What is the YES Programme?
The YES Programme was introduced into the B-BBEE Codes of Good Practice in August 2018, specifically to encourage private sector participation in addressing South Africa’s youth unemployment crisis.
In practice, businesses create quality 12-month work opportunities for unemployed youth between the ages of 18 and 35. In return, qualifying organisations may improve their B-BBEE Recognition Level with up to two levels, provided they meet the applicable requirements under the Codes.
Who Can Participate?
To qualify, a Measured Entity must:
- Register with the YES Programme
- Maintain or improve its existing B-BBEE Recognition Level, unless exceptional circumstances apply
- Meet the applicable priority element requirements prescribed by the B-BBEE Codes
Generic Entities, Qualifying Small Enterprises (QSEs), and Exempted Micro Enterprises (EMEs) are all eligible, though each category has its own qualifying criteria that determine how the programme applies.
What Is the Potential B-BBEE Benefit?
This is where the YES Programme becomes particularly interesting from a B-BBEE planning perspective. Depending on the number of YES youth employed and the organisation’s absorption rate, qualifying entities may achieve:
- A one-level improvement in their B-BBEE Recognition Level by meeting the YES target and achieving a 2.5% absorption rate
- A one-level improvement plus three bonus points on the overall scorecard by achieving 1.5 times the YES target and a 5% absorption rate
- A two-level improvement in their B-BBEE Recognition Level by achieving double the YES target together with a 5% absorption rate
For many organisations, a single level improvement can make a significant difference, whether that’s securing a contract, meeting a client’s procurement requirements, or maintaining a competitive position in the market. The businesses that use YES most effectively treat it as an integrated part of their broader B-BBEE strategy.
How Are YES Targets Calculated?
For Generic Entities, the YES target is determined using the higher of:
- 1.5% of the previous year’s headcount
- 1.5% of the average Net Profit After Tax (NPAT) from South African operations over the preceding three financial years, converted to a headcount
- The applicable target prescribed by the YES Programme that is based on Revenue
| Total Revenue Band (Rm) | Min Black Youth Jobs | |
|---|---|---|
| From | To | YES Target |
| 50 | 75 | 6 |
| 75 | 99 | 7 |
| 100 | 149 | 8 |
| 150 | 199 | 9 |
| 200 | 249 | 10 |
| 250 | 299 | 11 |
| 300 | 349 | 12 |
| 350 | 399 | 13 |
| 400 | 449 | 14 |
| 450 | 500+ | 15 |
For QSEs and EMEs, the target is based on Revenue.
Why Businesses Should Take YES Seriously
One of the most common misconceptions we encounter when advising clients is that ownership restructuring or additional expenditure is the only way to enhance a B-BBEE Recognition Level. The YES Programme challenges that assumption.
It offers organisations a genuine alternative pathway, one that strengthens overall B-BBEE performance while making a measurable contribution to youth employment in South Africa. That combination of commercial and social impact is difficult to replicate through any other element on the scorecard.
It is also worth noting that YES is able to assist with sourcing and placing qualifying youth on behalf of organisations that do not have the internal capacity to manage this process themselves.
Final Thoughts
The YES Programme remains one of the most impactful transformation initiatives available to South African businesses. Used correctly and planned well in advance, it can deliver meaningful B-BBEE level improvements while investing in South Africa’s future workforce. It is however important to know that this is not the perfect solution for all businesses, and it is worth it to calculate the cost and viability before implementing a YES strategy. It is advisable to look at the full scorecard holistically, to find the best solution from a financial perspective.
If you are unsure whether your organisation qualifies for the YES Programme or would like to understand exactly how it could affect your B-BBEE Recognition Level, contact Elevate Advisory Partners at info@elevateadvisory.co.za. We will assess your current position and help you determine whether YES makes sense as part of your broader B-BBEE strategy.