Would the following contributions qualify as valid Socio-Economic Development claims?
- Donations to the SPCA – where the Measured Entity provides confirmation (either in the form of an LOA or Affidavit) that the donation benefits Black people;
- Donations to organizations that support the welfare of animals – where the ME provides confirmation (either in the form of an LOA or Affidavit) that the donation benefits Black people in rural communities and that the economic benefit is that the end beneficiaries are able to save the money that would have been spent on feeding and/or immunizing these animals, etc)
BEE Commissioner's Response:
For a contribution by a measured entity to qualify for Socio-Economic Development points, it must contribute 1% of its Net Profit After Tax to supporting an initiative that will lead BLACK PEOPLE to access the means to the economy. The beneficiaries of such contributions must be 75% Black people.
The term Black People is defined in the B-BBEE Act to mean Africans, Coloureds and Indians—
(a) who are citizens of the Republic of South Africa by birth or descent; Or
(b) who became citizens of the Republic of South Africa by naturalisation—
(i) before 27 April 1994; or
(ii) on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date.
Based on the above, contributions to SPCA for the welfare of animals will not qualify as socio-economic development points under B-BBEE. It is important to distinguish Corporate Social Investments from B-BBEE initiatives under Socio-Economic Development. The direct benefit in question is to animal welfare not Black people.