Black Business Supplier Development Programme

The BBSDP is a 90:10 cost-sharing cash grant incentive scheme for black-owned businesses in South Africa. The Department of Trade and Industry contributes 90% of the cost of a project and the approved applicant 10%. The scheme provides access to business development services that assist companies to improve their core skills, managerial capabilities and streamline their operations to become more competitive.

Objectives of the incentive scheme

  • To fast track existing SMMEs that show good potential for growth into the mainstream economy
  • To grow black-owned enterprises by fostering linkages between black SMMEs and the corporate and public sector enterprises
  • To balance current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises
  • To enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.

Qualifying criteria of the incentive scheme

  • Companies that are majority black-owned (fifty plus one share) and have a significant representation of black managers on their management team.
  • Enterprises have a turnover of no more than R12 million per annum.
  • The company must have a minimum trading history of one year
  • If the company is registered for less than a year, but has been operating previously, the following proof must be submitted: (registration with local municipality and VAT registration) or invoices to confirm trade activity.
  • Companies should comply with all the relevant regulations, e.g. they must be registered with CIPRO and SARS.

Benefits of the incentive scheme

  • The maximum grant amount that a company can qualify for is limited to R100 000 (one hundred thousand rands).
  • The requested amount should not exceed 25% of the entity's previous year's turnover.
  • Enterprises will exercise their own choice in selecting service providers, subject to the constraint that at least three competitive bids are obtained in the selection process. Enterprises do not necessarily have to select the lowest cost service providers. The profile(s) of the service providers must also be submitted.  In a case where a higher quote is chosen, a good motivation letter from the grant applicant must be provided. Cited: dti, 2009.

For more information on BBSDP, visit the dti website:

 

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