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

Industry Charters

Financial Services  Charter

Code Series FS600: The Measurement of the Enterprise Development and/or Empowerment Financing Element of Broad-Based Black Economic Empowerment

Statement 602: The Measurement of the Empowerment Financing and Enterprise Development Element for Measured Entities that are not exempted from contributing towards Empowerment Financing

3. Definitions, Key Measurement Principles, Standards and Target

3.1 Empowerment Financing

3.1.2 B-BBEE Transaction Financing
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3.1.2        B-BBEE Transaction Financing

 

Definition:

 

B-BBEE Transaction Financing means:

 

The provision of finance for, or investments in, B-BBEE transactions being:

•All transactions for the acquisition, by Black People, of direct ownership in an existing or new entity (other than an SMME) in the financial or any other sector of the economy, and
•Joint ventures with, debt financing of, or other forms of credit extension to, and equity investments in B-BBEE companies (other than SMMEs), which are at least 25% Black owned.

 

Measurement principles

 

Target market

As per definition above.

 

Products

All forms of financing and / or investment.

 

Measurement

•If 25% black owned or more but less than 50% black owned - claim weighted funding
•If 50% black owned or more- claim 125% weighted funding.

 

Targets:

R32bn for banking sector plus R13b for long term insurers