BROAD-BASED BLACK ECONOMIC EMPOWERMENT KWAZULU-NATAL 2010 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) Qualifying Small Enterprise (Turnover btw R5m – R35m ) Other Companies (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 scorecard Element WeightingB-BBEE Codes (Construction) ContractorsBuilt Environment Professionals OWNERSHIP MANAGEMENT CONTROL 10 EMPLOYMENT EQUITY SKILLS DEVELOPMENT PREFERENTIAL PROCUREMENT 20 ENTERPRISE DEVELOPMENT SOCIO-ECONOMIC DEVELOPMENT 555

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

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