Broad-Based Black Economic Empowerment (B-BBEE) is a South African economic development initiative which aims to redress inequalities of the past by bringing ‘Black’ people into the mainstream of business activities.
B-BBEE is further broken down into five key elements to provide for optimal transformation results. These elements are namely:

• Ownership
• Management Control
• Skills Development
• Enterprise and Supplier Development (ESD)
• Socio-Economic Developmen

Of these five elements, three have been identified as priority elements on which companies should concentrate: Ownership, Skills Development and ESD. Large Enterprises need to achieve a sub-minimum of at least 40% for all three priority elements to prevent a discounting of one level down from their B-BBEE status level. Qualifying Small Enterprises need to comply with the sub-minimum for Ownership and either Skills Development or ESD.