Do you qualify to be an Empowering Supplier? An answer of NO could seriously impact your BEE status. If a company fails to meet the Empowering Supplier Status requirements then their entire scorecard is not able to be used by their customers. It is therefore vitally important to ensure that each criteria is carefully analysed to confirm compliance. If not then a great deal of effort should be placed on becoming an Empowering Supplier.

EconoBEE prepared a short video with our expert consultants to help explain the Empowering Supplier Status.

Contact our team of experts for additional assistance.

Criteria

  • Can only be an Empowering Supplier if a good corporate citizen – in compliance with all regulatory requirements
  • Generics must meet three conditions to be an Empowering Supplier
  • QSEs must meet one condition to be an Empowering Supplier

(a) At least 25% of cost of sales excluding labour cost and depreciation must be procured from local producers or local suppliers in SA, for service industry labour cost are included but capped to 15%.
(b) Job creation – 50% of jobs created are for Black people provided that the number of Black employees since the immediate prior verified B-BBEE Measurement is maintained.
(c) At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging.
(d) Skills transfer – at least spend 12 days per annum of productivity deployed in assisting Black EMEs and QSEs beneficiaries to increase their operation or financial capacity.
(e) At Least 85% of labour costs should be paid to South African employees by service industry entities