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Codes of Good Practice on Broad Based Black Economic Empowerment: Impact BEE Scorecard

By Transcend | 31 May 2019

On 31 May 2019, the dti released gazetted changes to the BEE codes, a new version of the Preferential Procurement, Enterprise and Supplier Development element, Skills Development Element, General Principles, as well as updates on interpretations and definitions.

Implementation of these gazetted changes is within 6 Months from date of Gazette, – i.e. by 01 December 2019.

Significant changes include:

1. How to measure an Unincorporated Joint Venture

2. Skills Development:

  • Skills Development targets and weightings have changed – from 8 to 6 and from 6% to 3.5%
  • Inclusion of one sub-pillar – Expenditure on Bursaries for Black Students at Higher Educations Institutions – with a target of 2.5% of the leviable amount and 4 points
  • Employed and Unemployed learnership categories now combined
  • Category F and G capped at 25% no longer 15%
  • Travel, Catering, accommodation and Training Manager capped at 15%
  • Scholarships included in Category A
  • Stipends linked to Bursaries now included as skills development cost
 3. Enterprise and Supplier Development:

  • Procurement points have increased to 27
  • The targets and available points for 51% Black-owned suppliers have increased to 50% and 11 points.
  • Enterprise Development beneficiary cannot be a supplier
  • Generic Enterprises can be recognised as Enterprise and Supplier Development beneficiaries
  • Procurement spend from Generic enterprises can be recognised under QSE or EME spend provided that with the first instance of procurement from that enterprise, they met the definition of an EME or QSE respectively up to a period of 5 years
  • ESD matric updated for guarantees

Definitions clarified:

  • Absorption – means a measure of the Measured Entity’s ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice. No further training.
  • Designated Group Supplier
  • Long Term Contract of employment

There are a few more pertinent changes but we would recommend you join us at one of our morning sessions where we will unpack these significant changes and the impact on your scorecard.

To discuss your BEE needs or request a BEE audit, contact us and one of our expert consultants will assist you.

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