Scoring System: Broad-Based Black Economic Empowerment

B-BBEE was initiated by the government in response to criticism that Black Economic Empowerment was too narrow resulting in the enrichment of only a few South African Blacks.

The B-BBEE Act was gazetted in February 2007 and an interpretative guide was added a few months later.

The following seven pillars of B-BBEE are taken into account for measurement purposes:

A score card under this system of measurement is known as a Generic Scorecard.

Verification

Verification agencies authorised by the South African National Accreditation System (SANAS) can audit an enterprise's BEE scorecard which is sufficient evidence of B-BBEE compliance.

Industry Sector Measurement

Instead of being measured under the Generic Scorecard system, enterprises that fall into the following sectors can choose to be scored under a Sector Scorecard. These scorecards have been developed to address industry specific issues. The sectors are:

• Construction
• Tourism
• Forestry
• Transport
• Finance
• ITC
• Mining
• Petroleum

Construction Industry Scorecard

The measurement system for the construction industry is:

Effect of Turnover on B-BBEE

Generic Enterprises

Turnover greater than R35M 
About 4% of South African Enterprises fall into this category.
These enterprises must apply all seven pillars for purposes of measurement.

Qualifying Small Enterprises (QSE's)

Turnover between R5M and R35M
This type of enterprise may choose the best four of the seven pillars with each element accounting for 25% of the scorecard.

Exempted Micro Enterprises (EME's)

These are enterprises with a turnover of less than R5M and automatically qualify for 100% scorecards. If the black ownership of these enterprises is more than 50% their scorecards are rated at 110%.

Bruce Lyle