Priority Elements and Discounting Principle

03 Mar Priority Elements and Discounting Principle

The new BEE Codes set out in October 2013 has the same general principles as the old BEE Codes, however there is one major change, “priority elements” and the “discounting principle”.


There are three priority elements, which are Ownership Equity element, Skills Development element and Enterprise and Supplier Development element. Medium to Large Enterprises are required to comply with all three of these elements whereas a Qualifying Small Enterprise are required to comply with only two, although the Ownership  Equity element is a compulsory element and either the Skills Development Element or the Enterprise and Supplier Development elements, in order to avoid the discounting of one level. Minimum targets to be met for the priority elements are set out in the respective code series and non-compliance with these thresholds respectively for the priority elements will result in a measured entity’s BEE status level being discounted by one level.

Also note if the measured entity does not comply with the required priority elements then this would also result in the measured entity BEE contributor status level being discounted by one level.

No Comments

Post A Comment
Visit Our Blog