The 5 Bonus Points for Skills Development in exchange for meeting Absorption targets can meaningfully impact an organisation’s overall B-BBEE Scorecard. At a B-BBEE Verification, an organisation will be measured against c lause 2.1.3 of Statement 300   of the Amended General B-BBEE Codes of Good Practice , which states:   "Number of ‘Black’ People absorbed by the Measured and Industry Entity at the end of the Internship, Learnership and Apprenticeship programme under Paragraph 2.1.2.1"   Skills Development Services  are available to guide members in accessing the Bonus Points on offer.  Please note that the General Amended B-BBEE Codes of Good Practice requirements may differ from those of the B-BBEE Sector Codes of Good Practice.

Additional enhancements are available for organisations that procure from EMEs and QSEs with more than 51% Black Ownership that are Supplier Development Beneficiaries. Paragraph 3.5 of Statement 400  of the Amended General B-BBEE Codes of Good Practice states:   “If a Measured Entity procures goods and services from a supplier that is:   3.5.1 A recipient of supplier development contributions from a Measured Entity under Code series 400 which has a minimum 3-year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2;   3.5.2 A Black-owned QSE or EME which is not a Supplier Development beneficiary but that has a minimum 3-year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; and   3.5.3 A supplier to the Measured Entity that is at least 51% Black-owned or at least 51% Black Woman-owned utilising the Flow Through Principle, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2”.   A reminder, a Supplier Development Beneficiary that elevates from an Enterprise Development Beneficiary allows an organisation to claim the 1 Bonus Point on offer.   Enterprise & Supplier Development Services  are available to guide Members on enhancements under Enterprise & Supplier Development.

Broad-Based Black Economic Empowerment (B-BBEE) is a transformative policy aimed at increasing the participation of previously disadvantaged South Africans in the mainstream economy. The B-BBEE policy framework, which was introduced in 2003, comprises various elements, including Enterprise and Supplier Development (ESD). ESD focuses on developing and supporting small and medium-sized enterprises (SMEs), particularly those owned by Black South Africans. Some of the benefits include the following: Economic Growth and Job Creation ESD promotes economic growth and job creation in South Africa. By supporting SMEs, ESD contributes to the development of a robust and diversified economy. SMEs are significant drivers of economic growth and job creation, contributing to GDP in South Africa. Through ESD, larger companies can help SMEs access finance, technology, and markets, enabling them to grow and create more jobs. Improved Business Competitiveness ESD also enhances the competitiveness of businesses in South Africa. By providing training, mentorship, and access to new technologies and markets, ESD helps SMEs improve their operations, productivity, and competitiveness. In turn, this benefits the larger companies that partner with SMEs as suppliers or service providers, as it increases the quality and reliability of their products and services. Enhanced Transformation ESD is a critical component of B-BBEE and contributes to enhanced transformation in South Africa. Through ESD, larger companies can support Black-owned SMEs, providing them with the resources they need to grow and become sustainable businesses. This contributes to the overall transformation of the South African economy, creating opportunities for previously disadvantaged individuals to participate fully in the economy. Social Development ESD also contributes to social development in South Africa. By supporting SMEs, ESD helps to create more jobs and economic opportunities in communities that may have limited access to these opportunities. This, in turn, can help to reduce poverty and inequality, improving the quality of life for many South Africans. Increased Innovation Finally, ESD can lead to increased innovation in South Africa. SMEs are often more agile and innovative than larger companies, as they are better able to adapt to changing market conditions and customer needs. By supporting SMEs, larger companies can access new ideas and approaches, contributing to the development of new products, services, and business models. ESD is a critical component of B-BBEE and contributes to economic growth, job creation, enhanced competitiveness, transformation, social development, and increased innovation in South Africa. By supporting SMEs, larger companies can contribute to a more inclusive and sustainable economy, benefiting not only themselves but also the wider society.   ESD Services  are available to guide members on understanding these benefits to implement sustainable ESD strategies.

Many organisations opt to use third parties in the implementation phase of their B-BBEE Strategy, which B-BBEE Legislation allows for. However, an organisation may only claim the spend from the time the Beneficiary, not the third-party facilitator, receives it. In addition, a B-BBEE claim is reserved for the originator of the funds and not the third-party facilitator. Essentially, a B-BBEE Verification will follow the money and evaluate the claim from the time it reaches the end Beneficiary.   Scorecard Monitoring Services  are available to guide members on third-party facilitators.

A B-BBEE Verification is based on the evidence presented. Therefore, when entering into an agreement with a Beneficiary, a contract must incorporate all evidential requirements. Although parties do not enter into an agreement with the mindset that things will go wrong, the mitigation of risk must drive such an agreement. Consequently, generic Beneficiary contracts do not apply to all. It is vital that an organisation highlights all the benefits in the agreement as well as how evidence is presented for a B-BBEE Verification at the date of signature. Challenges often occur when an organisation identifies benefits by default, following the signing of a contract. One may not synchronise the date of agreement to suit a benefit later revealed. Enterprise & Supplier Development Services  are available to guide members on the contractual requirements for this element.

