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

## G. Measurement Matrix (MM)

 Item Criteria Previous Year Current Year % Growth Weighting Score A FINANCIAL 1 Annual turnover 20 2 No. of permanent employees 20 3 Total value of assets 20 B REGULATORY 4 Total credit facilities available for suppliers 10 5 Tax & other regulatory compliance 10 C OTHER 6 Operating & costing systems capacity 10 7 Skills Transfer 10

EXAMPLE

 DOI DOII DOIII % GROWTH WEIGHT ING SCORE % GROWTH WEIGHT ING SCORE % GROWTH WEIGHT ING SCORE 1 + 10% X 20 = 2.0 + 8% X 20 = 1.6 + 12% X 20 = 2.4 2 + 33% X 20 = 6.6 + 0% X 20 = 0 + 66% X 20 = 13.2 3 + 6% X 20 = 1.2 + 4% X 20 = 0.8 + 15% X 20 = 3.0 4 + 0% X 10 = 0 + 0% X 10 = 0 + 0% X 10 = 0 5 + 15% X 10 = 1.5 + 8% X 10 = 0.8 + 3% X 10 = 0.3 6 + 12% X 10 = 1.2 + 4% X 10 = 0.4 + 0% X 10 = 0 7 + 20% X 10 = 2 + 5% X 10 = 0.5 + 5% X 10 = 0 TOTAL SCORE 14.5 4.1 18.9

Average Growth Rate                = 14.5 + 4.1 + 18.9

3

Assume real GDP growth rate to be 10

= 12.5

12.5 > 10 i.e. Growth Rate Exceeds real GDP growth annualised by 25% multiplier factor is 1.125

Therefore if these 3 developing organizations together accounted for 15% of the CE discretionary spend in the year in question, out of a total 30% allocated by the CE for Sub-Sector Code requirements then the multiplier effect will be

1.125 x 15 = 16.875 x [the monetary value of discretionary spend from the entities]

i.e Discretionary spend                =        R20  million

30%                                =        R6m

16.875%                        =        R1.0125m

15%                                =        R0.9m

CEs Scorecard Score                R1.0125m        =        16.875 x weighting        = x