BBSDP.

The South African Department of Trade and Industry (the dti) is a government department with a vision to facilitate a globally competitive and dynamic industrial South African economy through promoting structural transformation, provide a competitive, predictable, equitable and socially responsible environment that is conducive to investment, trade and development of enterprises and entrepreneurs. The South African Department of Trade and Industry (the dti) is a government department with a vision to facilitate a globally competitive and dynamic industrial South African economy through promoting structural transformation, provide a competitive, predictable, equitable and socially responsible environment that is conducive to investment, trade and development of enterprises and entrepreneurs.

 

The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to black-owned small enterprises to assist them to improve their competitiveness and sustainability to become part of the mainstream economy and create employment.

The programme provides grants to a maximum of R1 million:
–  R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; and
– R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on an 80:20 cost-sharing basis.

Objectives of the incentive scheme

– To fast-track existing Small, Medium and Micro Enterprises (SMMEs) that exhibit good potential for growth into the mainstream economy;
– To fast-track existing Small, Medium and Micro Enterprises (SMMEs) that exhibit good potential for growth into the mainstream economy;
– To grow black-owned enterprises by fostering linkages between black SMMEs and corporate and public sector enterprises;
– To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises; and
– 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

– Fifty-one percent (51%) black majority shareholding;
– Fifty-one percent (51%) black majority shareholding;
– R250 000 to R35 million turnover per year;
– One (1) year in operation and trading as a business;
– Fifty percent (50%) management positions held by black people (historically disadvantaged individuals);
– Enterprises formally registered for VAT;
– Eligible to obtain funding to a maximum of R1 million:

  • R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; and
  • R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost-sharing basis; and
  • Be operating and trading for at least one financial year – at the sole discretion of the dti, an enterprise that has been operational/registered for less than a year may be considered for this incentive, provided that the enterprise can supply sufficient evidence to service a tender/contract.

Downloadable Files

BBSDP Guidelines
Declaration by Consultant
BBSDP – Requirements
BBSDP Application Form

NB: To apply for the BBSDP, applicants should contact any of the accredited Network Facilitators (e.g. Neszette Wilson of CostPerform), who will assist your company with completing and submitting the application to the dti.

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