Large companies can gain 60 points from BBBEE simply by introducing ESD and SD in their plans. Bayanda Business Academy will show you how to achieve this

1. Improving BBBEE
Scorecard through Training
and Entrepreneurship
BAYANDA BUSINESS ACADEMY
WWW.BAYANDA.ORG.ZA
INFO@BAYANDA.ORG.ZA

2. Presentation Outline
• Introduction
• Purpose of presentation
• NEW BBBEE codes
• Skills Development
• Enterprise Development Proposal

3. Introduction
Ownership
Management
Skills
Development
Enteprise and
supplier
Development
Socie-economic
development

5. Introduction
Skills Development Training accounts
for 20% of the BBBEE score card
Enterprise Supplier Development
accounts for 40%
These 2 element should be
emphasised in an effort to improve
your score card
Bayanda has what it takes to enable
your company to have a
comprehensive SD and ESD
programme for maximum BBBEE
points

6. BBBEE levels
There are 118
possible points

7. Purpose of Presentation
To introduce Bayanda Business Consulting and
Bayanda Business Academy as service provider
for BBBEE Consulting and SETA Accredited
Training Provider
To demystify BBBBEE codes as it relates to
Skills Development (SD) and Enterprise
Supplier Development (ESD)
To demonstrate how Bayanda Business
Academy can enable your company to score
maximum points on Skills Development
points and Enterprise Supplier Development

8. Scoring Skills Development Points
BBBEE
points
Compliance Target
Place EMPLOYEES in a learnership,
apprenticeship or internship
4 2,5% of total employees
Train UNEMPLOYED black people 4 2,5% of total employees
Skills Development EXPENDITURE of black
people learning programme
8 6% of leviable amount
Skills Development Expenditure of black
people with disabilities learning programme
4 0.3% of leviable amount
An employee any person, excluding an independent contractor, who works for another person or
for the State and who receives, or is entitled to receive, any remuneration (LRA)
Excludes employees contracted under the Temporary Employment Services

9. Skills Expenditure Costs are refundable
20% refund on Mandatory Grant from SETA of
the TOTAL Annual Skills Development Levy
paid to SARS. (Mandatory grants are a refund
against all monies contributed towards the
skills development levy and not on monies
spent on training.
Discretionary Grant from SETA for employed
black people on a learnership up to R18,000
and R36,000 for unemployed learner per
person
SARS rebates of up to R30,000 per learner
Terms and Conditions
Subject to the timeous receipt of a correct
WSP/ATR by the SETA (30 April)
The learnership must be with an accredited
service provider
The learnership must be registered with a
SETA.

10. Skills Development Expenditure
Training material
Trainers
Bursaries
Accommodation and Travel
Facilities, catering, venue hire
Course fees
Stipends (salaries) of black people on
learnership
EXCLUDES sectoral training such as health and
safety

11. Skills Development Documents
Workplace Skills Plan
Annual Training Programme
Pivotal report
Learning Programme Matrix
Training Tracking Tool
Accurate proof of expenditure

12. Bayanda Business Consulting:
Skills Development
External Skills Development Facilitator
Develop a Workplace Skill Programme
Develop learning programme matrix
Design a learnership, apprenticeship or internship
programme
Learning interventions for employed and unemployed
black people including those with disabilities
Register your learnership with SETA
Track and monitoring report template
Conduct training in artisans and entrepreneurship
 Assist you claim Mandatory Grant for doing training
Ensure you get minimum of 20 BBBEE points

13. Skills Development for Job Creation
70% of unemployed people are youth
600,000 of whom have a university degree
SMME employ 13,4 million South Africans
SMME contributed more than 2/3 of National
GDP
Entrepreneurship is the main driver for job
creation and economic growth
There is no college in South Africa which focuses
only on teaching entrepreneurship, until now.

14. Training Programme
SETA Accredited
32 Unit Standards,
Marketing,
Managing Finance,
Business Plan,
Costing
MERSETA Accredited
in partnership with Majuba and
Welding
 Carpentry
Plumbing
Brickmaking
◦ Entrepreneurship Training Pivotal Training.

