BEE prepared and it will benefit all

| 0 Comments

 

Shanduka_JSE.jpgIt is not about the numbers.


For many South African companies, Broad-Based Economic Empowerment (B-BBEE) up until now may have been about tallying numbers on a scorecard to achieve compliance.


However this will no longer be enough, and amendments to the B-BBEE measurement codes published on 11 October 2013 by the Department of Trade and Industry and effective from 1 May 2015, should give pause for thought to South African businesses who will have to consider the imperative for enterprise and supplier development too.


There is a shift from enterprise development, where companies could just make a monetary contribution at arm’s length or settle supplier invoices early, to supplier development, where companies now have to have an active development relationship with the enterprises they support, says Nashika Singh, Supplier Development Manager for Shanduka Black Umbrellas (SBU).


“Over the years there have been a number of enterprise development programmes, and as a result we have a pool of businesses who are over-developed. Some businesses have been through four or five different enterprise development programmes, yet there is no access to procurement opportunities within the supply chains of the companies that have developed them” says Singh.


“If we want to create sustainable businesses, then we need to ensure that they are participating meaningfully in procurement opportunities.”


Furthermore, the imperative to reshape South Africa’s economic environment is at a critical stage, with unemployment rates increasing to 25.2% in the first quarter of 2014.


With one of the lowest levels of entrepreneurship in the world, contributing to 35% of GDP compared to 60% in countries like India and Brazil, the development of the country’s small, medium and micro businesses (SMMEs) is critically important.


Big and small businesses need to have a symbiotic relationship, where both can benefit equally from the transaction, rather than an underutilization of small businesses, noted Cyril Ramaphosa, Shanduka Foundation Chairperson, at a recent Shanduka Black Umbrellas National Enterprise Development Awards.


“We believe that we need to change that relationship, change that equation and get big businesses to begin to see the advantage of utilising emerging small and medium black enterprises,” says Ramaphosa.


Importantly, many companies are at risk of becoming non-compliant when evaluated against the amended codes, and particularly in respect of the sector-specific codes applicable to the following South African industries: IT and communications, agriculture, financial services, tourism and transport.


Whilst the DTI has committed to releasing the new codes before the end of the year, companies in this transitional period could elect compliance measured in terms of the new B-BBEE codes of good practice or the 2007 codes.


It will however be more difficult for enterprises to achieve and even retain their current B-BBEE contributor status ratings under the revised codes. However there are opportunities for companies to take proactive measures through platforms such as SBU.


Furthermore supply-chain ready businesses have the peace of mind that procurement opportunities are also cross-linked with continuous enterprise and supplier development, facilitated through the SBU business incubation programme.


“We also play a very active role in engaging with corporates in bringing qualifying businesses into their supply chains, and really understanding what the development needs are, what gaps exist, and how we address those as a development process over the procurement life cycle.”
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More