Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersFinancial Services CharterCode Series FS600: The Measurement of the Enterprise Development and/or Empowerment Financing Element of Broad-Based Black Economic EmpowermentStatement 601: The Measurement of the Enterprise Development Element for Measured Entities that are exempted from contributing towards Empowerment Financing5. The Benefit Factor Matrix |
| 5.1 | The Minister may from time to time, by notice in the Gazette, revise or substitute the Benefit Factor Matrix. Any changes will only be applicable to Compliance Reports prepared for a Measured Entity in respect of the first 12-month period following the gazetting of a revision or substitution. |
Qualifying Contribution Type |
Contribution Amount |
Benefit factor |
Grant contribution |
Full grant amount |
100% |
Direct Cost incurred in supporting approved projects or Enterprise Development |
Verifiable cost (including both monetary and non-monetary) |
100% |
Discounts in addition to normal business practices supporting Enterprise Development |
Discount amount (in addition to normal business discount) |
100% |
Overhead costs incurred in supporting Enterprise Development (including people appointed in Enterprise Development units) |
Verifiable costs (including both monetary and non-monetary) |
80% |
Interest-free loan with no security requirements supporting approved projects or Enterprise Development |
Outstanding Loan Amount |
100% |
Standard loan to black owned EME and QSEs |
Outstanding Loan Amount |
70% |
Standard loan provided to other beneficiary enterprises |
Outstanding Loan Amount |
60% |
Guarantees provided on behalf of a beneficiary entity |
Guarantee Amount |
3% |
Lower interest rate (in addition to the recognisable loan amount) |
Outstanding Loan Amount |
Prime Rate - Actual Rate |
Equity investments and Related Contributions |
Contribution Amount |
Benefit Factor |
Minority investment in Black Owned EME and QSEs |
Investment Amount |
100% |
Minority investment in other Beneficiary enterprises |
Investment Amount |
80% |
Enterprise Development investment with lower dividend to financier |
Investment Amount |
Dividend rate of ordinary shareholders - actual dividend rate of contributor |
Professional services rendered at no cost and supporting approved projects or Enterprise Development |
Commercial hourly rate of professional |
80% |
Professional services rendered at a discount and supporting approved projects or Enterprise Development |
Value of discount based on commercial hourly rate of professional |
80% |
Time of employees of measured entity productively deployed in assisting beneficiaries |
Monthly salary divided by 160 |
80% |