There are two facets to take into account on the Skills Development Scorecard, namely:   1.     Skills Development Expenditure; and 2.     Headcount.   The total points for Skills Development expenditure on Black People are ten against a total target of 6% of the Leviable Amount. The 2019 changes to the Amended General B-BBEE Codes of Good Practice for Large Enterprises further splits the target as follows:   2.5% of the Leviable Amount, specifically for Category A Bursaries for courses registered with the Department for Higher Education and Training (DHET) (4 Points). 3.5% of the Leviable Amount available from all categories, namely A to G, applicable to Bursaries not claimed above, Learnerships, Internships, Apprenticeships, skills programmes, short courses and in-house training (6 Points). An additional target of 0.3% of the Leviable Amount is available to organisations that provide training to Black Employed persons with disabilities. This expenditure for training such employees counts towards achieving an overall 6% expenditure target. Put another way; the expenditure could reflect in two ways, either under general expenditure or bursary expenditure (4 Points).   Skills Development Services  are available to assist Members with understanding the above.

Over time, one Beneficiary can be an Enterprise Development and Supplier Development Beneficiary. However, they can only be either an Enterprise Development or Supplier Development at a particular time. Put another way, they may over time represent both elements, but it must be at different time frames, typically an Enterprise Development Beneficiary is elevated to that of the Supplier Development one. A simple determination is based on role they play in the supply chain.   Clause 3.8 under Statement 400 of the Amended General B-BBEE Codes of Good Practice states:   3.8 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 for Members to understand Beneficiary requirements.

An organisation's Skills Development is vital to evaluating the skills needs and shortfalls within its workforce. Notably, a Skills Development Forum must link an organisation’s B-BBEE and Employment Equity Strategies. The forum members must know the rational intent, roll-out and implementation of the strategies. The responsibilities of the forum include (not limited to):   Assisting the SDF in identifying, formulating, and prioritising training needs. Promoting, where feasible, skills development interventions aligned with the Sector Skills Plan (SSP). Monitoring the implementation of planned training interventions as indicated in the WSP and PTP. Where relevant, ensuring that the WSP and PTP align with the objectives of the Employment Equity Plan. Providing feedback on the quality of training presented and communicating suggestions for improvement. Identifying any barriers hindering certain groups from gaining access to training opportunities. Presenting training-related input from both the workforce and management alike at the forum meetings. Where possible, ensuring that the company makes use of accredited training providers. Before submission, approving and signing off on WSP, PTP, ATR and PTR to the relevant SETA.   Human Capital Services  are available to assist Members with insight into Skills Development Forums.

Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , clause 3.7 identifies the requirements for Enterprise and Supplier Development Beneficiaries.   Clause 3.7 states the following:   3.7 Beneficiaries of Supplier Development or Enterprise Development are EMEs, QSEs or Generic Entities which are at least 51% Black Owned or at least 51% Black Women Owned utilizing the flow through principle. However, in terms of Generic Entities, this is based on the provision that at the first instance of receiving assistance from the Measured Entity, it was identified that such suppliers were EMEs or QSEs. This recognition for Generic Entities will only be allowed for 5 years from the first time of receiving assistance from the Measured Entity.   Enterprise & Supplier Development Services  are available to assist Members with understanding these requirements.

Under B-BBEE Legislation the definition of “ Black Designated Groups” is stated under Schedule 1 of the Amended General B-BBEE Codes of Good Practice.     Black Designated Groups are defined as:   (a) unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution;     (b) Black people who are youth as defined in the National Youth Commission Act of 1996;    (c) Black people who are persons with disabilities as defined in the Code of Good Practice on employment of people with disabilities issued under the Employment Equity Act;         (d) Black people living in rural and under developed areas;   (e) Black military veterans who qualifies to be called a military veteran in terms of the Military Veterans Act 18 of 2011 .   B-BBEE Verification Services   are available to Members in order to understand the definition of Black Designated Groups.

The Definition of Youth falls within the Black Designated Groups category. It was enacted as per the National Youth Development Agency Act No 54 of 2008 , published as Gazette #31780. It defines “Youth" as persons between the ages of 14 and 35.   The preamble to the act gave the following rationale behind the Act.   “Recognising the heroic struggles of generations of the youth to bring about freedom and democracy in South Africa;   And since youth development is central in the reconstruction and development of South Africa;   And whereas the government must take reasonable measures, within its available resources, to achieve progressive development of South Africa's youth;   And whereas the interventions on youth development in South Africa must be implemented in a cohesive, seamless and integrated manner;   Therefore the spirit and form of the National Youth Development Agency must give resonance to youth development in South Africa.”   The concept of Black Designated Groups is found under the Ownership as well as Enterprise & Supplier Development elements from a point scoring perspective.   B-BBEE Verification Services   are available to Members in order to understand the definition of Youth.

