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1. BBBEE Amended Codes Presentation –
Qualifying Small Enterprises
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2. Definitions
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• 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

3. Current Element vs New Elements
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 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

4. 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
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5. QSE
Scorecard
Weightings
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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

6. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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

7. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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

8. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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

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

10. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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

11. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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

12. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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.

13. www.crazyantconsulting.co.za l nolene@crazyantconsulting.co.za
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

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