B-BBEE, tracked through the year rather than in verification week
A B-BBEE level is earned over twelve months and proved in one. The evidence for ownership, management control, skills development, enterprise and supplier development and socio-economic development either accumulated as the year went or it did not. Dimeri holds each element as a tracked obligation with its evidence attached.
What B-BBEE measurement involves
The Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by Act 46 of 2013, establishes the framework for measuring empowerment, and the Amended Codes of Good Practice set out how a company is scored. The Act also created the B-BBEE Commission, which oversees the system and investigates fronting and misrepresentation. Several sectors have their own codes, which replace the generic codes for companies in those sectors.
The generic scorecard has five elements. Ownership measures black voting rights, economic interest and net value. Management control measures black representation across board, executive and management levels against economically active population targets. Skills development measures spend on training for black employees and learnership, apprenticeship and internship participation. Enterprise and supplier development combines preferential procurement, supplier development and enterprise development, and carries the largest share of the points. Socio-economic development measures contributions to beneficiary communities.
Three of those are priority elements: ownership, skills development, and enterprise and supplier development. Each carries a sub-minimum, and a measured entity that fails to achieve the sub-minimum on a priority element is discounted by one level from the level its points would otherwise give it. That discounting principle is why companies with a respectable total score sometimes receive a level well below what they expected, and it is why element level tracking through the year matters more than a total at the end of it.
The scorecard elements Dimeri tracks
Dimeri treats each element as an obligation with evidence and a running position, so the level is a forecast throughout the year rather than a surprise at verification.
Ownership
Black voting rights, economic interest and net value, measured on the flow through and modified flow through principles, including the treatment of broad based schemes and employee share ownership.
- Shareholding structure held with its supporting documents
- Voting rights and economic interest tracked
- Net value calculation with its inputs
- Priority element sub-minimum monitored
Management control
Black representation at board, executive, senior, middle and junior management levels, measured against economically active population targets.
- Headcount by level and designation maintained
- Board and executive composition recorded
- Employment equity data reconciled to the scorecard
- Gap to target visible by level
Skills development
Spend on learning programmes for black employees as a percentage of leviable amount, plus participation in learnerships, apprenticeships and internships.
- Training spend tracked against the leviable amount
- Programme records held with attendance evidence
- Learnership and internship participation counted
- Priority element sub-minimum monitored
Enterprise and supplier development
The largest element, combining preferential procurement from B-BBEE compliant suppliers with supplier development and enterprise development contributions.
- Supplier certificates held with expiry tracking
- Procurement spend classified by supplier level
- Supplier and enterprise development beneficiaries tracked
- Priority element sub-minimum monitored
Socio-economic development
Contributions with the objective of facilitating income generating activities for beneficiaries, measured as a percentage of net profit after tax.
- Contributions logged with beneficiary details
- Black beneficiary percentage evidenced
- Valuation of non monetary contributions supported
- Annual target tracked through the year
Verification readiness
The evidence pack a SANAS accredited verification agency will test, assembled as the year runs rather than in the weeks before the audit.
- Evidence attached to each element as it arises
- Missing evidence flagged against its owner
- Previous verification findings carried forward
- Certificate expiry tracked with lead time
How Dimeri covers B-BBEE
B-BBEE is an evidence exercise more than a calculation exercise. The calculation is straightforward once the evidence exists, and the evidence is what goes missing.
A running level, not a year end one
Each element carries its current position and its gap to target, so the projected level is visible in month three rather than month thirteen. That is the difference between being able to act and being able to explain.
Priority element sub-minimums watched
The discounting principle is tracked explicitly. A company on course for a good total score but short on a priority element sub-minimum sees that specific risk rather than a comfortable aggregate.
Supplier certificates that do not expire quietly
Supplier B-BBEE certificates are held with expiry dates and linked to the procurement spend they support. An expired certificate discovered at verification can move a significant amount of spend into the wrong category.
Risk and compliance in the same place
B-BBEE level risk sits in the main register alongside the contracts and tenders that depend on it, so the commercial consequence of a level drop is visible to the people who can do something about it.
Getting B-BBEE coverage in place
- 1
Establish which codes apply
Generic codes or a sector code, and whether the entity is measured as an exempted micro enterprise, a qualifying small enterprise or a generic entity, since that determines the scorecard used.
- 2
Load the current position
The last verification certificate, its scorecard and any findings are loaded, giving a starting position and a list of the elements that cost points last time.
- 3
Assign element owners
Each element gets a named owner: human resources for skills and management control, procurement for enterprise and supplier development, finance for ownership and socio-economic development, with evidence obligations attached to each.
- 4
Track through the year
Evidence is captured as it arises, the running position is reviewed on a cycle, and the projected level and the sub-minimum position are reported to the executive well before verification.
B-BBEE questions
What are the priority elements and why do they matter so much?
Ownership, skills development, and enterprise and supplier development are priority elements under the Amended Codes. Each carries a sub-minimum requirement, and failing to meet it results in the measured entity being discounted by one level from the level its points would otherwise achieve. A strong total score does not protect against a missed sub-minimum.
Do exempted micro enterprises and qualifying small enterprises need all of this?
No. Exempted micro enterprises are generally measured on turnover and receive a level without a full scorecard, and qualifying small enterprises use a reduced scorecard. Which category applies depends on annual turnover thresholds under the codes that apply to you. Dimeri configures the scorecard to the category and code set that applies to your entity.
How does Dimeri help with verification?
By making the evidence pack a by-product of the year rather than a project. Evidence is attached to the element it supports at the time it arises, with its owner and date, so the verification agency receives a structured file instead of a request list.
Does Dimeri calculate our B-BBEE score?
Dimeri tracks the element positions, the evidence and the gap to target so you can see where you stand and what is at risk. The certified score and level come from a SANAS accredited verification agency, and nothing in the platform substitutes for that verification.
Is this a substitute for advice from a B-BBEE practitioner?
No. Element measurement involves technical judgement, sector codes differ from the generic codes, and the rules have been amended over time. This page describes how Dimeri structures the tracking and evidence. Your B-BBEE advisers and verification agency should confirm how the codes apply to you.
Put B-BBEE on one register
Every requirement mapped to a control with a named owner, the evidence held against it, and one view of where you stand.