Our previous article on B-BBEE compliance discussed the categorization of enterprises and what it means for their B-BBEE compliance. This article explains the second differentiation of enterprises according to the legislation: Sector-specific B-BBEE Scorecards.
Over and above the enterprise differentiation based on turnover, the legislator further provided for the differentiation of enterprises by the sector within which they compete.
The rationale for this differentiation is to accommodate the hurdles, available resources, and needs within each sector and the status of each enterprise will be calculated under the relevant Scorecard.
Apart from the Generic Scorecards, the following Sector-specific Scorecards have been implemented, and we trust that several other scorecards will be introduced in the near future.
- Property Sector Code
- Forest Sector Code
- AgriBee Sector Code
- Financial Services Sector Code
- Information and Communication Technology (ICT) Sector Code
- Construction Sector Code
- Tourism Sector Code
- Marketing, Advertising, and Publication Sector Code
- Defence Sector Code
- Liquid Fuels Sector
The requirements and weighting of the different elements will differ from scorecard to scorecard.
It is up to the B-BBEE specialist to understand which scorecard must be used for your enterprise’s compliance requirements. Getting this wrong can lead to detrimental waste of resources. So far in this series of articles we have seen that enterprises are first categorized based on turnover to determine their compliance requirements, and understanding the Sector-specific Scorecard is the next categorization necessary for effective compliance.
Next, you need to understand the different elements of the scorecard.
