ICT Sector sets hard to reach B-BBEE Recognition Levels
The Amended ICT Sector Code 40407 gazetted on 7th November 2016 is unique as it modifies the points requirement for each B-BBEE Level, making it much harder to achieve the required levels than the Amended Codes of Good Practice (COGP)
The implication is that only Generics or 100% black owned Exempt Micro Enterprises (EME’s) can achieve a level 1. The best that a Qualifying Small Enterprise (QSE) can achieve using the QSE scorecard is a level 2, since there are only 117 points available including bonus points. Black owned QSE’s seem not to be able to benefit from enhanced 100% recognition either.
This is badly drafted legislation without EME or QSE thresholds or definitions and seems to have been rushed out without the usual checks and balances. Comparisons of BEE performance across the various sectors will not be possible where the basis of the BEE levels are so different.