The revised codes introduced under the Enterprise and Supplier Development an element of Empowering Supplier within a context of B-BBEE.
Originally there were four (4) elements to choose from and now recently in the gazette 38765, the Dti introduced a fifth element to choose from to become compliant as an Empowering Supplier. (see the clause A on the attached gazette). 44 EAP Amendments 38765_6-5_DTI
To be B-BBEE compliant entity, which is a good citizen South African entity, you need to comply with all regulatory requirements of the country and should meet at least three (3) out of the Five (4+1) if it is a large enterprise or one (1) if it is a QSE.
The elements to comply with to become an empowering supplier are:
- 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.
NEW ELEMENT
- At least 85% of labour costs should be paid to South African employees by service industry entities.
NB: No preferential points will be obtained if a supplier does not comply with the above
