BEE codes 'relaxed'

[The_Right_Honourable_Brit]

Johannesburg - South Africa's empowerment codes, which are meant to drive economic transformation, will become binding early next year, three years after the government started drafting them.
***
Jimmy Manyi, the president of the Black Management Forum, said the organisation was encouraged that the department of trade and industry had come up with a document that had managed to address a number of competing viewpoints, especially through the codes' increased emphasis on the promotion of black managers and skills development.

Key compromises include the fact that, subject to certain conditions, pension funds can be scored for empowerment or left out of any calculations of equity ownership.

This in effect means that companies have to sell fewer shares to black people to meet their black ownership requirements.
* * *
Foreign-owned companies do not have to sell shares in their South African operations as long as they exceed the other empowerment criteria, including procurement from black business, affirmative action and skills development.

The finalisation of the codes will bring certainty to business as it is now clear how empowerment efforts will be ranked. It will also enable verification agencies to be established. It will become possible to compare companies' empowerment shareholdings.

The codes have relaxed the empowerment requirements for small businesses. Businesses with turnover of less than R5 million are exempt. Those with turnover between R5 million and R35 million can choose four of the seven elements of the scorecard. Manyi said this was a worry because it could be abused. Black-owned businesses could be marginalised as they had to compete with similar white businesses without full credit being given for their empowerment status.

Business Report

 

[Nod]

A good thing SMME will have some leeway. At least the profit margin is more realistic.

 

[Boodles]

And what about the Sexwales (and a few others) of the world, whom have their fingers in everything from nail polish to casinos to wine farms to flippin everything...

He has certaintly reached his quota.

 

[icyrus]

Manyi said this was a worry because it could be abused. Black-owned businesses could be marginalised as they had to compete with similar white businesses without full credit being given for their empowerment status.

This line is tragic beyond words. We had all hoped for a colour free South Africa and now it seems that hope is lost forever.

 

[telkomsuig]

This line is tragic beyond words. We had all hoped for a colour free South Africa and now it seems that hope is lost forever.

So what she is admitting to is that BEE companies can't compete with similar "white" companies...SA has a very strange view of free market economy.

The fact of the matter is of white people are allowed to run their own small companies again they would be far more inclined to invest and thus create real jobs for the majority.

 

[GavinMannion]

I thought this was good news, BEE quotas are not working and the government has realised this and started to take action to rectify....

Did I miss something?

 

[icyrus]

I thought this was good news, BEE quotas are not working and the government has realised this and started to take action to rectify....

Did I miss something?

I don't see how any kind of racial classification can be seen as good news. I guess at best it could be seen as an attempt to reduce the overall negative effect.

 

[icyrus]

So what she is admitting to is that BEE companies can't compete with similar "white" companies...SA has a very strange view of free market economy.

That is not how understood the comment. I took it to mean that he believes everyone involved in business in SA is racist and wouldn't employ/sign deals with black people if they weren't forced to.

 

[telkomsuig]

they should go and dig up the old racial classification act aswell. It is going to become increasingly difficult to put people into classifications in the next 5 to 10 years. There are lots of mixed couples in the country.. what do you classify a mixed child as black/white/colored/south african?

 

[kilo39]

Ja, tell people how to run their business and companies: a sure guarantee for no companies and no business (and therefore no jobs.)

Their BEE, ApartheidApparatchik is bad for business (no business wants government dictating who they can and cannot employ.) Many would rather have no business at all.