Beyond the Tick-Box

Enterprise Supplier Development (ESD), a pillar of the Black Economic Empowerment Codes in South Africa, was designed to build supplier-grade, black-owned SMEs and to widen their access to South Africa’s corporate supply chains.

The spend is substantial, exceeding R150 billion over the past five years, but too much of it still prioritises activity over results. Money moves, workshops are counted, vendors are registered, yet the real markers of progress – capability, contracts, repeat spend and retention – remain patchily measured and weakly incentivised.

This report argues for a simple pivot: keep verification rigorous but point it squarely at outcomes that matter to firms and to the economy.

What next?

Your feedback on what resonated, and what was missing will contribute to the ongoing research and discussion on impactful ESD. Please take a moment to share your insights with us.