Socio-Economic Development

In this article we focus on the basic criteria of the Socio-Economic Development Element within the scope of the B-BBEE Act, Number 53 of 2003.

Socio-economic development is the fifth element that an entity is measured on. 

Socio-Economic Development (SED) 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.

QSEs and Generic Entities will be recognised with points in the SED element for making contributions towards the beneficiaries within the given criteria.

In terms of the BEE Codes of Good Practice, the objective of SED contributions is the promotion of sustainable access for beneficiaries to the economy.

What counts as SED contributions (a shortlist only)?

  • Grant Contributions
  • Offering Discounts
  • Covering overheads or direct costs
  • Providing professional services at no cost
  • Providing professional services at a discounted rate

To claim points under this element the beneficiary must provide the entity with a letter acknowledging receipt of the contribution, declaring that the beneficiaries are at least 75% black as defined by the Codes of Good Practice and that the full contribution was allocated to these black beneficiaries. All contributions need to be proved by providing the proof of payment and an Article 18A receipt.

Contact BEE Ratings – SA at your earliest convenience for further detail and an appointment. This article is provided for information only, and does not constitute the provision of professional advice of any kind.

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