Feb 17, 2012
BEE a priority for companies, survey findsBack
Johannesburg|Parktown|Africa|KPMG|Measurement|Africa|South Africa|Moses Kgosana|Warren Watkins|Measurement
© Reuse this
Speaking at the survey results presentation, in Parktown, Johannesburg, early this month, KPMG CEO Moses Kgosana said the business of broad-based black economic empowerment (BBBEE) was imperative for the organisation.
“I am delighted that BEE has become a boardroom topic and that organisations that were only focusing on quick fixes now realise that achieving BEE credentials is an ongoing process,” he explained.
Kgosana said organisations had, over time, come to the realisation that it was no longer about acting on BBBEE requirements, but about ensuring they had poli- cies and evidence of BEE-related work, such as skills development programmes, besides others.
KPMG partner and restructuring advisory head Warren Watkins highlighted the fact that BEE ratings for business entities averaged about 67% for 2011, compared with 55.03% in 2010.
He argued that this increasing invest- ment in BBBEE was encouraging, given the tough economic climate in South Africa.
“On average, respondents have increased their efforts geared towards supporting small black-owned entities, as evidenced by the significant increase in enterprise development (ED) scores from 3 points in 2006 to 12.41 points in 2011. Average ED scores are now 80% of the stipulated target,” said Watkins.
Meanwhile, the survey established that elements of ownership and socio- economic development, indicated as focus areas in previous surveys, are now less of a priority among respondents, as these elements’ scores are within acceptable range levels.
A total of 43% of 2011 respondents, compared with 27% in 2010, indicated that they had set minimum preferential procurement target levels for their suppliers, while 69% of respondents indicated that BBBEE level-four supplier contributor status was the preferred target level set by respondent organisations, as procuring entities were then able to recognise 100% of their procurement spend from level four suppliers.
“The challenge remains for organisa- tions to keep ahead of BBBEE scorecard measurement and target changes, as four out of the seven elements’ measurement criteria are changing, owing to the pro- posed changes to the BBBEE Amendment Bill. “The changes are likely to have a negative impact on subsequent scorecard ratings,” said Watkins.
Kgosana noted that employment equity and skills development elements seem to be lagging.
Watkins concluded that, with the pro- posed changes to BBBEE law, implementation challenges will arise but, with proper consultation and working closely with transformation officers, companies could achieve the necessary points.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other Statistical Releases News
Development financier Eastern Cape Development Corporation (ECDC) on Tuesday reported a stable balance sheet for the 2013/14 financial year, boasting a net asset value of R1-billion at year-end. Speaking at the financier’s performance results at the ECDC headquarters...
Article contains comments
Updated 7 hours ago Trade union Solidarity warned on Wednesday that ongoing restructuring and retrenchments in the information and communication technology (ICT) industry continued to put employees in the sector under “immense” pressure. This as the union claimed it had received...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...