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The “Number of points in the CoGP scorecard” refers to the number of points
required by the entity for a specific level as indicated in the Amended Codes.
This number must then be divided by the “Total number of DTI points” which BEE
refers to the 109 points which are available in terms of the DTI Codes.
The result of this calculation must then be multiplied by the “Total number of
available industry points” which differ for different types of entities and are as
follows for Generic entities:
- Banks: 120
- Short-term insurers: 115
- Stock exchanges: 103
- Others: 105
The best way to illustrate the working and potential effect of this formula is by
way of an example:
If a bank, for example, wishes to achieve a level 4 they would normally require
between 80 and 90 points. If we apply the above formula we get the following
result:
80/109 x 120 = 88.08
90/109 x 120 = 99.08

A bank would therefore be required between 88.08 and 99.08 points to achieve
a BEE level 4 result. This illustrates the dramatic effect that this formula can have
on the level of entity. In this example, the bank would have to obtain nearly
10 more points on its scorecard just to achieve a level 4 under the Amended
Codes as compared to the generic DTI Codes.
While the example above looks at the negative impact on Generic entities in
the banking sector, the formula can also potentially have a positive impact on
a QSE entity where there are only 100 points available in terms of the DTI Codes.
For example, an entity which hopes to achieve a BEE level 5, would normally
require 75 points on its scorecard. If we apply the Amended Codes formula then
we get the following result:
75/109 x 100 = 68.81

In this example, a QSE entity would only need to obtain 68.81 points to achieve
the level 5 result, showing that in this instance the formula provided the QSE
entity with a slightly easier target.

This formula is one of a number of changes brought about by the Amended
Codes. To calculate your BEE level as well as the planning that will be needed
to achieve your target BEE level, it is advisable that you consult with a BEE
specialist regarding the impact of the Amended Codes and changes that may
be needed to your BEE planning.

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