B-BBEE Level 2  - EME

What does that even mean?

It means that AkukhanYa @A Group - of which Karabo-inc is a subdivision - is:

  1. A company - (Pty) LTD - with 52% black ownership = Level 2 B-BBEE status = 125% return on investment for every 100% invested. I.e. for every R1 invested in AkukhanYa, you score R1,25 in B-BBEE points.

  2. 100% women owned = additional B-BBEE points

  3. 100% black youth partners = even more additional B-BBEE points

  4. an Exempt Micro Enterprise which means ...

... that any company who "invest" in AkukhanYa to help us grow stronger and more sustainable as an EME with the ultimate goal to reach QSE (Qualifying Small Enterprise) status can score points under the current B-BBEE Scorecard. Investment can be monetary or donations or a service which can be defined in monetary value terms.


Types of companies explained:

The B-BBEE codes define three types of companies:

  • EME (Exempt Micro Enterprises) with an annual turnover of less than R 10 million. These companies are automatically given a B-BBEE Level 1 with a 100% black shareholding OR  a Level 2 with a 51% or more black shareholding  OR a Level 4 with 50% or less black shareholding  

  • QSE (Qualifying Small Enterprise) with an annual turnover of between R 10 million and R 50 million. These companies are automatically given a B-BBEE Level 1 with a 100% black shareholding OR a Level 2 with a 51% or more black shareholding OR would be required to undergo a generic B-BBEE scorecard audit with 50% or less black shareholding  

  • Generic – companies with a turnover above R 50 million per annum undergo a generic B-BBEE scorecard audit. 


This translate into B-BBEE value in THREE of the B-BBEE Scorecard areas:

B-BBEE compliance is measured by means of a scorecard. The scorecard is based on various elements and measured out of a maximum of 100 points (excluding bonus points). The first step however would be to identify which scorecard you need to follow and the relevant associated targets.

What elements are measured?

  • Ownership – this measures the percentage of black ownership shareholding in the business. This is regarded as a priority element and failure to comply with the minimum target (40% of Net Value) will result in the Level as obtained being discounted;

  • Management Control – this measures the directorship, executive management, other executive management, senior management, middle management, junior management and disabled staff in the business;

  • Skills development  – this measures the amount of money spent on training of black employees and black people. This is regarded as a priority element and failure to comply with the minimum target of 40% will result in the Level as obtained being discounted;  

  • Enterprise and Supplier development – this measures your spend on helping other black owned enterprises grow, both suppliers to you and non-suppliers. This is regarded as a priority element and failure to comply with the minimum target 40% in all categories will result in the Level as obtained being discounted;  

  • Socio Economic development – this measures your spend on assisting charitable organisations. 

Investing in the AkukhanYa & Out of the Box Xmas Wishlist Sweepstake will let your organisation score in TWO of the five B-BBEE scorecard elements as explained above.


 

How can you score in element 3 of the scorecard in the AkukhanYa & Out of the Box sweepstake?

How can you score in element 4 of the scorecard in the AkukhanYa & Out of the Box sweepstake?

How can you score in element 5 of the scorecard in the AkukhanYa & Out of the Box sweepstake?