Welcome to Alternative Procurement

Procurement

Maximise your BBBEE Preferential Procurement points by converting existing non-compliant spend on Imports into the highest possible Preferential Procurement points, while enjoying the benefit of credit terms. Our solution converts any import into Level 2 BBBEE spend with a 100% Black Women and Designated Group owned entity.

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Many companies have either structured their “own” 100% Black-Owned procurement intermediary business or use “procurement platforms” set up by BEE consultants, only to later discover it falls short of the requirements of the B-BBEE Act – particularly the fronting provisions. Fronting, being a criminal offence, carries a potential penalty of 10 years in prison and/or 10% of the revenue of the business.

These intermediary structures or procurement platforms often include one or more of the following – each of which constitutes fronting under B-BBEE law:

  • Restrictions on the choice of clients, suppliers, or service providers (whether implicitly or explicitly).
  • Limited resources and capacity to grow the intermediary, typically with personnel transferred or seconded from the company itself.
  • Limited funds or banking facilities, resulting in the company paying upfront for inventory – something it would not do with an independent supplier that has a small balance sheet.
  • Terms and conditions negotiated with the intermediary are not at arm’s length.
  • Multiple intermediary entities are created to keep the revenue of each below R50 million.
  • Profits are deliberately minimised to keep costs to the company as low as possible.

In our experience, companies lack the financial incentive and discipline to develop the intermediary or platform into a truly independent and sustainable business that empowers its black shareholders.

Alternative Procurement solves this!

Alternative Procurement retains independence from its customers and provides significant value-added services for which it charges a fair, market-related margin. This eliminates fronting risk entirely while maintaining your procurement costs through an innovative pricing model, giving you full compliance without additional financial burden.

Fronting is expensive – we’re not. Secure full compliance, save money, and eliminate legal stress all in one. Let’s get started!

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Who We Are

Fully BEE compliant incorporated joint venture:

  • 100% Black Owned
  • 100% Women Owned
  • 100% Black Designated Group Owned

World first offshore independent B-BBEE strategic Supplier & Procurement Partner:

  • Expert BEE knowledge
  • Expert trade finance knowledge
  • Expert supply chain & logistics knowledge

The BEE Procurement Challenge We Solve

  • Imports may only be excluded if the goods or services:
    • are not locally produced at all (and then only under certain specific circumstances)
    • do not fall within so-called protected industries
  • Therefore – in general, imports do not contribute to the PP scorecard (at best they can be excluded). In most cases imports seriously impede the PP score.
  • Our value proposition: Challenge => Opportunity
    • increase the competitive advantage of the Measured Entity
    • while transforming its Imports into BEE compliant procurement

The Solution: Import Replacements

  • Alternative Procurement to analyse and advise on optimal PP solution
  • Convert selected imports into fully compliant BEE Procurement spend by procuring from Alternative Procurement thus close the PP gap
  • We source, procure and supply imported products from existing and new suppliers
  • We take full ownership and risk of goods and deliver to client at port or Distribution Centre
  • Pricing in Rand (ZAR) or client-selected foreign currency
  • Terms provided are 30 to 90 days from statement
  • Independence from clients eliminates risk of fronting

Benefits To The Customer

  • BEE analysis and advice of preferential procurement of measured entity by leading experts in South Africa
  • Procurement from a single BEE supplier that has the financial and operational capacity to close the PP gap of large corporates
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  • Conversion of existing expenditure (sunken cost) into BEE expenditure
    • Score maximum procurement points from imports that are currently:
      • excluded
      • in protected industries
      • negatively affecting procurement points
  • Reduce overall spend on BEE Compliance
  • BEE supplier that adds significant value as end-to-end supply chain solutions provider and therefore not merely pass through procurement
  • Arms-length supplier which is thoroughly capacitated, with no restrictions on its suppliers or clients which mitigates against any fronting risk
  • Enhanced Procurement Recognition:
    • 1.2 multiplication of BEE recognition level for procuring from 100% Black Owned entity
    • 1.2 multiplication of BEE recognition level if measured entity enters into a 3-year procurement contract
    • EME recognition for 5 years if measured entity starts procuring in year 1
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Contact Us

Location

  • Silver Lakes Office Park 1, Block 3, Von Backstrom Blvd., Silver Lakes, Pretoria

Email Address

  • info@youthprojectsnpc.co.za

Phone Number

  • +27 861 11 22 56

Lesego Msebenzi

Lesego is a director of iHoldings Youth Projects NPC and has over a decade of experience in the fields of Governance & Compliance, specialising in Labour. Lesego began her career working for the Department of Employment & Labour as an Inspector in 2004 and worked her way through to the senior ranks until she resigned in 2020.

She founded and wholly-owns Ikamva Lomtha Holdings in 2020, a Corporate Governance and Compliance Consultancy Company that assists with governance and compliance, specialising in Labour. Recently, Lesego also founded Ikamva Lomtha Staffing Solutions, which provides specialist Private Employment Solutions. Lesego is passionate about the upliftment of previously disadvantaged young women from the community she came from and regularly returns to with diverse upliftment projects.

Lesego holds a BA.HSSS(Health Science & Social Services) degree specializing in Psychological Counselling.

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Pieter Odendaal

Pieter is a founding director of iHoldings Youth Projects NPC and its subsidiaries and has decades of corporate finance, private equity, finance and investment experience.

Pieter began his career working for Deloitte as a Financial Institutions Consultant and in 1999 he joined Anglo American as a corporate financier. Thereafter, he joined the South African private equity group Peregrine and subsequently joined African Alliance as CEO of the Lobaka Private Equity Fund. He has also consulted extensively in a corporate advisory capacity, including as a consultant to Deloitte Innovation, the United Nations, Eskom Enterprises and various South Africa government departments.

He currently serves as a director on several privately owned company boards in different sectors. He holds a B.Com. (Accounting) degree (cum laude), is a registered CA(SA) and has passed the CFA examination administered by the CFA Institute.

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Khalid Hassan

Khalid is a well-established qualified Chartered Accountant and executive with strategic management experience as the CEO at WIP Investments and former CFO at the National Union of Metal Workers of South Africa.

He has extensive experience working in the financial sector with organisations in manufacturing, import, wholesale, retail, investments and banking industries. He has a phenomenal knowledge of financial management and its procedures, which he utilises to make strategic financial and management decisions that maximise business operations.

He is an excellent manager who can lead large teams nationally. He aims to maximise his expertise by utilising his experience and qualifications including LLB and M.Com Degrees, adding value to a reputable organisation.

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