BBBEE Consulting Services @ Crazy Ant Consulting

BBBEE Amended Codes Presentation –
Qualifying Small Enterprises
www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za

Definitions
• Exempted Micro Enterprise (EME) < R10m
• Qualifying Small Enterprise (QSE) R10m – R50m
• Generic >R50 million
• Amended Codes effective 1 May 2014
• Priority Elements – Ownership (compulsory) and Skills Development or
Enterprise Supplier Development. 40% sub-minimum requirement

Current Element vs New Elements
 Ownership
 Management Control
 Employment Equity
 Skills Development
 Procurement
 Enterprise Development
 Socio-Economic
Development
 Choose best 4 of 7
 Ownership
 Management Control
 Skills Development
 Enterprise- and Supplier
Development
 Socio-Economic Development
 Use all 5 elements

BBBEE Level Amended Codes Current Codes
1 ≥100 points ≥100
2 ≥95 but <100 points ≥85 but <100
3 ≥90 but <95 points ≥75 but <85
4 ≥80 but <90 points ≥65 but <75
5 ≥75 but <80 points ≥55 but <65
6 ≥70 but <75 points ≥45 but <55
7 ≥55 but <70 points ≥40 but <45
8 ≥40 but <55 points ≥30 but <40
Non-Compliant <40 points <30
BEE
Recognition
Levels

QSE
Scorecard
Weightings
Element Weighting
Ownership 25 points
Management Control 15 points
Skills Development 25 points
Enterprise & Supplier Development 30 points
Socio-Economic Development 5 points
Total 100 points

Ownership 25 points COMPULSORY PRIORITY ELEMENT
Description
Weighting
points
Compliance Target
1. Voting rights:
Exercisable voting rights in the enterprise in the hands of black people. 5 25% + 1 Vote
Exercisable voting rights in the enterprise in the hands of black women. 2 10%
2. Economic interest :
Economic interest of black people in the enterprise 5 25%
Economic interest of black women in the enterprise 2 10%
New entrants or Black Designated groups 3 2%
3. Realization points :
Ownership fulfillment 1 No restrictions
Net value 8 25%
Total 25

Management Control 15 points Not priority element
Description
Weighting
points
Compliance Target
Executive Management :
Black representation at Executive Management 5 50%
Black Female representation at Executive Management 2 25%
Non-Executive Management:
Black representation at Non-Executive Management 6 60%
Black Female representation at Non-Executive Management 2 30%
Total 15

Skills Development 25 points Priority element
Description
Weighting
points
Compliance
Target
Skills Development expenditure on learning Programmes specified
in the learning matrix for black people as a percentage of leviable
amount
20 3%
Skills Development expenditure on learning Programmes specified
in the learning matrix for black females as a percentage of leviable
amount
5 1%
Total 25

Sub-minimum Requirements
• Workplace Skills Plan, and
• Annual Training report, and
• Pivotal Report which are SETA approved
• Implementation of Priority Skills Program
Nolene Fuhri – 074 263 7653

Enterprise and Supplier Development 30 points Priority Element
Description
Weighting
points
Compliance
Target
1. Preferential Procurement
B-BBEE procurement spend from all Empowering Suppliers based on the
B-BBEE procurement recognition levels as a percentage of total measured
procurement spend
15 60%
B-BBEE procurement spend from Empowering Suppliers that are at least
51% black owned based on the B-BBEE procurement recognition levels as
a percentage of total measured procurement spend
5 15%
Total 20

Enterprise and Supplier Development 30 points Priority Element
Description
Weighting
points
Compliance
Target
2. Supplier Development
Annual value of all Supplier Development Contributions made by the
measured entity as a percentage of the target
5 1% of NPAT
3. Enterprise Development
Annual value of Enterprise Development Contributions and Sector Specific
Programmes made by the measured entity as a percentage of the target 5 1% of NPAT
Total 30

Empowering Supplier Definition
QSE’s need to meet at least one of the criteria
• At least 25% of cost of sales excluding labour cost and depreciation must be procured from local
suppliers in RSA; for service industry labour costs are included but capped to 15%.
• Job creation – 50% of jobs created are for black people provided that the number of black employees
since the immediate prior verified measurement is maintained.
• At least 25% transformation of raw material which include local manufacturing must be done inside
SA.
• Skills Development – spend at least 12 days per annum of productivity deployed in assisting black
EME’s and QSE’s to increase their operational and financial capacity.

Socio-Economic Development 5 points Not priority element
Description
Weighting
Points
Compliance
Target
Annual value of all Socio Economic
Development contributions as a
percentage of the target
5 1% of NPAT

Crazy Ant Consulting, 031 – 763 3967 l 074
263 7653 l nolene@crazyantconsulting.co.za
www.crazyantconsulting.co.za
Contact Details

BBBEE Consulting Services @ Crazy Ant Consulting

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