ABC Traders decides to use a third-party facilitator to distribute Enterprise Development  funds to Beneficiaries. The money to the third-party facilitator was transferred two weeks before its Financial Year ended in December 2024. However, the third-party facilitator only transferred the funds to the end Beneficiaries at the end of January 2025.   When using the services of a third-party facilitator, when does Enterprise Development spend be considered a claim? Is it when the third-party facilitator receives the funds or when the end Beneficiary receives the funds?   An Enterprise Development contribution is only considered as recognised spend when it reaches the end Beneficiary. Therefore, in this instance, where the third-party facilitator distributed the funds outside the Measurement Period, ABC Traders may only claim the amount paid out in January 2025 in the next Measurement Period.   Enterprise Development Services  are available to assist Members on how to engage with Third-Party Facilitators.

The commitment to transformation and empowerment has led to the establishment of various policies and initiatives, with the Broad-Based Black Economic Empowerment (B-BBEE) Act being a prominent one. Central to this legislation is the imperative of Skills Development, a Priority Element on the B-BBEE Scorecard and a key driver of socio-economic transformation in the country. Within the realm of Skills Development, Bursaries can play an important role, not just for the beneficiaries, but for the sponsors as well.   Bursaries and the B-BBEE Scorecard Under the B-BBEE framework, businesses are assessed based on their performance across various elements, including Skills Development. The Skills Development element focuses on nurturing skills, competencies and qualifications among Black People in South Africa. Achieving compliance in this element is crucial for businesses aiming to improve their B-BBEE rating.   One of the ways businesses can earn Skills Development pints is by providing Bursaries to designated beneficiaries. These beneficiaries typically include Black South Africans who may not have had access to higher education and skills development opportunities due to historical disadvantages. When business offer Bursaries to these beneficiaries, they contribute directly to addressing this imbalance and encouraging a more equitable society.   The Impact of Bursaries on Skills Development Access to education: Bursaries provide individuals with the financial support they need to access quality education and training. Many aspiring students from disadvantaged backgrounds are unable to pursue higher education due to financial constraints. Bursaries break down this barrier, opening doors to education and skills development. Skill acquisition: Bursaries enable individuals to acquire skills, competencies and qualifications that are in line with industry demands. This aligns with the Skills Development Act’s objective of addressing skills shortages and enhancing the employability of South Africans. Employment Equity: Businesses that provide Bursaries often require beneficiaries to work for the company upon completion of their studies. This can contribute to Employment Equity goals, as it can increase the representation of Black people in skilled positions within the organisation. Community development: Bursaries extend beyond the individual beneficiaries. They have a ripple effect, positively impacting families and communities. Educated individuals are better equipped to uplift their families and contribute to the development of their communities. Scorecard points: For businesses, offering Bursaries translates into points on the Skills Development Scorecard. This not only helps in achieving compliance, but it also enhances the overall B-BBEE rating of the company.   Challenges and Considerations While Bursaries are a powerful tool for Skills Development, they can come with challenges. Businesses need to carefully plan and manage their Bursary programmes to ensure alignment with B-BBEE requirements and the company’s strategic goals. This includes selecting suitable beneficiaries, monitoring their progress and managing the contractual agreements associated with Bursaries.   Bursaries are an important component of Skills Development, serving as a bridge to education, skills and empowerment for Black People. Beyond compliance, they hold the potential to transform lives, communities and businesses. As South Africa continues its journey towards a more equitable society, the role of Bursaries in Skills Development remains vital, driving sustainable change and progress.   Skills Development Services  are available to guide members on how to claim such Training initiatives.

VAT is a Total Measured Procurement Spend (TMPS) exclusion as per  Clause 6.1 of Statement 400 of the Amended General B-BBEE Codes of Good Practice :   “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government."   Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements.   Support Services  are available to guide members on TMPS Exclusions.

From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials.   This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

The author or deponent of a Sworn Affidavit must be a duly represented registered Director / Owner / Shareholder / Member etc. of an organisation as per company documentation. Where an organisation has foreign shareholders, the same principle applies. A Sworn Affidavit is invalid if anyone other than duly represented individuals function as a deponent.   Certificate Collection Services   are available to assist with identifying valid and invalid Sworn Affidavits.

For most SETAs, the deadline for submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) is 30th April 2025. Where organisations must submit these reports to their relevant SETA, they should obtain points under the Skills Development element.   As Skills Development is an identified Priority Element, not submitting an ATR and WSP could trigger the Discounting Principle, which will impact an organisation’s overall score.   The information contained in the WSP and ATR must coincide with the data submitted to an organisation's B-BBEE Rating Agency at the time of their B-BBEE Verification.   Both the WSP and ATR are strategically designed documents that systematically identify any skills gaps, which align with the government's overall Skills Development Strategy. Both intend to track development, plot succession plans, and monitor the overall progress of organisations against set targets

Organisations are encouraged to achieve Bonus Points by graduating an Enterprise Development Beneficiary to a Supplier Development one. Therefore, an organisation may enter into a Supplier Development Programme directly without first going through the Enterprise Development phase but will not earn the Bonus Points available. Statement 400, clause 3.8 of the Amended General B-BBEE Codes of Good Practice highlights the rationale behind this:   “A Supplier Development Beneficiary is a part of the Measured Entity's supply chain, whereas an Enterprise Development Beneficiary is not.” Enterprise & Supplier Development Services are available to guide members on Enterprise & Supplier Development Initiatives.