The B-BBEE scorecard assesses the structure of your business in line with the five elements of B-BBEE and the points your business earns determine its B-BBEE Level. To achieve the best possible results for your business, it’s important to fully understand all the elements that make up the B-BBEE scorecard and how the scoring works.
In this newsletter we unpack the Socio-Economic Development (SED) element of the B-BBEE scorecard.
The 5 elements of the generic B-BBEE scorecard
| Element | Indicator | Available Points (Total of 118) |
| Ownership (Priority Element) | Measures the equity held by Black people in the entity in terms of voting rights, economic interest and realisation points | 25 |
| Management Control | Measures Black participation at board, executive level and senior, middle and junior management levels, and employment of Black people with disabilities | 19 |
| Skills Development (Priority Element) | Designed to improve skillsets and measure skills development expenditure on Black people – including participation in learnerships, internships and apprenticeship programme | 20 (+ 5 Bonus Points) |
| Enterprise and Supplier Development (Priority Element) | This is the highest contributor of all the elements and measures the entity’s contributions in relation to the following sub-elements: Preferential Procurement measures the empowerment levels of the entity’s suppliers in terms of the procurement of goods and services. (25 points) Enterprise Development and Supplier Development measures the entity’s contribution towards the upliftment, development, sustainability, financial and operational independence of Enterprise and Supplier Development Beneficiaries.(15 points) | 40 (+ 4 Bonus Points) |
| Socio-Economic Development | Measures the entity’s contribution towards initiatives or organisations that enhance the ability of Black people who remain non-participants in the economic mainstream to be included in the economy in a sustainable manner | 5 |
What is Socio-Economic Development?
The aim of this element is to direct spending to the broader socio-economic context of society in South Africa, with the objective of Socio-Economic Development (SED) contributions to promote sustainable access for beneficiaries to the economy.
Companies are required to spend 1% of Net Profit After Tax (NPAT) for maximum SED points on the BBBEE scorecard – a total of 5 points. Socio-Economic Development (SED) contributions are any monetary or non-monetary contribution implemented for individuals or communities, where at least 75% of the beneficiaries are black people. SED contributions are recognised annually and need to be quantifiable as a monetary value.
What counts as SED contributions?
- Development programmes for women, youth, people with disabilities, people living in rural areas.
- Healthcare / HIV programmes.
- Support for education programmes, resources and materials at primary, secondary and tertiary level, bursaries and scholarships.
- Training in communities, skills development for unemployed people and adult basic education (ABET).
- Arts, culture and sporting development programmes
Approved Socio-Economic Development projects include:
- Environmental Conservation awareness education and waste management.
- Infrastructural development, enterprise creation or reconstruction in underdeveloped areas, rural communities or geographic areas identified in the government’s integrated sustainable rural development or urban renewal programs.
- New projects promoting beneficiation.
Forms of socioeconomic development contributions
- Grant contributions
- Guarantee or security provided
- Direct costs incurred in assisting beneficiaries
- Overhead costs which are directly attributable
- Developmental capacity advanced to communities
- Preferential terms granted for supply of goods or services to beneficiary communities payments made to third parties to perform social economic development on the enterprise’s behalf
- provision of training or mentoring to beneficiary communities, maintenance bar the enterprise of socioeconomic development unit which focuses only on supportive beneficiaries and beneficiary communities
- these amounts are measurable by quantifying the cost of time excluding travel or commuting time spent by staff or management of the enterprise in carrying out such initiatives
SA Business School’s SED Solution for your business
SA Business School has developed our SED programme with the sole focus of tackling South Africa’s raging youth unemployment crisis.
The vast majority of unemployed individuals struggle to obtain interviews, and when they do, they are often unprepared and lacking in the skills needed to sell themselves and put their best foot forward to a prospective employer.
Our SED offering is a highly focused employability skills training solution that focuses on developing the core skills demanded by employers, as well as the preparation and interview techniques needed by beneficiaries to put their best forward. Ultimately, it’s about developing young people that are ‘work-ready’ and confident in their skills to compete effectively in the world of work.
For corporate sponsors of the Employability Skills programme:
- Get maximum point allocation for SED.
- Beneficiaries are sourced and vetted by SA Business School.
- Beneficiaries are trained at SA Business School by our accredited and qualified facilitators.
- All supporting documents supplied for your BBBEE Verification.
- Be a part of a solution that helps a young South African secure meaningful employment, experience the thrill of career growth and progression, and enjoy a vastly improved quality of life and standard of living.
Beneficiary Benefits:
- Get Employability Skills – we teach essential skills like connectedness, resilience, learning agility, curiosity, a growth mindset, problem solving, critical thinking and adaptability – all essential skills needed in a rapidly evolving world of work and demanded by employers.
- Professional CV development
- Professional presentation skills
- Interview skills – how to prep, what to expect, handling the tough questions.
Talk to SA Business School about our learning and development solution that has maximum impact on all the elements of your B-BBEE scorecard, and that’s the right fit for your business, your people and our economy.
