3. Introduction
Empowerdex (Pty) Ltd was established in 2001, by Vuyo Jack and Chia Chao Wu.
Our Mission is to provide support to both the public and private sectors to accelerate
the implementation of broad-based black economic empowerment in South
Africa, thereby helping to bridge the gap between the country's first and second
economies.
Empowerdex was a pioneer of the rating methodology, having worked closely with the
Department of Trade and Industry in developing the framework for BEE and involved in
the drafting of the Codes of Good practice.
Based in Johannesburg, with offices in JHB, Pretoria, Cape Town, Durban, and reach
in all provinces through partnerships with external analysts.
Founding member of the Association of BEE Verification Agencies, and accredited by
the South Africa National Accreditation System.
4. Experience
•Our research division has worked in the development of sector
charters, and with particular industries on the assessment of BEE in
those industries, including:
•Produce the Top Empowerment Companies with the Financial
Mail annually since 2003.
•Were involved in the drafting of the Codes, Tourism Charter ,
AgriBEE, as well as the Liquor Charter, which is not finalised as
yet.
•Completed studies for the Department of Energy on the progress
of the petroleum industry in implementing BEE, as well as a similar
study for the CASA for the state of BEE in the Casino industry.
5. Some Rated Clients
Standard Bank SA Hollard Ltd Multinationals rated by Empowerdex
African Oxygen Ltd (Afrox) Nampak Ltd Toyota Unilever
Gijima AST Bidvest Ltd Siemens Volvo
Massmart Ltd Barloworld Ltd DHL Accenture
Oceana Ltd GlenRand MIB Chevron SA Adidas
Mobile Telephone Network (MTN) Foschini
Adcorp Ltd Omnia Ltd
Aspen Pharmaceuticals African Bank
Sappi Ltd Alexander Forbes
Liberty Holdings Ltd
Professional Firms rated by Empowerdex Other Rated clients:
PriceWaterHouse Coopers JP Morgan South African Airways Astral Foods
Ernst and Young Deloitte Tsogo Sun ACSA
Bowman Gilfillan KPMG Shanduka Nashua Mobile
Werkmens Deneys Reitz Mineworkers Investment Comp. Primedia Outdoor
Webber Wentzel RMB Asset Man Rhodes Food Group Landbank
Cliffe Dekker Hofmeyr Eversheds Group 4 Securicor Mweb
Fidelity Security Services McCarthy
Butterworths Publishers Bateleur
Protea Hotels Southern Sun
Eskom Holdings Limited Mweb
6. Objectives of BEE
Equitable Economic Opportunities
Emerging black
Ownership middle class &
And Management investors
The Opportunity Barrier
Affirmative Enterprise Black
Procurement Development entrepreneurs
The Business Barrier
Skills Black workers,
Development & professionals,
Employment
Equity
graduates, school-
leavers
The Skills Barrier
Corporate
Employment
Equity/Job creation Social Investment
Black unemployed
& rural poor
The Poverty Barrier
8. INTENTION OF BEE
• Increase the level of participation
by black people in mainstream Mainstream Economy
economy Mainstream Economy
• Increase the real market in the
SA economy
Upliftment
BEE
• Increase income through
resultant economic growth
Second Economy
More economic participants
Second Economy
Higher Economic Growth
9. Generic Scorecard
BEE ELEMENTS WEIGHTINGS CODE
REFERENCE
OWNERSHIP 20 POINTS CODE 100
MANAGEMENT 10 POINTS CODE 200
CONTROL
EMPLOYMENT 15 POINTS CODE 300
EQUITY
SKILLS 15 POINTS CODE 400
DEVELOPMENT
PREFERENTIAL 20 POINTS CODE 500
PROCUREMENT
ENTERPRISE 15 POINTS CODE 600
DEVELOPMENT
SOCIO ECONOMIC 5 POINTS CODE 700
DEVELOPMENT
10. BEE Recognition Levels
BEE Status Qualification BEE procurement
recognition level
Level One Contributor ≥100 points on the Generic 135%
Scorecard
Level Two Contributor ≥85 but <100 points on the 125%
Generic Scorecard
Level Three Contributor ≥75 but <85 on the Generic 110%
Scorecard
Level Four Contributor ≥65 but <75 on the Generic 100%
Scorecard
Level Five Contributor ≥55 but <65 on the Generic 80%
Scorecard
Level Six Contributor ≥45 but <55 on the Generic 60%
Scorecard
Level Seven Contributor ≥40 but <45 on the Generic 50%
Scorecard
Level Eight Contributor ≥30 but <40 on the Generic 10%
Scorecard
Non Compliant Contributor <30 on the Generic Scorecard 0%
11. Ownership indicator Weighting Compliance
points Target
Ownership
Exercisable Voting Rights in the Enterprise in the hands
of black people
3 25%+1 vote
Scorecard measures the
Exercisable Voting Rights in the Enterprise in the hands
of black women
2 10% ability of black shareholders
to exercise and enforce
Economic Interest of black people in the Enterprise 4 25%
their ownership rights to
Economic Interest of black women in the Enterprise 2 10% prevent exploitation
Economic Interest of the following black natural people
in the Enterprise: Measures Voting Rights,
black designated groups;
black Participants in Employee Ownership Schemes; Economic Interest
black beneficiaries of Broad-Based Ownership 1 2.5%
And Net Equity Value
Schemes; or
black Participants in Co-operatives
Specific Target on Black
Ownership fulfilment 1 Dependent on Women and
below
Designated Groups
