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