BEE an economic imperative - Davies

BEE an economic imperative - Davies

2012-10-02 17:27

Johannesburg - Black economic empowerment remains an imperative in South Africa‚ Trade and Industry Minister Rob Davies said on Tuesday.

He was speaking at the launch of the revised Broad-Based Black Economic Empowerment Codes of Good Practice in Midrand.

“Black economic empowerment is not just a social and political imperative. We need to make sure that in the country’s economy‚ control‚ ownership and leadership are reflective of the demographics of the society in the same way the political space does.

"That’s why we are saying BEE remains an economic imperative. We cannot expect to grow and develop as a country if the leadership of the economy is still in the hands of only a small minority of the society‚” Davies said.

He added that the talent pool that was available in the country would not be drawn in its totality if the majority of the country’s population was still excluded from the control of the economy.

“We will only be able to realise the number of benefits of the demographic and democratic changes when all our people have the opportunities which they ought to be having in terms of the values of our Constitution. So BEE is also an economic imperative‚” added Davies.

Davies said the revised Codes sought to amend the secondary legislation arising from the Broad-Based Black Economic Empowerment Act to make sure that people were truly and broadly empowered in South Africa‚ and genuine broad-based black economic empowerment took place.

Minimum standards

"The amendment of the BEE Act and the revision of the Codes‚ he said‚ would go a long way in plugging the gaps that businesses have taken advantage of such as fronting‚ 'tick-box' compliance‚ and the exorbitant amounts of money that small enterprises had to pay to consultants to prove they were BEE compliant.

“The current generic scorecard contains seven elements and these have been reduced to five in order to align the elements more closely with the trajectory of the economic growth and development in the country‚ with a total of 105 points assigned to the five elements.

"All companies‚ except the exempted micro enterprises (EMSs) should comply with all the elements of the scorecard. There is also some adjustment to the points allocated and the qualification criteria.

"There is also an enhanced recognition of the status of black-owned micro enterprises‚” said Davies.

He said one of the new things being proposed in the revised Codes was the introduction of minimum requirements for priority elements. These were ownership‚ skills development and enterprise and supplier development.

Qualifying small enterprises were required to comply with two of the elements‚ although ownership was compulsory‚ while large entities would have to comply with all of the requirements.

Davies said the launch of the Codes signalled the opening of a sixty-day period in which business and all other members of the public could submit their comments on the Codes for consideration before the amendments were finalised.

The CEO of the Black Business Council‚ Xolani Qhubeka said the Codes of Good Practice should be the minimum standard for all sectors in the country’s economy‚ adding that the revised Codes were a step in the right direction although there was still a lot that needed to be done.

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  • merkwaardig - 2012-10-02 17:43

    You grow and develop something by using the best building blocks. This does not necessarily equate demographic representation.

      JaredVN - 2012-10-02 17:56

      There is not a single country on earth where most of the business and wealth is NOT owned by a small minority.

      hannesenbrianda - 2012-10-03 11:04

      One small minority replaced by another small minority.... this is not traansformation this is theft

      george.outremer - 2012-10-03 11:22

      The issue here is that there are too many people who determine wealth/success based on ownership of smartphones, I-pads, laptops, TV's, VCR's and other electronic goods, thinking this success is based on having a white-collar / office job. The tragedy is that blue-collar jobs are viewed in a negative light. Government has introduced all sorts of 'safety legislation' that is restrictive of skills development in technical schools - most of the machinery is standing idle. There will come the day when trade skills will command higher rates of compensation than office jobs - as is evident in Europe. In the meantime, government is happy to repackage apartheid type discrimination into a fancy term called EE and BEE - choosing a policy of taking away from a few to give to many. This model is simply not sustainable in the longer term - and history will judge the ANC severely when this system implodes - as it surely will.

  • FUNKMASTERFLEX.AKA.BAIN - 2012-10-02 17:46

    this is the same guy that said the marikana will not affect investor confidence and a few weeks later we get a downgrade from the rating agency.Fact is if a person takes his skills overseas due to BEE ,the poor blackman is affected more than anybody els.

  • simon.carter.5836711 - 2012-10-02 17:48

    Yes, because it's worked frikken amazingly so far, let's carry on hitting our heads against the wall. Maybe this time we will have a different outcome.

