CODE 700: SOCIO-ECONOMIC DEVELOPMENT

Area

Target

Weighting Points

% of Points

Formula

Notes:

Statement 700: General Principles

 

5

 

 

 

Average annual value of all Socio-Economic Development Contributions by the ME as a % of the target

1% of NPAT or if ME is not profitable or its net profit margin is less than 25 % of the industry norm, then turnover as follows: 3% x INPM x Turnover

5

100%

Value of all SED Contributions / target x 5

 

 

Valuation of SED Contributions: If ≥ 75% of the value of the contribution directly benefits black people – R1 x 1. If ≤ 75% of the value of the contribution directly benefits black people – value of contribution x % that benefits black people

Measured cumulatively from 9/2/2007, or an earlier date being no earlier than 9/2/2002, until the date of measurement. Future commitments are excluded. Monetary or monetary contributions with the specific objective of facilitating sustainable access to the economy for those beneficiaries. Annexe 700(A) contains a Benefit Factor Matrix used in determining Socio-Economic Development Contributions.