Acts Online
GT Shield

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

Amended Codes of Good Practice (2017)

Amended Code Series CSC500: Measurement of the Preferential Procurement and Supplier Development Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC500: The General Principles for Measuring the Socio-Economic Development Element

3. Key Measurement Principles


3.1 General principles:
3.1.1 Measured Entities receive recognition for any Qualifying Socio-Economic Contributions that are quantifiable as a monetary value using a Standard Valuation Method.
3.1.2 Qualifying Socio-Economic Contributions of any Measured Entity are recognisable annually
3.1.3 No portion of the value of any Qualifying Socio-Economic Contribution that is payable to the beneficiary after the last day of the Measurement Period can form part of any calculation under this statement.


3.2 Socio-Economic Development Contributions:
3.2.1 Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating sustainable access to the economy for targeted beneficiaries. Measured Entities are encouraged to prioritise communities in areas where they operate.
3.2.2 The full value of Socio-Economic Development Contributions made to beneficiaries is recognisable if at least 75% of the value directly benefits Black People.
3.2.3 If less than 75% of the full value of Socio-Economic Development Contributions directly benefits Black People, the value of the contribution made multiplied by the percentage that benefits Black People, is recognisable.
3.2.4 Any portion of the contribution that benefits Black People with Disabilities will be recognised at an enhanced factor of 1.25.
3.2.5 The following is a non-exhaustive list of Socio-Economic Development Contributions: Grant contributions to beneficiaries of Socio-Economic Development Contributions; Guarantees given or security provided for beneficiaries; Direct costs incurred by a Measured Entity in assisting beneficiaries; Overhead costs of a Measured Entity directly attributable to Socio-Economic Development Contributions; Developmental capital advanced to beneficiary communities; Preferential terms grants by a Measured Entity for its supply of goods or services to beneficiary communities; Contributions made by the Measured Entity to third parties to perform Socio-Economic Development on the Measured Entity’s behalf. For the avoidance of doubt such contributions are regarded as having been initiated and implemented once they become payable to the third party; Provision of training or mentoring to beneficiary communities which will assist them to increase their financial capacity; Such contributions are measurable by quantifying the cost of time (excluding travel or commuting time) spent by staff or management of the Measured Entity in carrying out such initiatives; A clear justification must support any claim for time costs incurred, (commensurate with the seniority and expertise of the trainer or mentor). The maintenance by the Measured Entity of a socio-economic development unit which focuses only on support of beneficiaries and beneficiary communities; Only that portion of salaries and wages attributable to time spent by the staff in, and the other expenses related to, promoting and implementing socio-economic development, constitute contributions.