Trade and industry minister Rob Davies has signed the ICT charter into effect, nine years after work first started on the document.
Here are 10 key points:
1. Enterprises with annual turnover of less than R5 million are exempted micro enterprises and are deemed to be level four contributors.
2. Exempted micro enterprises can move up to level three if they are more than 50%-owned by black people.
3. Qualifying small enterprises are those with turnover of between R5 million and R35 million a year, and only need to choose four of the seven scorecard elements for measurement.
4. Start-up firms are viewed as exempted for their first year after incorporation, regardless of revenue, and are automatically seen as level four contributors.
5. Non-listed firms have a 30% equity ownership target, while JSE-listed companies gain full points for having 25.1% of their company in black hands.
6. The charter has also set a target of 10% of voting rights to be in the hands of black women.
7. If empowerment deals are more than R7.5 billion in value, regardless of the size of the company, the firm is deemed to have complied with the target.
8. The compliance target for enterprise development is 5% of after-tax profit.
9. Socio-economic development contributions have a compliance target of 1.5% of after-tax profit.
10. The charter, nine years in the making, came into effect on 6 June.
Share
