The B-BBEE Scorecard Explained: Elements, Points and Sub-Minimums

Overview of the Generic Scorecard

The Generic Scorecard was introduced by the dtic Amended Codes of Good Practice and applies to all Generic Enterprises (annual turnover above R50 million). QSEs use a modified scorecard. The five elements and their maximum points are: Ownership (25 pts), Management Control (19 pts), Skills Development (20 pts), Enterprise and Supplier Development (40 pts), and Socio-Economic Development (5 pts), totalling 109 points.

Because 109 points are available but only 100 are needed for Level 1, there are 9 bonus points built into the scorecard. These are found primarily in Ownership and Skills Development, rewarding black youth, black people with disabilities, and learnership enrolments.

Priority Elements and Sub-Minimum Rules

Ownership, Skills Development, and ESD are priority elements. Each has a sub-minimum threshold. For Ownership, the sub-minimum is generally 40% of the net Ownership points. For Skills Development, it is 40% of the net Skills Development points. For ESD, sub-minimums apply separately to the Preferential Procurement, Supplier Development, and Enterprise Development sub-elements.

Failing to meet any single priority sub-minimum results in a one-level demotion of the overall B-BBEE status. It is therefore strategically important to ensure compliance with sub-minimums before chasing total points.

Element 1: Ownership (25 Points)

The Ownership element measures the extent to which black people own and control the measured entity. The 25 points are distributed across voting rights, economic interest, and net value sub-elements. The sub-elements are: Exercisable Voting Rights of black shareholders (4 pts), Economic Interest of black shareholders (8 pts), Net Value (3 pts), Economic Interest of black women (2 pts), Economic Interest of black designated groups (3 pts), Economic Interest of black participants in employee share ownership plans or broad-based schemes (2 pts), and bonus points for black new entrants (3 pts).

Element 2: Management Control (19 Points)

Management Control measures black representation at board and executive levels and in the management pipeline. The 19 points cover: Black board members (5 pts, with additional sub-points for black female board members), Black top management (3 pts), Black senior management (4 pts), Black middle management (4 pts), and Black junior management (3 pts). Measurement uses the employment equity occupational levels framework.

Element 3: Skills Development (20 Points)

Skills Development is a priority element and measures spending on training and workplace learning for black employees. Key targets under the Amended Codes are: spending at least 6% of the annual Leviable Amount on training for black employees (8 pts), with additional points for PIVOTAL (Professional, Vocational, Technical and Academic Learning) programmes. The Leviable Amount is the payroll figure used to calculate Skills Development Levy obligations under the Skills Development Levies Act.

Points are also awarded for enrolling black employees in learnerships, apprenticeships, and internships, and for absorbing learners after programme completion. There are bonus points for training black people with disabilities and black youth.

Element 4: Enterprise and Supplier Development (40 Points)

ESD is the highest-weighted element at 40 points and is a priority element. It has three sub-elements: Preferential Procurement (25 pts), Supplier Development (10 pts), and Enterprise Development (5 pts).

Preferential Procurement requires the measured entity to buy from B-BBEE compliant suppliers, with specific targets for black-owned suppliers (51%+ black ownership), black women-owned suppliers, qualifying small enterprises, and exempt micro enterprises. Supplier Development requires annual contributions of at least 2% of Net Profit After Tax (NPAT) to qualifying black-owned suppliers to build their capacity. Enterprise Development requires annual contributions of at least 1% of NPAT to beneficiary enterprises that are majority black-owned.

Element 5: Socio-Economic Development (5 Points)

SED measures contributions to initiatives that facilitate access to the economy for black beneficiaries. The target is 1% of NPAT annually. Qualifying contributions include donations to registered non-profit organisations, bursaries for black students, community development projects, and skills transfer initiatives benefiting black communities.

Unlike Enterprise Development, SED contributions must primarily benefit individuals rather than commercial entities, and the beneficiaries must derive meaningful socio-economic benefit.

Frequently Asked Questions

Related Guides

• Ownership Element in Detail
• ESD Element Explained
• Skills Development Element
• B-BBEE Sector Codes