B-BBEE — B-BBEE Codes of Good Practice: Amended Codes of Good Practice (GG 38765, 2015) (source: https://www.thedtic.gov.za/wp-content/uploads/BEE38765.pdf)
Government Gazette
Staatskoerant
R EPU B LI C OF S OUT H AF RICA
REPUBLIEK VAN SUID-AFRIKA
May
Vol. 599 Pretoria, 6
Mei
2015 No. 38765
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2 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
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CONTENTS • INHOUD
Page Gazette
No.
No. No.
GENERAL NOTICE
Trade and Industry, Department of
General Notice
407 Broad-Based Black Economic Empowerment Act (46/2013): Amendment of Code Series 400, Statement 400-Add 9
fifth criterion for the empowering supplier...................................................................................................................... 3 38765
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STAATSKOERANT, 6 MEI 2015 No. 38765 3
GENERAL NOTICE
NOTICE 407 OF 2015
DEPARTMENT OF TRADE AND INDUSTRY
a) By virtue of the powers vested in me in terms of sections 9(1) and
14 (2) of the Broad-Based Black Economic Empowerment Act,
2013 (B-BBEE Act No. 46 of 2013), Dr. Rob Davies, Minister of
I
Trade and Industry, hereby amend the amended Codes of Good
Practice gazette 36928 as set out in the Schedule
The amendments embodied in this Notice will become effective on
e date of publication of this Notice.
Dr. ROB DAVI S, MP
MINISTER OF TRADE AND INDUSTRY
DATE: 30 / Ls /2015
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4 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
SCHEDULE
AMENDMENT OF CODE SERIES 400, STATEMENT 400 - ADD A FIFTH
CRITERION FOR THE EMPOWERING SUPPLIER
(a) Amended Code Series 400, Paragraph 3.3 is hereby amended by
the additional Criteria that reads as follows:
At least 85% of labour costs should be paid to South African
employees by service industry entities.
ELIGIBILITY AS AN EXEMPTED MICRO ENTERPRISE (EME)
(b) Paragraph 4.5 of Amended Code Series 000 gazette 36928 is
Hereby amended by the following:
An EME is only required to obtain a sworn affidavit or Certificate
issued by Companies and Intellectual Property Commission (CIPC)
on an annual basis, confirming the following:
Annual Total Revenue of R10 million or less; and
Level of Black ownership.
Any misrepresentation in terms of para 1 above constitutes a
criminal offence as set out in the B-BBEE Act as amended.
DISCOUNTING PRINCIPLE EFFECT
(c) State that only the discounted levels of Measured Entities as per
paragraph 3.3.3 Amended Code Series 000, shall appear on the
face of a B-BBEE certificate.
DEMOGRAGRAPHIC REPRESENTATION OF BLACK PEOPLE
(d) The demographic representation of black people as defined in the
Regulations of Employment Equity Act and Commission on
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STAATSKOERANT, 6 MEI 2015 No. 38765 5
Employment Equity report are not applicable under paragraph 2.6
on Statement 200 and paragraph 2.1.1.2 and 2.1.3 Statement 300.
MEASUREMENT OF SENIOR MANAGEMENT, MIDDLE MANAGEMENT AND
JUNIOR MANAGEMENT INDICATORS
(e) Repeal paragraphs 4A "the formula" under Amended Code Series
200 of the Amended Codes of Good Practice gazette Number
36928. The paragraphs are replace by the following:
ANNEXE 200(A)
Formula
The management control criteria provided for in paragraphs 2.3.1, 2.4.1 and
2.5.1, is calculated by following the sub calculations below.
The measurement criteria targets for 2.3.1, 2.4.1 and 2.5.1 are broken down
according to the relevant EAP statistics i.e. splitting the compliance target and
points in proportion to the EAP statistics.
The EAP Statistics are reported on the following race groups:
Statistic African African Coloured Coloured Indian Indian White White
Male Female Male Female Male Female Male Female
Abbrevi AM AF CM CF IM IF WM WF
ation
The maximum points per race group needs to be adhered to in order to achieve
the outcomes of Statement 200. These calculations will need to be repeated for
every race group due to the maximum score for each race group.
The first parameter to be defined is the percentage of black employees in the
measured entity for the measurement criteria (senior, middle and junior
management). The formula to calculate this will need to be repeated six times,
for each of the six black EAP statistics.
