Gazette No.41709 For Public Comment Summary

Introduction

The DTI has issued a Draft Gazette No. 41709 on the 15^th of June 2018, this document is open for 60-day public commentary.

Proposed Changes

The proposed changes outlined in the Draft Gazette are summarized below:

Skills Development

1. Absorption will mean a learner securing a long-term contract of employment (also defined in Gazette No.41709) and will no longer include proceeding with further education and training.
2. Critical Skills is tightened to mean as defined by the relevant SETA and not any SETA.

Preferential Procurement

1. The definition of a Designated Group supplier is clarified as 51% ownership by Black Designated Groups.
2. A new recognition multiplier of 2.0 is introduced for purchases for suppliers that are 51% Black Owned or 51% Black Women Owned utilising the Flow-Through Principle.
3. 30% Black Women Owned means an Entity where Black women own at least 30% and not more than 30%.
4. The Preferential Procurement Scorecard is amended as follows:-

• The two separate indicators for purchase from EMEs and QSEs are merged into one with 5 Points and a target of 25%. Purchases from Generic entities that are 51% Black owned are also included under this indicator, so long as they are 51% black owned via flow-through.
• Indicator 2.1.4 relating to purchases from 51% Black Owned suppliers becomes 2.1.3 and the points and target are increased from 9 to 11 and 40% to 50% respectively.

Enterprise & Supplier Development

1. Suppliers to the measured entity cannot benefit from Enterprise Development contributions.
2. The recognition of guarantees provided on behalf of an Enterprise or Supplier Development beneficiary is increased from 3% to 50%.
3. The definition of qualifying Enterprise & Supplier Development beneficiaries is changed to EMEs, QSEs or Generic Entities that are 51% Black or 51% Black Women Owned utilizing the flow-through principle.

Thrive Corporate Advisors is a Broad-Based Black Economic Empowerment (“B-BBEE”) consulting and advisory firm which assists the corporate sector with all aspects of B-BBEE legislation.