Black Management Forum BEE Conference BEE Codes of Good Practice A perspective on their effectivenes - PowerPoint PPT Presentation

Loading...

PPT – Black Management Forum BEE Conference BEE Codes of Good Practice A perspective on their effectivenes PowerPoint presentation | free to download - id: 224158-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Black Management Forum BEE Conference BEE Codes of Good Practice A perspective on their effectivenes

Description:

License in regulated sectors e.g. gambling or mining ... 10. Every organ of state and public entity must take into account and, as far as ... – PowerPoint PPT presentation

Number of Views:56
Avg rating:3.0/5.0
Slides: 22
Provided by: nimr3
Learn more at: http://www.workinfo.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Black Management Forum BEE Conference BEE Codes of Good Practice A perspective on their effectivenes


1
Black Management Forum BEE ConferenceBEE Codes
of Good Practice A perspective on their
effectiveness 14 April 2005LIONEL
OCTOBERDEPUTY DIRECTOR-GENERAL ENTERPRISE AND
INDUSTRY DEVELOPMENT DIVISION, DTI
2
Outline
  • Economic context
  • Context of the Sectors
  • Rationale for BBBEE
  • BBBEE Transformation and Growth Imperative
  • BBBEE Act
  • Balanced Generic Scorecard
  • Transformation Charters
  • Code of Good Practice
  • Preferential Procurement
  • B-BBEE support i.e. Funding for B-BBEE


3
Economic context
  • Non-racial democratic society consolidated
  • Education successfully de-racialised
  • Modest growth 2 3 percent growth since 1994
  • Improvement of negative growth rate of 1980s,
    but insufficient to address social challenges
  • Income inequality amongst highest in the world
  • Massive disparity in white and black incomes,
    ownership and access to employment opportunities
  • Economy has undergone major transformation
    macro economic stability, global integration

4
Context of the sectors
  • Very low levels of black participation
  • Black senior management accounts for less than
    10
  • Diminished black ownership in Sectors
  • Low levels of investments in areas of national
    priority
  • Infrastructure, Low income Housing, Black
    SMEs,Black farmers, BEE Transactions
  • Low levels of provision of effective access to
    services and products for low income groups

5
Rational for empowerment
  • Rationale essentially economic.
  • Higher growth path not possible without broad
    based empowerment.
  • Skills, low levels of entrepreneurship and low
    incomes are major constraints to growth.
  • Human and social dimension important given
    historical legacy.
  • High levels of inequality poses social,political
    and investment risk.

6
Black Economic EmpowermentTransformation/growth
Imperative
  • Rationale essentially economic
  • Double bind of low growth , slow transformation
  • Not possible to raise growth rate without
    expanding entrepreneurial and skills base
  • Growth/redistribution trade-off not relevant
  • 5 Growth with significant empowerment possible
    in short /medium term
  • Equal societies grow faster because of effective
    demand/consumption patterns
  • Growth effects to be broadly distributed
  • Equity base/shareholding to be broadened
  • Balance operational control passive investment

7
Brief Background to BEE Act
  • The State President assented to the BEE Act No
    53 on 9 January 2004.
  • BBBEE Act sets clear objectives for broad based
    empowerment
  • Enabling framework for Codes of Good Practise
  • Creation of a BEE Advisory Council
  • Legislative endorsement for sector charters
  • Enabling framework for the establishment of the
    BBBEE Strategy
  • 2. Publication of Charters
  • Mining
  • Finance
  • ICT
  • Petroleum
  • 3. Minister may make Regulations to promote BBBEE

7
8
Policy Instruments
  • Legislation and regulation
  • Preferential Procurement
  • Use of the balanced scorecard in
  • Granting of licences
  • Concessions to private enterprises
  • Sale of state assets
  • Public private partnerships
  • Any economic activity

9
Definition of BBBEE
  • DTI encourages a broad based B-BBEE definition
    that is a process that
  • Directly contributes to the economic
    transformation of South Africa
  • Brings about significant increases in the numbers
    of black people who manage, own and control the
    countrys economy and
  • Results in significant decrease in income
    inequalities
  • B-BBEE process will include elements of human
    resource development, employment equity,
    enterprise development, preferential procurement,
    as well as investment, ownership and control of
    enterprises and economic assets

10
BBBEE Strategy
  • BBBEE is a process that directly contributes to
    the economic transformation of South Africa
  • Draft B-BBEE strategy has been issued for public
    comments
  • Update B-BBEE strategy
  • B-BBEE Strategy Objectives
  • Substantial increase of ownership and control of
    existing and new wealth
  • Substantial increase ownership and control of
    existing and new enterprises in the priority
    sectors of the economy
  • A significant increase in the number of new black
    enterprises, black empowered enterprises and
    black engendered enterprises
  • A significant increase in executive and senior
    management of enterprises
  • An increase proportion of ownership and
    management of economic activities vested in
    community enterprises
  • Increased ownership of land and other productive
    assets, improved access to infrastructure,acquisit
    ion of skills and increased participation in
    areas identified in the Urban Renewal Programme

