The Broad-Based Black Economic Empowerment (B-BBEE) Commission has released its annual report on the national status and trends on B-BBEE for the 2019 calendar year.
The Commission said that the report shows a 1% (43%: 2018 – 42%: 2019) decrease in the number of submitted compliance reports by JSE listed entities.
Click here to read more.
The Department of Tourism has encouraged eligible businesses to apply for the COVID-19 Tourism Relief Fund. Read more here.
On Tuesday, 18 February 2020, Cabinet announced its approval of the Employment Equity Amendment Bill 2020, to be submitted to Parliament. As the Bill makes its way to Parliament for deliberation, the Department of Employment and Labour has set the ball in motion for the introduction of sector-specific Employment Equity numerical targets. Read the full article in SA News.
Click here for Government Gazette Notice. Download the Draft Public Procurement Bill here.
According to the B-BBEE Commission’s Zodwa Ntuli an analysis of compliance reports submitted by JSE-listed companies indicates that the financial sector is regressing in ownership and management control. These companies could face possible penalties for non-compliance.
Please take note of this response from the Construction Council re the application of EAP targets.
There has been no significant change in the levels of transformation in the South African economy with black ownership declining to 25.2% in 2018, says the Broad Based Black Economic Empowerment (BBBEE) Commission, reports the SA Government News Agency.
Click here to read the full article.
The Department of Trade and Industry, has gazetted the revised Chartered Accountancy Profession B-BBEE Sector Code (CA Charter) for public comment. The aim of the revised code is to empower and grow the number of Black people in the chartered accountancy profession.
Revisions to the Code include drastic changes to the skills development element.
Individuals who want to comment on the new CA Charter, should e-mail the DTI (for the attention of Sipho Solfafa) at cacode@thedti.gov.za by no later than 26 June 2019.
See full CA Charter here.
Services SETA has released a draft discussion paper on improving the quality of Business Advisory Services in South Africa, with the aim to stimulate debate, policy consideration and strategies. See PDF document here.
The Broad Based Black Economic Empowerment (BBBEE) Advisory Council has called for the declaration of a Transformation Week in the country to showcase best B-BBEE practice.
“There was consensus at the meeting that there is a need to declare a Transformation Week in the country to showcase best B-BBEE practice, create awareness, and educate, with platform to share progress and introspect regarding economic transformation,” said the Council.
Council held its meeting, chaired by Trade and Industry Minister Rob Davies on behalf of President Cyril Ramaphosa on Friday.
The B-BBEE Advisory Council is a body appointed by the President in terms of the B-BBEE legislation to advise him and government on B-BBEE and transformation of the South African economy in order to achieve an inclusive economy.
The collective also acknowledged that the country’s procurement laws need to be strengthened to embed B-BBEE compliance in their content.
Successes
Friday’s meeting recognised that progress has been made in the implantation of B-BBEE policy over the last five years.
The Black Industrialist Programme, noted the meeting is among one of the achievements of that can be counted. The programme intends to create majority black-owned entities in the productive sectors. To date the Department of Trade and Industry (dti) has supported 138 beneficiaries.
The meeting held at the dti campus in the capital, also counted the establishment of the B-BBEE Commission to effectively monitor implementation and progress as one of the other successes.
“Understanding the primacy of B-BBEE in the government’s drive to effect fundamental change and economic redistribution, the Council discussed and number of issues that have an effect on the implementation of B-BBEEE,” it said.
Financing
Issues discussed at the meeting include the role of development financing institutions (DFIs) in financing and supporting empowerment. The gathering stresses that the role of DFIs, should be complemented by the financial sector to intensify funding for B-BBEE as per the commitment of the Financial Services Charter.
The Preliminary report of the B-BBEE Commission showed that vendor-financing is higher, followed by funding financial institutions in respect of major B-BBEE deals already registered, with government funding being the lowest.
It added that focus should be placed on financing SMMEs and Black Industrialists, particularly those in the productive sectors.
The Council emphasised the need to intensify efforts of ensuring that SMMEs get markets to sell their wares, and also appreciated the significance of public and private sector partnerships in this regard.
The Council also mulled on the appropriate way to utilise the 30% as contained in the procurement policies to empower SMMEs in local communities.
Transformation, fronting
The collective acknowledged the veracity of the economic transformation work that still need to be advocated in society to educate and ensure increased B-BBEE compliance.
On black ownership target, the Council said the 25% target should be inclusive of active participation of the beneficiaries and not passive involvement.
In the same breath, the Council raised concern on the usage of broad-based ownership schemes, the abuse of the third party for enterprise development, supplier development and skills development.
It also expressed concern about the non-participation of black shareholders and directors in 51% black owned structures.
Acknowledging that fronting is becoming more sophisticated aided by consultants and verification agencies in the market, the Council urged government to finalise the development of regulation for verification agencies and B-BBEE practitioners to complement the work of the B-BBEE Commission and South African National Accreditation System. – SAnews.gov.za