  • Steven Trollip - 2012-10-02 17:52

    problem is that the BEE company's cant deliver.they only think of self enrichment

  • nicholas.graan - 2012-10-02 17:52

    I guarantee Rob Davies, that if this minority in who's hands the economy "still" lies had to all end up in any other African country, within 15 years the economy of that country would be in their hands as well. By beating the tired old drum of trying to get the economy to be "representative" of the countries demographics you are on a hiding to nothing. That is just populist talk because unfortunately life does not work that way. Give all citizens a proper education and equal opportunity and let the cards fall where they may. We will still be having this conversation in 20 years time if there is anything still left.

      leslie.wynne.3 - 2012-10-02 18:27

      I agree.Proper education and dissipline will be the building blocks for the youth of this country for the future and then we can add the protocols of 'responsability'and 'accountability'to the equation.Maybe this recipe will help to bring balance to the anarchy that is prevailing all entities in SA in general.Factions will always be a problem because we have tribal leaders etc.The one always stalking the other to gain 'better ground'Tribalism.But because of this anarchy our whole future is at risk.And nobody in the top ranks 'governing'this country knows the meening of the words 'responsibility'and 'accountability'

  • social12345 - 2012-10-02 17:55

    I propose that only businesses still in operation and founded before 1994, be part of this farcical and futile exercise, which is blatantly attempting to legalise the theft of people's assets (BEE = equity = (assets minus liabilities)

  • alfred.neumann.142 - 2012-10-02 17:56

    Ofcourse it's "imperative". Even when you're a majority and you have it you fail dismally. It would be nothing short of ludicrous to expect you to compete successfully on merit alone.

  • johnwilliam.roberts - 2012-10-02 17:57

    oh so you mr clever one thinks black economic extortion is good for the economy ! my havent you been brainwashed !!! so explain to me if i am a one man show why must i have a black partner or they take my license away to trade in diamonds ?? explain this to me ?

  • george.pito - 2012-10-02 17:59

    BEE is only utilised as a corrupt mechanish causing a lot of negative growth a hole

  • shirley.steenkamp - 2012-10-02 18:00

    I employ the best qualified person,not according to his/her colour. One needs only to look at state run entities to see how"successful" colour coding has worked!!!!!!!!If government pilfered less,gave a decent education and foundation to ALL,this idiotic practice wouldnt be neccesary!It is racisim under a disguise but we all see through it.

  • george.pito - 2012-10-02 18:02

    CXan we please replace Davies with a BEE

  • elgh.elgh - 2012-10-02 18:06

    Mr Rob Davies, rather not say anything than talk absolute rubbish. We are sick and tired of the anc blaming anything but themself for the negative impact their bad leadership have on our country. By pointing to a small minority you are referring to the whites in the country. Get a life.

  • Andrew2711 - 2012-10-02 18:14

    You grow the economy by having the most capable people in leadership positions. Affirmative action policies have been in place for 18 years and have not made a significant impact as the ANC has failed to address the more important matter of educating the people. Had it addressed that from the word go then matriculants and graduates entering the job market now would all have received an equivalent education and could compete for jobs based on their skills not the colour of their skin. Having skilled workers would increase productivity and competitiveness of the country & its industries, which in turn would attract more investment and fuel further growth, creating more jobs etc. Its such a shame that the country is being run by incompetent fools...

      malcolm.j.patterson.1 - 2012-10-02 18:25

      It's the old story, give a man a fish you feed him for a day teach him to fish and he has food for ever. Very few in this world have benefited long term from handouts.

  • mike.lamb.7777 - 2012-10-02 18:15

    Rob 'I speak with my Masters voice' Davies!!!!!!!!!!!!!!!!!!!

  • dustin.mccrindle.5 - 2012-10-02 18:21

    My gripe with BBBEE, or whatever they're calling it now is many of these BEE companies meerly have some connected black guy/woman as a face who just gets the tenders

  • marius.rossouw.7 - 2012-10-02 18:22

    Please set an example mister minister. Resign so a black person can take your job. Whatever your kids are doing, let them resign too so that more black people, competent or not, can have their jobs as well. See this as a challenge oh, wise one. We as as the white minority need to see how it should be done. Please show us.

      johnwilliam.roberts - 2012-10-02 18:45

      Marius he cant resign no decent white owned company would give the prick a job !!!

