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Trevor Manuel's Budget

BLACK ECONOMIC EMPOWERMENT

The Balanced Scorecard for Broad- Based Black Economic Empowerment

Government will use a 'balanced scorecard' to measure progress made in achieving BEE by  enterprises - and where sector-specific charters are developed, the terms set out in these charters  will apply. The use of a common scorecard by different stakeholders provides a basic framework  against which to benchmark the BEE processes in different enterprises and sectors.

The Scorecard allows for a measurement of flexibility so that it can be adapted to the particular circumstances of specific sectors or enterprises, while at the same time bringing a measure of standardization to the definition and measurement of BEE.

Core Component  of BEE

Indicators

Conversion Factor

Raw Score

Weighting

Total Score

Direct empowerment score

Equity Ownership

% share of economic benefits

 

 

20%

 

Management

% black persons in executive management and/or executive board and board committees

 

 

10%

 

Human resource development and employment equity score

Employment Equity

Weighted employment equity analysis

 

 

10%

 

Skills Development

Skills Development expenditure as a proportion of total payroll

 

 

20%

 

Indirect empowerment score

Preferential procurement

Procurement from black-owned and empowered enterprises as a proportion of total procurement

 

 

  20%

 

Enterprise Development

Investment in black-owned and empowered enterprises as proportion of total assets

 

 

10%

 

Residual 10%

To be determined by sector/enterprise

 

 

 

10%

 

Total Score out of 100%

Below are links to important documents regarding Black Economic Empowerment. These documents are in Acrobat Reader (pdf) format and you can download them by clicking on the relevant link.

  •  Draft Revised Codes of Good Practice 22 June 2005
  •  A simple explanation of BEE
  •  Broad Based Black Economic Empowerment Act
  •  Broad Based Black Economic Empowerment Bill
  •  Black Economic Empowerment Strategy Document
  •  Empowerment SA Web Site

    BEE Charters

  •  Maritime transport & service industry Charter
  •  Forwarding & clearing (F&C) industry Charter
  •  The ICT Charter (working draft)
  •  Mining Charter
  •  Tourism industry empowerment & transformation Charter
  •  Petroleum & liquid fuels industry Charter
  •  Financial sector Charter

    2nd Phase of BBBEE Codes - 2006

  •  Heading
  •  Index
  •  Executive Summary
  •  BEE via Indirect Ownership
  •  Code 000 - 001 Fronting Practices
  •  Code 000 - 002 Specific Verifications issues complex
  •  Code 100 - 102 Recognition of Ownership via Warehousing
  •  Code 100 - 103 Recognition of Ownership Multi Nationals
  •  Code 100 - 104 Recognition of Ownership Public Entity
  •  Code 100 - 105 Recognition of Ownership Coys & Section 22
  •  Code 300 - 300 Recognition of Employment Equity contribution
  •  Code 400 - 400 Recognition of Skills Development & Organogram Transformation
  •  Code 500 - 500 Recognition of Preferential Procurement contribution
  •  Code 600 - 600 Recognition of Enterprise Development contribution
  •  Code 700 - 700 Recognition of Residual Element
  •  Code 1000 - 1000 Small Business Qualifying Codes
  •  Code 1100 - 1100 Small Business Recognition of Ownership
  •  Code 1200 - 1200 Small Business Recognition of Management Control
  •  Code 1300 - 1300 Small Business Recognition of Employment Equity
  •  Code 1400 - 1400 Small Business Recognition of Skills Development
  •  Code 1500 - 1500 Small Business Recognition of Preferential Procurement
  •  Code 1600 - 1600 Small Business Recognition of Enterprise Development
  •  Code 1700 - 1700 Small Business Recognition of Residual

      

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