Okay, here’s a revised summary of BEE Code 000 (Statement 000: General Principles and the Generic Scorecard), avoiding Roman numerals and maintaining a business-executive-friendly format:

Core Concepts and Definitions of BEE Code 000

This code series establishes the framework for measuring Broad-Based Black Economic Empowerment (B-BBEE) in South Africa.

1. Objectives and Principles:

  • Objectives:
    • Provide a standard interpretation of B-BBEE.
    • Define how the B-BBEE Codes apply and how measurements are conducted.
    • Set thresholds for different business sizes (Exempted Micro-Enterprises, Qualifying Small Enterprises).
    • Specify how to measure new businesses (Start-ups).
    • Define the key elements of B-BBEE that are measured.
    • Establish how businesses should comply with the Codes.
    • Provide a transition period for implementing the scorecard.
  • Key Principles:
    • Substance Over Form: The actual empowerment impact is prioritized over legal technicalities.
    • Reasonable Interpretation: Interpretations should align with the B-BBEE Act’s goals.
    • Measurement Date: B-BBEE compliance is assessed on a specific measurement date.
    • Misrepresentation: False B-BBEE claims are illegal and can lead to disqualification.
    • Splitting of Entity: Dividing or separating a business to ensure eligibility is an offense.
    • Evidence: B-BBEE claims must be supported by documentation.
    • Consistent Valuation: Standard valuation methods should be applied consistently.

2. Application of the Codes:

  • Who is Measured?
    • All government bodies (Organs of State and Public Entities).
    • Businesses engaging in any economic activity with government bodies.
    • Businesses engaging in any economic activity (directly or indirectly) with other measured entities seeking B-BBEE compliance.
    • Sector-specific codes take precedence.
  • How is Compliance Measured?
    • Exempted Micro-Enterprises (EMEs): Refer to Section 4.
    • Other Entities: Using the Generic Scorecard and Qualifying Small Enterprise (QSE) Scorecard.

3. Priority Elements and Discounting:

  • Priority Elements:
    • Ownership: A sub-minimum of 40% of the Net Value points (40% of 8 points) is required.
    • Skills Development: A sub-minimum of 40% of the total weighting points is required.
    • Enterprise and Supplier Development: A sub-minimum of 40% for each of preferential procurement, supplier development, and enterprise development.
  • Compliance:
    • Large Enterprises must comply with all Priority Elements.
    • Qualifying Small Enterprises must comply with Ownership and either Skills Development or Enterprise and Supplier Development.
  • Discounting Principle:
    • If a business fails to meet the 40% sub-minimum on any priority element, its B-BBEE status level is reduced by one level.

4. Exempted Micro-Enterprises (EMEs):

  • Definition: Businesses with annual total revenue of R10 million or less.
  • B-BBEE Status:
    • Automatically considered a “Level Four Contributor” (100% B-BBEE recognition).
    • 100% Black-owned EMEs: Elevated to “Level One Contributor” (135% recognition).
    • At least 51% Black-owned EMEs: Elevated to “Level Two Contributor” (125% recognition).
    • EMEs can opt to be measured under the QSE scorecard to potentially achieve a higher level.
  • Requirements:
    • Submit an annual sworn affidavit confirming:
      • Annual Total Revenue of R10 million or less.
      • Level of Black ownership.
      • Misrepresentation is a criminal offense.

5. Qualifying Small Enterprises (QSEs):

  • Definition: Businesses with annual total revenue between R10 million and R50 million.
  • Measurement: Must comply with all elements of the B-BBEE scorecard.
  • Enhanced Recognition:
    • 100% Black-owned QSEs: Qualify for Level One recognition.
    • At least 51% Black-owned QSEs: Qualify for Level Two recognition.
  • Requirements:
    • Submit an annual sworn affidavit confirming:
      • Annual Total Revenue of R50 million or less.
      • Level of Black ownership.
      • Misrepresentation is a criminal offense.

6. Start-Up Enterprises:

  • Measurement (First Year): Treated as Exempted Micro-Enterprises (see Section 4), regardless of expected revenue.
  • B-BBEE Status: Deemed to have a qualifying status (similar to EMEs).
  • Requirements: Provide independent confirmation of start-up status.
  • For Larger Contracts:
    • Contracts > R10 million but < R50 million: Submit a QSE scorecard.
    • Contracts >= R50 million: Submit the Generic scorecard.
    • Scorecards should utilize annualized data.

7. The Generic Scorecard Elements:

The Generic Scorecard assesses five key elements:

  1. Ownership (Code Series 100): Measures effective ownership by Black people.
  2. Management Control (Code Series 200): Measures effective control by Black people.
  3. Skills Development (Code Series 300): Measures initiatives to develop the skills of Black employees and other Black individuals.
  4. Enterprise and Supplier Development (Code Series 400): Measures procurement from B-BBEE compliant suppliers and initiatives to develop Black-owned businesses.
  5. Socio-Economic Development and Sector Specific Contributions (Code Series 500): Measures contributions to socio-economic development and sector-specific initiatives.

8. B-BBEE Recognition Levels:

The document provides a table outlining the different B-BBEE status levels (from Level One Contributor to Non-Compliant Contributor) and their corresponding B-BBEE recognition levels, based on the points achieved on the Generic Scorecard.

9. Enhanced Recognition for Certain Categories:

  • The Codes prioritize the advancement of specific groups of Black people, including:
    • Black women.
    • Black people with disabilities.
    • Black youth.
    • Black people in rural areas.
    • Black unemployed people.

10. Key Definitions within Statement 000 (Important for Interpretation):

  • Black People: A generic term encompassing Africans, Coloureds, and Indians who are South African citizens by birth or descent, or who became citizens before April 27, 1994, or would have been eligible for citizenship before that date but were prevented by apartheid laws.
  • Measured Entity: The business or organization being assessed for B-BBEE compliance.
  • Organ of State/Public Entity: Government departments, municipalities, and other state-owned entities.
  • Priority Elements: Ownership, Skills Development, and Enterprise and Supplier Development.
  • Sworn Affidavit: A written statement confirmed by oath, used for EMEs and QSEs to declare their revenue and ownership.
  • Total Revenue: All income as reported in the entity’s financial statements.

This revised summary provides a clear and structured overview of the main concepts of BEE Code 000, suitable for business executives, without using Roman numerals for sectioning. It maintains the key information and definitions in an easily digestible format.

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