To qualify as a quality supplier, an entity must meet all regulatory requirements and comply with at least three of the four rules when it comes to a generic or qualified business. Measured companies are encouraged to develop and implement a supplier development plan What is Business Development (ED)? – ED is the growth of small and medium-sized enterprises (EME and QSE) to create wealth and improve the quality of life of the poor. What is an empowering provider? – It is a good South African citizen, who meets all the country`s regulatory requirements and should meet at least three, whether it is a large company or a QSE of the following criteria: the measured unit has the capacity to significantly increase revenues for the energy beneficiary by providing new or renewed contracts. Supplier development has the potential to ease one of the most critical constraints for small businesses – market access. Guaranteed contracts are often a turnkey condition for financing; As part of a supplier development program, recipients often have funding opportunities. Enterprise Development (ED) and Supplier Development (SD) is one of the three priority elements of the Broad-Based Black Economic Empowerment (B-BBEE) scorecard. A company must reach a minimum of 40% of the categories on the ED and SD scorecards (without bonus points). SD 4 points out of 10 points and ED 2 points out of 5. The 40% failure to comply with the waterproofing results in a one-step drop in the B-B-BBEE dashboard.

An entity may make monetary or non-monetary contributions to a recipient unit. Requirements may be different when a company is audited on the basis of a specific sector code. Contributions to the development of the business in the form of a shorter payment period; limited to a maximum of 15% of the bill amount and 1.5 of the 10 points to earn a contribution to business development points on the scorecard, it must be: 1. Made to a Qualifying Enterprise 2. Defined as Enterprise – Supplier Development Contribution by benefit Matrix SD Contributions are made to companies that are already part of the current Supply Chain of Measured Entity (ME). DE contributions are made to companies that are not part of the ME supply chain. Why are Enterprise and Supplier Development the priority among B-B BEE codes? Below are the most common types of contributions ME makes to ED or SD recipients: this element is also a « priority element » that requires companies to get at least 40% of the points in each sub-element to prevent an EED level from falling. Supplier development is a global concept, but according to B-BBEE codes, supplier development in South Africa is defined as the development of the enterprise, which takes place specifically in the supply chain of the measured entity. The new codes combine business development, supplier development and procurement in a 40-point section out of a total of 105.