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Enhanced Recognition for EMEs and QSEs with 51% Black Ownership

Enhanced Recognition for EMEs and QSEs with 51% Black Ownership

An Exempted Micro Enterprise (EME) or Qualifying Small Enterprise (QSE) that qualifies for an automatic level 2 due to having 51% black ownership, is required to comply with 40% of the QSE Skills Development target as a compulsory priority element to avoid discounting.

How to achieve level 1.

The Amended Construction Sector Charter provides that an EME can choose to enhance its status by one of the following ways:

  1. Obtain measurement in terms of Skills Development expenditure as per the QSE scorecard and if full points are achieved, the B-BBEE level will be enhanced by one level.
  2. Obtain measurement in terms of Supplier Development expenditure category as per the QSE scorecard and only if full points are achieved, the B-BBEE Level will be enhanced by one level.

A QSE with 51% black ownership qualifies as a level 2 and can be enhanced to level 1 if they receive full points for Skills Development or Preferential Procurement and Supplier Development.

A QSE is an entity with the revenue of R10 – R50 million for Contractor and a revenue of between R6 – R25 million for BEP.

ABOUT THE AUTHOR

Stacy Lee Oberem has been with SEESA Labour since October 2015 and joined SEESA BEE in July 2017. She obtained her LLB degree in 2015 from Nelson Mandela Metropolitan University.

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