B-BBEE Score Formula:
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The B-BBEE (Broad-Based Black Economic Empowerment) score is a comprehensive measurement used in South Africa to evaluate a company's empowerment credentials. It consists of five elements that measure different aspects of economic transformation and empowerment.
The calculator uses the B-BBEE score formula:
Where:
Explanation: The scorecard evaluates a company's commitment to broad-based black economic empowerment across multiple dimensions of business activity.
Details: A good B-BBEE rating is crucial for doing business in South Africa as it affects procurement decisions, tender eligibility, and demonstrates commitment to economic transformation and empowerment.
Tips: Enter the points achieved in each of the five elements. Ensure values do not exceed the maximum points for each category. The calculator will sum all points to provide the total B-BBEE score.
Q1: What is the maximum possible B-BBEE score?
A: The maximum generic scorecard total is 108 points (25 + 19 + 20 + 20 + 5 = 89, plus potential bonus points).
Q2: How are B-BBEE levels determined?
A: B-BBEE levels range from Level 1 (highest) to Level 8 (lowest), based on the total score achieved.
Q3: Who needs a B-BBEE certificate?
A: All companies operating in South Africa that want to do business with government entities or other B-BBEE compliant companies.
Q4: How often should B-BBEE ratings be updated?
A: B-BBEE ratings are typically valid for one year and should be renewed annually.
Q5: Are there different scorecards for different industries?
A: Yes, there are generic scorecards as well as sector-specific scorecards for certain industries.