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6 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Let
Number of AM employees
%BlackA2,1
= Total of all employees in ail race groups
Number of AF employees
9/0 BlackA
Total of all employees in all race groups
Number of CM employees
c/C Blackc,! =
Total of all employees in all race groups
Number of CF employees
BI =
Total of all employees tri all race groups
Number of IM employees
"C Black
- Total of all employees in all race groups
Number of IF employees
% Block 1F. -
Total of all employees in all race groups
Where:
RG: Race Group
% BlackRG: Percentage of black employees in the
measured entity for the specific race
group
Number of RG Employees: Number of employees in the
management level for the measurement
criteria
Total of all race groups: Total of all employees in the
management level for the measurement
criteria
(AM+AF+CM+CF+IM+IF+WM+WF)
Due to the Codes not awarding points for meeting the EAP statistics for the white
race groups, the EAP statistics need to be adjusted to exclude the white
categories. The following formula shows how this is accomplished:
Let
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STAATSKOERANT, 6 MEI 2015 No. 38765 7
EAP(A NO
AD] EAPA:d. -
EAP(Sum)
EA PA F)
ADJ EAP
EAP(Sum)
EAP(CM)
AD] EAP0,4
= EAP(Sum)
EAP(CF)
AD] EAPcp -
LAP(Sum)
EAP(I
ADJ. EAPIM =
EAP(Suni.)
EAK1F)
ADJ LA 1F =
pthim)
Where:
ADJ EAPRG: Adjusted EAP for a specific race group
EAP (RG): EAP statistic for the calculated race group
EAP (Sum): Sum of published EAP statistics for all black race
groups (AM+AF+CM+CF+IM+IF)
Since the calculation for each of the race groups need to be done individually,
the compliance target also needs to be split in proportion to the EAP statistics.
This formula is defined below:
Let
ComplianCe target
SCTAf = A DJ EA x
Corn pliance target
SCTAF = ADJ EAPAF x
Compliance target
SCT.- = - AD] LAP cm x
Compliance target
SETcF ADJ EA Pc X
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8 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Compliance target
SCTim = AD] EAPim x
Compiiance tarn. et
SCTiF = ADJ EA PIF
Where:
SCTRG: Split Compliance Target for race group
ADJ EAPRG: Adjusted EAP for the race group as calculated above
Compliance target: Compliance Target as specified for 2.3.1, 2.4.1 and
2.5.1
The points allocated for the measurement criteria will also be split in proportion to
the EAP statistics. The split points for the measurement criteria represent the
maximum allowable points for the race groups, and must be enforced as such.
The formula for calculating the maximum allowable points is shown below:
A = ADJ. EAPAmx Points
MAP F= ADJ ErgPAF x Points
MAP.c = AD] EAPcm x Points
MAPcF = ADJ EAPcc. x Points
MAPim = ADJ x Points
= ADJ EAPIF x Points
Where:
MAP: Maximum allowable points for a race group
Points: Weighting points as specified for 2.3.1, 2.4.1 and 2.5.1
The achieved score per race group (ScoreRG) will be calculated using the above
four equations. The formula must be completed for each race group using the
four results from above for each race group. This formula is shown below:
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STAATSKOERANT, 6 MEI 2015 No. 38765 9
ABlackelm
Scor = .x MA PAm
SCTA m
,
/co tacKAF
Score, F = x MAPAF
SCTAF
%Si ackcm
Scar ecm = x Af.4
SCTc",./
%Biczckcf,
ScorecF = x N APcE
SCTrF
°AB CIE k
Score;, = x MA:Pim
SCTim
%Biackw
Score m- = x MAPIF
SCTIF
Note that the score per race group may not exceed the maximum allowable
points for that race group. The following shows how the total score for 2.3.1,
2.4.1 and 2.5.1 is calculated:
Tor& Score = Score ,r + Score + Scored,? + ScorecF + Scorem + ScorelF
Formula 2
The management control criteria provided for in paragraphs 2.3.2, 2.4.2 and
2.5.2, is calculated by following the sub calculations below.
The measurement criteria targets for 2.3.2, 2.4.2 and 2.5.2 are broken down
according to the relevant EAP statistics i.e. splitting the compliance target and
points in proportion to the EAP statistics.
These calculations will need to be repeated for every race group due to the
maximum score for each race group.
The first parameter to be defined is the percentage of black employees in the
measured entity for the measurement criteria (senior, middle and junior
management). The formula to calculate this will need to be repeated six times,
for each of the six black EAP statistics.
