EmpowerDEX has pioneered its economic empowerment rating methodology to provide an independent opinion on the economic empowerment status of companies. The rating will assist companies in identifying and understanding their own, unique empowerment status, risks and opportunities. Empowerment ratings can also be used by public and private sector institutions and companies to allocate procurement, licensing and financing benefits more efficiently and effectively thus benefiting sustainable empowerment entities.
Ratings provide procurement officers, financiers and licensing organisations with an independent assessment of the BEE status of a potential beneficiary. An SMME rating provides information on the direct empowerment status of the entity being rated, as well as an assessment of its operational capacity.
Companies with a turnover higher then R35 million will be rated against the Generic Scorecard (as set out in the Codes of Good Practice for B-BBEE)
Companies with a turnover of between R5 million and R35 million will be rated according to the Qualifying Small Enterprises (QSE) Scorecard carried in the Codes
Companies with turnovers of R5 million or less are exempt from compliance with the Codes of Good Practice but may have their exempt status confirmed by requesting an Empowerdex EME Certification.
A private assessment can be undertaken by a company without the commitment to release the rating to the public. It allows the rated entity to evaluate their existing status and implement corrective measures.
These are ratings done according to the transformation charter of the sector of the economy which the rated entity forms part of. These ratings are currently done on request, but will be fully integrated once the charters are gazetted as per the requirements on the Codes of Good Practice on Broad Based Black Economic Empowerment.