How the enterprise and supplier development elements of B-BBEE work, and how a technology supplier’s level affects its customers — framed honestly.

dgm is an independent integration partner for osFoundry — it is not affiliated with osFoundry’s maker (OS LLC) and has not yet completed an integration project for any client.

The enterprise and supplier development elements of B-BBEE let larger companies support smaller black-owned suppliers. They are scorecard elements, not a fund that buys AI software — and a technology supplier’s own B-BBEE level shapes its customers’ procurement points.

How ED and SD work

  • Enterprise and Supplier Development is one of the five B-BBEE scorecard elements and combines preferential procurement, supplier development and enterprise development.
  • Through enterprise development and supplier development, a larger company can support and develop smaller black-owned suppliers.
  • These are reasons a buyer prefers a higher-B-BBEE-level supplier; they are not a pot of money that pays for the buyer’s AI software.

What a technology supplier’s level means

  • A supplier’s own B-BBEE status level determines how much procurement credit its customers earn by buying from it — a better level means the customer recognises a higher share of that spend.
  • That status level is earned through a verification agency and measures the supplier’s transformation; it is not an accreditation to deliver an incentive.
  • A supplier such as dgm adopting or implementing a tool like osFoundry is a commercial relationship; B-BBEE shapes supplier preference, it does not fund the software.

The honest framing

Public support in South Africa funds the company’s own research, development or innovation, or gives it a tax break — it does not buy an off-the-shelf AI subscription. The section 11D R&D tax incentive offers a 150% deduction on approved R&D, requires pre-approval by the Department of Science and Innovation and has been extended to 31 December 2033; the Technology Innovation Agency (TIA) and the Small Enterprise Development and Finance Agency (SEDFA, formed in 2024 from SEDA and SEFA) fund innovation and small enterprises; and DTIC sector programmes such as the Global Business Services (GBS) incentive and the automotive APDP support specific industries. Separately, Broad-Based Black Economic Empowerment (B-BBEE) is a procurement and empowerment scorecard, not a grant: a supplier’s B-BBEE level affects how many procurement points its customers earn, so it shapes who buyers prefer rather than paying for software. dgm is not a registered or accredited provider of any of these programmes; it can advise a beneficiary or act as a subcontractor.

Where dgm comes in

dgm is an independent integration partner that helps organisations in South Africa adopt the osFoundry platform — from identifying the first practical use case, to setting it up, to connecting AI to the systems you already run. dgm can help identify which parts of your activity might qualify — without committing that any incentive will be granted. dgm operates separately from osFoundry’s maker (OS LLC) and has not yet completed an integration project for any client, so everything above is a proposed service rather than a delivered outcome. If you would like to weigh up a practical first step, dgm would be glad to think it through with you. Arrange an introductory call with dgm.

This article is general information and is not legal, financial or tax advice. Incentives, tax rates and regulations change; always confirm the current position with an official source (SARS, the Department of Science and Innovation, the dtic, the Information Regulator, the FSCA or the relevant authority) or a qualified adviser before you act.