Empowerdex presentation

BEE Presentation
The changes and how they impact QSEs
25 April 2017
Rationale to amend 2007 Codes
•
From a historical perspective
The 2007 CoGP relative performance across elements
B-BBEE Element
Ownership
Management Control
Employment Equity
Skills Development
Preferential Procurement
Enterprise Development
Socio-Economic Development
Total
Target Points
20.00
10.00
15.00
15.00
20.00
15.00
5.00
100.00
Average Score
(Top 100
Performers)
16.11
5.95
7.52
9.28
17.76
13.96
4.80
75.38
Compliance
Rate
80.53%
59.51%
50.14%
61.88%
88.82%
93.07%
95.96%
75.38%
Classification per the Codes
2007 CODES OF GOOD
PRACTICE
Turnover Threshold
2013 CODES OF GOOD
PRACTICE
Turnover Threshold
Exempted Micro Enterprise
< R5 million
< R10 million
Qualifying Small Enterprise
R5 million ≤ R 35 million
R10 million ≤ R50 million
≥ R35 million
≥ R 50 million
ENTITY SIZE
CLASSIFICATIONS
Generic Enterpises
Strictly Private and Confidential
3
EMEs and 51% black-owned QSEs
•
51%+ black-owned EMEs and QSEs are now Level 2; 100% black-owned EMEs and QSEs
are now Level1
•
An affidavit confirming that the entity’s turnover is below 10 million and percentage of
black ownership will be accepted for EMEs
•
QSEs have to comply with all elements
•
Start-up enterprises are verified similar to EMEs, but can opt to be rated using the QSE
and Generic Scorecard
•
QSE with at least 51% black ownership or above are only required to obtain a sworn
affidavit on an annual basis with a confirmation of turnover and black ownership
•
Exempt Micro Enterprises (EME) and Start-Ups are automatically recognised as
Empowering Suppliers
Strictly Private and Confidential
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Amended QSE Scorecard
BEE Elements
Ownership
2007 Code
Weightings
Amended Codes
Weightings
25 Points
25* Points
25 Points
Management Control (Employment Equity)
15 Points
25 Points
Skills Development
25 Points
Enterprise and Supplier Development
(Procurement and Enterprise Development)
25 Points
Socio Economic Development
25 Points
25* Points
30* Points
25 Points
5 Points
* Priority Elements – will lead to discounting where thresholds
not met
Strictly Private and Confidential
BEE Recognition Levels
BEE Status
Points on the QSE Scorecard
BEE procurement
recognition level
2013 Codes
2007 Codes
Level One Contributor
≥100
≥ 100
135%
Level Two Contributor
≥95 but <100
≥ 85 but < 100
125%
Level Three Contributor
≥90 but < 95
≥75 but <85
110%
Level Four Contributor
≥80 but <90
≥ 65 but < 75
100%
Level Five Contributor
≥75 but <80
≥ 55 but < 65
80%
Level Six Contributor
≥70 but <75
≥45 but <55
60%
Level Seven Contributor
≥55 but <70
≥40 but < 45
50%
Level Eight Contributor
≥40 but <55
≥ 30 but < 40
10%
<40
<30
0%
Non Compliant Contributor
Strictly Private and Confidential
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Ownership – Incoming Codes
Ownership indicator
Weighting
points
Compliance
Target
Exercisable Voting Rights in the Enterprise in the hands of black people
5
25%+1 vote
Exercisable Voting Rights in the Enterprise in the hands of black women
2
10%
Economic Interest of black people in the Enterprise
5
25%
Economic Interest of black women in the Enterprise
2
10%
3
2%
8
10 year
targets on
Formula A
New Entrants of black designated groups
Net Value (priority indicator)
Strictly Private and Confidential
7
Management Control – Amended Codes
Indicator
Weighting
Target
Executive Management
Black representation at Executive Management
5
50%
Black female representation at Executive Management
2
25%
Black representation at Senior, Middle and Junior Management
6
60%
Black female representation at Senior, Middle and Junior Management
2
30%
Senior, Middle and Junior Management
Strictly Private and Confidential
8
Skills Development – Incoming Codes
Indicator
Weighting
Target
Skills Development Expenditure on learning programmes
specified in the learning programme matrix for black people as a
percentage of leviable amount
15
3%
Skills Development Expenditure on learning programmes
specified in the learning programme matrix for black female
people as a percentage of leviable amount
7
1%
Black disabled people
3
0.15%
Bonus Points:
Number of black people absorbed by the Measured Entity and
Industry at the end of the learnership programme
5
100%
9
ESD Scorecard – Incoming Codes
Indicator : Preferential Procurement
B-BBEE procurement spend from all Empowering Suppliers
based on its BBBEE procurement recognition level as a
percentage of total measured spend
B-BBEE procurement spend from all Empowering Suppliers
that are at least 51% black owned based on its BBBEE
procurement recognition level as a percentage of total
measured spend
Bonus Points: B-BBEE Procurement Spend from Designated
Group that are at least 51% black owned
Strictly Private and Confidential
Weighting
Target
15
60%
5
15%
1
1%
10
ESD Scorecard – Incoming Codes
Indicator : Supplier Development
Weighting
Annual value of all Supplier Development Contributions made by the
Measured Entity as a percentage of the target
Indicator : Enterprise Development
5
Weighting
Annual value of all Enterprise Development Contributions and Sector
Specific Programmes made by the Measured Entity as a percentage of
the target
5
Target
1% of NPAT
Target
1% of NPAT
Bonus Points
Graduation of 1 or more ED beneficiaries to SED
1
Creating 1 or more jobs directly as a result of SD and ED initiatives
1
Strictly Private and Confidential
11
Socio-Economic Development
Criteria
Weighting
Points
Compliance
Target
Average annual value of all Socio-Economic
Development Contributions and Qualifying
Socio-Economic Development Contributions
made by the Measured Entity as a percentage of
the target.
5
1% of NPAT
12
Thank You
Duncan de Groot
Office: 021 419 5130
Email: [email protected]
Address:
14th Floor, Metropolitan Life Building
7 Walter Sisulu Avenue
Foreshore, Cape Town
Strictly Private and Confidential
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