SAWIC PRESENTATION ON THE B-BBEE AMENDEMENT BILL BY: MPUMI PAKADE (PRESIDENT) & VUYISWA NDZAKANA- MABUTYANA (MEMBERSHIP NATIONAL CHAIR) 1

INTRODUCTION  The South African Women in Construction (SAWIC) is a National Association of women entrepreneurs that has its footprint throughout all 9 Provinces of the country, with International Affiliation to the National Association of Women in Construction (NAWIC) in America and Australia.  SAWIC this year celebrates 15 years of existence and contribution towards the economic growth of Women in the industry.  SAWIC was founded in 1997 by the late Honorable Public Works Minister, Stella Sigcau. The primary aim was and still is to build, empower and grow emancipation of women in the SA economy, through capacity building, finance and networks in the relevant built and related industries. Lifting each other as we rise 2

GENERAL COMMENTS…. Lifting each other as we rise 3  It is a fact that black women in South Africa have been marginalized in all social and business spheres.  More so in the male dominated business world such as Construction, there is not much recognition for women, this is evident in how the business world treats Black Women Owned businesses, irrespective of the pieces of legislation like the B-BBEE Act.  Regardless of women efforts to display their capabilities, at times they are not awarded an equal opportunity with their peers in business.

GENERAL COMMENTS.....CONT Lifting each other as we rise 4 SAWIC generally welcomes and supports the proposed amendments with the following comments!  In light of the following: - Women constitutes the majority of the country’s population; - Majority of households are dependent on women as breadwinners and - Most households are headed by previously disadvantaged women, SAWIC therefore, sees it fit for the B-BBEE Codes to be more inclusive with regards to black women in South Africa.  This Act, since its inception, has been a vehicle that allowed black people to participate in the mainstream economy and therefore the number of women in business has steadily grown. Thus more recognition of black women can still be improved as they are only benefiting from a fraction of the economy of the country, as confirmed by the recent STATS SA report.

OUR INPUT Lifting each other as we rise 5 Amendment of paragraph 4 of Code Series 000 Statement 000 – Eligibility as an Exempted Micro-Enterprise  We accept the change regarding recognition of percentage ownership of black EME’s. HOWEVER: - [Input]  There is no promotion of the B-BBEE Status in recognition of the businesses that are 100% Black Women Owned [BWO] and controlled. Level 1 promotion as per 4.4 should be awarded ONLY to companies that have Black Women Ownership and Control in majority. If this were to be implemented, it would entice business to utilize BWO entities and therefore improve their economic status.  This will accelerate the economic growth of women especially in the construction sector.

OUR INPUT…….CONT Lifting each other as we rise 6 Amendment of Paragraph 2 of code series 100, statement 100 – the Ownership Scorecard  There is no improvement in the 10% target for Exercisable voting rights in the hands of black women as well as in the points awarded on achieving this target.  There is no improvement on the 10% target for the Economic Interest to which black women are entitled as well as in the points awarded on achieving this target.  We propose that these be reviewed, increase the targets to at least 20% and weighting points to at least 4. This will enhance the economic emancipation of the black women in the mainstream economy.

0UR INPUT……CONT  Question: - what measures are in place to ensure that the company does not SUDDENLY make a loss, with no dividends declared after a black shareholder has acquired shares in the previously white owned company? This is a concern because it has been a trend in the business, yet they are achieving the maximum B-BBEE Points by virtue of having a Black shareholder  Monitoring and evaluation commission is essential to oversee effective implementation of the Act. Lifting each other as we rise 7

OUR INPUT…….CONT Code Series 400, Statement 400 – Enterprise and Supplier Development Element The following questions arise:  With the current Procurement Policies at the government departments and private sector, how will the B- BBEE Act ensure that the Black Businesses are not sidelined based on trade experience ?  We therefore propose that the principle applied by State Owned enterprises such as Eskom on the PPPFA waver for 30% set asides to be procured to women owned enterprises, be applied across the board including government departments and municipalities. This proves to accelerate the implementation of BEE’s intention and purposes, we hope that the BBBEE bill will also reflect this too.  What measures are in place to avoid exploitation of Black Enterprises? By that we mean:- businesses might be incline to accept services from a black owned company at a far lesser rate than they would be charged by another service provider.  How does the Act protect the small emerging businesses from not being preferred as a supplier based on costs – by creating price war? E.g. a bigger business is able to provide the same service at a lesser rate because they have all the resources and the government always prefers the lowest price  It is for all these reasons that SAWIC support - Trumping Provision  SAWIC strongly recommends that, this Act should supercede any other Act / Charter / Codes except for the constitution of South Africa in the B-BBEE Matters. This will prevent any potential conflict with other B-BBEE related legislation. 8

The End 9  You empower the woman, you empower the nation! THANK YOU