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10 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Let
Number of AF employees
% BlackAF -
Total of all employees in all race groups
Number of CF employees
% Black =
Total of all employees in all race groups
Number of IF employees
9/c BlockiF =
Total of all employees in all race groups
Where:
RG: Race Group
% BlackRG: Percentage of black employees in the
measured entity for the specific race group
Number of RG Employees: Number of employees in the management level
for the measurement criteria
Total of all race groups: Total of all employees in the management level
for the measurement criteria
(AM+AF+CM+CF+IM+IF+WM+WF)
Due to the Codes not awarding points for meeting the EAP statistics for the white
race groups, the EAP statistics need to be adjusted to exclude the white
categories. The following formula shows how this is accomplished:
Let
EA P(AP)
AD] A.
- EA P(Sum)
LAP(CF)
AD] EAPcF =
EA P(Suni)
EAP(
EAP(1F)
1F)
AD] EAPIF =
Where:
ADJ EAPRG: Adjusted EAP for a specific race group
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STAATSKOERANT, 6 MEI 2015 No. 38765 11
EAP (RG): EAP statistic for the calculated race group
EAP (Sum): Sum of published EAP statistics for all female black
race groups (AF+CF+IF)
Since the calculation for each of the race groups need to be done individually,
the compliance target also needs to be split in proportion to the EAP statistics.
This formula is defined below:
Let
Compliance arget
SCTAF = ADJ EAPAF x
Compliance target
S Tc, = AD] EAPcF x
iaQ
Compliance barge
SCT;!F = ADJ EA PT X
Where:
SCTRG: Split Compliance Target for race group
ADJ EAPRG: Adjusted EAP for the race group as calculated above
Compliance target: Compliance Target as specified for 2.3.2, 2.4.2 and
2.5.2
The points allocated for the measurement criteria will also be split in proportion to
the EAP statistics. The split points for the measurement criteria represent the
maximum allowable points for the race groups, and must be enforced as such.
The formula for calculating the maximum allowable points is shown below:
MAPAF = AD] EAPAF X Points
MAPCF = DJ EAPcF x Points
MAPIF = AD] EA PIF x Points
Where:
MAP: Maximum allowable points for a race group
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12 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Points: Weighting points as specified for 2.3.2, 2.4.2 and 2.5.2
The achieved score per race group (ScoreRG) will be calculated using the above
four equations. The formula must be completed for each race group using the
four results from above for each race group. This formula is shown below:
°/C.BiackAF
ScoreAF = .x MAP,
SCTAF
VGB 2ackrF
Scorecp= x APcF
SCTc.F
9/CB 1 ack
SCOreiF = X MAPIF
SCTIF
Note that the score per race group may not exceed the maximum allowable
points for that race group. The following shows how the total score for 2.3.2,
2.4.2 and 2.5.2 is calculated:
rota: Score = ScoreAF + ScorecF + Score IF
MEASUREMENT OF SKILLS DEVELOPMENT INDICATORS
(f) Similarly paragraph 9 A and B "Formula 1 and 2" under Code Series 300 of
the Amended Codes of Good Practice gazette Number 36928 is repealed.
The paragraph is replace by the following:
ANNEXE 300 (A)
Formula
The skills development criteria provided for in paragraphs 2.1.1.1 is calculated by
following the sub calculations below.
The measurement criteria targets for 2.1.1.1 are broken down according to the
relevant EAP statistics i.e. splitting the compliance target and points in proportion
to the EAP statistics.
The EAP Statistics are reported on the following race groups:
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STAATSKOERANT, 6 MEI 2015 No. 38765 13
Statistic African African Coloured Coloured Indian Indian White White
Male Female Male Female Male Female Male Female
Abbreviation AM AF CM CF IM IF WM WF
The maximum points per race group needs to be adhered to in order to achieve
the outcomes of the code. These calculations will need to be repeated for every
race group due to the maximum score for each race group.
The first parameter to be defined is the percentage of spend on black employees
in the measured entity as a percentage of the Leviable Amount. The formula to
calculate this will need to be repeated six times, for each of the six black EAP
statistics.
Let
Spend on AM employees
/0 S end Am =
Pt7i ighe Anlinunt
Spend on Air' employees
% Spend.
