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Criteria |
Weighting Points |
Compliance Target |
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Preferential Procurement |
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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% |
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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% |
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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% |
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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% |
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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% |
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Supplier Development |
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Annual value of all qualifying Supplier Development contributions made by the Measured Entity as a percentage of the target |
10 |
3% of NPAT |
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Enterprise Development |
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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 |
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Bonus Points |
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Bonus point for graduation of one or more qualifying Enterprise Development beneficiaries to graduate to the Supplier Development level. |
1 |
Yes |
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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
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