Acts Online
GT Shield

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

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

B-BBEE Sub-Sector Code for Public Sector - Transport

6. Appendix B: Enterprise Development Enhanced Recognition Factor Mechanism

G. Measurement Matrix (MM)

 

 

Item

Criteria

Previous Year

Current Year

% Growth

Weighting

Score

A

FINANCIAL




1

Annual turnover


20

2

No. of permanent employees


20

3

Total value of assets


20

B

REGULATORY




4

Total credit facilities available for suppliers


10

5

Tax & other regulatory compliance


10

C

OTHER




6

Operating & costing systems capacity


10

7

Skills Transfer


10

 

 

EXAMPLE

DOI


DOII


DOIII

 

%

GROWTH

WEIGHT

ING

SCORE

 

%

GROWTH

WEIGHT

ING

SCORE

 

%

GROWTH

WEIGHT

ING

SCORE

1

+ 10%

X 20

= 2.0

 

+ 8%

X 20

= 1.6

 

+ 12%

X 20

= 2.4

2

+ 33%

X 20

= 6.6

 

+ 0%

X 20

= 0

 

+ 66%

X 20

= 13.2

3

+ 6%

X 20

= 1.2

 

+ 4%

X 20

= 0.8

 

+ 15%

X 20

= 3.0

4

+ 0%

X 10

= 0

 

+ 0%

X 10

= 0

 

+ 0%

X 10

= 0

5

+ 15%

X 10

= 1.5

 

+ 8%

X 10

= 0.8

 

+ 3%

X 10

= 0.3

6

+ 12%

X 10

= 1.2

 

+ 4%

X 10

= 0.4

 

+ 0%

X 10

= 0

7

+ 20%

X 10

= 2

 

+ 5%

X 10

= 0.5

 

+ 5%

X 10

= 0

 

 

 




 

 

 

TOTAL SCORE

14.5


4.1

 

 

18.9

 

 

Average Growth Rate                = 14.5 + 4.1 + 18.9

                                 3

                                         Assume real GDP growth rate to be 10

                         = 12.5

 

12.5 > 10 i.e. Growth Rate Exceeds real GDP growth annualised by 25% multiplier factor is 1.125

 

Therefore if these 3 developing organizations together accounted for 15% of the CE discretionary spend in the year in question, out of a total 30% allocated by the CE for Sub-Sector Code requirements then the multiplier effect will be

1.125 x 15 = 16.875 x [the monetary value of discretionary spend from the entities]

i.e Discretionary spend                =        R20  million

30%                                =        R6m

16.875%                        =        R1.0125m

15%                                =        R0.9m

 

CEs Scorecard Score                R1.0125m        =        16.875 x weighting        = x