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THE

BEECHAMBER

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NEWS

51% BLACK OWNED

Writer: Newsletter EditorNewsletter Editor
The Preferential Procurement element is a critical component of the Broad-Based Black Economic Empowerment (B-BBEE) framework in South Africa, aimed at promoting economic participation among historically disadvantaged groups.

The Preferential Procurement element measures the way a Measured Entity procures goods and services from Suppliers. One of the key point Indicators under the General Amended B-BBEE Codes of Good Practice is the spend on Suppliers that are at least 51% Black Owned based on the applicable B-BBEE Procurement Recognition Level. As per Schedule 1 of the General Amended B-BBEE Codes of Good Practice, 51% Black Owned is defined as:

 

An Entity in which:

 

(a)    Black people hold at least 51% of the exercisable voting rights as determined under Code series 100;

(b)   black people hold at least 51% of the economic interest as determined under Code series 100; and

(c)    has earned all the points for Net Value under statement 100;

 

Enterprise & Supplier Development Services are available to assist Members with analysing their Supply Chain from a B-BBEE perspective.

 
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