How Does Socio-Economic Development Work?

Socio-Economic Development (SED) is about facilitating sustainable access into the economy for black people. In order to gain maximum points in SED, the company has to spend 1% of NPAT.

SED contributions can be monetary or non-monetary. Non-monetary contributions should be converted to a financial value in order to claim points.

The full value of SED contributions made to beneficiaries is recognized if at least 75% of the value directly benefits black people. If not, the value of the contribution will be multiplied by the percentage that benefits black people only.

A record of the following must be kept as they are required during verification:

  • date of contribution,
  • information on the beneficiary entity proving that 75% or more beneficiaries are black,
  • quantifiable non-monetary contributions to beneficiaries,
  • thank you letter in acknowledgement of assistance.

EconoServ is able to assist clients find suitable SED beneficiaries or if you would like us to recommend your organisation to our clients – please contact us.

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