Supplier’s Information
The following is the relevant information to be obtained from each supplier in order to calculate the attributable BEE spend with each such supplier:
All of the information is contained on the BEE Certificate of the Supplier (except of course for the amount spent with that supplier).
- Is the supplier an Empowering Supplier?
The Codes define an Empowering Supplier as follows:
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 should meet at least three if it is a large enterprise or one if it is a QSE of the following criteria:
- At least 25% of cost of sales excluding labor cost and depreciation must be procured from local producers or local supplier in SA, for service industry labor cost are included but capped to 15%
- 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.
- At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.
- Skills transfer – at least spend 12 days per annum of productivity deployed in assisting Black EME’s and QSE’s beneficiaries to increase their operation or financial capacity”
-
Labour Costs - - At least 85% of labour costs should be paid to South African employees by ICT Sector entities.
- Exempted Micro Enterprises and Start-ups are automatically recognized as Empowering Suppliers.
- QSEs must meet at least one of the seven criteria to be classified as Empowering Suppliers.
- Generic Enterprises must meet at least three of the seven criteria to be classified as Empowering Suppliers.
Whether the supplier is classified as an Empowering will determine if any points can be claimed in relation to expenditure with such client.
If the supplier IS an Empowering Supplier then recognition is attributable in relation to the expenditure with such supplier.
If the supplier is NOT an Empowering Supplier then no recognition is attributable in relation to the expenditure with such supplier, irrespective of their BEE credentials. (ie it’s as if they are Non-Compliant suppliers)
- The amount of money spent with the supplier.
- This is obtained from the company’s books of accounts or financials
- Entity Type
The Entity type of the supplier i.e. is it a:
- EME.
- QSE.
- Generic.
- The black-ownership status of the supplier
What are the black-ownership credentials of the supplier?
- Is your supplier 51% or more black owned?
- Is your supplier 35% or more black female owned?
- The BEE Status Level of the supplier
The BEE Status Level of the supplier will determine the recognition level multiplier to be used in relation to that supplier. The better the BEE Status Level of any supplier, the higher the multiplier and accordingly the more BEE points will be earned by procuring and goods and services from that supplier.
| BEE Status | Recognition Level |
| Level 1 | 135% |
| Level 2 | 125% |
| Level 3 | 110% |
| Level 4 | 100% |
| Level 5 | 80% |
| Level 6 | 60% |
| Level 7 | 50% |
| Level 8 | 10% |
| Non-Compliant | 0% |
- Enhanced Recognition - Multipliers
Expenditure with the following types of suppliers will receive an enhanced recognition by a 1.2 multiplier factor:
6.1 Supplier Development Beneficiaries with a 3 year contract
- A 51% black owned EME or QSE;
- is the recipient of Supplier Development Contributions ; and
- has a minimum 3 years suppliers contract with the measured entity
6.2 51% black owned EME or QSEs with a 3 year contract (non- Supplier Development beneficiaries)
- A 51% black owned EME or QSE;
- is NOT the recipient of Supplier Development Contributions ; and
- has a minimum 3 years suppliers contract with the measured entity
6.3 First time Suppliers
- A First time B-BBEE owned supplier to the measured entity
The applicable BEE spend relative to each supplier (or relevant category of supplier) is then summed and benchmarked against the Total Measured Preferential Procurement BEE Spend, in order to determine how many points the entity has earned under the Preferential Procurement Element.
|
An expired BEE certificate of a supplier may still be utilised if the BEE certificate in question was valid during the selected verification period of the measured entity. |