CODE 500 - MEASUREMENT OF THE PREFERENTIAL PROCUREMENT ELEMENT OF BBBEE.

The preferential procurement Element measures the extent to which organisation procures goods and services from other broad-based black empowerment organisations, which include micro enterprises and qualifying small enterprises. 

This element penalises organisations that does not support other BEE rated organisations, by zero-scoring.

We provide the organisation with guidance and we assist the organisation in obtaining the BEE ratings of its suppliers. We also assist the suppliers of the client in obtaining a BEE rating.

The Act creates a  “domino” effect by requiring organisations to obtain a rating should they wish to continue doing business with the State and listed companies. The organisation in turn requires the BBBEE rating of their suppliers as this will positively or negatively influence their own BBBEE rating.

An organisation with a BBBEE rating will prefer suppliers with a high BBBEE rating as this will positively affect their own status