Net value 7 10 year targets
on Formula A
Funding to be repaid over
Involvement in the ownership of the Enterprise of black 2 10%
new entrants; ten years
Involvement in the ownership of the Enterprise of black
Participants in:
black Participants in Employee Ownership
Schemes; 1 10%
black beneficiaries of Broad-Based Ownership
Schemes; or
black participants in Cooperatives
12. Ownership - QSE
Ownership Indicator Weighting Compliance target
points
Voting Rights:
•Exercisable Voting Rights in the Enterprise in the hands of Black people 6 25%+1 vote
Economic Interest:
•Economic Interest in the Enterprise to which Black people are entitled 9 25%
Realisation points:
•Ownership fulfilment points 1 Yes/No
•Net equity points 9 25%
Bonus points:
•Involvement of black women 2 10%
•Involvement in the ownership of the business by: 1 10%
•Black participants in Employee Ownership Schemes
•Black participants of Broad-Based ownership schemes
•Black participants in co-ops
13. Management
Voting Rights in the hands of black-people
using the Adjusted Recognition
Bonus point for black independent
directors
14. Management - QSE
Management Control Indicator Weighting Compliance target
points
•Black representation at top manager level 25 50.1% of top manager
representation
•BONUS: Black women representation as top managers 2 25%
16. Employment Equity - QSE
Employment Equity Indicator Weighting Compliance target
points
•Black employees in management, as a percentage of all 15 40%
management, adjusted for gender
•Black employees, as a percentage of all employees, adjusted for 10 60%
gender
•BONUS: Meeting or exceeding the EAP (economically active population) 2
in each indicator above (unadjusted)
17. CONCLUSION
Skills Development
2008 2009
Total Points 55.17 71.32
Level contribution 5 4
Expenditure on
training of black
people
This level can be maintained , especially if the work on procurement
and skills development is maintained.
Black people
participating
Accredited
learning
programmes
18.
19. CONCLUSION
Skills Development - QSE
2008 2009
Total Points Development Indicator
Skills
55.17 Weighting
71.32
points
Compliance target
•AdjustedLevel Development spend on learning programmes for
Skills contribution 5 4
25 2%
black employees, as a percentage of the leviable amount
This level can be maintained , especially if the work on procurement
and skills development is maintained.
20. CONCLUSION
Procurement
Compliance targets
2008 Years 0 - Years 6 -
2009
Criteria 5 10
Total Points 55.17
Weighting 71.32
points
Level contribution 5 4
B-BBEE Procurement Spend 12 50% 70%
from all Suppliers
B-BBEE Procurement Spend 3 10% 15%
from Qualifying Small
This level can be maintained
Enterprises or Exempted Micro- , especially if the work on procurement
Enterprises
B-BBEE skills development
and Procurement Spend is maintained.
5 15% 20%
from any of the following
Suppliers:
Suppliers that are 50% black
owned
Suppliers that are 30% black
women owned
21. CONCLUSION - QSE
Procurement
2008 2009
Preferential Procurement Indicator Weighting Compliance target
Total Points 55.17 71.32
points
•BEE procurement spend from all suppliers, based on BEE 25 40%
Level contribution 5
recognition levels, as a percentage of total measured spend
4
This level can be maintained , especially if the work on procurement
and skills development is maintained.
22. CONCLUSION
Enterprise Development
2008 2009
Total Points 55.17 71.32
Level contribution 5 4
Criteria Weighting Compliance
Points Target
Average annual value of all 15 3% of NPAT
Qualifying Contributions made by especially if the work on procurement
This level can be maintained ,
the Measured Entity as a
and skills development is maintained.
percentage of the target.
23.
24. Enterprise Development
CONCLUSION
- QSE
2008 2009
Total Points 55.17 71.32
Level contribution 5 4
Criteria Weighting Compliance
Points Target
Average annual value of all 25 2% of NPAT
Qualifying Contributions made by especially if the work on procurement
This level can be maintained ,
the Measured Entity as a
and skills development is maintained.
percentage of the target.
25. Socio-economic
CONCLUSION
Development
2008 2009
Total Points 55.17 71.32
Criteria Weighting Compliance Target
Level contribution 5 Points
4
Average annual value of all Socio- 5% 1% of NPAT
Economic Development
Contributions and Qualifying
This level can be Development , especially
Socio-Economic maintained if the work on procurement
Contributions made by the
and skills development is maintained.
Measured Entity as a percentage
of the target.
26. Socio-economic
CONCLUSION
Development - QSE
2008 2009
Total Points 55.17 71.32
Criteria Weighting Compliance Target
Level contribution 5 Points
4
Average annual value of all Socio- 25 1% of NPAT
Economic Development
Contributions and Qualifying
This level can be Development , especially
Socio-Economic maintained if the work on procurement
Contributions made by the
and skills development is maintained.
Measured Entity as a percentage
of the target.
