Procuring A Preferential Score For BEE

This element of the Codes deals with your supply Chain and measures the extent to which you buy goods and services from BEE compliance suppliers and black-owned entities.

Preferential procurement is one of the most important elements of the BEE balanced scorecard and it comprises the main thrust of BEE. This is because it is this element that has the effect of promoting BEE compliance by all entities and encouraging transformation throughout the entire economy. This creates the "filtering down" effect of BEE in that it brings everybody that sell goods and services in South Africa within the realms of the BEE environment, notwithstanding that the Broad Based Black Economic Empowerment Act, in terms of which the BEE Codes are promulgated, stipulates that it is only binding on organs of state and public entities.