15. Skills Programme 1.Entrepreneurship
Course

16. Skills Programme: Procurement,
Tendering and Costing

17. Skills Programme 3: Business
Management and Leadership

18. Enterprise Supplier Development
Accounts for 40 points
Minimum compliance target of 40%
Failure to reach 40% minimum results in score
being dropped a notch below
It has 3 elements
a) Preferential procurement
b) Supplier Development
c) Enterprise Development

19. Enterprise Supplier Development
•Supplier and Enterprise Development can only be done for 51% or more Black Owned Businesses;
•These 51% or more Black Owned Businesses must have a turnover of less than R50 million per
annum;
•You cannot claim money spend on Supplier Development as money spend on Enterprise
Development;
•Supplier and Enterprise Development can only be done on existing businesses;
•The spend on these two sub-elements must be quantifiable in a monetary value;
•There must be a formal written agreement between your business and the recipient of Supplier or
Enterprise Development;
•The recipient must show its gratitude by means of a Letter of Appreciation
For Supplier Development you will have to spend 2% (1% QSE) of your nett profit after tax per annum and
For Enterprise Development you will have to spend 1% (1% QSE) of your nett profit after tax.

21. Amount Supplier Level Recognition Level
R25 000 1 1.35 * R25 000 = R33 750
R25 000 8 0.10 * R25 000 = R2 500
Total: R50 000 R36 250
Percentage of preferential procurement: R36 250/R50 000 = 72.5%

22. Value adding or Empowering Supplier
Requirements for an empowering supplier are
• A “BBBEE compliant entity” (level 1-8)
• Complying with all “regulatory requirements”;
and
• A large enterprise (>R50 mil turnover) meeting
at least three of the following criteria or one if it
is QSE(R10 mil to R50 mil turnover
• At least 25% cost of sales (excl labour cost)
must be procured from local producers or
suppliers in SA
• 50% of jobs created are for black people
• At least 25% transformation of raw
material
• Skills transfer-at least 12 days per annum
of productivity deployed in assisting Black
EME and QSEs beneficiaries

25. Principles of ESD
 To strengthen local procurement in order to help South
Africa’s industrial base in critical sectors of production
and value adding manufacturing which are labour
intensive
 To increase, strengthen and support procurement from
black owned QSEs and EMEs allowing them an
opportunity to participate in the mainstream economy
 Increasing local procurement leads to job creation in
South Africa
 To promote the use of Black Suppliers and Professional
Service Providers
 To encourage measured entities to align their supply
chain with enterprise development and supplier
development

26. ESD
The measured Entity should develop a Enterprise and Supplier Development Plan that show
• Priority Intervention
• Key Performance Indicators
• Implementation Plan with milestones
• Bayanda Business Academy can assist you develop this plan

27. Examples of Enterprise Development
• Provision of training or mentoring by suitably qualified
entities to beneficiary entities enabling them to increase
their operational and financial capacity
Bayanda can be contracted to identify
and train youth entrepreneurs
Maintenance of an Enterprise and Supplier Development Unit
which focuses on support or beneficiary entities or candidates Bayanda to assist set it up
Payments made to suitably qualified and experience
third parties to perform ED and SD on behalf of the
entity
Bayanda is accredited and qualified to
perform this

28. Other ESD costs
Loans, discounts, credit facilities to beneficiary entities
Direct cost incurred in assisting development of beneficiary entities
Overhead costs attributable to ESD contributions
Preferential credit terms
Facilitating access to credit
etc

29. Short term Proposal for Enterprise
Development
•Bayanda has a SETA accredited course on entrepreneurship which
can be used to train unemployed black youth comprising of women
and people with disabilities.
•The entrepreneurship course includes business registration, tax
clearance certificate and BBBEE certificate
•The graduates from the course become suppliers to your company
and create own jobs. Scoring 2 bonus point.
•They can supply groceries, PPE, stationery etc

30. Recommendations for ESD
1. request all your suppliers for BBBEE
certificate.
2. Use my spreadsheet to audit your
Procurement spend.
3. Calculate your 1% and 2% NPAT value
4. Outsource your ESD Programme for
Bayanda to run and manage
GET ON WITH RUNNING YOUR BUSINESS!
80% of procurement should be on a VA
supplier

31. Red Seal Placement
Accredited as a Temporary Employment Agent
Placement
Screening, vetting of candidates
Verification of Trade Certificates
Accredited by QCTO of SAQA

32. Thank you!