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BBEE Scorecard

BBEE Scorecard

 

Please note that there is a difference between the BBBEE criteria used to rate a generic enterprise and a Qualifying Small Enterprise (QSE). There are three applicable business categories:

  1. Those with an annual turnover below R10mil are measured under the EME codes
  2. Those with an annual turnover between R10 Million and R50 Million are measured under the QSE codes.
  3. Those with a turnover of R50 Million and above are measured under the Generic scorecard codes.

Further information:

  • Any enterprise is viewed as a QSE if annual turnover falls between 5 Million and 35 Million South African Rand per year. For enterprises that have turnover above this range, the generic scorecord is utilised.
  • QSE’s only have to comply with 4 of the 7 BEE elements, while generic enteprises are rated on a different scale
  • The information provided below has application on QSE’s only, and is not the correct rations and ratings for generic enteprises.
  • The QSE must elect to be rated on any four of the seven BBBEE elements. Where a selection is not specifically made by the business enterprise, the four best element scores will be used to calculate the final result. This means that an enterprise can still achieve a reasonable BBBEE rating, in spite of not performing well in three of the seven elements.
  • The Generic Scorecard includes all seven BBBEE Elements, namely:
    • Ownership
    • Management Control
    • Employment Equity
    • Skills Development
    • Preferential Procurement
    • Enterprise Development
    • Socio-Economic & Sector Specific Contributions

An overview of the new Scorecard for Broad Based Black Economic Empowerment (BBBEE) for qualifying enterprises.

An enterprise will be evaluated as falling into one of the following BEE Statuses based on the overall performance in terms of the Qualifying Small Enterprises Scorecard:

The BEE Status will be determined through the points qualification as specified in the centre column.

After a BEE audit has taken place, the status attained will determine the BEE procurement recognition level that the enterprise has obtained. This recognition level is used for the measurement of the preferential procurement Element discussed in Code 1500 of the new scorecard.

THE BEE PROCUREMENT RECOGNITION LEVEL OF THE ENTERPRISE IS THE ULTIMATE REASON FOR PARTICIPATION IN THE SCORECARD. THE HIGHER THE RECOGNITION LEVEL, THE BETTER YOUR CHANCE OF WINNING TENDERS AGAINST COMPETITORS WITH LOWER RECOGNITION LEVELS.

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