1. Learning Unit 4 Part 2
The Macro Environment

2. Characteristics of SA Government
Constitutional democracy – 3-tier system:
National
Provincial
Local
3-Tier system:
Executive authority for each
Defined in Constitution as “distinctive, interdependent and interrelated
Advisory bodies from SA’s traditional leaders

3. Characteristics of SA Government
Country run on co-operative governance
Parliament has legislative authority
President elected by National assembly
Executive Head of State
Leads the Cabinet
Not serve 2x 5 year terms in office

4. Structure of the SA Parliament
South African Parliament
(Situated in Cpt)
National Assembly
( members for 5 year term)
National Council of Provinces
(Achieve co-op governance and democracy)

5. SA economic system Open economy: What G&S to produce
What price to charge
How to use resources
Start business of own choice
Choose how to divide profits

6. On par with developed countries On par with basic infrastructure
SA economy
On par with developed countries
On par with basic infrastructure

7. SA economy Transportation best in Africa.
Primary sector well developed.
Manufacturing
Services
Mining
Agriculture
SA is productive and industrialised.
Labour divided into formal and informal sector
Uneven distribution of wealth and income

8. SA economy 3 Fundamental problems to solve:
What should be produced in the economy?
Quantities to produce, spending on housing and HIV?
How should production be organised?
Employment, location, buy or lease?
For whom should production take place?
Equal distribution?

9. Doing business in SA Must comply to ‘rules of the game’. Major rules:
Corporate Governance
Labour Laws
BBBEE
Basic tax

10. Corporate Governance Act as ‘responsible citizens’.
Corporate Governance = Good citizenship for business organisations
Business integrity
Ethical values
Professionalism

11. 7 Characteristics of Good Corporate Governance
Discipline
Transparency
Independence
Accountability
Responsibility
Fairness
Social Responsibility

12. Labour Law - Basic Conditions of Employment Act
Regulate employment conditions:
Leave
Working hours
Contracts
Records
Deductions
Pay slips
Overtime
Termination

13. Labour Law - Compensation for Occupational Injuries and Diseases Act
Information with regards to injury on duty.

14. Labour Law - Employment Equity Act
Applies to employers and workers.
Protects workers and job seekers from unfair discrimination.
Framework for implementing affirmative action.

15. Labour Law - Unemployment Insurance Act
UIF
Jobless or retrenchment
Temporary compensation

16. Labour Law - Labour Relations Act
Support labour peace.
Support democracy.
Support worker decision-making in the workplace.

17. Labour Law - Skills Development Act
Develop the skills of SA.
Improve life-quality of workforce.
Improve prospects of work.
Improve productivity in workplace.
Improve competitiveness.
Improve self-employment.

18. Broad-based Black Economic Empowerment (BBBEE)
Objectives:
Facilitate transformation: Enable meaningful participation of black people.
Promotes fair percentage of racial ownership and management for existing and new enterprises
Black people = Generic term for Africans, Coloureds and Indians.
Also includes women, workers, youth, disabled people and people in rural areas.

19. Broad-based Black Economic Empowerment (BBBEE)
Strategies to ensure BBBEE:
Increase # of black people that manage, own and control.
Equitable representation on all levels of the workforce.
Preferential procurement.
Investment in organisation owned/managed by black people.

20. SA Tax system Main income source of government. Pays for services:
Education
Healthcare
Infrastructure
Research
Development

21. Business support in SA
SMME’s play big role in SA economy and development.
Gov target SMME’s for economic empowerment of previously disadvantaged.
SMME’s receive investments and attention.
Through DTI
National Small Business Act of 1996 = Establish supportive structures

22. Government initiatives to support SMME’s
CSBP, Khula Enterprise Finance
Industrial Development Cooperation, Women’s Entrepreneur network
NAMAC trust + Ntsika = SEDA = DTI agency
BRAIN: Online initiative with info and links