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THE DEFINITION OF “BLACK NEW ENTRANTS”


The concept of "Black New Entrants" within the context of the Amended General B-BBEE (Broad-Based Black Economic Empowerment) Codes of Good Practice is an important aspect of promoting economic participation among historically disadvantaged individuals in South Africa.

The concept of “Black New Entrants” is found under the Ownership scorecard whereby the Amended General B-BBEE Codes of Good Practice allows for Two Points to be scored based on a 2% Compliance Target.

 

The definition contained under Schedule 1 of the Amended General B-BBEE Codes of Good Practice defines “Black New Entrants” as “Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in any Entity which has a total value of more than R50,000,000.00 measured using a standard valuation method.”

 

Technical Services are on hand to assist with the understanding of the above and how it is recognised.

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