BEE Blog 8

B-BBEE Ownership – A Background Of B-BBEE And How Ownership Is Broken Down

Element 1 – Ownership


Total Weighting Points: 25

Total Bonus Points: 0

Total Possible Points: 25

Core Pillar: Yes

Sub-Minimum Element: Net Value Transfer


The Detailed Ownership Scorecard:


OwnershipGeneric Scorecard
Voting RightsBlack people25%4
Black women10%2
Economic InterestBlack people25%4
Black women10%2
Designated Group3%3
New Entrants2%2
Realisation PointsNet Value TransferStep function8
Total Ownership Points 25.00




1. Ownership is the central theme of BEE and was the first element of BEE implemented in South Africa

2. Ownership aims to transfer part ownership of the productive assets in the South African economy to black people

3. The Rights of Ownership are made up of the following elements:

3.1. Voting Rights in the hands of black people

3.2. Black shareholders must enjoy the same voting rights as ordinary shareholders

3.3. Economic Interest in the hands of black people

3.4. Black shareholders must receive distributions in proportion to their shareholding, as an ordinary shareholder would

3.5. Net Value Transfer (“NVT”) also referred to as Realisation Points in the Revised Codes refers to value actually transferred to black people

3.6. The score for NVT is the lower result of two formulae:

3.6.1. Formula A measures equity free of debt as a percentage of the equity value of the company held by black people (called Deemed Value) and measures the Deemed Value against a target that increases to 25% over eight years

3.6.2. Formula B measures equity held by black people as a percentage of a target of 25% 

3.7. The target of 25% applies to companies subject to the Generic Scorecard but is higher in some of the sectoral charters

3.8. A score of less than the sub-minimum of 3.2 points leads to the Measured Entity being discounted an empowerment level