: The Measurement of the Procurement Element of Broad-Based Black Economic Empowerment

4. The Calculation of Preferential Procurement Contributions to B-BBEE
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4.1A Measured Entity receives a score for Procurement in proportion to the extent that it meets the compliance target

 

4.2The B-BBEE Procurement spend of a Measured Entity in respect of a supplier is calculated by multiplying the spend as per paragraph 3 in respect of that supplier by the supplier's B-BBEE recognition level.

 

4.3The Measured Entity's score for Preferential Procurement contributions to B-BBEE under the preferential procurement scorecard can be calculated in terms of formula "B" in Annexe 500(A).