Preferential Procurement - Definitions

Summary View - Summary View requires the user to manually input the figures to generate the scores of the different procurement indicators.

Detailed View – In the Detailed View details can also be added manually or via a spreadsheet (the template for the spreadsheet is made available for download when clicking on the “From a Spreadsheet” button. The user will need to capture the specific supplier in the Detailed View. Please note that the system has been designed to reject any upload where changes have been made to the structure of the template).

Designated Group Supplier– means a supplier to the Measured Entity that is at least 51% owned by one or more of the following categories of ownership within its structure:

• unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution;
• Black people who are youth as defined in the National Youth Commission Act of 1996;
• Black people who are persons with disabilities as defined in the Code of Good Practice on employment of people with disabilities issued under the Employment Equity Act;
• Black people living in rural and under developed areas;
• Black military veterans who qualify to be called a military veteran in terms of the Military Veterans Act 18 of 2011.

Empowering Supplier– An Empowering Supplier within a context of B-BBEE is a B-BBEE compliant entity, which is a good citizen South African entity, comply with all regulatory requirements of the country and should meet at least three if it is a large enterprise or one if it is a QSE of the following criteria:

• • At least 25% of cost of sales excluding labour cost and depreciation must be procured from local producers or local supplier in SA, for service industry labour cost are included but capped to 15%.
  • Job creation – 50% of jobs created are for Black people provided that the number of Black employees since the immediate prior verified B-BBEE Measurement is maintained.
  • At least 25% transformation of raw material/beneficiation, which include local manufacturing, production and/or assembly, and/or packaging.
  • Skills transfer - at least spend 12 days per annum of productivity deployed in assisting Black EMEs and QSEs beneficiaries to increase their operation or financial capacity.

Entity– means a legal entity or a natural or a juristic person conducting a business, trade, or profession in the Republic of South Africa.

51% Black Owned– means an Entity in which:

• Black people hold at least 51% of the exercisable voting rights as determined under Code series 100;
• Black people hold at least 51% of the economic interest as determined under Code series 100; and:
• has earned all the points for Net Value under statement 100

30% Black Women Owned– means an Entity in which:

• Black women hold at least 30% of the exercisable voting rights as determined under Code series 100;
• Black women hold at least 30% of the economic interest as determined under Code series 100; and
• has earned all the points for Net Value under statement 100;

Exempt Micro Enterprise (EME)– means an Entity with an annual turnover of R 10 (ten) million or less.

Generic Entity– means an Entity with an annual turnover of R 50 (fifty) million or above.

Supplier – means any supplier or service provider to a Measured Entity if any portion of the supply or service provision falls within the definition of Total Measured Procurement Spend.

Qualifying Small Enterprise (QSE)– means an Entity that qualifies for measurement under the Qualifying Small Enterprise scorecard with a turnover of R10 million or more but less than R50 million.

The PFMA Act– means the Public Finance Management Act 1 of 1999 as amended.

Total Measured Procurement Spend – a measure of all expenses incurred by an entity throughout their measurement period, with certain expenses being excluded due to the nature of those expenses.

Value Adding Supplier – An organisation who is registered as a vendor under the Value-Added Tax of 1991 and whose sum of its Total Labour Cost and Net Profit Before Tax exceeds 25% of its Turnover.