What are the 10 most important things you need to know about the new codes and how they will affect you?

1. The introduction of Priority Elements and the Discounting Principle.
2. There are 3 Priority elements for Large Enterprises and 2 for Medium Size Enterprises.
3. The Threshold Levels have changed and it now requires 80 points to achieve a Level 4 B-BBEE status.
4. Management Control incorporates the Employment Equity element and is now measured as per percentage of Economically Active sub-race group and gender (Black further divided into African, Indian and Coloured).
5. Skills Development target increased to 6% of leviable amount and now includes both employees and non-employees.
6. Procurement targets have increased and the EME and QSE categories have been further divided.
7. Suppliers have to be deemed Empowering Suppliers for their B-BBEE Status to be deemed valid for calculation purposes.
8. The Codes now require that 2% of Net Profit after Tax (NPAT) is spent on Supplier development and 1% on Enterprise Development.
9. Socio-Economic Development is now calculated annually and not cumulatively and you will need to monitor the NPAT to ensure full points are scored.
10. A Black owned and controlled business is now one that has at least 51% black voting rights and economic interest compared to 50.1% in the previous Codes.