Amendments to the B-BBEE Codes of Good Practice Code Series 400—Enterprise and Supplier Development—General Principles

On the 31st of May 2019, amendments to the Codes of Good Practice were published via Government Gazette No 42496.

The fourth part of the gazette may be downloaded here:

Principles for Measuring Enterprise and Supplier Development – Code Series 400

For this article, we will focus on the General Principles and what they mean to the average user as per clause 4 of Code Series 400 in relation to ED and SD matters.

  • To strengthen local procurement.
  • To actively support procurement from black owned QSEs and EMEs.
  • To support procurement from black owned and black women owned businesses.
  • To promote the use of black owned professional service providers and entrepreneurs.
  • Measured Entities receive recognition for any Enterprise Development and Supplier Development Contributions that are quantifiable.
  • Measured Entities are encouraged to align their Enterprise Development and Supplier Development initiatives with the designated sectors of government’s localisation and value adding programmes.
  • Measured Entities are encouraged to align their Enterprise Development and Supplier Development initiatives with their supply chain requirements thereby linking Enterprise Development and Supplier Development with Preferential Procurement.
  • Qualifying Enterprise Development and Supplier Development Contributions of any Measured Entity are recognisable on an annual basis.
  • Contributions, programmes and/or initiatives that span over multiple years, the total contribution amount must be divided by the number of years, and the average per year is then to be utilised for the annual contribution.
  • Measured Entities are encouraged to develop and implement an Enterprise Development plan and Supplier Development plan for Qualifying Beneficiaries.

ED and SD Plans must include:

  • Clear objectives
  • Priority interventions
  • Key performance indicators
  • A concise implementation plan with clearly articulated milestones.

This article is provided for information only, and does not constitute the provision of professional advice of any kind.

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