PRESENTATION LAYOUT Introduction
Ushering in a new era for Empowerment (B-BBEE)
B-BBEE & SMMEs
B-BBEE Scorecard
Black Industrialists Support
Conclusion
2
INTRODUCTION Radical Economic Transformation (RET) - changing the productive base
of the economy, as well as changing the patterns of participation in the
economy, drawing from the skills, capacity and entrepreneurial spirit of
entire population
Radical Transformation is about inclusive growth
B-BBEE at the centre of RET
The B-BBEE scorecard is aligned in accordance with government key
priorities that support RET.
The Generic Scorecard has five (5) elements – Ownership, Management
Control, Skills Development, Enterprise and Supplier Development &
Socio Economic Development
USHERING IN A NEW ERA OF
EMPOWERMENT
4
B-BBEE
NGP
NDP
NIPF
IPAP
CSDP
NIPP
Skills D
evelop
men
t
DEVELOPMENTAL OBJECTIVES
Job
creation
Lo
calisation
Ind
ustrialisatio
n
Su
pp
lierD
evelop
men
t
B-BBEE & SMMEs
All entities with a turnover of less than R 10 M per annum areconsidered to be small and therefore exempted
For Black Owned Entities the exemption threshold is a turnover ofless R 50 M per annum
Large entities: R50 million and above.
All companies except for Exempted Enterprises (EMEs) mustcomply with all 5 elements.
B-BBEE & SMMEs The BBBEE Codes enhanced the recognition status of black
owned EMEs and Qualifying Small Enterprises (QSE).
An Exempted Micro Enterprise and Qualifying Small Enterprisethat is 100% owned by black people qualifies as a Level 1contributor.
An Exempted Micro Enterprise and Qualifying Small Enterprisethat are more than 50% owned by black people qualifies as aLevel 2 contributor.
No verification requirements for Exempted Micro Enterprises &black owned QSEs – this is in support of small businessdevelopment, as well as serving to eliminate the role ofintermediaries that exploit small businesses.
B-BBEE & SMMEs All Large Entities are required to spend at least 30% of their
Total Procurement Spend on SMMEs
All Large Entities are required to spend at least 40% of their
Total Procurement Spend on entities that are at least 51%
Black Owned
Furthermore the Codes require that Large Entities spend 3% of
annual NPAT in developing and supporting Black Owned SMMEs
The support could be monetary on non-monetary
The aim is to create new or expand existing emerging enterprises
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THE AMENDED GENERIC
SCORECARDElement Weighting
Compliance
Target
Ownership 25 points 25% + 1 vote
Management control 19 points (50% to 88%)
Skills Development 20 points 6% of payroll
Enterprise and Supplier
Development 40 points
PP = 80%
SD = 2% (NPAT)
ED = 1% (NPAT)
Socio-Economic Development 5 points 1% (NPAT)
TOTAL 109 points
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B-BBEE Status Qualification Criteria B-BBEE recognition
level
Level One Contributor ≥100 points on the Generic Scorecard 135%
Level Two Contributor ≥95 but <100 points on the Generic
Scorecard
125%
Level Three Contributor ≥90 but <95 on the Generic Scorecard 110%
Level Four Contributor ≥80 but <90 on the Generic Scorecard 100%
Level Five Contributor ≥75 but <80 on the Generic Scorecard 80%
Level Six Contributor ≥70 but <75 on the Generic Scorecard 60%
Level Seven Contributor ≥55 but <70 on the Generic Scorecard 50%
Level Eight Contributor ≥40 but <55 on the Generic Scorecard 10%
Non-Compliant Contributor <40 on the Generic Scorecard 0%
B-BBEE RECOGNITION LEVELS
BLACK INDUSTRILISTS SUPPORT BI is about value chain approach to development and
empowerment
A Black Industrialist is a juristic person that includes cooperatives, incorporated in terms of the Companies Act (2008)that are owned by black South Africans, as defined by the B-BBEE Act, who create and own value-adding industrial capacityand who provide long-term strategic and operational leadership toa business.
A Black Industrialist can also be a natural person.
High level of ownership (>50%) and/or exercises control over thebusiness;
Operate in manufacturing sector (IPAP);
Strategic and operational leadership
TARGETED SECTORS
Such entities should be operating in the manufacturing sectors
in line with the IPAP industrialisation path as follows:
TARGETED SECTORS …continued
Such entities should be operating in the manufacturing sectors
in line with the IPAP industrialisation path as follows:
POLICY SUPPORT MEASURES
• Black Industrialist
Financing Forum:
• IDC, NEF, DBSA, PIC,
LAND BANK, SEFA,
ECIC
• DTI Incentive SCHEME
( Cost-sharing grant
of between 30-50%
up
to R50million)
• Collaboration with
private financial
institutions
AC
CE
SS
TO
FU
ND
ING
AC
CE
SS
TO
MA
RK
ET
S
OT
HE
R N
ON
FIN
AN
CIA
L S
UP
PO
RT
• Government Procurement opportunities
• Collaboration with State Owned Procurement Forum ,
• Agreements with Multi nationals across the sectors on Enterprise
Development Program
• Collaboration with Private Sector to facilitate access to markets
• Training and capacity
building
• Portal for networking
( information sharing)
and
match-making
• Research and support for
innovation
• Quality standard and
productivity support
• Other support initiatives
within the economic
cluster of government
• Compliance and
competitiveness
• B-BBEE in SA is an economic, social and political
imperative
• B-BBEE must promote inclusive growth
• Partnerships between the private and the public
sector to accelerate transformation
• B-BBEE Codes and Sector Codes should be used
as mechanism to facilitate transformation in key
sectors of our economy
CONCLUSION
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