Category A ED beneficiaries
This category comprises of ED beneficiaries who are EMEs (Exempt Micro Enterprises) and QSEs (Qualifying Small Enterprises) who are 50% Black owned or Black women owned. Thus, any company with annual turnover, which is less than R35 million and is Black owned or Black Women owned, qualifies as a beneficiary under this category.
Any company that helps a company in this category to grow financially or to achieve operational independence will earn points under this category. The contributions made to category A ED beneficiaries are multiplied by a factor of 1.25
A company gives an interest-free loan without security requirements to a business with annual turnover of R4 million
Assuming the outstanding amount is R5 000 the contribution will be multiplied by a benefit factor of 100% which will be further multiplied by 1.25 resulting in R6250 of ED contributions
The company will claim ED contributions of R6 250 for the outstanding loan amount of R5 000.
This means any company will reap more BEE points on their ED scorecard by making an ED contribution towards category A ED beneficiaries.
Category B ED beneficiaries
This category comprises of ED beneficiaries who do not fall into category A and are 50% Black owned or Black women owned. Another group of companies that falls into this category are companies that are 25% Black owned or Black female owned but with a BEE compliance status between levels 1 to 6. ED contributions to beneficiaries in this category are not multiplied by any factor.
Beneficiaries that fall into this category can be generic companies (companies with annual turnover of R35 million or more). An example of ED contributions under this category would be buying shares in a company like MvelaPhanda or Dimension Data. QSEs and EMEs who are at least 25% Black owned or Black women owned but less than 50% Black owned or Black women owned will also fall into category B ED beneficiaries.