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 SectorStatement CSC400: The General Principles for Measuring Preferential Procurement and Supplier DevelopmentAnnexe CSC400 (B) |
Annexe CSC400B - Supplier Development Benefit Factor Matrix
Qualifying Contribution type |
Contribution Amount |
Benefit Factor |
Grant and Related Contributions |
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Grant Contribution |
Full Grant Amount |
100% |
Direct Cost incurred in supporting Supplier Development |
Verifiable Cost (including both monetary and non-monetary) |
100% |
Discounts in addition to normal business practices supporting Supplier Development |
Discount Amount (in addition to normal business discount) |
100% |
Overhead Costs incurred in supporting Supplier Development (including people appointed Supplier Development) |
Verifiable Costs (including both monetary and non-monetary) |
80% |
Loans and Related Contributions |
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Interest-Free Loan with no security requirements supporting Supplier Development |
Outstanding Loan Amount |
80% |
Standard Loan to Supplier Development Beneficiaries |
Outstanding Loan Amount |
60% |
Guarantees provided on behalf of a beneficiary entity |
Guarantee Amount |
3% |
Lower Interest Rate |
Outstanding loan amount |
Prime Rate—Actual Rate |
Equity Investments and Related Contributions |
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Minority Investment Supplier Development Beneficiaries |
Investment Amount |
100% |
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 |
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Professional services rendered at no cost and supporting Supplier Development |
Commercial hourly rate of professional as defined by Department of Public Works (DPW) |
80% |
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) |
80% |
Time of employees of Measured Entity productively deployed in assisting beneficiaries |
Monthly salary divided by 160 |
80% |
Other Contributions |
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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 |