Acts Online
GT Shield

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

Codes of Good Practice on Black Economic Empowerment

Code Series 600: Measurement of Enterprise Development Element of Broad-Based Black Economic Empowerment

Statement 600 : The General Principles for Measuring Enterprise Development Element

2. The Enterprise Development Scorecard


2.1.1) The NPAT or average target applies unless: the company does not make a profit last year or on average over the last five years. the net profit margin is less than a quarter of the norm in the industry.


2.1.2) lf the Turnover is to be used, the target will be set at: 3% x Indicative Profit Margin (NPAT/Turnover) x Turnover. Indicative profit margin is the profit margin in the last year where the company's profit margin is at least one quarter of the industry norm.


2.2) The following table represents the criteria and method used for deriving a score for Enterprise Development under this statement:



Weighting Points

Compliance Target

Average annual value of all Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target


3% of NPAT


2.3) The weighting points in the ED scorecard represent the maximum number of points possible for each of the criteria.