Telkom explains ‘no white-owned businesses’ tenders
Some of Telkom’s tenders require a minimum effective black ownership of 50.1%, disqualifying any white-owned businesses from the tender process. Telkom explained that this is needed to increase access for Telkom opportunities to black-owned, black-female-owned and qualifying small enterprises.
In Telkom’s armed response network protection tender, for example, the minimum requirements for bidders include being a level 4 BBBEE contributor, and having an effective black ownership of 50.1%.
These minimum requirements disqualify white-owned businesses, raising questions about the impact of these strict BBBEE rules on white entrepreneurs trying to break into the telecoms market.
However, Telkom explained that only a small portion of their tenders (aka, set-aside tenders) have the 50.1% black ownership requirement.
“Telkom’s preferential procurement policy makes provision for set-aside tenders – i.e. black-owned; black-women-owned; qualifying small enterprises; and exempted micro-enterprises,” Telkom said.
“Set-aside tenders are enablers to increase access for Telkom opportunities to black-owned, black-women-owned and qualifying small enterprises, and also to comply with the DTI B-BBEE codes of good practice targets.”
Telkom said that the guidelines to determine set-asides projects include:
- Enterprises’ ability to provide such a product or service;
- Concentration of black-owned enterprise; black-women-owned enterprise; or qualifying small enterprises in that sector.
“The BEE critical criteria required for most tenders is a level 4 B-BBEE recognition level, to balance participation by all enterprises,” Telkom pointed out.
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