What is Enterprise Supplier Development
Definition of ESD The basis for Enterprise and supplier development (ESD) for corporates is the B-BBEE Act (as Amended) and the Codes of Good Practice. The primary purpose of the BBBEE Act and the Codes is to address legacy segregation and imposed policies of the Apartheid government in the South African economy.
According to the BEE Commission, the purpose of the Enterprise and Supplier Development (ESD) is “to promote a conducive environment for creation of sustainable partnerships between Corporate South Africa and black entrepreneurs to enable access and transformation of the value chains.”
The difference between BEE and B-BBEE
BEE refers to the government’s policy which seeks to right the wrongs of the past and to distribute the wealth of nation across all races and genders, as well as growth, development and sustainable development of suppliers. B-BBEE is the implementation of the policy. Both refer to the same strategic framework to promote meaningful participation of the black majority in the country’s economy.
ESD is a component of Preferential Procurement and seeks to strengthen and diversify a Corporate’s Supply Chain while simultaneously stimulating economic transformation and job creation.