Ownership is perhaps one of the most misinterpreted aspects of BBBEE. However, it is also a strategic way to gain ownership, management and control points. This element measures the effective ownership of an enterprise by black people in relation to their voting rights and economic interests within the enterprise.

The new but similar Management Control Element is a combination of the old Management Control and Employment Equity elements, with a maximum of 19 points distributed over multiple indicators. The indicators are Board Participation, Other Executive Management, Senior Management, Middle Management, Junior Management and Employees with Disabilities. Under the amended codes there has been the introduction of the EAP (Economically Active Population) targets. The EAP includes people ranging from 15 to 64 years of age who are either employed or unemployed and who are seeking employment.

The Skills Development target-spend has changed from 3% of leviable amount to be spent on skills development for black employees to 6% of leviable amount to be spent on skills development for black people. Whilst the target has essentially doubled, companies can now use their skills development spend on black unemployed people outside their organisation as well. Like Management Control, Skills Development now requires the use of the EAP (Economically Active Population) targets. The target-spend for training black employees with disabilities remains the same although the weighting has increased.

Preferential Procurement is used to drive transformation throughout the economy by encouraging procurement from suppliers that are compliant with the B-BBEE scorecard. This element measures the overall procurement spent from suppliers based on B-BBEE procurement recognition levels including, Qualifying Small Enterprise (QSE’s), Exempt Micro Enterprise (EME’s) and suppliers that have a percentage of black owned or black woman owned.

One of the easiest ways to earn points is through the Enterprise and Supplier Development Element. But what is the dierence between Supplier Development and Enterprise Development? Supplier Development is performed on your current supplier database whereas Enterprise Development is on suppliers that are not on your database as well as on start-up businesses or new entrants. With Supplier Development, the business is already a supplier to your business. With Enterprise Development, the business wants to become a part of your supply chain.

REQUIREMENTS

Supplier and Enterprise Development can only be done for 51% or more Black Owned Businesses; These 51% or more Black Owned Businesses must have a turnover of less than R50 million per annum. For Supplier Development you will have to spend 2% (1% QSE) of your nett prot after tax per annum and For Enterprise Development you will have to spend 1% (1% QSE) of your nett prot after tax.

Socio-Economic Development (SED) is about facilitating sustainable access into the economy for black people. In order to gain maximum points in SED, the company has to spend 1% of NPAT. SED contributions can be monetary or non-monetary. Non-monetary contributions should be converted to financial value in order to claim points. The full value of SED contributions made to beneciaries is recognized if at least 75% of the value directly benets black people. If not, the value of the contribution will be multiplied by the percentage that benets black people only.