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

Industry Charters

Financial Services  Charter

Code Series FS600: The Measurement of the Enterprise Development and/or Empowerment Financing Element of Broad-Based Black Economic Empowerment

Statement 601: The Measurement of the Enterprise Development Element for Measured Entities that are exempted from contributing towards Empowerment Financing

5. The Benefit Factor Matrix

 

5.1 The Minister may from time to time, by notice in the Gazette, revise or substitute the Benefit Factor Matrix. Any changes will only be applicable to Compliance Reports prepared for a Measured Entity in  respect of the first 12-month period following the gazetting of a revision or substitution.

 

Qualifying Contribution Type

Contribution Amount

Benefit factor

Grant contribution

Full grant amount

100%

Direct Cost incurred in supporting approved projects or Enterprise Development

Verifiable cost (including both monetary and non-monetary)

100%

Discounts in addition to normal business practices supporting Enterprise Development

Discount amount (in addition to normal business discount)

100%

Overhead costs incurred in supporting Enterprise Development (including people appointed in Enterprise Development units)

Verifiable costs (including both monetary and non-monetary)

80%

Interest-free loan with no security requirements supporting approved projects or Enterprise Development

Outstanding Loan Amount

100%

Standard loan to black owned EME and QSEs

Outstanding Loan Amount

70%

Standard loan provided to other beneficiary enterprises

Outstanding Loan Amount

60%

Guarantees provided on behalf of a beneficiary entity

Guarantee Amount

3%

Lower interest rate (in addition to the recognisable loan amount)

Outstanding Loan Amount

Prime Rate - Actual Rate

Equity investments and Related Contributions

Contribution Amount

Benefit Factor

Minority investment in Black Owned EME and QSEs

Investment Amount

100%

Minority investment in other Beneficiary enterprises

Investment Amount

80%

Enterprise Development investment with lower dividend to financier

Investment Amount

Dividend rate of ordinary shareholders - actual dividend rate of contributor

Professional services rendered at no cost and supporting approved projects or Enterprise Development

Commercial hourly rate of professional

80%

Professional services rendered at a discount and supporting approved projects or Enterprise Development

Value of discount based on commercial hourly rate of professional

80%

Time of employees of measured entity productively deployed in assisting beneficiaries

Monthly salary divided by 160

80%