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
B-BBEE CODES OF GOOD PRACTICE
Generic Scorecard,
with all seven elements
Other
Companies
(Exceed
Revenue R35m)
Small Enterprise Scorecard,
Select four of the seven elements
All elements weigh 25%
Qualifying
Small Enterprise
(Turnover btw R5m – R35m)
Micro Enterprises
(Turnover R 5m and below)
Indicators adapted to small
enterprises
Micro Exemption,
Automatic Level 4
Recognition
Construction-generic scorecard
Element
Weighting
Contractors
Built Environment
Professionals
B-BBEE Codes
(Construction)
OWNERSHIP
25
25
20
MANAGEMENT CONTROL
10
10
10
EMPLOYMENT EQUITY
10
10
15
SKILLS DEVELOPMENT
15
20
15
PREFERENTIAL PROCUREMENT
20
20
20
ENTERPRISE DEVELOPMENT
15
10
15
SOCIO-ECONOMIC
DEVELOPMENT
5
5
5
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
Thank you