Jun 181 min read

EITHER, OR, BUT NOT BOTH

The distinction between Enterprise Development and Supplier Development beneficiaries is crucial within the framework of Broad-Based Black Economic Empowerment (B-BBEE) in South Africa. While a single beneficiary can transition between these roles over time, they cannot hold both statuses simultaneously.

Over time, one Beneficiary can be an Enterprise Development and Supplier Development Beneficiary. However, they can only be either an Enterprise Development or Supplier Development at a particular time. Put another way, they may over time represent both elements, but it must be at different time frames, typically an Enterprise Development Beneficiary is elevated to that of the Supplier Development one. A simple determination is based on role they play in the supply chain.

Clause 3.8 under Statement 400 of the Amended General B-BBEE Codes of Good Practice states:

3.8 A Supplier Development Beneficiary is a part of the Measured Entity’s supply chain, whereas an Enterprise Development Beneficiary is not.

Enterprise & Supplier Development Services are available for Members to understand Beneficiary requirements.