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This would mean that a company that would otherwise achieve a level 4 rating
could potentially move up to a level 2 rating if it meets the requirements of the
YES element. BEE

The YES requirements can be summarised as follows:
• Must obtain the sub-minimum points for the three priority elements
of your BEE scorecard.
• Must meet the minimum required number of learners for the programme.
• The learners must be black youth.
• They must be placed on a 12 month contract of employment.

A further change introduced by the Code Amendments, relates to the splitting
of the skills development expenditure target for generic companies. Currently
the target is set at 6% of what is essentially payroll expenditure.

The Code Amendments propose reducing the target to 3.5% of skills development
programmes and introducing a new 2.5% of payroll target for expenditure on
bursaries to black learners.

The total skills spend thus still remains 6%, but with an emphasis on tertiary
education bursaries introduced through the new 2.5% target.

It will be interesting to see if the Code Amendments are passed as proposed,
although it is clear that they align strongly with current Government’s policy. If
they are passed, it will require generic companies to have a major rethink of
their current BEE strategy and planning.

Calculating your BEE Level under the new
Financial Sector BEE Charter

Marc Naude
March 2018

“My insurance business falls under the new Financial Sector BEE charter which
recently came into effect. I’m struggling to understand how the new scoring
system works and how this will impact on the BEE level of my business. Could
you help clarify this?”

The Amended Financial Sector Codes of Good Practice (“Amended Codes”)
was gazetted on 1 December 2017 and came into effect immediately.

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