Leviable _Amount
Spend on CM employees
Spendcm
Leviable Amount
Spend on CF employees
ckSpendcF
Leviable Amount
Spend on 1M employees
clb SP e71 dim - Leviable Amount
Spend on IF employees
% Spend EF =
Leviable Amount
Where:
RG: Race Group
% SpendRG: Percentage of spend on black employees in
the measured entity for the specific race group
Spend on RG Employees: Rand value of Skills Development Expenditure
on Learning Programmes specified in the
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14 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Learning Programme Matrix for the specified
Race Group for 2.1.1.1
Leviable Amount: As defined in Code Series 300
Due to the codes not awarding points for meeting the EAP statistics for the white
race groups, the EAP statistics need to be adjusted to exclude the white
categories. The following formula shows how this is accomplished:
Let
FA P(A .14)
A Dj EA PAm -
EAP(SUM)
EAP(AF)
ADJ EAP - EA PI,SUm)
EA P (C )
DJ E: Pry =
EA 13( Sum)
EA 13(,CF)
ADJ EA Prr
E A. P (Su in)
EA P(1114)
ADJ. EA Pim =
EA P(5 um)
LAP(' F)
ADJ EA P1F =
EA .P(Sum)
Where:
ADJ EAPRG: Adjusted EAP for a specific race group
EAP (RG): EAP statistic for the calculated race group
EAP (Sum): Sum of published EAP statistics for all black race groups
(AM+AF+CM+CF+1M+IF)
Since the calculation for each of the race groups need to be done individually,
the compliance target also needs to be split in proportion to the EAP statistics.
This formula is defined below:
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STAATSKOERANT, 6 MEI 2015 No. 38765 15
Let
Corrzpliance target
SCTAT4 = AD] EA PAm x
Compliance
Corry target
SCTJ = ADj EAPAF x
Compliance target
SCTEm = EAPC4 x
Compliance target
SCTcF = ADJ EA Pc F X
Compliance target
SCTrm = AD] EAP ,,r x
Compliance target
SCTx = ADJEAP,Fx
Where:
SCTRG: Split Compliance Target for race group
ADJ EAPRG: Adjusted EAP for the race group as calculated
above
Compliance target: Compliance Target as specified for 2.1.1.1
The points allocated for the measurement criteria will also be split in proportion to
the EAP statistics. The split points for the measurement criteria represent the
maximum allowable points for the race groups, and must be enforced as such.
The formula for calculating the maximum allowable points is shown below:
MAPAm= AD] EAPA7 x Points
MAP = ADJ EAPAF x Points
MAPcw = ADJ EARcm x Points
MAPCF = AD] EAPcF x Points
= ADJ EAPIM x Points
MAPIF = ADJ EAPIF X Points
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16 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Where:
MAP: Maximum allowable points for a race group
Points: Weighting points as specified for 2.1.1.1
The achieved score per race group (ScoreRG) will be calculated using the above
four equations. The formula must be completed for each race group using the
four results from above for each race group. This formula is shown below:
GieSpendx,s
Score Am = x MAPAAI
SCTAm
51')Speild
Score AF = x MAP
SCTAF
c/6Spendcm
SCOrecm =
VCSpe-ndr.-
Scorec= APCF
SCrr,
°4 Spend
Scorerm = x A APp d
SCTEm
%Spend
SCOr erp - x AP/F
SCT/F
Note that the score per race group may not exceed the maximum allowable
points for that race group. The following shows how the total score for 2.1.1.1 is
calculated:
Tor& Score = ScoreA, I + ScoeAF + Score+ ScoecF + Score + ScorelF
Formula 2
The Skills Development criteria provided for in paragraphs 2.1.2.1 and 2.1.2.2, is
calculated by following the sub calculations below.
The measurement criteria targets for 2.1.2.1 and 2.1.2.2 are broken down
according to the relevant EAP statistics i.e. splitting the compliance target and
points in proportion to the EAP statistics.
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STAATSKOERANT, 6 MEI 2015 No. 38765 17
The maximum points per race group needs to be adhered to in order to achieve
the outcomes of the code. These calculations will need to be repeated for every
race group due to the maximum score for each race group.
The first parameter to be defined is the percentage of black employees in the
measured entity for the measurement criteria (Number of black people
participating in Learnerships, Apprenticeships and Internships OR Number of
black unemployed people participating in the learning programme matrix). The
formula to calculate this will need to be repeated six times, for each of the six
black EAP statistics.
