The document summarizes the key aspects of the Amended Broad-Based Black Economic Empowerment (B-BBEE) Information and Communications Technology (ICT) Sector Code. It provides an index of the code series which measure different elements of B-BBEE such as ownership, management control, skills development, enterprise and supplier development, and socio-economic development. For each element, it outlines the scorecard indicators, weighting points and compliance targets. The document concludes by noting that questions about the code can be directed to the Chairperson or Deputy Chairperson of the B-BBEE ICT Sector Council.

1. Councillor Nokuzola Ehrens
Chairperson
zolaehrens@gmail.com

2. Contents
1. Enterprises in the ICT Sector
2. Introduction of the Councilors
3. The B-BBEE ICT Sector Code
4. Process to Amend the 2012 ICT Sector Code
5. Objectives of the Council
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1. Amended B-BBEE Sector Code
2. Ownership Element
3. Ownership targets for Non-South African Enterprises
4. Implementing Enterprise Supplier Development (ESD)
Initiatives to Support SMMEs
5. B-BBEE Verification Process
6. B-BBEE Compliance and Transformation

3. Enterprises in the ICT Sectors
The Councilors were nominated from the
following Sub-Sectors:
Electronics
Information Technology
Telecommunications
Broadcasting Sector

4. Introduction of the ICT Sector Councillors
 The B-BBEE ICT Sector Council was established in October 2015
 Minister Siyabonga Cwele launched the Council on 8 November 2016
 Councillors
 Mrs Nokuzola Ehrens (Chairperson – Women in ICT)
 Mr Andile Tlhoaele (Deputy Chairperson - Electronics)
 Mr Frank Awuah – Broadcasting Sub-sector
 Ms Pheladi Gwangwa - Broadcasting Sub-sector
 Ms Sarah-Jane Capazario – Telecommunications Sub-sector
 Mr Tshepang Lesiba - Labour
 Ms Petronella Linders - Government – DTPS
 Mr Lucky Masilela - Telecommunications Sub-sector
 Mr Mduduzi Mkhonza – IT Sub-Sector
 Mr Richard Poulton - Labour
 Mr Gavin Pieterse – IT Sub-sector
 Ms Katharina Pillay - ICASA
 Ms Morwesi Ramonyai – Youth
 Mr Adrian Schofield - IT Sub-sector
 Mr Thulani Tshefuta – Community

5. The B-BBEE ICT Sector Code
Upon establishment the Council embarked on a process to
Amend the B-BBEE ICT Sector Code:
 Priority to align with the 2015 Amended Codes of Good
Practice
 Failure to align the Code would have required the ICT
Sector to revert to the Generic Code of Good Practice
 Overriding concern to save the Code from being repealed
Recognition of the need to robustly foster transformation in
the ICT Sector
Adherence to the Generic Code guidelines – targets to either
be set at the levels of the Generic Code or higher

6. Process to Amend the 2012 ICT Sector Code
The Council started the process to Amend the B-BBEE ICT Sector Code:
 2012 B-BBEE ICT Sector Code overdue for review
 Council worked flat out to amend the Code, within a month
 Met the deadline for submitting the draft amended B-BBEE ICT
Sector Code (draft Sector Code) on 13 November 2015 for the dti
Minister’s approval.
 Embarked on consultative process with stakeholders
 Draft Sector Code published for public comments on 26 February
2016 ending on 29 April 2016
 Industry consultations including Telkom, Vodacom, MTN, Cell C,
Neotel, Multichoice, Industry associations, SMME representatives and
the DTI
Final B-BBEE ICT Sector Code published on 7 November 2016 for
implementation

7. Objectives of the Council
 The custodian of the B-BBEE ICT Sector Code;
 Advise the organs of state on all matters relating to B-BBEE in the ICT sector;
 Monitor and review the implementation of the ICT Sector Code and all related
matters;
 Develop and foster common standards and code of ethics in the
implementation of ICT Sector Code;
 Assess, evaluate and commission research on specific areas where such
research is not available;
 Responsible for the accreditation of the national ICT projects aimed at “bridging
the digital divide” in conjunction with the existing bodies such as the USAASA,
the Digital Divide Partnership, ICASA, the CSIR, trade unions, NGOs and other
organs of civil society;
 Provide guidance on sector-specific matters affecting B-BBEE in entities in the
sector
 Compile reports on the status of B-BBEE within the ICT sector

8. Objectives of the Council (Cont)
Oversee, supervise and promote adherence to the Amended
Sector Code in the interest of the public;
Strengthen and foster collaboration between the public and
private sector in order to promote and safeguard the
objectives of the Amended Sector Code;
Receive complaints relating to the implementation of the
sector code and refer such complaints to relevant bodies
including but not limited to the Line Minister, B-BBEE
Commission, Department of Trade and Industry, National
Prosecution Authority and Treasury;
Maintain a registry of major broad-based economic
empowerment transactions in the sector;
Promote public awareness of the ICT Sector codes

9. Amended B-BBEE ICT Sector Code - 2016
Executive Summary
Cllr Andile Tlhoaele
Deputy Chairperson
tlhoaele@inforcomm.co.za

10. ICT SECTOR RESOLUTIONS

11. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

12. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

13. CODE SERIES AICT000/STT000
1. Objectives of this statement
2. Key principles
3. Application of the Amended B-BBEE ICT Sector Code
4. The Elements of B-BBEE in terms of the Scorecard
5. The Amended ICT Sector Scorecard
6. Enhanced recognition for certain categories of Black People
7. Framework for Reporting by Measured entities and B-BBEE
Verification Professionals
8. Adjustment of Thresholds
9. Amendments and Duration of the Amended B-BBEE ICT Sector Cod

