The South African government has introduced a system known as the black economic empowerment (BEE) policy. It is a pragmatic growth strategy that aims to realise the country’s full economic potential.
Groupair can proudly state that they have achieved BEE status as per the requirements set out by the South African government.
How to achieve BEE?
Black economic empowerment is driven by legislation and regulation. An integral part of the BEE Act of 2004 is the balanced scorecard, which measures companies’ empowerment progress in four areas:
- Direct empowerment through ownership and control of enterprises and assets.
- Management at senior level.
- Human resource development and employment equity.
- Indirect empowerment through:
- preferential procurement,
- enterprise development, and
- corporate social investment – a residual and open-ended category.
This scorecard is defined and elaborated in the recently released BEE codes of good practice, which will soon be passed into law. The codes will be binding on all state bodies and public companies, and the government will be required to apply them when making economic decisions on:
- licensing and concessions
- public-private partnerships, and
- the sale of state-owned assets or businesses
Private companies must apply the codes if they want to do business with any government enterprise or organ of state – that is, to tender for business, apply for licenses and concessions, enter into public-private partnerships, or buy state-owned assets.
Companies are also encouraged to apply the codes in their interactions with one another, since preferential procurement will affect most private companies throughout the supply chain.
Different industries have also been encouraged to draw up their own charters on BEE, so that all sectors can adopt a uniform approach to empowerment and how it is measured.