  • karel.dutoit.50 - 2012-10-02 18:23

    Start new businesses let only black run it, go big employ many. That will solve many problems. STOP demanding stakes in current business White owned business brought the country here. This is not a racial issue it is greed talking.

  • john.morreira.9 - 2012-10-02 18:24

    Mr Davies this is Bull putty.

  • Willie Olivier - 2012-10-02 18:38

    Davies, why don't you set a example by resigning from your post and give it to a more capable blank person

  • george.k.townsend - 2012-10-02 18:43

    Too often, academics are out of touch with reality. Never have so few blacks become so extraordinarily rich, in such a short space of time! Yet, the line of beggars and car guards grows longer by the hour. And, the Jhb wants to prosecute them for washing cars (illegally) in the street! Getoff the pot, you are a disgrace to your electorate, who voted for your useless govt, that has so badly failed the people.

  • leslie.wynne.3 - 2012-10-02 18:54

    It is not in the interest of the ANC to discover the demographics of the poor and needy and HIV ststus in SA when there is no commitment.'Commitment is the difference'This government is failing by the day and I wonder if there isn't an open door invite from our 'leaders' to give them a map for the road forward....

  • joe.blogs.98837399 - 2012-10-02 19:32

    It is imperative that his buddies rape the fiscus under the guise of BEE.

  • john.cryink - 2012-10-02 20:09

    I am no business man just imagine no points for BE no goverment contracts. Stil holding on then I get hit with a fine because of equity another fine AA is not right by that time I will have to close doors and bankupt. I take my hat off to some one who can run a business.Please davies wake up the job market is shrinking very fast.

  • peter.strydom.37 - 2012-10-02 21:42

    False economy, sharing unequal slices of a cake does not necessarily mean it's a great cake. Wake up Davis it's a fools economy, you must be blind to the facts.

  • kate.petford - 2012-10-02 22:02

    I came back to SA 8 years ago after 12 years overseas, to open a business which now employs nearly 200 FANTASTIC, motivated young, so called PDI's earning a good salary with constant opportunities presented to those who stand out in our company - these in turn support hundreds of extended family members and as a result I feel great going to work and developing these guys. We are currently a level 2 contributor and have not shied away from the commitment all S Africans recognize but now........Ownership is compulsory??!! - globally, only a minority can afford to start businesses or invest and the majority work for a salary / the new approach is designed to avoid the elite getting the break??!! - my guys certainly don't have the capital to buy a share in our business ( who of us did in our twentys?) and so who do they think will be buying up interests in multiple companies for discounted rates based on winning govt business. I need to write a moe comprehensive comment on this but overall, as a business owner doing the right thing - DISSAPOINTED to say the least

      EricksonTL - 2012-10-02 22:21

      If the rule was that potential BEE co-owners have to BUY their way in at fair market value, then no problem. The way it stands now, may I say: Zim South.

  • ghi.mmn - 2012-10-02 22:52

    Compulsory ownership? If a % black ownership is compulsory, then so MUST a % white, indian, coloured, etc ownership be compulsory to be equitable and reflective of the country's demographics! So why not? Because BEE is blatantly racist. It will be a failed political experiment, just as apartheid was.

  • EricksonTL - 2012-10-03 00:57


  • sefako.mokgalaka - 2012-10-03 06:34

    Our attitudes towards the policies aimed at addressing decades and centuries of racial inbalances, are doing the country more harm than good. The implementation from the beginning was not properly managed by the ANC led government. It would have worked better had it not been managed by the government because the high ranking ANC comrades have made millions of rands for facilitating the tenders from government. This was done through immoral and unethical means thereby robbing the poorest citizens of the basic services by inflating the prices of providing services or goods. We need a competent body to manage the system.

      Karel du Toit - 2012-10-03 08:16

      Haha shame you are doing yourself injustice by claiming other peoples sweat and tears to build a company, by demanding something you do NOT deserve!

      hannesenbrianda - 2012-10-03 11:31

      The idea to use race based policies to address inbalances is where the problem lies. Rather provide opportunities for those that can demonstrate that they are deserving of these opportunities regardless of race. You can adjust the selection criteria for social economomic differences but help those that wants to help themselves. provide opportunities to the highly talented bright instead of the highly connected black and then you will see everyone benefits.

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