Jul 10, 2012
Davies warns of stricter BEE codesBack
Construction|Johannesburg|Africa|Building|Industrial|Locomotives|Africa|South Africa|Equipment|Manufacturing|Manufacturing Sector|Service|Infrastructure|Rob Davies|Operations
Too few companies were giving sufficient support to these areas in terms of the BEE Act and Codes of Good Practice.
"Far too few companies are involved in this space," he said at a summit hosted by infrastructure company Aveng for its emerging black suppliers in Midrand, Johannesburg.
BEE legislation would be tweaked to ensure more attention was given to supporting small business.
"If you don't earn a percentage of the target (for these sectors), we will deduct points from the overall scorecard," he said.
Davies said the government wanted to encourage a symbiotic relationship between big and small companies. By developing black entrepreneurs, particularly black industrialists, corporates would contribute to South Africa's industrialisation, and to a significant manufacturing sector.
"We want to see this space occupied increasingly by black manufacturers and black industrialists," he said.
Accordingly, the government's infrastructure rollout, as well as the industrial development action plan, stipulated that a certain percentage of equipment was sourced from local suppliers. This policy had already been implemented when sourcing buses, electricity transmission lines, and locomotives.
"This is the way we are intending to move forward," he said.
The government would also double the number of small business incubation programmes from 30 to 60 in the next three years, said Davies.
Aveng CEO Roger Jardine said big business must be an active participant in capacity building, skills transfer, employment equity, and empowerment through business operations.
"Big business cannot afford to be blind to developmental challenges," he said.
Jardine called for the construction sector to conduct its business in an ethical manner. An ongoing Competition Commission investigation into anti-competitive behaviours in the sector had sparked public concern.
Companies found guilty of collusion by the competition authorities could be banned from doing business for 10 years, he noted.
"If the same logic was applied to other companies (in other sectors), it would severely hamper the economy."
Following a similar investigation in the UK, a code of conduct had been promulgated across the industry.
The Office of Fair Trading had fined companies for anti-competitive behaviour, but recommended against imposing further sanction. It was felt that banning companies would affect competition among the remaining players, Jardine said.
"We must embrace an integrity pact and adopt a code that addresses past practices and focuses on eradicating unlawful practices. We must all commit to conducting our business ethically."
Companies should also pay the taxes they owed to the SA Revenue Service.
Aveng had paid R3.6 billion in taxes over the past three years, enough to finance 51 000 low-cost homes.
"Your taxes will make a difference," Jardine promised, adding that Aveng would make tax assistance available to its suppliers.
Edited by: SapaComment Guidelines (150 word limit)
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...