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

Sector Codes

Defence Sector Code

14. The Defence Sector Scorecard


14.1 The Ownership Element, measures effective ownership of Entities by Black people.


14.2 The Management Control Element measures the effective control of Entities by Black people.


14.3 The Skills Development Element measures the extent to which employers carry initiatives designed to develop the competencies of Black employees and Black people internally and externally.


14.4 The Enterprise and Supplier Development Element, measures the extent to which Entity buys goods and services from Empowering Suppliers preferably between level 1 and level 4 B-BBEE recognition levels. This element also measures the extent to which Enterprises carry out supplier development and enterprise development initiatives intended to assist and accelerate the growth and sustainability of Black enterprises.


14.5 The Socio-Economic Development and Sector Specific Contributions Element, measures the extent to which Entities carry out initiatives that contribute towards Socio-Economic Development or Sector Specific initiatives that promote access to the economy for Black people.


14.6 The Localisation Element measures the extent to which Entities procure Defence Matériel from Local Enterprises that contribute to the development of manufacturing and new locally developed technology.


14.7 Organs of State and State-Owned Enterprises shall be measured using the Specialised Defence Scorecard but shall otherwise comply with all the provisions of this Sector Code unless expressly excluded there from.


The Defence Scorecard



Sector Code Reference


25 Points

Paragraph 16.1

Management Control

15 Points

Paragraph 16.2

Skills Development

20 Points

Paragraph 16.3

Enterprise and Supplier Development

40 Points

Paragraph 16.4


10 Points

Paragraph 16.5

Socio-Economic Development

5 Points

Paragraph 16.6