Procurement Policy

Total South Africa is part of the multinational French-based energy company, which holds a 50,1% interest in the local operation. The remaining shares are held by BEE partner TOSACO (25%) and Remgro (24,9%).

TCS (Tosaco Commercial Services) is TOTAL South Africa's BEE partner. 

Procurement Policy

An aggressive procurement policy to enhance Black economic empowerment has been adopted by TOTAL South Africa. The initiative is intended to address the economic imbalances in South Africa by bringing Black entrepreneurs into the mainstream of the South African economy.

Black Economic Empowerment companies that will be considered as suppliers to TOTAL, are companies with

  • Majority shareholding
  • An effective controlling shareholding, and
  • A majority of the board of directors.

The company also sees Black economic empowerment as a process designed to benefit BEE companies.

Potential suppliers, when applying for registration or wishing to tender, must provide a statement of their ownership/control and internal Black Empowering Programme for assessment. Areas to be covered by such a statement are:

  • Black ownership
  • Black management
  • Skills transferred to Blacks using existing suppliers
  • Commitment to purchasing from Black economic suppliers

In accordance with the policy adopted, a Black Economic Empowerment supplier to Total will include benefits such as conducting supplier forums annually, providing guidance and training with regard to financial management, marketing and procurement among others, a shared database of equity partners and an enabling and positive environment for those contracted to Total South Africa.

Since 2001 Total has made much progress in promoting Black Economic Empowerment as part of its procurement policy. The transport and security functions were outsourced putting some R30 million into BEE companies. In 2001 the money spent with BEE suppliers was 16 percent of the company's total expenditure.