Definition of Supplier Development Contributions

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


Supplier Development Contributions

Means monetary or non-monetary contributions carried out for the benefit of value-adding suppliers to the Measured Entity, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries: 

a)      Supplier Development Contributions to suppliers that are Exempted Micro-Enterprises or Qualifying Small Enterprises which are at least 51% black owned or at least 51% black woman owned;

Make note re 51% women


BizAdvance Consulting comments and references:

Relates to the Enterprise and Supplier Development element Statement 400, page 60.

Entities can score 10 points for contributing 2% of net Profit after Tax to supplier development.

Refer to clauses 2.2.1 page 62, 3.5.1 page 64, 4.7 page 66, 4.10 page 66, 9.1 page 71 and 10.1 page 74.

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.