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