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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Amended Codes of Good Practice (2017)

Amended Code Series CSC400: Measurement of the Preferential Procurement and Supplier Development Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC400: The General Principles for Measuring Preferential Procurement and Supplier Development

4. General Principles

 

4.1 To strengthen local procurement in order to help build South Africa's industrial base in critical sectors of production and value adding manufacturing, which are largely labour-intensive industries.

 

4.2 To increase local procurement through capacity building achieved by incentivizing appropriate Supplier Development Programmes by businesses supplying imported goods and services.

 

4.3 The imports provisions do not apply to the designated sectors and products for local production, as and when published.

 

4.4 To actively support procurement from an at least 51% Black Owned QSEs and EMEs by identifying opportunities to increase procurement from local suppliers in order to support employment creation.

 

4.5 To support procurement from an at least 51% Black Owned and at least 35% Black Woman owned businesses in order to increase the participation of these businesses in the mainstream economy.

 

4.6 To promote the use of the at least 51% Black Owned professional service providers and Entrepreneurs as Suppliers.

 

4.7 Measured Entities receive recognition for any Qualifying Supplier Development Contributions that are quantifiable as a monetary value using a Standard Valuation Method.

 

4.8 Measured Entities are encouraged to align their Supplier Development initiatives with the designated sectors of government's localisation and value adding programmes.

 

4.9 Measured Entities are encouraged to align their Supplier Development initiatives with their supply chain requirements thereby linking Supplier Development with Preferential Procurement. For the avoidance of doubt such alignment is not compulsory.

 

4.10 Qualifying Supplier Development Contributions of any Measured Entity are recognisable on an annual basis, loans and related contributions, which will be measured against the full outstanding loan amount on Measurement Date as per Annexe CSC400 (B).

 

4.11 No portion of the value of any Qualifying Supplier Development Contribution that is payable to the beneficiary after the last day of the Measurement Period can form part of any calculation under this statement.