What are Socio-Economic Contributions?

Under the element Socio-Economic Development, there is an emphasis on the concept of the objective of facilitating income generating activities for targeted beneficiaries. ?As per Statement 500 of the Amended General Codes of Good Practice, the following is stated under Clause 3.2:

3.2? Socio- Economic Development Contributions:

3.2.1?????? Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating income generating activities for targeted beneficiaries.

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Furthermore, the definition of Socio-Economic Development Contributions is stated under Schedule 1 of the Amended General Codes of Good Practice as follows:

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“Socio-Economic Development Contributions means monetary or non-monetary contribution implemented for communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are Black people. The objective of Socio-Economic Development Contributions is the promotion of sustainable access for the beneficiaries to the economy. Socio-Economic Development Contributions commonly take the following forms:

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(a)?? development programmes for women, youth, people with disabilities, people living in rural areas;

(b)?? support of healthcare and HIV/AIDS programmes;

(c)??? support for education programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships;

(d)?? community training; skills development for unemployed people and adult basic education and training; or

(e)?? support of arts, cultural or sporting development programmes;”

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Our Technical Compliance Services are available to guide members in understanding the concept of Socio-Economic Development.

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