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

Industry Charters

Financial Services  Charter

Code Series FS700: Measurement of the Socio-Economic Development Element of Broad-Based Black Economic Empowerment

3. Key Measurement Principles

 

3.1 Subject matter of this paragraph: This paragraph relates to the following statements within the CoGP:

 

3.1.1 Code 700 Statement 700; and

 

3.1.2 Code 800 Statement 807.

 

3.2 Applicability of the CoGP: The provisions and principles contained in the relevant statements apply to all financial institutions, subject to the following variations:

 

3.2.1 No contribution to Socio-Economic Development recognised as forming part of a financial institution's contribution to Targeted Investment may be recognised as Socio-Economic Development.

 

3.2.2 Socio-Economic Development Programmes conceptualised and measured under this Code may include, but will not be limited to, one of the following forms:

 

3.2.2.1 Education: support for community education facilities, programmes at secondary and tertiary education levels aimed at promoting the industry, bursaries and scholarships, which are orientated towards the hard sciences;

 

3.2.2.2 Training: community training, skills development for the unemployed, adult basic education and training in communities, financial literacy programmes in communities;

 

3.2.2.3 Development programmes for youth and other target groups;

 

3.2.2.4 Environment: support of conservation projects, community cleanup projects, food garden initiatives;

 

3.2.2.5 Job Creation: job creation projects external to the workplace or any commitments contained in Empowerment Financing;

 

3.2.2.6 Arts and culture: support of development programmes, development of new talent;

 

3.2.2.7 Health: support of community clinics, health programmes in the community; and

 

3.2.2.8 Sport: support of developmental programmes.

 

3.2.3 Socio-Economic Development Programmes in South Africa can be funded directly from the philanthropic arms of international institutions situated outside of South Africa (provided that such benefits do not accrue to other jurisdictions).

 

3.3 Measurement of Qualifying Contributions

 

Qualifying Contributions are measurable using the formula "A" in Annexe 700(B)

 

3.4 The Benefit Factor Matrix

 

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.