PREFERENTIAL PROCUREMENT
The preferential procurement element aims to drive transformation throughout the economy by encouraging companies to procure goods and services from suppliers that are compliant with the B-BBEE scorecard. By sourcing from empowered suppliers, organisations not only strengthen their own compliance but also help to grow sustainable, black-owned businesses and support South Africa’s transformation objectives.
BBBEE Wise recognises that B-BBEE preferential procurement has become a growing challenge for many businesses. Companies often struggle to keep supplier information up to date and face difficulties collecting and maintaining B-BBEE certificates. To address this, we provide a comprehensive solution designed to make supplier compliance simpler and more effective.
This solution includes a secure online portal that gives clients access to real-time supplier B-BBEE credentials. This shared platform between BBBEE Wise and your business ensures that supplier data is accurate, current, and accessible when you need it most. Beyond data management, our team provides strategic guidance to improve procurement performance and ensure your company meets its compliance goals.
A well-structured preferential procurement policy is essential for meeting the requirements of the B-BBEE Codes of Good Practice and remaining competitive in the market. BBBEE Wise helps you design and implement a procurement strategy that meets your business objectives while contributing to meaningful transformation.
How BBBEE Wise Supports Your Preferential Procurement Process
We assist and advise on every step of the preferential procurement process, including:
- Contacting your suppliers to obtain their latest B-BBEE certificates
- Verifying the validity of all certificates received
- Providing a comprehensive Monthly Procurement Report that highlights your current score, identifies shortfalls, and offers practical recommendations
Monthly Procurement Reporting and B-BBEE Preferential Procurement
Our monthly reports give you a complete overview of your procurement landscape and help you monitor progress against compliance targets. Each report includes:
- B-BBEE level of each supplier
- Certificate expiry dates for proactive renewals
- Spend with top EMEs, QSEs, and Generic suppliers
- Spend with non-compliant suppliers
- Spend with suppliers who do not have valid B-BBEE certificates
- Black and Black Women ownership percentages
- Procurement recognition percentages
BBBEE Wise ensures that procurement data is always accurate and up to date so that you are fully prepared when verification takes place. It is important to remember that a 40% sub-minimum must be achieved for this element to avoid a discounted B-BBEE level.
PREFERENTIAL PROCUREMENT FAQS
What is preferential procurement?
Preferential procurement focuses on encouraging businesses to purchase goods and services from suppliers who are B-BBEE compliant. By sourcing from black-owned and empowered suppliers, companies help drive economic transformation, strengthen supply chains, and improve their own B-BBEE levels. It also contributes to broader goals of inclusive growth and increased participation of previously disadvantaged groups in the economy.
What is measured under preferential procurement?
Preferential procurement measures the extent to which a company spends its procurement budget with B-BBEE compliant suppliers. This includes assessing spend with:
- Exempt Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) that are black-owned
- Suppliers with valid B-BBEE certificates
- Suppliers with higher B-BBEE levels or black women ownership
- Empowering suppliers that meet the criteria set out in the B-BBEE Codes of Good Practice
Performance is evaluated based on the percentage of total spend that meets these criteria, and businesses must achieve a 40% sub-minimum in this element to avoid a discounted B-BBEE level.