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

Codes of Good Practice on Black Economic Empowerment

Code Series 500: Measurement of the Preferential Procurement Element of Broad-Based Black Economic Empowerment

Statement 500 : The General Principles for Measuring Preferential Procurement

7. Measurement of B-BBEE Procurement Spend


7.1) B-BBEE Procurement Spend is the value of the procurement falling within paragraph 5 and not excluded by paragraph 6. If a supplier falls within a category of supplier listed in paragraph 3.3 or 4, the value of procurement from that supplier is multiplied by the applicable factor listed in paragraph 3.3.


7.2) B-BBEE Procurement Spend can be measured in terms of formula "A" in Annexe 500(A).


7.3) The B-BBEE Procurement Spend for a Measured Entity in respect of a supplier is calculated by multiplying the spend contemplated by paragraph 5 (and not excluded by paragraph 6) in respect of that supplier by the supplier's B·BBEE Recognition Level.


7.4) A Measured Entity's Total Procurement Spend is the total of all amounts calculated in terms of paragraph 7.3.