AMENDED B-BBEE ICT SECTOR CODE (AICT) Executive Summary
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1 AMENDED B-BBEE ICT SECTOR CODE (AICT) Executive Summary
2 1. Understand how the Amended B-BBEE ICT Code is structured 2. What is the intention of the Council behind certain provisions 3. Clarify issues relating to the implementation of the code 15
3 14 ICT SECTOR RESOLUTIONS
4 INDEX FOR THE AMENDED B-BBEE ICT SECTOR CODE (AICT) Code Series AICT000 AICT100 AICT200 AICT300 AICT400 AICT500 AICT600 AICT1 Code Title Framework for measuring Broad-Based Black Economic Empowerment Measurement of the Ownership Element of Broad-Based Black Economic Empowerment Measurement of the Management Control Element of Broad-Based Black Economic Empowerment Measurement of the Skills Development Element of Broad-Based Black Economic Empowerment Measurement of the Enterprise and Supplier Development Element of Broad-Based Black Economic Empowerment Measurement of the Socio-Economic Development Element of Broad-Based Black Economic Empowerment Measurement of Qualifying Small Enterprises of Broad-Based Black Economic Empowerment Interpretation and Definitions
5 CODE SERIES AICT000/STT Objectives of this statement 2. Key principles 3. Application of the Amended B-BBEE ICT Sector Code 4. The Elements of B-BBEE in terms of the Scorecard 5. The Amended ICT Sector Scorecard 6. Enhanced recognition for certain categories of Black People 7. Framework for Reporting by Measured entities and B-BBEE Verification Professionals 8. Adjustment of Thresholds 9. Amendments and Duration of the Amended B-BBEE ICT Sector Code 12
6 CODE SERIES AICT000/STT Objectives of this statement 2. Key principles 3. Application of the Amended B-BBEE ICT Sector Code 4. The Elements of B-BBEE in terms of the Scorecard 5. The Amended ICT Sector Scorecard 6. Enhanced recognition for certain categories of Black People 7. Framework for Reporting by Measured entities and B-BBEE Verification Professionals 8. Adjustment of Thresholds 9. Amendments and Duration of the Amended B-BBEE ICT Sector Code 12
7 11 CODE SERIES AICT000/STT000
8 CODE SERIES AICT000/STT000
9 CODE SERIES AICT100/STT Objectives of this statement 2. The Ownership Scorecard 3. Key Measurement Principles 4. Broad-Based Ownership Schemes and Employee Share Ownership Programmes 5. Private Equity Funds 6. Not-for-profit Companies (NPCs) and Companies Limited by Guarantee 7. Trusts 8. Options and Share Warrants 9. Equity Instruments carrying Preference Rights
10 CODE SERIES AICT100/STT100 Category Ownership indicator Weighting points Compliance target Voting rights: Exercisable Voting Rights in the Entity in the hands of Black People Exercisable Voting Rights in the Entity in the hands of Black Women Economic Interest: Economic Interest in the Entity to which Black People are entitled Economic Interest in the Entity to which Black Women are entitled Economic Interest of any of the following Black natural persons in the Measured Entity. NOTE: The maximum points that can be achieved by any of the following is limited to 3 points. 4 30% 2 10% 4 30% 2 10%
11 6 CODE SERIES AICT100/STT100
12 CODE SERIES AICT200/STT200
13 2.1 Skills Development Elements Scorecards Category Skills Development Element Weighting points Skills Development Expenditure on any program specified in the Learning Programmes Matrix for Black People as a percentage of the Leviable Amount: Compliance Target Skills Development Expenditure on Learning Programmes specified in the Learning Programmes Matrix for Black People as a percentage of Leviable Amount Skills Development Expenditure on Learning Programmes specified in the Learning Programmes Matrix for Black People with disabilities as a percentage of Leviable Amount Learnerships, Apprenticeships and Internships Number of Black People participating in Learnerships, Apprenticeship and Internships as a percentage of total employees Number of Black Unemployed People participating in training specified in the Learning Programme Matrix as a percentage of number of employees Bonus points: Number of Black People absorbed by the Measured Entity or in the economy at the end of the 5 Learnerships, Apprenticeship, Internships and Graduate programmes 8 6% 4 0.3% 4 2.5% 4 2.5% 5 100%
14 CODE SERIES AICT400/STT400 Element AICT400 Enterprise and Supplier Development Scorecard Points Targets TMPS PREFERENTIAL PROCUREMENT - B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 5 80% Qualifying Small Enterprises 3 15% Exempted Micro-Enterprises 4 15% At least 51 % Black owned 9 40% At least 30% Black Women owned 4 12% Bonus - from Designated Group Suppliers that are at least 6% Black Owned 2 2% SUPPLIER DEVELOPMENT Black Owned ICT Entities 10 2% NPAT ENTERPRISE DEVELOPMENT Black Owned ICT Entities 15 3% NPAT Bonus points - graduation 1 1.5% NPAT Bonus points - creating new jobs up to 10% of the workforce directly Bonus points - creating new jobs up to 10% of the workforce directly 1 2
15 3 CODE SERIES AICT500/STT500
16 CODE SERIES AICT600/STT600 Element Points Targets AICT200 Specialised Scorecard AICT300 Specialised Scorecard AICT400 Enterprise and Supplier Development Specialised Scorecard PREFERENTIAL PROCUREMENT - B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 5 80% Qualifying Small Enterprises 4 15% Exempted Micro-Enterprises 5 15% At least 51 % Black owned 11 40% At least 30% Black Women owned 5 12% SUPPLIER DEVELOPMENT 10 2% ENTERPRISE DEVELOPMENT 15 3% AICT500 Socio-Economic Development %
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