Preferential Procurement

The South African Department of Trade and Industry (DTI) defines preferential procurement as “the procurement of goods and services from Empowering Suppliers as a percentage of total procurement”.

ArcelorMittal South Africa`s (AMSA) sustainable development programs and initiatives provide active support to qualifying suppliers, who are participating or may potentially participate in our supply chain, as and when required. These entities play an important role in the growth of the local community and to bring previous disadvantaged individuals into the mainstream economy.

Our Preferential Procurement Philosophy and Policy states to:
  • Promote compliance with legislation relating to broad based economic empowerment (B-BBEE).
  • Support and promote preferential procurement initiatives and projects for purposes of improving procurement from previously marginalized communities.
  • Define and implement procurement instruments benefitting previously marginalized vendors during purchase order and contract allocation.
  • Measure, track and report preferential procurement performance against general scorecard elements as defined by the DTI.
  • Register vendors within AMSA`s national database requires of such vendors to possess a valid Level 4 B-BBEE certificate or better
  • Improve existing contracted vendors B-BBEE level rating annually, and this principle must be encapsulated within contract documents
  • A preferential procurement benefit scale must be applied during the contract tenders evaluation process
The objectives of AMSA`s Preferential Procurement policy is to identify and implement preferential procurement initiatives in support of our strategic targets, and in so doing, ensure annual KPI`s, with respect of the following areas, are achieved:
  • Preferential procurement from qualifying vendors
  • Preferential procurement from EME vendors
  • Preferential procurement from QSE vendors
  • Preferential procurement from BO vendors
  • Preferential procurement from BWO vendors