ENTERPRISE DEVELOPMENT

The Enterprise Development policy has the objective of using the Company’s economic muscle to support the growth of HDSA companies and to assist in the emergence of small, medium and micro enterprises (SMMEs). Wherever possible the Group ensures that HDSAs and SMMEs are afforded preferred supplier status.

Recognizing the inequities of the past and the importance of giving preference to previously disadvantaged suppliers, Avidity Energy (Pty) Ltd is committed to affirmative procurement as a valuable tool to establish and support a competitive, sustainable and viable base of Black owned businesses that will contribute to the mainstream economy.  In line with existing Company procurement practices and with a view to aligning the Company with current government policy, the Preferential Procurement Policy defines and formalise these practices while recognising the need not to compromise the quality and efficiency of goods and services supplied to Avidity Energy (Pty) Ltd.

The affirmative procurement policy governs all purchasing and subcontracting of goods and services required by the Company, with preference will be given to Black Business Enterprises (BBEs) that reflect a combination of the following factors/activities;
-  Black equity ownership;
-  Black management at executive level (decision making control);
-  Black women equity ownership;
-  Proven commitment to Black economic empowerment;
-  Purchases from BBEs;
-  Subcontracting to BBEs;
-  Transfer of skills to BBEs;
-  Joint ventures with enterprises owned or managed by Black people

Specific objectives of the policy include:
-  To ensure that wherever possible Avidity Energy (Pty) Ltd will procure products and services through companies and
   organisations partially or wholly owned by PDIs, while not compromising standards of service
-  To ensure that goods and services are increasingly purchased from Target Groups (PDIs, with preference given to
   Black suppliers) and from suppliers who have a clear and proven commitment to PDI economic empowerment; this
   means that economic empowerment criteria will be taken into account in the appointment of suppliers, including
   consultants, contractors and vendors, etc
-  To create an environment to make it easier for Target Groups to do business with the Company
-  To encourage the development of entrepreneurship and business skills within PDI communities
-  To create awareness and support of economic empowerment objectives among key stakeholders
-  To encourage established businesses to contribute to PDI economic empowerment
-  To encourage employment creation by providing business opportunities to PDIs
-  Ultimately, to contribute to the process of structural change that will ensure participation in the economy that is in
   line with the demographic profile of South Africa’s population