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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 800 : Codes of Good Practice for Qualifying Small Enterprises (QSE’s)

8. Statement 807 : Socio-Economic Development Contributions for QSE's

8.1 The QSE Socio-economic Development (SED) Scorecard


8.1.1) In calculating the compliance of a Measured Entity the following Net Profit After Tax (NPAT) 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.


8.1.2) If the Turnover is to be used, the target will be set at: 1% x Indicative Profit Margin (NPAT/Turnover) x Turnover.


8.1.3) The following table represents the criteria and method used for deriving a score for socio-economic development under this statement:



Weighting Points

Compliance Target

Average annual value of all Qualifying Contributions made by the Measured Entity as a percentage of the target


2% of NPAT