Let
Number of AM learners
of 57 c'-Aw =
- Total of all employees in all race groups
Number of AF learners
%BlackAF =
Total of all employees in all race groups
Number of CM learners
%Blacks
- Total of all employees in all race groups
Number of CF learners
c/c Blackcp -
Total of all employees in all race groups
Number of 1M learners
c/6 Black!,
Total of all employees in all race groups
Number of IF learners
%Blacks =
Total of all employees in all race groups
Where:
RG: Race Group
% BlackRG: Percentage of black employees in the measured
entity for the specific race group
Number of RG learners: Number of people participating in Learnerships,
Apprenticeships and Internships OR number of
unemployed people participating in training specified
in the learning programme matrix
Total of all race groups: Total of all employees in the measured entity
(AM+AF+CM+CF+IM+IF+WM+WF)
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18 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
Due to the codes not awarding points for meeting the EAP statistics for the white
race groups, the EAP statistics need to be adjusted to exclude the white
categories. The following formula shows how this is accomplished:
Let
EAP(AM)
AD] LA AM
EAP(1Sum)
EAP(AF)
ADJ EAPAF
EAP(Sum)
EAP (CM)
AD] EAP04
EAP(Sum)
EAP(CF)
ADJ EAPcF
EA Pf.,Sum)
EA P(1M)
AD] EA PI M
- EA. P(Sum)
EAP(IF)
AD J EA PIF
EAP(Sum)
Where:
ADJ EAPRG: Adjusted EAP for a specific race group
EAP (RG): EAP statistic for the calculated race group
EAP (Sum): Sum of published EAP statistics for all black race
groups (AM+AF+CM+CF+IM+IF)
Since the calculation for each of the race groups need to be done individually,
the compliance target also needs to be split in proportion to the EAP statistics.
This formula is defined below:
Let
Compliance target
5crA,1 = AD] EA PAAr x
Compliance target
SCTAF = AD] EAPAF x
Compliance target
SCTc,,,f = AD] EA Pcm x
Compliance target
SCTcF = A DJ EA PcF
Compliance target
SCTim = AD] EAPim
Compliance target
SCTIF = AD j EAPIF x
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STAATSKOERANT, 6 MEI 2015 No. 38765 19
Where:
SCTRG: Split Compliance Target for race group
ADJ EAPRG: Adjusted EAP for the race group as calculated
above
Compliance target: Compliance Target as specified for 2.1.2.1 OR
2.1.2.2
The points allocated for the measurement criteria will also be split in proportion to
the EAP statistics. The split points for the measurement criteria represent the
maximum allowable points for the race groups, and must be enforced as such.
The formula for calculating the maximum allowable points is shown below:
MAPAM = ADJ EAPAm x Points
MAPAF = ADJ EAPAr X Points
NIAPcm ADJ LAP x Points
MAP= A Dir E.APcF X Points
MAPim = AD1 EA Pm x Points
M.ApiF = AD] EAP1F x Points
Where:
MAP: Maximum allowable points for a race group
Points: Weighting points as specified for 2.1.2.1 OR 2.1.2.2
The achieved score per race group (ScoreRG) will be calculated using the above
four equations. The formula must be completed for each race group using the
four results from above for each race group. This formula is shown below:
%Black-Am
S coreA2f = x AlAPAm
JL" I AM
%BiackA,
ScoreAF = x MAPAF
SCTAF
9/GBiackcm
S corecm = MAPc,,,1
CT
%Black cE-
ScorecF = x MA Pc-F
SCTrp
%Black
Scoren,f = x MA P11
SCTEm
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20 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
°/cBlackiF
ScoreIF = x AI A PIF
SCTIF
Note that the score per race group may not exceed the maximum allowable
points for that race group. The following shows how the totals score for 2.1.2.1
OR 2.1.2.2 is calculated:
Total. Score = Score + Score + Scorecm + ScorecF + Score + ScoreiF
Formula 3
This equation explains the method of measurement of the criteria under
paragraph 2.1.1.2 and 2.1.3
A = BxD
C
Where
A is the score for measurement category indicator
B is the percentage of spend in the measurement category that are black
disabled people
B is the percentage of absorbed people in the measurement category that are
black people
C is the target for the applicable criteria as referred to in the scorecard under
statement 300
D is the Weighting points for the applicable criteria as referred to in the
scorecard under statement 300
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STAATSKOERANT, 6 MEI 2015 No. 38765 21
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22 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
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STAATSKOERANT, 6 MEI 2015 No. 38765 23
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24 No. 38765 GOVERNMENT GAZETTE, 6 MAY 2015
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