OVERVIEW:

• There will be a 12 month transitional period
• Ownership, Skills Development and Supplier and Enterprise Development will be priority elements with subminimum requirements
• Failure to comply with the subminimum will result in a discount of one level on the BEE scorecard
• An EME will be an entity with a turnover up to R10m
• A QSE will be an entity with a turnover of R10m – R50m
• A Generic will be an entity with a turnover of above R50m
• 100% black owned EME/QSE entities will automatically qualify as a Level 1 contributor
• 51% or more black owned EME/QSE entities will automatically qualify as a Level 2 contributor

Ownership key points

• 40% subminimum will be measured on Net Value
• Net Value and Fulfilment have been consolidated
• Only South African based regulated investments will qualify for Mandated Investments
• There will be enhanced provisions for Private Equity Funds
• Clarity has been provided on Family Trusts
• Designated groups, new entrants will be included in the body of the scorecard
• New Entrants threshold has been increased to 50%

Management Control key points

• Junior Management will be included with minimised points
• Compliance targets will be aligned to the EAP targets of the Department of Labour and aligned to the EE Commission report
• There will be a measurement principle for entities operating on a Provincial and National level

Skills Development key points

• Targeted spend is 6% leviable payroll and will include external training
• 40% subminimum must be reached on weighted points
• Current category F and G (work based and informal training) will be capped to 15%
• Non core training costs such as travel and accommodation will be capped to 15%
• International training will be recognised if the training meets SAQA requirements

Supplier Enterprise Development

• 40% subminimum applies to both the Procurement and ESD sub indicators
• The import exclusion principle can be applied but not to designated sectors

There is a provision for Value Adding Suppliers, who are defined as BEE compliant suppliers who can demonstrate that production and operations add value. This will be measured in 4 indicators, generic companies need to comply with at least 3

Socio Economic Development

• Remains the same.

Comments by Bridget Ntombela, AQRate employee and ABVA Boardmember