Priority Elements

B-BBEE Priority Elements

 Relates to the discounting of an entity’s B-BBEE Recognition level for not achieving sub-minimum percentages of the weighting points allowed, for certain elements as indicated below

 The priority elements are as follows:

  • Ownership – A sub-minimum of 40% of the weighting points. The percentage of economic interest of Black People in the Measured Entity (40% of the indicator weighting of 8 points) needs to be achieved.
  • Skills development – A sub-minimum of 40% of the total weighting points of 30 points for skills development needs to be achieved.
  • Enterprise and supplier development – A sub-minimum of 40% for each of the three categories stated below:

      -  Preferential procurement: 40% of 15 points

      -  Supplier development: 40% of 10 points

      -  Enterprise development: 40% of 5 points.

  • Large entities need to comply with all the priority elements.
  • QSEs need to comply with ownership as a compulsory element, and either skills development or supplier development.
  • Non-compliance with the 40% in any of the priority elements as indicated above will result in the following for both large entities and QSEs:

The actual score achieved (regardless of the non-compliance with the sub-minimum requirements) will be discounted by one level down until the next applicable verification period in which the entity can demonstrate compliance with the 40% sub-minimum requirement, at which point the recorded level will become the applicable rating



 BizAdvance Consulting comments and references:

 For further information refer to the B-BBEE Codes of Good Practice of 11th October 2013 page 7