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

Amended Codes of Good Practice (2013)

Amended Code Series 400: Measurement of the Enterprise and Supplier Development Element of Broad-Based Black Economic Empowerment

Statement 400: The General Principles for Measuring Enterprise and Supplier Development

Annexures

Annexe 400(B)

 

Annexe 400B - Enterprise Development and Supplier Development Benefit Factor Matrix

 

Qualifying Contribution type

Contribution Amount

Benefit Factor

Grant and Related Contributions

Grant Contribution

Full Grant Amount

100%

Direct Cost incurred in supporting Enterprise Development and Supplier Development

Verifiable Cost (including both monetary and non-monetary)

100%

Discounts in addition to normal business practices supporting Enterprise Development and Supplier Development

Discount Amount (in addition to normal business discount)

100%

Overhead Costs incurred in supporting Enterprise Development and Supplier Development (including people appointed in Enterprise Development and Supplier Development)

Verifiable Costs (including both monetary and non-monetary)

70%

Loans and Related Contributions

Interest-Free Loan with no security requirements supporting Enterprise Development and Supplier Development

Outstanding Loan Amount

70%

Standard Loan to Enterprise Development and Supplier Development Beneficiaries

Outstanding Loan Amount

50%

Guarantees provided on behalf of a Beneficiary entity

Guarantee Amount

3%

Lower Interest Rate

Outstanding loan amount

Prime Rate—Actual Rate

Equity Investments and Related Contributions

Minority Investment in Enterprise Development and Supplier Development Beneficiaries

Investment Amount

70%

Enterprise Development and Supplier Development Investment with lower dividend to financier

Investment Amount

Dividend Rate of Ordinary Shareholders - Actual Dividend Rate of Contributor

Contributions made in the form of human resource capacity

Professional services rendered at no cost and supporting Enterprise Development and Supplier Development

Commercial hourly rate of professional

60%

Professional services rendered at a discount and supporting Enterprise Development and Supplier Development

Value of discount based on commercial hourly rate of professional

60%

Time of employees of Measured Entity productively deployed in assisting beneficiaries

Monthly salary divided by 160

60%

Other Contributions

Shorter payment periods for 2.2 of this statement (Supplier Development)

Percentage of invoiced amount multiplied by 15% (being an approximation of the cost of short term funding)

Percentage being 15 days less the number of days from invoice to payment Maximum points that can be scored is 15% of 10 points

 

 

A: Qualifying Contributions are measurable on the following basis:

 

Where

 

A is the score achieved in respect of the Qualifying Contributions made by the Measured Entity

 

B is the annual value of all Qualifying Contributions made by the Measured Entity measured from the commencement of this statement or the Inception Date to the date of measurement

 

C is compliance target in respect of the Qualifying Contributions as specified in the scorecard for statement 400

 

D is the Weighting points allocated to the criteria under the scorecard for statement 400.