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

Amended Code Series 000: Practice Note 1 of 2018

Purchase

GENERIC ENTERPRISES (40% SUB-MINIMUMS ON PRIORITY ELEMENTS):

•	Ownership (Net Value) = 8 Points x 40% = 3.2 Points need to be achieved

•	Skills Development = 20 Points x 40% = 8 Points need to be achieved

•	Enterprise and Supplier Development:

o	Preferential Procurement = 25 Points x 40% = 10 Points need to be achieved

o	Supplier Development = 10 Points x 40% = 4 Points need to be achieved

o	Enterprise Development = 5 Points x 40% = 2 Points need to be achieved

GENERIC ENTERPRISES (50% AVERAGE OF SUB-MINIMUMS ON PRIORITY ELEMENTS – SPECIFIC TO Y.E.S INITIATIVE ONLY):

•	Ownership (Net Value) = 8 Points + Skills Development = 20 Points + Enterprise and Supplier Development = 40 Points = 68 Points

•	68 Points x 50% = 34 Points needs to achieved in Total in order for the Y.E.S Measured Entity to participate

•	Sector Codes of Good Practice will apply the same Calculation Principles as above when calculating Averages according to their Specific Sector Code of Good Practice – Points will differ depending on what has been prescribed in the relevant Sector Code of Good Practice

QUALIFYING SMALL ENTERPRISES (40% SUB-MINIMUMS ON PRIORITY ELEMENTS):

• Ownership (Mandatory) (Net Value) = 8 Points x 40% = 3.2 Points need to be achieved

• Skills Development = 25 Points x 40% = 10 Points need to be achieved

• OR

• Enterprise and Supplier Development:

o Preferential Procurement = 20 Points x 40% = 8 Points need to be achieved

o Supplier Development = 5 Points x 40% = 4 Points need to be achieved

o Enterprise Development = 5 Points x 40% = 2 Points need to be achieved

QUALIFYING SMALL ENTERPRISES (40% AVERAGE OF SUB-MINIMUMS ON PRIORITY ELEMENTS - SPECIFIC TO Y.E.S INITIATIVE ONLY):

•	Ownership (Net Value) = 8 Points + Skills Development = 25 Points = 33 Points x 40% = 13,20 Points needs to achieved in Total in order for the Y.E.S Measured Entity to participate

•

•	Ownership (Net Value) = 8 Points + Enterprise and Supplier Development = 30 Points = 38 Points x 40% = 15,20 Points needs to achieved in Total in order for the Y.E.S Measured Entity to participate

•	Sector Codes of Good Practice will apply the same Calculation Principles as above when calculating Averages according to their Specific Sector Code of Good Practice - Points will differ depending on what has been prescribed in the relevant Sector Code of Good Practice