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

Codes of Good Practice on Broad-Based Black Economic Empowerment

Amended Property Sector Code

Statement 000: General Principles and General Scorecard as applied to the Amended Property Sector Code

10. Enterprise and Supplier Development

 

10.1 To date there has been limited implementation of preferential procurement practices in the sector: The signatories to this sector code commit themselves to:
(a) 80% of B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend;
(b) 15% B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend;
(c) 15% of B-BBEE Procurement Spend from all Empowering Suppliers that are Exempted Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend;
(d) 40% of B-BEE Procurement Spend from all Empowering Suppliers that are at least 51% black owned;
(e) 12% of B-BBEE Procurement Spend from all Empowering Suppliers that are more than 30% black women-owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement and
(f) Spend 40% of procurement spend on property service Enterprises that are 51% black owned (level 1-3) as a percentage of total property Services spend.

 

10.2 There are numerous micro and small businesses in the sector; however few of these have significant levels of black ownership and control.

 

10.3 The property sector commits itself to invest in, support, facilitate and foster new and existing small and micro enterprises possessing that are black owned, through the implementation of comprehensive enterprise development programmes. The parties to the charter therefore commit to achieve the following targets:
10.3.1 2% of annual value of NPAT on all Supplier Development contributions;
10.3.2 Consequently each enterprise in the sector commits to achieve a target of 1% of annual value NPAT on Enterprise Development contributions and sector specific .

 

10.4 All principles under Supplier and Enterprise Development (Code 400) in the revised codes as amended time to time (for both generic and QSE) are applicable

 

CODE 400: ENTERPRISE and SUPPLIER DEVELOPMENT GENERIC ENTITIES – 39 POINTS

 

MEASUREMENT CATEGORY & CRITERIA

WEIGHTING

POINTS

COMPLIANCE

TARGETS
2.1 PREFERENTIAL PROCUREMENT

BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

2

80%

B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

2

15%

B-BBEE Procurement Spend from all Empowering Suppliers that are Exempted Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

2

15%

B-BBEE Procurement Spend from all Empowering Suppliers that are at least 51% black owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

8

40%

B-BBEE Procurement Spend from all Empowering Suppliers that are more than 30% black women-owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

4

12%

Percentage of procurement spend with at least 51% Black owned Property Service enterprises (level 1-3) as a percentage of the total property services spend

6

40%
2.2 SUPPLIER DEVELOPMENT

Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target.

10

2% of NPAT

2.3        ENTERPRISE DEVELOPMENT
2.3.1 Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target

5

1% of NPAT

 

ENTERPRISE and SUPPLIER DEVELOPMENT BONUS POINTS FOR GENERIC ENTITIES – 4 POINTS

 

MEASUREMENT CATEGORY & CRITERIA

BONUS

POINTS

COMPLIANCE

TARGETS

BEE Procurement Spent from designated group suppliers that are at least 51% Black Owned

2

2%

Bonus points for graduation of one or more Enterprise Development beneficiaries to the Supplier Development level

1

 

Bonus points for creating one or more job directly in the beneficiary entity as a result of supplier Development or enterprise development initiatives by the measured entity

1

 

 

CODE 704: ENTERPRISE AND SUPPLIER DEVELOPMENT FOR QSE- 35 POINTS

 

MEASUREMENT CATEGORY & CRITERIA

WEIGHTING

POINTS

COMPLIANCE

TARGETS

PREFERENTIAL PROCUREMENT

B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE procurement Recognition Levels as a percentage of a Total measured Procurement Spend

10

60%

B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% black owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

15

15%

SUPPLIER DEVELOPMENT

Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target

5

1% of NPAT

ENTERPRISE DEVELOPMENT

Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target

5

1% of NPAT

 

10.5 Enterprise development programmes may include but are not limited to the following
(a) Management, business development and technical skills transfer;
(b) Technology transfer, establishment of administrative systems, cost control systems and infrastructure support;
(c) Development of entity credit resources with suppliers; and
(d) Development of entity financial capacity and/or financial assistance.

 

10.6 Enterprise development plans should promote sustainability and must provide for the measurement of enterprise growth.

 

10.7 Refer to the enterprise matrix in the revised codes of good practice for a comprehensive list enterprise development programmes that are calculated for points.

 

10.8 Empowering supplier is currently not a requirement, but the Property Sector Charter Council reserves the right to implement sector specific Empowering Supplier requirements and would include but not limited to:

 

10.9 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%.

 

10.10 Have a current approved B-BBEE Enterprise and Supplier Development plan as defined in the COGP for your company (signed by board and/or CEO and/or CFO) which commits to improvement/s of at least one level higher than previously recorded and the plan should be current-not older than 12 months from verification.

 

10.11 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.

 

10.12 At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.

 

10.13 Skill transfer – at least spend 12 days per annum of productivity deployed in assisting Black EMEs and QSEs beneficiaries to increase their operation of financial capacity.

 

10.14 At least 85% of labour costs should be paid to SA employees by services industry entities.

 

10.15 An Empowering Supplier within a context of B-BBEE is a B-BBEE compliant entity, which is a good citizen South African entity, comply with all regulatory requirements of the country and until the list of possible relevant activities to the property sector is extended, an entity should meet at least two if it is a large enterprise with employees and at least one if it is large enterprise without people or one if it is a QSE.