The BEE Business Newsletter is a comprehensive communication of companies and suppliers from various sectors of industry, offering services and solutions enabling your company to source, secure and implement the most effective and efficient BEE practices.
Below you will find the latest news on BEE brought to you by our editorial partners, the National Association of BEE Consultants and The Financial Mail.
Latest News From the NABC:
As the end of Quarter 1, 2011 draws to a close the much-expected changes and activity that we predicted at the end of 2010 has been all too visible.
Essentially BEE is a process of transformation, or change. A model called the "Change Curve", created in 1969 by Elisabeth Kubler-Ross, explains how people respond to the need to change initially through shock, anger and fear, to blame of external parties or third-parties to seeking clarity and testing responses and ultimately to acceptance.
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B-BBEE Targets for Property Industry :
The recently released Sector Code of Good Practice by the Property Sector Charter (PSC) unveils bold new B-BBEE targets for the industry.
The Charter includes the usual 7 B-BBEE components through which companies can earn points towards their B-BBEE compliance. These include Ownership, Management Control, Employment Equity, Preferential Procurement, Skills Development, Enterprise Development and Socio-Economic Development .
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Alignment of the Preferential Procurement Policy Framework Act and the B-BEE Act :
Alignment of the Preferential Procurement Policy Framework Act and the Broad-Based Black Economic Empowerment Act Section 217(1) of the South African Constitution mandates that when an organ of state in the national, provincial or local government or any other institution identified in the national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.
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EMPOWER A WOMAN AND YOU EMPOWER A NATION - By Judy Rajoo:
We are mothers, we are care givers, we are pillars in our communities, we have immeasurable strength, we are pioneers in business and we are vying for equal opportunity and equal share in our country's economic resources. The challenges facing women are HERCULEAN - consider the fact that we have to juggle managing the household, being gracious hostesses, raising the children and armouring for battle in the boardroom.
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Black Economic Empowerment
Flimsy front – Carol Paton :
How much of the JSE do black South Africans own? Is it 8%, the figure claimed by JSE CE Russell Loubser? Is it 5%, the "optimistic" guess of the Black Management Forum, shared by ratings agency Empowerdex? Or is it 36%, the proportion of shares held by black individuals (as opposed to white South Africans) once direct foreign holdings on the exchange are excluded?
It is an emotive debate without a firm conclusion.
For those who stand to benefit from BEE, what has been done so far is not enough. For those who don't, too much has been done already.
While BEE was initiated with good intentions — the idea was to give black people a stake in every level of the economy — along with it have come deals for the politically well-connected and pay-offs for the ruling party.
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Progress on sector charters
Two grudging steps forward – Zweli Mokgata
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The success of the black economic empowerment (BEE) charters has been a mixed bag, with progress in some sectors and stalled processes in others. Of the nine industries that have published transformation charters, only five are truly active.
The effectiveness of the charters depends largely on the industry's reliance on the public sector, either for government contracts or for operating licences.
But there's also confusion about a charter versus the objectives of these codes, published in 2009 following the launch of the generic codes of good practice in 2007. The words "charter" and "code" are often used interchangeably. But, strictly speaking, a transformation charter becomes a sector code only once it becomes legally binding, or gazetted under section 9-1 of the act.
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BEE deal flow
More to come – Sharda Naidoo
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The days of big-ticket black economic empowerment (BEE) deals are over. Most of the headline-grabbing transactions have been done and deal flow has tapered off. The number of deals has dropped from 174, worth R62bn, in 2007 to 52 (R43bn) last year, according to Who Owns Whom (see graph).
Even the banks are reporting slower activity. For example, about two years ago more than 45% of Rand Merchant Bank's deals involved BEE. That figure is now less than 20%, says the investment bank, which has arguably funded most of the big deals.
That's not surprising as many of the signed deals need to gain traction and reach maturity. Also, many deals are in recovery mode, with bankers and BEE advisers heralding the start of the "refinancing phase". Ratings agency Empowerdex's Stephen Hawes says: "Everyone got stuck in the recession and is trying to fix things."
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