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

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Information and Communication Technology (ICT) Charter

ICT Sector Code for Black Economic Empowerment

Code Series 800: ICT Codes of Good Practice for Qualifying Small Enterprises (QSE's)

7. Statement 806: Enterprise Development for QSEs


7. Statement 806: Enterprise development for QSE's
7.1 The QSE Enterprise Development (ED) scorecards
7.1.1 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. If the Turnover is to be used, the target will be set at:
· 2% 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.
7.1.2 The following table represents the criteria and method used for deriving a score for approved projects and enterprise 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 Net Profit After Tax


7.2 Key Measurement Principles
7.2.1 Measured Entities receive recognition for any Qualifying Contributions that are quantifiable as a monetary value using a Standard valuation method.
7.2.2 Qualifying Contributions of any Measured Entity are recognisable: from the commencement date of this statement, or an earlier date chosen by the Measured Entity (the Inception Date); until the date of measurement.
7.2.3 No portion of the value of any Qualifying Contribution that is payable to the beneficially after the date of measurement can form part of any calculation under this statement.
7.2.4 The recognition of Enterprise Development contributions must be determined in accordance with statement 600.