The IDC is committed to promoting economic growth through the advancement of preferential procurement from Historically Disadvantaged Individuals (“HDI’s”) and the promotion of local production. Spend with Local Suppliers refers to all discretionary procurement spend facilitated through the IDC Procurement Department with Suppliers of materials, products and services trading from premises which are physically located within the borders of South Africa.
During the financial year, the IDC spent more than 90% of its total discretionary procurement spend with locally based suppliers.
The IDC is a Level 2 BEE Contributor based on an independent review undertaken by a SANAS (“South African National Accreditation System”) accredited rating agency.
During the year under review, the IDC introduced policy changes to enable increased participation of Black Owned Entities in its procurement processes. This resulted in a procurement spend with Black Owned Entities of about 80% of the total awarded procurement transactions through targeted procurement activities. In addition, the IDC continues to engage its suppliers on transformation commitment plans and to have this as an integral part of the conditions of contract. The objectives are to improve inclusive development and economic transformation through the procurement function. During the year under review, the IDC also concluded a procurement contract which forged a partnership agreement with a Black Owned Entity to promote its exposure and development on strategic financial transactions.
Through its commitment to Government’s national broad-based black economic empowerment (“B-BBEE”) and transformation goals, the IDC is playing an important role in supporting Government’s initiatives towards a sustainable economy and people who actively participate in it.