Enterprise and Supplier Development
|
|
|
|
|
||||
|
Criteria |
Weighting Points |
Compliance Target |
|||||
|
Preferential Procurement |
|
||||||
|
B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend |
5 |
80% |
|
||||
|
B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprise based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend |
3 |
15% |
|
||||
|
B-BBEE Procurement Spend from all Exempted Micro Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend |
4 |
15% |
|
||||
|
B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% Black Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend |
9 |
40% |
|
||||
|
B-BBEE Procurement Spend from Empowering Suppliers that are 30% Black Women Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend |
4 |
12% |
|
||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
|
|
||||
|
Supplier Development |
|
||||||
|
Annual value of all qualifying Supplier Development contributions made by the Measured Entity as a percentage of the target |
10 |
3% of NPAT |
|
||||
|
Enterprise Development |
|
||||||
|
Annual value of all qualifying Enterprise Development contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target |
5 |
0.5% of NPAT |
|
||||
|
Bonus Points |
||
|
|
||
|
|
||
|
Bonus point for graduation of one or more qualifying Enterprise Development beneficiaries to graduate to the Supplier Development level. |
1 |
Yes |
|
Bonus point for creating one or more jobs directly as a result of qualifying Supplier Development and Enterprise Development contributions by the Measured Entity. |
1 |
Yes |
Key Principles:
Enterprise & Supplier Development (ESD) is a priority element and therefore a 40% sub minimum must be achieved in order to avoid the discounting principle. To avoid doubt, that is 10 points for Preferential Procurement, 4 points for Supplier Development and 2 points for Enterprise Development (excluding any bonus points).
Preferential Procurement:
- All procurement needs to be facilitated through Empowering Suppliers.
- EME’s and Start-Up Enterprises are automatically regarded as Empowering Suppliers.
- There is enhanced recognition of 20% if procurement is done with a recipient of Supplier Development Contributions with a minimum of a 3-year contract.
- There is enhanced recognition of 20% if procurement is done with a Black owned QSE or EME with a minimum of a 3-year contract even if they are not a Supplier Development beneficiary.
- First time suppliers get an enhanced 20% above their recognisable spend.
- If imports are done due to brand and/or technical specifications, a plan must be drawn up identifying a local supply.
Supplier and Enterprise Development:
- Only EME’s and QSE’s entities that are at least 51% Black owned qualify as valid beneficiaries.
- Supplier Development beneficiaries are part of the measured entity’s supply chain, while Enterprise Development beneficiaries may not be.
- The same contribution cannot count towards both Supplier Development and Enterprise Development.
- Only contributions done within the measurement period can be taken into account.
- Shorter payment terms only count towards Supplier Development and not Enterprise Development.
- Shorter payment periods cannot contribute to more than 15% of the Supplier Development points (i.e. 1.5 points).
Enterprise and Supplier Development Benefit Factor Matrix
Related Articles
Enterprise and Supplier Development
Criteria Weighting Points Compliance Target Preferential Procurement B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 5 80% B-BBEE ...Enterprise and Supplier Development
Criteria Weighting Points Compliance Target Preferential Procurement B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend 5 80% B-BBEE ...Insurance Broker and Insurance Intermediary Commissions
Revised Financial Services Charter (Gazette no. 41287) Procurement Enterprise and Supplier Development Scorecard Insurance broker and insurance intermediary commissions were excluded from the Total Measured Procurement Spend (TMPS) for the first 3 ...Skills Development
Criteria Weighting Points Compliance Target Skills Development Expenditure on any programme specified in the Learning Programme Matrix for Black People as a percentage of the Leviable Amount Skills Development Expenditure on Learning Programmes ...Socio - Economic Development
Criteria Weighting Points Compliance Target Annual value of all Socio-Economic Development Contributions and Qualifying Socio-Economic Development Contributions made by the Measured Entity as a percentage of the target 15 1% of Net Profit After Tax ...