B-BBEE: The Revised Codes of Good Practice

The Department of Trade and Industry (DTI) published the Revised Codes on the 11th of October 2013, and provided for a provisional period of 18 months. The Revised Codes became effective from the 1st of May 2015 and brought about the following changes:

1.The number of elements has been reduced from 7 to 5 elements, these include:

  • Ownership
  • Management Control
  • Skills Development
  • Enterprise & Supplier Development
  • Socio-Economic Development

2. Entities which are measured in terms of sector-specific Codes such as mining, property, tourism, chartered accountancy, construction, agriculture, transport, forestry, ICT and financial sectors, will continue to be measured in terms of those sector-specific Codes.  However, the sector Codes were required to be aligned with the Revised Codes by 1st of November 2015.

3. The turnover thresholds have been increased to the following:

  • EME (Exempted Micro Enterprises) below a turnover of R10 million
  • QSE (Qualifying Small Enterprises) from R10 million up to R50 million
  • Large Enterprises (previously known as Generics) over R50 million

4. The Revised Codes have also introduced Priority elements and companies will need to meet a 40% sub-minimum requirement of the Priority elements to avoid being discounted by 1 level on their overall B-BBEE rating. The Priority elements are as follows:

  • Ownership – the sub-minimum requirement is 40% of the net value points based on the Time Based Graduation Factor
  • Skills Development – the sub-minimum requirement is 40% of the total weighting points for Skills Development
  • Enterprise & Supplier Development – the sub-minimum requirement is 40% for each of the three categories within the element

5. A large enterprise will be required to comply with all three Priority elements.

6. A QSE is required to comply with Ownership as a compulsory element and either Skills Development or Enterprise & Supplier Development.


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Need assistance in actively implementing B-BBEE within your organisation? Contact us for a no-obligation consultation on 011 849 1345 or email us at info@hrsgroup.co.za

DISCLAIMER – All information supplied herein is intended to be used solely as a guide. HRS Group does not accept any responsibility or liability for any outdated information. Readers are encouraged to contact our professionals directly for further advice.

Source: Government Gazette No 36928

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