The Thresholds Look Familiar, So It’s Easy to Get Complacent
Unlike Property, Tourism, Legal, or Construction, the ICT Sector doesn’t set its own annual turnover thresholds. If your annual turnover is under R10 million, you’re an EME. Between R10 million and R50 million, you’re a QSE. Above that, you fall under the Generic threshold and require full verification.
That familiarity can work against ICT businesses. Because the entry points look identical to what most companies already know, it’s tempting to assume the rest of the scorecard will look like the Generic Scorecard. It doesn’t, and the differences carry real weight.
Ownership Sets a Higher Bar
The first place ICT companies notice the sector’s own identity is Ownership. The target here isn’t the standard Generic figure, it’s raised to 30% Black ownership. For ICT businesses building out their B-BBEE Strategy, this is worth factoring in early rather than discovering it at your next verification cycle.
Where the ICT Scorecard Really Diverges: ESD and SED
This is where things get interesting for anyone in the ICT industry.
Enterprise and Supplier Development (ESD) carry a specific, sector-linked target: 5% of Net Profit After Tax must go toward enterprise and supplier development initiatives, and critically, that development spend towards Enterprise Development must be towards qualifying ICT Entities. A further requirement is that a beneficiary will only qualify for ESD spend if it is an EME or QSE with at least 51% Black Owned. You can’t simply fund any small business and expect it to count. ESD makes up 25 points on the ICT scorecard with an additional 4 bonus points, a substantial share of your overall score, which makes getting this element right one of the highest-leverage things a technology company can do for its B-BBEE level.
Socio-Economic Development (SED) follows a similar sector-specific logic. Your SED spend needs to be directed toward ICT sector initiatives, not general community upliftment unrelated to technology. The ICT scorecard allocates 12 points to this element, noticeably more weight than SED typically carries elsewhere, which signals just how central sector-relevant social investment is to this Code.
Put together, ESD and SED reward ICT companies that build genuine, sector-focused development programmes rather than generic CSR spend. A donation to an unrelated cause, however worthy, simply won’t move the needle here the way an ICT-specific enterprise development initiative will.
Why This Matters for Your Business
Because the Annual Turnover thresholds mirror the Generic Codes, it’s easy for an ICT company to assume their entire compliance approach can be generic too. In reality, the Ownership target is higher, and two of the high-weighted elements on your scorecard demand spend that’s specific to your own industry. Get this wrong, and you could be investing in development programmes that don’t count toward your score at all.
Understanding this early means your enterprise development and social investment budgets are working for your B-BBEE level, not just your CSR reporting.
Need Help Structuring Your ICT Scorecard?
Elevate Advisory Partners can help you plan your Ownership structure, direct your ESD and SED spend toward initiatives that actually count, and make sure your business is verification-ready.
This post covers the ICT Sector Code specifically. Want the complete picture across every sector, including Property, Legal, CA, Tourism, Construction, Financial, Agricultural, Defence, and Transport? Download our full ebook, “B-BBEE Industry Thresholds Explained,” here.
Frequently Asked Questions
Do ICT companies use different turnover thresholds to other industries?
No. The ICT Sector Code’s thresholds align with the Generic Codes: EME below R10 million, QSE between R10 million and R50 million, and Generic above R50 million.
What’s the Black ownership target for ICT companies?
30%, higher than the standard Generic Codes target.
Does all Enterprise and Supplier development spend count toward the ICT scorecard?
No. Enterprise development must be towards ICT Entities to count. General, non-sector-related initiatives won’t contribute to this element.
Does the Socio-Economic Development element carry more weight in ICT than in other sectors?
Yes, the ICT scorecard allocates 12 points to SED, and that spend must go toward ICT sector specific initiatives, reflecting the sector’s emphasis on technology-focused social investment.