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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Sector Codes

Defence Sector Code

18. Elements of the Defence Sector Code: The Qualifying Small Enterprises Defence Scorecard

 

18.1 QSE Scorecard

 

The following table represents and contains the Elements of the scorecard and the weighting for each element:

 

Element

Weighting

Ownership

25 points

Management Control

15 points

Skills Development

25 points

Enterprise and Supplier Development

30 points

Localisation

10 points

Socio-Economic Development

5 points

Total

110 Points

 

The Weighting in respect of any elements in the scorecard represents the maximum number of points possible for each of the criteria

 

Any matter concerning the application of the QSE Scorecard that is not dealt with explicitly in this Sector code must be dealt with in terms of the Codes.

 

18.2 The Qualifying Small Enterprises Ownership Scorecard

 

Category and Ownership Indicator

Weighting Points

Compliance targets

Year 1

Year 2

Year 3

Voting rights

Exercisable Voting Rights in the Enterprise in the hands of Black people

5

25%

30%

35%

Exercisable Voting Rights in the Enterprise in the hands black women

2

10%

15%

15%

Economic Interest

 

25%

30%

35%

Economic Interest of Black people in the Enterprise

5

25%

30%

35%

Economic Interest of black women in the Enterprise

2

10%

15%

15%

New Entrants or Black Designated Groups

3

2%

3%

5%

Realisation Points

Net Value

 

8

Refer to Annexure 100 (E) of the Generic Scorecard

 

 

Total

25 Points

 

 

 

 

18.3 The Qualifying Small Enterprise Management Control Scorecard

 

Criteria

Weighting points

Compliance targets

 

Year 1

Year 2

Year 3

Executive Management

Black representation at Executive Management

5

50%

50%

60%

Black female representation at Executive Management

2

25%

25%

30%

Senior, Middle and Junior Management

Black representation at Senior , Middle and Junior Management

6

60%

60%

70%

Black female representation at Senior, Middle and Junior Management

2

30%

30%

30%

Total

15 Points

 

 

 

 

18.4 The Qualifying Small Enterprise Skills Development Scorecard

 

Skills Development Element

Weighting points

Compliance targets

 

Year 1

Year 2

Year 3

Skills development expenditure on learning programs specified in the learning programme matrix for Black people as a percentage of leviable amount

16

3%

3%

4%

Skills development expenditure on learning programmes specified in the learning programme matrix for Black females as a percentage of leviable amount

10

1%

1%

2%

Skills development expenditure on learning programmes specified in the learning programme matrix for Black people with disabilities as a percentage of leviable amount

4

0.15%

0.15%

0.30%

Bonus Points

Number of Black people absorbed by the measured entity and industry at the end of the learning

5

100%

100%

100%

Total

30 Points

 

 

 

 

18.5 The Qualifying Small Enterprise and Supplier Development Scorecard

 

Criteria

Weighting points

Compliance targets

 

Year 1

Year 2

Year 3

Preferential Procurement

B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Recognition Levels as a percentage of Total Procurement Spend

15

60%

60%

70%

B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% black owned based applicable B-BBEE

Procurement Recognition Levels as a percentage of Total Measured Procurement

4

15%

20%

30%

Bonus Points

B-BBEE Procurement Spend from Designated Group suppliers that are at least 51% black owned based on the B-BBEE Recognition Level

1

1%

1%

1%

Supplier Development

Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target.

4

1% of Net Profit After Tax

 

 

Enterprise Development

Annual value of Enterprise Development Contribution and Sector Specific Programmes made by the Measured Entity as a percentage of the target

4

1% NPAT

 

 

Annual Contributions to the Enterprise and Development Fund

3

1% NPAT

 

 

Bonus Points

Bonus point for graduation of one or more Enterprise Development beneficiaries to graduate to the Supplier Development level

1

 

 

 

Bonus point for creating one or more jobs directly as a result of Supplier Development and Enterprise Development initiatives by the Measured Entity

1

 

 

 

Total

30 Points

 

 

 

 

18.6 The Qualifying Small Enterprise Localisation Scorecard

 

B-BBEE

Element

Indicator

Description

Weighting Points

Compliance Target

Localisation

 

Defence Matériel products and services manufactured by procured from local enterprises

6

60%

Procurement from local enterprises that introduce new locally developed technology in the SADI that is not older than 24 months

2

60%

Procurement of technologies  are developed in South Africa by Local Enterprises from intellectual property owned by such Local Enterprises or technologies that are developed in South Africa by Local Enterprises from intellectual property licensed thereto by Local or Foreign Enterprises.

2

60%

 

 

Total

10 Points

 

 

18.7 The Qualifying Small Enterprise Socio-Economic Development Scorecard

 

Criteria

Weighting points

Compliance targets

Year 1

Year 2

Year 3

Annual value of all Socio-Economic Development Contributions and Qualifying Socio-Economic Development Contributions made by the Measured Entity as a percentage of the target

5

1%

NPAT

1%

NPAT

1%

NPAT

Total

5 Points