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The Amended Codes differ from the generic Department of Trade and Industry
(DTI) Codes of Good Practice in their calculation of the BEE level requirements
BEE as the Amended Codes include an additional formula which must be applied
to determine the final score of an entity that is measured under the Amended
Codes. This is where much of the confusion around the Amended Codes has
arisen from, as there are different calculations for the different entities that
operate within the financial services industry.

The formula required by the Amended Codes to be applied to determine the
score and resultant BEE level for an entity is the following:

Number of points in the CoGP scorecard
X Total number of available industry points
Total number of DTI points

The “Number of points in the CoGP scorecard” refers to the number of points
required by the entity for a specific level as indicated in the Amended Codes.
This number must then be divided by the “Total number of DTI points” which
refers to the 109 points which are available in terms of the DTI Codes.

The result of this calculation must then be multiplied by the “Total number of
available industry points” which differ for different types of entities and are as
follows for Generic entities:
- Banks: 120
- Short-term insurers: 115
- Stock exchanges: 103
- Others: 105
The best way to illustrate the working and potential effect of this formula is by
way of an example:
If a bank, for example, wishes to achieve a level 4 they would normally require
between 80 and 90 points. If we apply the above formula we get the following
result:

80/109 x 120 = 88.08
90/109 x 120 = 99.08

A bank would therefore be required between 88.08 and 99.08 points to achieve
a BEE level 4 result. This illustrates the dramatic effect that this formula can have
on the level of entity. In this example, the bank would have to obtain nearly
10 more points on its scorecard just to achieve a level 4 under the Amended
Codes as compared to the generic DTI Codes.
While the example above looks at the negative impact on Generic entities in
the banking sector, the formula can also potentially have a positive impact on

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