Economic transformation is an essential component of the South African Government strategy. As one of the ways to achieve this in South Africa, the Department of Trade and Industry (thedti) has implemented the Codes of Good Practice.

The DTI states that the B-BBEE objectives include ‘an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings significant increases in the number of black people that manage, own and control the country’s economy, as well as significant decreases in the ethnic inequalities.’

The codes of good practice aim to achieve the following objectives:

  • Drive growth of SMME black-owned enterprises,
  • Encourage job creation,
  • Drive local manufacture and processing,
  • Accelerate representation of black women, rural and youth in economic activities, and
  • Encourage companies to be pro-active not re-active.

In the updated Codes of Good Practice, (2013), the ESD (Enterprise and Supplier Development) pillar has increased in importance to ensure that emerging suppliers receive the support and assistance they need to grow and create jobs, and overall to strengthen and increase local procurement, as they encounter barriers that challenge their start-up and sustainability.

Supplier diversity is beneficial to all stakeholders; it adds economic value as it encourages the growth of diverse businesses. Supplier Development also boosts job creation in South Africa. Statistics show that over 50% of the workforce is employed by small businesses. It is also proven that in many countries recoveries have been born on the back of growth coming from small businesses, in fact in the US, post 2014, 7 million of the 10,9 million jobs were added back by start-ups and small businesses. The current score card pillars are illustrated diagrammatically.

We analyse your BBBEE scorecard, understand the target spend and co-design solutions that will assist you to obtain maximum recognition and maximum points in selected scorecard categories (at the same time helping you to reduce your actual spend if possible).

Generally, we are able to make a positive score card impact in the following areas:

  • Skills Development
  • Supplier Development,
  • Enterprise Development, and
  • Socio-Economic Development

Often there is an additional positive affect on preferential procurement and bonus points as you build and develop enterprises and suppliers.

Once the co-designed solution is agreed, we vet the solution with your rating agency, assist with operationalisation and implementation, e.g. using Business Incubation Hubs to implement an Enterprise Development programme, we facilitate reporting and tracking and monitoring and evaluation to ensure score card optimisation and lastly put risk mitigation strategies in place.