B-BBEE Scorecard

B-BBEE incentivizes companies to promote increased black ownership, management, and participation. It also recognizes companies with effective socio-economic initiatives, skills development, and supplier development practices. These companies may be granted preferred supplier status, enhancing their competitiveness when bidding for large and public sector contracts.

Assessment is conducted via a B-BBEE scorecard, where businesses earn points across five key elements of B-BBEE. The total points scored determine the organi- zation’s B-BBEE level or indicate non-compliance. 

The B-BBEE scorecard is made up of five elements, each with a specific weighting:

1. Ownership (25 points): This element measures the percentage of black ownership in the company.
2. Management Control (19 points): This element measures the level of black management control in the company.
3. Skills Development (20 points plus 5 bonus points): This element measures the company’s investment in the development of black employees’ workforce.
4. Enterprise and Supplier Development (40 points plus 4 bonus points): This element measures the company’s support for black-owned enterprises and its procurement from black-owned suppliers.
5. Socio-Economic Development (5 points): This element measures the efforts and initiatives undertaken by a company to improve the socio-economic conditions of previously disadvantaged communities and individuals.

Companies are required to undergo a B-BBEE verification process to determine their B-BBEE level. The verification process involves an audit of the company’s B-BBEE practices and procedures, as well as a review of its financial statements and other documentation.