CODE 600 – ENTERPRISE DEVELOPMENT
- In the event that new black suppliers are identified that are able to be brought into the Group supply chain but possibly do not meet the required criteria, a process to manage these suppliers fom now on to ensure maximum compliance with the CoGP is:
– Part of the ED spend can comprise dedicated internal enterprise development resources within each entity, and records of actual costs incurred should be maintained. – A dedicated internal resource within each entity is to take responsibility for the measurement and reporting on the number of black QSEs supported, the sustainability of those QSEs and the monetary and non-monetary contributions to be made to them. The impact of this on funding available for the enterprise development budget will be determined and will be the responsibility of the management to whom this function is allocated. – Core competence assessments should be carried out for each identified beneficiary enterprise and progression levels discussed with that identified beneficiary. – For each enterprise development beneficiary, the entity should ensure accessibility of procurement opportunities and that mechanisms are in place to support the beneficiary. These may include early payment or setting aside certain products or services for identified enterprises. – All enterprise development initiatives must be documented between the parties, clearly identifying the area of development and assistance offered.
In Code 600, other common examples of enterprise development spend are:
- Grants or contributions made;
- Investments made in beneficiary entities;
- Guarantees given or security provided for beneficiary entities;
- Loans made to beneficiary entities;
- Credit facilities made available to beneficiary entities;
- Direct costs incurred by measured entity in assisting beneficiaries in hastening development of the beneficiary entity;
- Overhead costs directly attributable to enterprise development contributions;
- Preferential credit terms granted;
- Enterprise development or development capital granted;
- Preferential terms granted for the supply of goods or services to beneficiary entities;
- Payments made to third parties to perform enterprise development on the measured enterprise’s behalf;
- Contributions made to settling service costs relating to the operational or financial capacity or efficiency levels of the beneficiary entity;
- Discounts given to beneficiary entities in relation to the acquisition and maintenance costs associated with the grant to those beneficiary entities of franchise, licence, agency, distribution or other similar rights;
- The creation or development of capacity and expertise for beneficiary entities needed to manufacture or produce goods or services not previously manufactured or produced in the RSA;
- Provision of training or mentoring to beneficiary communities (quantifying the cost of time spent by employees);
- Maintaining an enterprise development unit including cost of employment of staff and other expenses involved in operating the unit, provided that the unit focuses only on the support of beneficiaries and beneficiary communities. Costs are allocated on a pro rata basis;
- New projects promoting beneficiation may constitute enterprise development contributions;
- Provision of finance to beneficiary entities at lower than commercial rates of interest;
- Relaxed security requirements or absence of security requirements for beneficiary entities unable to provide security for loans; and
- Settlements of accounts over a shortened period of time, provided the shortened period is no longer than 10 days.