Definition of Empowering Supplier

Definition in terms of the B-BBEE Codes of Good Practice of 11th October 2013 (BEE Codes 2013)

Empowering Supplier

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:

a)      At least 25% of cost of sales excluding labour cost and depreciation must be procured from local producers or local suppliers in SA, for service industry labour cost are included but capped to 15%.

b)      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.

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

d)      Skills transfer – at least spend 12 days per annum of productivity deployed in assisting black EMEs and QSEs beneficiaries to increase their operation or financial capacity.

e)   At least 85% of labour costs should be paid to South African employees by service industry entities.

BizAdvance Consulting comments and references:

     1. It is necessary to be an Empowering Supplier in order for a BEE certificate to be of any value to a measured entity for the purposes of calculating Procurement points.

     2. Exempted Micro Enterprises and Start-Ups are automatically recognised as Empowering Suppliers.

     3. Suppliers that are least 51% black owned are required to qualify as Empowering Suppliers.

     4. Suppliers that are at least 30% black women owned are required to qualify as Empowering Suppliers.

Comments are based on the opinion of BizAdvance Consulting and may be subject to different interpretations and opinions by other parties. The comments and references are intended as a guide to readers but it is important that they are read in conjunction with the Codes and other related legislation. Please refer to our Disclaimer Policy.