South African Government

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Black Business Supplier Development Programme (BBSDP)

The Black Business Supplier Development Programme (BBSDP) is a cost-sharing grant offered to small black-owned enterprises to assist them to improve their competitiveness and sustainability. This helps them to become part of the mainstream economy and to create employment.

The programme provides grants to a maximum of R1 million:

  • R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis    
  • R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost-sharing basis.

Objectives of the Incentive Scheme

  • To fast-track existing Small, Medium and Micro Enterprises (SMMEs) that exhibit good potential for growth into the mainstream economy;
  • To grow black-owned enterprises by fostering linkages between black SMMEs and corporate and public sector enterprises;
  • To complement current affirmative procurement and outsourcing initiatives of corporate and public sector enterprises; and
  • To enhance the capacity of grant recipient enterprises to successfully compete for corporate and public sector tenders and outsourcing opportunities.

Qualifying criteria of the Incentive Scheme

  • Fifty-one per cent black majority shareholding;
  • R250 000 to R35 million turnover per year;
  • One year in operation and trading as a business;
  • Fifty per cent management positions held by black people (historically disadvantaged individuals);
  • Enterprises formally registered for VAT;
  • Eligible to obtain funding to a maximum of R1 million:
    o R800 000 for tools, machinery and equipment on a 50:50 cost-sharing basis; and
    o R200 000 for business development and training interventions per eligible enterprise to improve their corporate governance, management, marketing, productivity and use of modern technology on a 80:20 cost-sharing basis; and
  • Be operating and trading for at least one financial year at the sole discretion of DSBD, an enterprise that has been operational/registered for less than a year may be considered for this incentive, provided that the enterprise can supply sufficient evidence to service a tender/contract.

In order to access the scheme we are using Network Facilitators.NB: Network Facilitators are independent contractors who act as honest brokers between DBSDB and black enterprises seeking assistance under BBSDP. A National list of Network Facilitators can be found on our website address shown below and you can call one from the list for assistance.

Find out more about the programme from the Department of Small Business Development.