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 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 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 Phase in: 10% for 1st Year, 20% for 2nd year, 25% for 3rd year, 30% for 4th year, 40% for 5th year, provided the measured entity achieve the 3% NPAT under 2.1 below	9	40%
B-BBEE Procurement Spend from Empowering Suppliers that are at least 30% black women owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend. Phase in: Target is 6% for year 1 to year 4, provided the target for supplier development is increased to 3% NPAT	4	12%
Bonus Points
BBEE Procurement Spend from Designated Group Suppliers that are at least 51% Black owned	2	2%
Supplier Development
Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target	10	(3% of NPAT for year 1 to year 4) 2% of NPAT
Enterprise Development
Annual value of all Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target	5	1.5% of NPAT
Bonus Points
Bonus point for creating one or more jobs directly as a result of Supplier Development and Enterprise Development initiatives by the Measured Entity. Bonus point for creating one or more jobs as a result of Supplier Development and Enterprise Development initiatives by the Measured Entity	1 1

Key Principle

Note 1: Ownership is kept at 25% + 1 vote because emphasis is placed on Enterprise and Supplier Development to develop and initiate more black industrialists to own enterprises. This will be reviewed by the AgriBEE Sector Charter Council every 2nd year of the implementation of this sector code. Two or more Measured Entities are allowed to pool their resources or fund in order to implement Enterprise and Supplier Development initiatives informed by a needs analysis. However, each entity will have to provide proof to the Verification Agency of their contribution towards the initiatives.

For the purpose of verification, new Enterprise Development Initiatives or projects are defined as green field projects that include, but are not limited to, those that support the Industrial Policy Action Plan. Points will be scored for permanent employees based on the following sliding scale: Year 1: 100% points; Year 2: 70% points and Year 3: 30% points. Additionally, should there be a percentage decrease in employment; there would be a pro rata percentage decrease in percentage points scored.

Subminimum and Discounting principle

A measured Entity must achieve a minimum of 40% of the targets set out on 1, 2 and 3 excluding bonus points of the Enterprise and Supplier Development Scorecard

A recipient of supplier development contributions from a Measured Entity under Code series 400 that has a minimum 3 year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor 1.2;

A black owned QSE or EME which is not a supplier development beneficiary but that has a minimum 3 year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2;

A first time Black owned supplier to the Measured Entity, the recognisable BBBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2;

Procurement of goods and services and any other activities that fall under 1 will not qualify for scoring under 2 and 3 and vice versa; and

Beneficiaries of Supplier Development and Enterprise Development are EMEs or QSEs which are at least 51% black owned or at least 51% black women owned.

Contributions by the measured entity can be recognised for up to two years even if the beneficiary turnover/ revenue threshold exceeds the measured threshold, on condition that when the intervention was initiated the threshold was qualifying.

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