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Standard Bank ESD Continued...
Posted by Daniel Makhura on 8 May 2017 8:55 AM SAST
More information about the Enterprise Supplier Development
The Enterprise and Supplier Development (ESD) pillar of the revised BBBEE codes, offers companies the opportunity to achieve 40 of the total 100 points required simply by expanding their business.
Furthermore it recognises the challenges of acquiring points within this pillar led to Standard Bank launching a new unit with pioneering solutions designed to benefit both corporates and SMEs, says Diale Mokgojwa, Senior Manager, Enterprise Development at Standard Bank.
“This pillar offers businesses an opportunity to develop sound business focussed partnerships and simultaneously qualify for the necessary points that will impact on their BEE ratings. One of the key requirements is that SMEs must be eligible for contracts with minimum terms of three years, the objective being to bring black SME’s into the core activities of big business.
“By adopting an effective strategy and backing the strategy with a finance partner, we believe that the demands of the legislation can be achieved.”
In addition:
He points out that of the 40 points on offer; 25 points are allocated to procurement from black-owned businesses (entities which are more than 50% black-owned).
The opportunity then arises for companies to ‘on-board’ selected black suppliers, or to incentivise white-owned smaller businesses operating as suppliers to offer equity in their businesses to black participants via arms-length ownership transactions.
