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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

Annexe CSC400 (B)



Annexe CSC400B - Supplier Development Benefit Factor Matrix


Qualifying Contribution type

Contribution Amount

Benefit Factor

Grant and Related Contributions

Grant Contribution

Full Grant Amount


Direct Cost incurred in supporting Supplier Development

Verifiable Cost (including both monetary and non-monetary)


Discounts in addition to normal business practices supporting Supplier Development

Discount Amount (in addition to normal business discount)


Overhead Costs incurred in supporting  Supplier Development (including people appointed Supplier Development)

Verifiable Costs (including both monetary and non-monetary)


Loans and Related Contributions

Interest-Free Loan with no security requirements supporting Supplier Development

Outstanding Loan Amount


Standard Loan to Supplier Development Beneficiaries

Outstanding Loan Amount


Guarantees provided on behalf of a beneficiary entity

Guarantee Amount


Lower Interest Rate

Outstanding loan amount

Prime Rate—Actual Rate

Equity Investments and Related Contributions

Minority Investment Supplier Development Beneficiaries

Investment Amount


Supplier Development with lower dividend to financier

Investment Amount

Dividend Rate of Ordinary Shareholders - Actual Dividend Rate of Contributor

Contributions made in the form of human resource capacity

Professional services rendered at no cost and supporting Supplier Development

Commercial hourly rate of professional as defined by Department of Public Works (DPW)


Professional services rendered at a discount and supporting Supplier Development

Value of discount based on commercial hourly rate of professional as defined by Department of Public Works (DPW)


Time of employees of Measured Entity productively deployed in assisting beneficiaries

Monthly salary divided by 160


Other Contributions

Shorter payment periods for 2.3 of this statement (Supplier Development)

Percentage of invoiced amount multiplied by 15% (being an approximation of the cost of short term funding)

Percentage being 15 days less the number of days from invoice to payment. The Maximum points that can be scored is 75% of 10 points