Definition of Socio-Economic Development Contributions

Definition in terms of the B-BBEE Codes of Good Practice of 11th October 2013 (BEE Codes 2013)

Socio-Economic Development Contributions

Means monetary or non-monetary contribution implemented for communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are Black people. The objective of Socio-Economic Development Contributions is the promotion of sustainable access for the beneficiaries to the economy. Socio-Economic Development Contributions commonly take the following forms:

a)      Development programmes for woman, youth, people with disabilities, people living in rural areas.

b)      Support of healthcare and HIV/AIDS programmes;

c)      Support for educational programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships;

d)      Community training, skills development for unemployed people and adult basic education and training; or

e)      Support of arts, cultural or sporting development programmes;

BizAdvance Consulting comments and references:

Relates to the Socio-Economic Development element of the scorecard Statement 500, page 82

Socio-Economic  Development Contributions are measured as a percentage of Net Profit after Tax.

Refer to 2.3 page 83.

Comments are based on the opinion of BizAdvance Consulting and may be subject to different interpretations and opinions by other parties. The comments and references are intended as a guide to readers but it is important that they are read in conjunction with the Codes and other related legislation. Please refer to our Disclaimer Policy.