BROAD-BASED BLACK ECONOMIC EMPOWERMENT

KWAZULU-NATAL2010

SIXTUS SIBETA

          

B-BBEE CODES OF GOOD PRACTICE

B-BBEE ELEMENTS:

Ownership

Management control

Employment equity

Skills development

Preferential procurement

Enterprise development

Socio-economic development

          

REAL B-BBEE CHALLENGES

Stagnation, no growth from EMEs to QSEs, ultimately Large Entities.

Playing ‘locally’ with high B-BBEE activities in big cities, leaving out rural areas and townships.

Ownership problem-black people are still under-represented in terms of race and gender

Administrative, legal and financial constrains-restrict black participation (Property ).

Property ownership is dominated by institutional investors, large private owners, and collective investment schemes. Limited representation of blacks companies in sectors that are more capital and knowledge intensive.

Limited number of black women in controlling positions (Managerial).

Inadequate implementation of BEE, mostly in response to government tender requirements.

          

B-BBEE CODES OF GOOD PRACTICE

B-BBEE Act 53 of 2003, Section 10:

Procurement

Licensing and concessions

Public private partnership (PPPs)

The sale of state-owned entities

          

Micro Enterprises (Turnover R 5m and below)

QualifyingSmall Enterprise

(Turnover btw R5m – R35m)

OtherCompanies(Exceed

Revenue R35m)

Generic Scorecard,with all seven elements

Small Enterprise Scorecard,Select four of the seven elements

All elements weigh 25%

Indicators adapted to small enterprises

Micro Exemption,Automatic Level 4

Recognition

B-BBEE CODES OF GOOD PRACTICE

          

Construction-generic scorecardElement Weighting B-BBEE Codes

(Construction)Contractors Built Environment Professionals

OWNERSHIP 25 25 20

MANAGEMENT CONTROL 10 10 10

EMPLOYMENT EQUITY 10 10 15

SKILLS DEVELOPMENT 15 20 15

PREFERENTIAL PROCUREMENT 20 20 20

ENTERPRISE DEVELOPMENT 15 10 15

SOCIO-ECONOMIC DEVELOPMENT

5 5 5

          

KZN-B-BBEE APPROACH

IMPLEMENTATION PROGRAMMES:

Information dissemination

Skills development for the unemployed

Preferential procurement

Enterprise Development (sector matrix approach)

Partnerships and stakeholder relations

BEE monitoring and evaluation

And Four Work-Streams: SD, ED, FN, PPPFA

          

KZN-B-BBEE APPROACH

SUB- PROGRAMMES:

Women Economic Empowerment

Youth Economic Empowerment

B-BBEE Forums

B-BBEE Finance Market & Partnership

B-BBEE Complaints Handling

B-BBEE Monitoring and Evaluation

          Thank you