Page 12 - Q&A

It is thus crucial for a Generic company such as yours to constantly revise and
monitor its suppliers to ensure that spend is aligned with the sub-targets under
BEE the Procurement element. You will want to make sure that at least 50% of your
procurement spend is with 51% Black Owned suppliers and 12% with 30% Black
Women owned suppliers. Ideally these companies should also be EME or QSE’s.
Lastly, remember to allow for enhanced recognition. Here, allowance is made
for a multiplication of your procurement spend by a factor of 1.2 when your
supplier is either –
• a recipient of supplier development contributions from a Measured
Entity under Code series 400 which has a minimum 3-year contract
with your company;
• a Black Owned QSE or EME which is not a Supplier Development beneficiary
but has a minimum 3-year contract with your company; or
• is at least 51% Black Owned or at least 51% Black Woman Owned utilising
the Flow Through Principle.
From the above it is clear that procurement points take timeous planning
and careful management, but that if this is done, a company can obtain
the necessary points for procurement to maintain a decent BEE level. If your
company is set to be rated as a Generic enterprise, we would advise consulting
your BEE specialist to help you get a procurement plan in place as soon as
possible for your company.

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