Socio-Economic Development and the NPAT calculation

The objective of this element is to measure initiatives that contribute toward SED or to Sector Specific Programmes that promote access to the economy whereby contributions are any monetary or non-monetary contribution implemented for  individuals (natural individual or group of natural individuals) or communities, where at least 75% of the beneficiaries are classified as black people in terms of race.

 

The challenges which this section of the scorecard seeks to address can be summarised as follows:

 

The majority of Black People in South Africa are still unable to access the mainstream economy owing to poverty and a lack of education.

The most critical aspect of this B-BBEE Element is that SED initiatives should result in sustainable economic participation by its intended beneficiaries and discourage dependence on hand-outs.

The indicators and weightings are as follows and in this example specific to the Generic sector:

SED indicator

BEE Element  Number

Generic sector  –

maximum possible points

Compliance Target for 2018

Average annual value of all SED         contributions by the Measured  Entity as a percentage of NPAT or turnover

5

5

1% of NPAT or
0,125% of turnover or by use of STATS SA  quarterly statistics indicators for the            particular industry when calculating the      industry norm net profit margin

 

Below is a summary of the required contributions to assist with maximising your BEE Scorecard points for the SED element.

 

QSE & Generic Scorecards

Annual value of all Socio-Economic Development Contributions made by the Measured Entity as a percentage of the target equates to a 1% contribution of Net Profit after Tax (NPAT).

 

Specialised & Sector Specific Scorecards

Annual value of all Socio-Economic Development Contributions made by the Measured Entity as a percentage of the target equates to:

Tourism, ICT QSE, Forestry, Media-Advertising-Communications, Transport – 1% of NPAT

ICT Generic – 1% of NPAT

Agricultural – 1.5% of NPAT

Financial – 1.25% of NPAT

Property – 1% of NPAT

 

BEERSA Flyer – 30 July 2018 – Socio-Economic Development and the NPAT calculation

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