AboutABOUT B-BBEE
ABOUT B-BBEE
The Amended Codes of Good Practice, gazette No 36928 has come into effect on the 1st May 2015. B-BBEE verifications conducted using the financial year ending on or before 30 April 2015 can be verified using the old Codes of Good Practice, gazette No 29617 and B-BBEE verifications conducted using the financial year ending on or after the 1st May 2015 can be verified using the Amended Codes of Good Practice, gazette No 36928 with the exception of the Sector Codes.
| Category | Preceding Codes | Revised Codes |
| EME’s | R0 – R5m | R0 – R10m |
| QSE’s | R5m – R35m | R10m – R50m |
| Generic | > R35m | > R50m |
TURNOVER THRESHOLDS
B-BBEE SCORECARD
| PRECEDING CODES | REVISED CODES |
| Ownership | Ownership |
| Management Control | Management Control |
| Employment Equity | Skills Development |
| Skills Development | Enterprise & Supplier Development |
| Preferential Procurement | Socio-Economic Development |
| Enterprise Development | |
| Socio-Economic Development |
*A QSE will now have to comply with Ownership as a compulsory element and can elect either Skills Development or Enterprise & Supplier Development. The significance of this is that these three priority elements have a 40% sub-minimum requirement for points obtained*
Exempt Micro Enterprises
- 100% Black owned = Level 1
- 50,1% to 99% Black owned = Leve2
- ≤ 50% Black owned = Level 4
For Black Owned Exempted entities sworn affidavit confirming:
- Annual total revenue is less than R10 million
- Level of Black Ownership
Qualifying Small Enterprises
Turnover between R10 million to R 50 million per annum
Measure all 5 elements
Comply with at least 2 priority of the following elements:
- Ownership (compulsory) and
- Enterprise and Supplier Development or Skills Development
*Entities which do not meet priority element thresholds the overall score will be discounted by 1 level.*
Enhanced recognition for black owned QSE’s:
- 100% Black owned = Level 1
- 51% or more black owned = Level 2
Qualifying Black Owned QSE Requirements:
Sworn affidavit confirming:
- Annual total revenue is less than R50 million
- Level of black ownership
Generics
- Turnover = or more than R50 million per annum
- Measure all 5 elements
- Have to comply with priority elements, Ownership, Skills Development and Enterprise and Supplier Development.
* Entities who do not meet priority element thresholds the overall score will be discounted by 1 level *
B-BBEE RECOGNITION LEVELS
| Preceding B-BBEE Scorecard | Revised B-BBEE Scorecard | |||
| B-BBEE Status | B-BBEE Points | B-BBEE Recognition | B-BBEE Point | B-BBEE Recognition |
| Level One | >=100 | 135% | >=100 | 135% |
| Level Two | >=85 & < 100 | 125% | >=95 & < 100 | 125% |
| Level Three | >=75 & < 85 | 110% | >=90 & < 95 | 110% |
| Level Four | >=65 & < 75 | 100% | >=80 & < 90 | 100% |
| Level Five | >=55 & < 65 | 80% | >=75 & < 80 | 80% |
| Level Six | >=45 & < 55 | 60% | >=70 & < 75 | 60% |
| Level Seven | >=50 & < 45 | 50% | >=55 & < 70 | 50% |
| Level Eight | >=30 & < 40 | 10% | >=40 & < 55 | 10% |
| Non-Compliant | <30 | 0% | <40 | 0% |