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:
- 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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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 HRS Group does not accept any responsibility or liability for any outdated information.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