​Preferential Procurement (25 points)
  • Measures extent to which enterprises buy goods/services from suppliers with favorable BBBEE ratings (Empowering Suppliers)
  • Bonus points for procurement from 'black owned' enterprises
 
Enterprise Development (5 points)
  • Measures extent to which enterprises contribute towards assisting growth and sustainability of 'black' enterprises
  • 1% net profit after tax (NPAT) to be spent on 'black' companies with turnover under R50 million (increase financial/operational capacity)
 
Supplier Development (10 points)
  • ​Measures extent to which enterprises contribute towards assisting growth and sustainability of 'black' suppliers
  • 1% NPAT (QSE's) and 2% NPAT (Generics) to be spent on 'black' suppliers with a turnover under R50 million
  • Employment Equity and Management Control have been combined
  • Measures percentage of 'black' employees per occupational level according to Economically Active Population
  • Emphasis on participation of 'blacks' at Board, Executive and Other Management levels
  • Emphasis on participation of 'blacks' at Senior, Middle Management and other key positions
  • Encourages operational and strategic decision making of 'blacks' 
  • Less emphasis/recognition for 'black' representation at Junior Management level
  • Further breakdown/recognition for different race sub groups and gender per occupational level (Economically Active Population)
  • Additional points for disabled employees
  • Based on current payroll data to prove and calculate score under Management Control
  • Employees may be interviewed to verify the authenticity of claimed Management levels
Ownership (25 Points)
Skills Dev. (20 + 5 Points)
Revised Codes (119 Points)
  • Increased emphasis on compliance
  • Revised targets, points and thresholds
  • Reduced Scorecard Elements from 7 to 5
  • Employment Equity and Management Control combined into one Element 
  • Preferential Procurement and Enterprise Development into one Element (ESD) 
  • Introduction of 3 “Priority Elements”
  1. Ownership
  2. Skills Development (SD)
  3. Enterprise & Supplier Development (ESD) 
 
Failure to meet minimum thresholds of priority elements (40% of target) impacted as follows:
  • Generic: Drop 1 level after scoring completed if not meeting all 3 elements
  • QSE: Drop 1 level after scoring completed if not meeting Ownership plus 1 other priority element
Direct Ownership
  • Ownership target remains unchanged at 25% plus 1 share
  • Measures tangible ownership of 'black' people i.e. voting rights, shares and other economic interests 
  • Active involvement in strategic/operational affairs of entity
 
Indirect Ownership
  • Indirect equity and other forms of ownership still possible - may achieve 40% threshold.
  • Broad-based ownership and employee share ownership schemes may hold equity on behalf of 'black' beneficiaries
  • NB! Compulsory for both QSE and Generic.
  • If 40% threshold not achieved, entity will still score actual points achieved BUT overall score will be discounted by one level
  • Spend targets increased to 6% of total annual payroll 
  • 85% of spend must be on Accredited Learning Interventions
  • Interventions must address Scarce and Critical Skills identified within industry/sector
  • Interventions must coincide with Workplace Skills Plan/Pivotal Training Plan  
  • Eligibility/recognition broadened to include unemployed learners
  • Bonus points for hiring/retention of learners after training interventions
  • Sub-elements include Apprenticeships, Internships, Work Integrated Learning etc
  • Targets based on demographic representation per focus area (Economically Active Population)
  • NB! Compulsory for both QSE and Generic
  • If 40% threshold not achieved, entity will still score actual points achieved BUT overall score will be discounted by one level
Management Control (19)
ESD (40 + 4 Points)
SED (5 Points)
  • Socio-Economic Development measures social and economic contributions, development projects or similar initiatives
  • Assist previously disadvantaged communities /individuals for the purpose of social welfare 
  • Required to spend 1% NPAT on initiatives that facilitate sustainable economic inclusion for previously disadvantaged beneficiaries, 75% of whom must be 'black'
Requirements differ per industry/sector, but could include:
  • Contribution towards employees, their families and/or communities such as children's school fees, sponsoring sports teams etc 
  • Sector specific initiatives that promotes sustainable access to the economy
  • Provision of training/mentoring programmes that improve beneficiaries employability or capacity to work, including entrepreneurship /self-employment etc
Your BBBEE rating is becoming vital to the success or failure of almost any business in South Africa.
It is steadily becoming a requirement rather than an option.
Your BBBEE score will not manage itself and tasking unqualified staff with the responsibility can be dangerous!
Dropping down a level or two could prove costly for business - It's therefore essential to have a comprehensive plan in place with stringent monitoring/reporting structures. It's about being strategic and partnering with experts, experienced and dedicated to implementing and project managing initiatives that yield solid results.

We work closely with an impressive portfolio of clients across all industries and assist in improving all elements of their BBBEE rating.