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

Annexe 600(A)- Benefit Factor Matrix


Qualifying Contribution Type

Contribution Amount

Benefit Factor

Grant and Related Contributions

Grant Contribution

Full Grant Amount


Direct Cost incurred in supporting enterprise development

Verifiable Cost (including both monetary and non-monetary)


Discounts in addition to normal business practices supporting enterprise development

Discount Amount (in addition to normal business discount)


Overhead Costs incurred in supporting enterprise development (including people appointed in enterprise development)

Verifiable Costs (including both monetary and non-monetary)


Loans and Related Contributions

Interest-Free Loan with no security requirements supporting enterprise development

Outstanding Loan Amount


Standard Loan to Black Owned EME and GSEs

Outstanding Loan Amount


Standard Loan provided to other Beneficiary Enterprises

Outstanding Loan Amount


Guarantees provided on behalf of a Beneficiary entity

Guarantee Amount


Lower interest rate

Outstanding Loan Amount

Prime Rate – Actual Rate

Equity Investments and Related contributions

Minority Investment in Black Owned EME and QSEs

Investment Amount


Minority Investment in Other Beneficiary Enterprises

Investment Amount


Enterprise Development investment with lower dividend to financier

Investment Amount

Dividend Rate of Ordinary Shareholders – Actual Dividend Rate of Contributor

Contributions made in the form of human resource capacity

Professional services rendered at no cost and supporting enterprise development

Commercial hourly rate of professional


Professional services rendered at a discount and supporting enterprise development

Value of discount based on commercial hourly rate of professional


Time of employees of Measured Entity productively deployed in assisting beneficiaries

Monthly salary divided by 160


Other Contributions

Shorter payment periods

Percentage of invoiced amount

Percentage being 15 days less the number of days from invoice to payment