PREFERENTIAL PROCUREMENT
The preferential procurement performance of the
group for 2011 has exceeded internal expectations. The
broad-based black economic empowerment (BBBEE)
overall spend stands at 99,58%. In the subcategories
SME spend stands at 32,33% against a 15% target,
black-owned (BO) spend is 10,47% against a 9%
target, and black-women-owned (BWO) spend is 4,50% against a 6% target. These results translate into
a very credible achievement of 19,50 points on the
preferential procurement scorecard out of a possible
20 points.
These achievements are a direct result of the buyin
and cooperation of the various Nedbank Group
business clusters and the groupwide commitment from
business units to adhere to the group's preferential
procurement policies.
LOCAL PROCUREMENT ACCORD
Representatives of business, organised labour, the
community constituency and government met in 2011
and have concluded an accord on promoting local
procurement. The parties to the accord, with Nedbank
Group taking a leading role, recognise the importance of
local procurement in promoting jobs and industrialisation.
Government has undertaken to provide the necessary
standards for measurement and verification of
local content. Nedbank Group, as part of organised
business, has committed itself to improving the levels
of local procurement through the identification of
imported goods and services that can be replaced with
economically viable local equivalents.
As a first step, Nedbank Group has commenced with
the production of high-level management information
indicating that the bank currently procures 77%
of goods and services locally. This management
information will be upgraded as the standards and
verification processes become clearer. The bank is in
the process of updating the vendor onboarding system
to allow for the identification of local procurement
credentials. These initiatives will allow Nedbank Group
to review its supply chain and key vendors with a
view to increasing local content and with an objective
of formally reporting on progress with effect from
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