14. CODE SERIES AICT000/STT000

15. CODE SERIES AICT000/STT000

16. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

17. CODE SERIES AICT100/STT100
1. Objectives of this statement
2. The Ownership Scorecard
3. Key Measurement Principles
4. Broad-Based Ownership Schemes and Employee Share
Ownership Programmes
5. Private Equity Funds
6. Not-for-profit Companies (NPCs) and Companies Limited by
Guarantee
7. Trusts
8. Options and Share Warrants
9. Equity Instruments carrying Preference Rights

18. CODE SERIES AICT100/STT100
Category Ownership indicator Weighting
points
Compliance
target
Voting rights:
Exercisable Voting Rights in the Entity in
the hands of Black People
4 30%
Exercisable Voting Rights in the Entity in
the hands of Black Women
2 10%
Economic Interest:
Economic Interest in the Entity to which
Black People are entitled
4 30%
Economic Interest in the Entity to which
Black Women are entitled
2 10%
Economic Interest of any of the following
Black natural persons in the Measured
Entity. NOTE: The maximum points that can
be achieved by any of the following is limited
to 3%.

19. CODE SERIES AICT100/STT100

20. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

21. CODE SERIES AICT200/STT200

22. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

23. 2.1 Skills Development Elements Scorecards
Category Skills Development Element Weighting
points
Compliance
Target
2.1.1 Skills Development Expenditure on any program specified in the
Learning Programmes Matrix for Black People as a percentage
of the Leviable Amount:
2.1.1.1 Skills Development Expenditure on Learning
Programmes specified in the Learning Programmes
Matrix for Black People as a percentage of Leviable
Amount
8 6%
2.1.1.2 Skills Development Expenditure on Learning
Programmes specified in the Learning Programmes
Matrix for Black People with disabilities as a
percentage of Leviable Amount
4 0.3%
2.1.2 Learnerships, Apprenticeships and Internships
2.1.2.1 Number of Black People participating in
Learnerships, Apprenticeship and Internships as a
percentage of total employees.
4 2.5%
2.1.2.2 Number of Black Unemployed People participating
in training specified in the Learning Programme
Matrix as a percentage of number of employees
4 2.5%
2.1.3 Bonus points:
Number of Black People absorbed by the Measured
Entity or in the economy at the end of the
Learnerships, Apprenticeship, Internships and
Graduate programmes
5 100%

24. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

25. CODE SERIES AICT400/STT400
Element AICT400 – Enterprise and Supplier Development Scorecard Points Targets
TMPS
2.1.1 PREFERENTIAL PROCUREMENT - B-BBEE Procurement Spend from all
Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a
percentage of Total Measured Procurement Spend
5 80%
2.1.2 Qualifying Small Enterprises 3 15%
2.1.3 Exempted Micro-Enterprises 4 15%
2.1.4 At least 51 % Black owned 9 40%
2.1.5 At least 30% Black Women owned 4 12%
2.1.6 Bonus - from Designated
Group Suppliers that are at least 6% Black Owned
2 2%
2.2.1 SUPPLIER DEVELOPMENT Black Owned ICT Entities 10 2% NPAT
2.3.1 ENTERPRISE DEVELOPMENT Black Owned ICT Entities 15 3% NPAT
2.4.1 Bonus points - graduation 1 1.5%
NPAT
2.4.2 Bonus points - creating new jobs up to 10% of
the workforce directly
1
2.4.3 Bonus points - creating new jobs up to 10% of
the workforce directly
2

26. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

27. CODE SERIES AICT500/STT500

28. INDEX FOR THE AMENDED B-BBEE ICT
SECTOR CODE (AICT)
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

29. CODE SERIES AICT600/STT600
Element Points Targets
AICT200 – Specialised Scorecard
AICT300 – Specialised Scorecard
AICT400 – Enterprise and Supplier Development Specialised Scorecard
PREFERENTIAL PROCUREMENT - B-BBEE Procurement Spend from all
Empowering Suppliers based on the B-BBEE Procurement Recognition
Levels as a percentage of Total Measured Procurement Spend
5 80%
Qualifying Small Enterprises 4 15%
Exempted Micro-Enterprises 5 15%
At least 51 % Black owned 11 40%
At least 30% Black Women owned 5 12%
SUPPLIER DEVELOPMENT 10 2%
ENTERPRISE DEVELOPMENT 15 3%
AICT500 – Socio-Economic Development 12 1.5%

30. Summary and conclusion
Code Series Code Title
AICT000 Framework for measuring Broad-Based Black Economic
Empowerment
AICT100 Measurement of the Ownership Element of Broad-Based Black
Economic Empowerment
AICT200 Measurement of the Management Control Element of Broad-Based
Black Economic Empowerment
AICT300 Measurement of the Skills Development Element of Broad-Based
Black Economic Empowerment
AICT400 Measurement of the Enterprise and Supplier Development Element
of Broad-Based Black Economic Empowerment
AICT500 Measurement of the Socio-Economic Development Element of
Broad-Based Black Economic Empowerment
AICT600 Measurement of Qualifying Small Enterprises of Broad-Based Black
Economic Empowerment

31. Questions? Feel free to Email
zolaehrens@gmail.com
OR
tlhoaele@inforcomm.co.za
THANK YOU