Procurement and Importation

Imports will now be included under procurement unless Imported capital goods or components for value-added production in South Africa provided that:

There is no existing local production of such capital goods or Components; and importing those capital goods or components promotes further value-added production within South Africa.

The exclusion of imports listed under 6.5.2 are subject to them having developed and implemented an Enterprise Development and Supplier Development plan for imported goods and services. This plan should include Clear objectives, Priority interventions, Key performance indicators; and a concise implementation plan with clearly articulated milestones.

 

To summarize the element: 

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Preferential Procurement (25 + 2 Bonus Points):  

• Value added status now falls away and is replaced with Empowering Supplier status.

• Suppliers to a measured entity will now need to be an Empowering supplier in order for that supplier to contribute toward the measured entities Preferential Procurement score

• EME’s and Start-Up enterprises automatically qualify as Empowering suppliers

• Greater value in points for spending with Black Owned and Black Women Owned empowering suppliers

• Enhanced recognition for spending with first time suppliers and Black QSE/EME’s or Supplier Development beneficiaries that are tied in with a 3-year contract

• Imports are an allowable exclusion provided certain criteria are met.

• Bonus points awarded for spend with suppliers that are owned by designated groups that are at least 51% Black Owned

 

Supplier Development (10 Points) and Enterprise Development (5 Points):  

• Beneficiaries of Supplier Development (SD) and Enterprise Development (ED) can only be EME’s or QSE’s that are at least 51% black owned.

• Enhanced recognition for Category A beneficiaries is no longer in place

• Cumulative contributions are still recognised.

• Measured entities are encouraged to develop and implement a supplier development plan

• Enterprise Development contributions in the form of shorter payment period limited to a maximum of 15% of the invoice amount and 1.5 of the 10 points

• 2 Bonus points are available for migrating an ED to a SD beneficiary and for creating jobs through ED/SD initiatives. 

 

This element is also a “priority element”, requiring companies to score at least 40% of the points in each sub-element to avoid dropping a BEE level.