Note: Sub-minimum targets not met. Level discounted.
Understanding B-BBEE Scorecard Calculations
Broad-Based Black Economic Empowerment (B-BBEE) is a legislative framework in South Africa designed to advance economic transformation. For businesses, achieving a favorable B-BBEE level is crucial for securing government tenders and providing value to corporate clients who track their own "Preferential Procurement" spend.
The Five Pillars of the Generic Scorecard
Ownership: Measures the effective percentage of black ownership in the entity. This is a priority element.
Management Control: Evaluates the representation of black people at Board, Executive, and Management levels.
Skills Development: Measures investment in the training and development of black employees and unemployed people. This is a priority element.
Enterprise & Supplier Development (ESD): Combines preferential procurement spend, supplier development, and enterprise development. This is a priority element.
Socio-Economic Development (SED): Measures contributions toward social causes that facilitate sustainable economic access for black people.
Score to Level Conversion Table
B-BBEE Level
Qualification Score
Procurement Recognition
Level 1 Contributor
≥ 100 points
135%
Level 2 Contributor
95 – 99.99 points
125%
Level 3 Contributor
90 – 94.99 points
110%
Level 4 Contributor
80 – 89.99 points
100%
Level 8 Contributor
40 – 54.99 points
10%
Calculation Example
Imagine a Qualifying Small Enterprise (QSE) that scores the following:
Ownership: 21 points
Management Control: 10 points
Skills Development: 15 points
ESD: 30 points
SED: 5 points
Total Score: 81 points. According to the table, 81 points falls into the 80-89.99 bracket, resulting in a Level 4 B-BBEE Contributor status with 100% procurement recognition.
Important: Priority Elements & Penalties
Under the Amended Codes, large entities and QSEs must meet sub-minimum targets (usually 40%) for priority elements: Ownership, Skills Development, and ESD. If these sub-minimums are not met, the company's B-BBEE level is automatically dropped by one level, regardless of the total score.
function calculateBBBEE() {
var own = parseFloat(document.getElementById('ownership').value) || 0;
var mc = parseFloat(document.getElementById('management').value) || 0;
var skills = parseFloat(document.getElementById('skills').value) || 0;
var esd = parseFloat(document.getElementById('esd').value) || 0;
var sed = parseFloat(document.getElementById('sed').value) || 0;
var empowering = document.getElementById('empowering').value;
var totalScore = own + mc + skills + esd + sed;
var level = "Non-Compliant";
var recognition = "0%";
var numericLevel = 9;
// Check Empowering Supplier Status
if (empowering === "no") {
document.getElementById('bbbee-result').style.display = 'block';
document.getElementById('total-score-display').innerHTML = "Total Score: " + totalScore.toFixed(2);
document.getElementById('level-display').innerHTML = "NON-COMPLIANT";
document.getElementById('procurement-recognition').innerHTML = "Entity must be an Empowering Supplier to be compliant.";
return;
}
// Determine Base Level
if (totalScore >= 100) { numericLevel = 1; recognition = "135%"; }
else if (totalScore >= 95) { numericLevel = 2; recognition = "125%"; }
else if (totalScore >= 90) { numericLevel = 3; recognition = "110%"; }
else if (totalScore >= 80) { numericLevel = 4; recognition = "100%"; }
else if (totalScore >= 75) { numericLevel = 5; recognition = "80%"; }
else if (totalScore >= 70) { numericLevel = 6; recognition = "60%"; }
else if (totalScore >= 55) { numericLevel = 7; recognition = "50%"; }
else if (totalScore >= 40) { numericLevel = 8; recognition = "10%"; }
else { numericLevel = 9; recognition = "0%"; }
// Simple Priority Element Check (Simplified Logic for User Tool)
// If Ownership < 40% of target (approx 10 points) or Skills/ESD are very low
var penaltyApplied = false;
if (own < 10 || skills < 8 || esd < 16) {
if (numericLevel 0) {
numericLevel += 1;
penaltyApplied = true;
// Adjust recognition based on new level
var recMap = {1:"135%", 2:"125%", 3:"110%", 4:"100%", 5:"80%", 6:"60%", 7:"50%", 8:"10%", 9:"0%"};
recognition = recMap[numericLevel];
}
}
var resultDiv = document.getElementById('bbbee-result');
var levelText = numericLevel <= 8 ? "Level " + numericLevel : "Non-Compliant";
document.getElementById('total-score-display').innerHTML = "Total Score: " + totalScore.toFixed(2);
document.getElementById('level-display').innerHTML = levelText + " Contributor";
document.getElementById('procurement-recognition').innerHTML = "Procurement Recognition: " + recognition;
if (penaltyApplied) {
document.getElementById('penalty-note').style.display = 'block';
} else {
document.getElementById('penalty-note').style.display = 'none';
}
resultDiv.style.display = 'block';
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}