11
Key Principles Underpinning BBBEE
  • Black Economic Empowerment is Broad-Based
  • Black Economic Empowerment is an inclusive
    process
  • Black Economic Empowerment is associated with
    good governance
  • Black Economic Empowerment is part of our growth
    strategy
  • B-BBEE strategy stresses a process associated
    with growth, development and enterprise
    development and not merely the redistribution of
    existing wealth

12
  • Balanced Scorecard
  • A basic and objective framework against which
    Transformation and Empowerment Achievements can
    be measured
  • Provides a balance between imperatives for
    sectoral transformation and black economic
    empowerment
  • Equal weighting to equity, management/ control,
    enterprise development
  • Application of scorecard
  • License in regulated sectors e.g. gambling or
    mining
  • Concession to operate an asset on behalf of state
  • Sale of state assets or SOE
  • Enter into a PPP

13
The dti scorecard will allow for a measure of
flexibility
14
Transformation Charters section 12
  • 9. (1) In order to promote the purposes of the
    Act, the Minister may by notice in the Gazette,
    issue codes of good practice on BEE that may
    include(e) guidelines for stakeholders in the
    relevant sectors of the economy to draw up
    transformation charters for their sector and
  • 12.The Minister must publish in the Gazette for
    general information and promote a transformation
    charter for a particular sector of the economy,
    if the Minister is satisfied that the charter
  • (a) has been developed by major stakeholders in
    that sector and
  • (b) advances the objectives of this Act.

15
Transformation Charters
  • The BEE Charter should incorporate the following
  • The BEE challenges in that sector
  • The sectors vision for achieving BEE targets and
    timetables
  • The specific mechanism to achieve BEE targets
    including financing instruments, skills
    development and employment equity, preferential
    procurement, enterprise development, as well as
    any additional mechanisms appropriate to specific
    sector
  • An assessment of the financing required to fund
    BEE transactions
  • The institutional and management mechanisms that
    will co-ordinate, facilitate, monitor and
    evaluate in the implementation of the charter
    and
  • Any other relevant issues and commitments
    relevant to the sector, in order to enable its
    participants to advance the objectives of BBBEE

16
Transformation Charters
  • BBBEE is legally binding on government
    institutions
  • BBBEE is a voluntary process and is not legally
    binding on private sector, but it is business
    savvy to formulate one.
  • It is not expected that every sector will develop
    empowerment charters.
  • The charter is binding to the sector with which
    it was adopted.
  • Government strongly encourages sectors that
    interacts and/or transacts with any organ of the
    state to develop sector charter that set specific
    BEE targets and outline concrete plans to achieve
    these targets.
  • The sector that interacts and/or transacts with
    any organ of the state shall be strongly
    encouraged, subject to certain qualification
    criteria, to formulate a sector transformation
    charter in order to accelerate the fulfillment of
    the objectives of the Broad-Based BEE Act.

17
Codes of Good Practice
  • (1) In order to promote the purposes of the Act,
    the Minister may by notice in the Gazette issue
    codes of good practice on black economic
    empowerment that may include
  • (a) the further interpretation and definition of
    broad-based BEE and the interpretation and
    definition of different categories of black
    empowerment entities
  • (b) qualification criteria for preferential
    purposes for procurement and other economic
    activities
  • (c) indicators to measure broad-based BEE
  • (d) the weighting to be attached to broad-based
    BEE indicators referred to in paragraph (c)
  • (e) guidelines for stakeholders in the relevant
    sectors of the economy to draw up transformation
    charters for their sector and
  • (f) any other matter necessary to achieve the
    objectives of this Act.

18
Codes of Good Practice
  • 10. Every organ of state and public entity must
    take into account and, as far as reasonably
    possible, apply any relevant code of good
    practice issued in terms of this Act in
  • (a) determining qualification criteria for the
    issuing of licences, concessions or other
    authorizations in terms of any law
  • (b) developing and implementing a preferential
    procurement policy
  • (c) determining qualification criteria for the
    sale of state-owned enterprises and
  • (d) developing criteria for entering into
    partnerships with the private sector.

19
Preferential Procurement Framework
  • Changes made to the PPPFA regulations in order to
    align them with the B-BBEE strategy
  • Use of balanced scorecard in determining
    preference points (broad-based approach)
  • Minimum B-BBEE points required for preference
    points to be given
  • Move from narrow-based to broad-based B-BBEE in
    determining preference points
  • Next to review the PPPF Act to align it with the
    B-BBEE Act

20
BBBEE Support
  • Relaunch of the NEF on 31 May 2004
  • Products with focus on addressing market failures
  • R2bn capitalisation from National Treasury
  • Khula Enterprise Finance
  • Industrial Development Corporation
  • Small and Medium Enterprise Development Programme
  • Black Business Supplier Development Programme

21
SIYABONGA!
About PowerShow.com