THE ICT SECTOR B-BBEE CODES HAS BEEN PUBLISHED

The Minister of Trade and Industry, Rob Davies, signed the ICT Sector Charter into law on 3 November 2015 in Gazette no.40407. This legislation is not very clearly drafted and due to the points table differing from the DTI and other Sector Codes comparing performance across other sectors would be impossible.

Table below:

  B-BBEE Status

  Qualification

  B-BBEE

  Recognition Level  

  Level One Contributor

  ≥ 120 points on the ICT Scorecard

135%

  Level Two Contributor

  ≥ 115 points but <120 points on the ICT Scorecard 

125%

  Level Three Contributor

  ≥110 points but < 115 points on the ICT Scorecard

110%

  Level Four Contributor

  ≥100 points but < 110on the ICT Scorecard

100%

  Level Five Contributor

  ≥ 95 points but < 100 on the ICT Scorecard

80%

  Level Six Contributor

  ≥90 points but <95 points on the ICT Scorecard

60%

  Level Seven Contributor

  ≥ 75 points but <90 points on the ICT Scorecard

50%

  Level Eight Contributor

  ≥ 55 points but < 75 on the ICT Scorecard

10%

  Non-compliant Contributor 

  <55 points on the ICT Scorecard

0%

Here are some of the main points:

-The table values are different to the standard in the DTI Codes i.e. compliant starts at 55 points

-Only Generic Entities or 100% Black Owned EME’s can achieve level 1 status

-Due to level 1 requiring at least 120 points it is not possible for a QSE to reach this status as the maximum QSE’s can achieve is 117 points

-QES’s that are 100% black owned don’t seem to benefit from the enhanced status to qualify for a level 1

-Ownership creep is once again evident due to the target for full points being 30% black ownership of which 10% has to be black females vs the 25.1% in the DTI Codes

We will see how this piece of legislation gets absorbed into industry as I am expected changes. It the meantime we will have to work with what we got

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