A QSE that is at least 51% Black-owned qualifies for Enhanced Recognition, which means that a Sworn Affidavit is the only B-BBEE Credential they have to present. Paragraph 5.3 of Statement 000 of the Amended General B-BBEE Codes of Good Practice published in Gazette #42496  makes the following allowance for Enhanced Recognition:   5.3 Enhanced B-BBEE recognition level for QSE:   5.3.1    Despite paragraph 5.2 above, a QSE which is 100% Black-owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level One Contributor” having a B-BBEE recognition level of 135%. 5.3.2    Despite paragraph 5.2 above, a QSE which is at least 51% Black-owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level Two Contributor” having a B-BBEE recognition level of 125%. 5.3.3    A Black-owned QSE in terms of paragraph 5.3. above, is only required to obtain a sworn affidavit on an annual basis, confirming the following: 5.3.3.1 Annual Total Revenue of between R10 million and R50 million; and 5.3.3.2 Level of Black ownership.   Thus, as they have met the Ownership criteria, they are not required to meet the Management Control, Skills Development, Enterprise & Supplier Development or Socio-economic Development targets.    Furthermore, paragraphs 5.4 and 5.5 make the following references:   5.4 Despite paragraph 5.3 a Black-owned QSE may be measured in terms of the QSE scorecard should it so choose.   5.5 Any misrepresentation in terms of paragraph 5.3 above constitutes a criminal offence as set out in the B-BBEE Act as amended.   QSE Services   are available to Members to assist with understanding these requirements for QSEs.

The Ownership element of the B-BBEE Scorecard assesses the proportion of Ownership held by Black People within an organisation and is one of the Priority elements under B-BBEE Legislation.   As per the Amended General B-BBEE Codes of Good Practice, and using the Verification Manual as a guide, Ownership must be measured on the date of a B-BBEE Verification and not on the date of an Ownership transaction.   Ownership Services   are available to Members to assist with understanding requirements for Ownership.

Under B-BBEE Legislation the concept of Miliary Veteran Is found under the definition of Designated Group Supplier and linked to the Miliary Veterans Act 18 of 2011  which identifies a Military Veteran as follows:   “military veteran means any South African citizen who--   (a) rendered military service to any of the military organisations, statutory and non-statutory, which were involved on all sides of South Africa's Liberation War from 1960 to 1994;   (b) served in the Union Defence Force before 1961; or   (c) became a member of the new South African National Defence Force after 1994, and has completed his or her military training and no longer performs military service, and has not been dishonourably discharged from that military organisation or force: Provided that this definition does not exclude any person referred to in paragraph (a), (b) or (c) who could not complete his or her military training due to an injury sustained during military training or a disease contracted or associated  with military training;”   B-BBEE Verification Services   are available to Members in order to understand the definition of a Miliary Veteran.

Skills Development is an intrinsic part of building a transforming economy. It incentivises organisations to use 6% of their payroll annually for Skills Development interventions. The core aim is to facilitate development to create sustainable employment, thus inviting more people to participate in the economy.   Some organisations invest what they can afford, whilst others aim to fund the complete 6% for Skills Development. However, due to a disconnect on where the spend would be most effective and how a meaningful investment in higher education, training or learnerships, internships or apprenticeships could lead to absorption, they only meet the sub-minimum requirements.   It Is encouraged that Members develop and maintain a sustainable Skills Development strategy.   Skills Development Services  are available to assist members in developing Skills Development strategies.

The Preferential Procurement element measures the way a Measured Entity procures goods and services from Suppliers. Another key point Indicator under the General Amended B-BBEE Codes of Good Practice is the spend on Suppliers that are at least 30% Black Women Owned based on the applicable B-BBEE Procurement Recognition Level. As per Schedule 1  of the General Amended B-BBEE Codes of Good Practice, 30% Black Women Owned is defined as:   An Entity in which:   (a)    Black Women hold at least 30% of the exercisable voting rights as determined under Code series 100; (b)   Black Women hold at least 30% of the economic interest as determined under Code series 100; and (c)    has earned all the points for Net Value under statement 100;   Enterprise & Supplier Development Services  are available to assist Members with analysing their Supply Chain from a B-BBEE perspective.

Youth Employment Service (Y.E.S) B-BBEE legislation  and the subsequent Practice Note 1 of 2018  are clear that expenditure for the initiative and Skills Development must remain independent of one another, which extends to administration costs. Clause 7 of the legislation references Informal Spend for Category F & G training initiatives featuring in the Skills Development Matrix which states:   “7.1 Informal Skills Development expenditure for Y.E.S employees will be recognised during the Verification Process of the Skills Development element under Amended Code Series 300, Statement 300. Y.E.S Measured Entities will be able to claim up to 50% of their Skills Development Spend as Informal Training (Category F and G of the Skills Development Matrix) against the Skills Development Scorecard”.   Further reference appears in clause 1.11 of the Practice Note:    “1.11 Y.E.S Measured Entities will be able to claim up to 50% of their Skills Development Spend as Informal Training (Category F and G of the Skills Development Matrix) against the Skills Development Scorecard for Y.E.S Eligible Employees only”.   Therefore, administration costs for Y.E.S Employees would fall under Preferential Procurement Spend and not Skills Development.   Y.E.S Management Services  are available to assist members in understanding requirements under the Y.E.S Initiative.