In the News (146)
JOHANNESBURG (miningweekly.com) – African Rainbow Minerals (ARM) plans to restructure the shareholding of its broad-based economic empowerment (BBEE) trust, as the financial covenants of a loan remain under pressure. ARM was required to increase its guarantees from R700-million to R850-million to support the financial covenants of the 2005 Nedbank loan that allowed the trust to acquire 28.6-million ARM shares from Harmony Gold, which had also provided R150-million in guarantees to the bank. The financial covenants of the Nedbank loan came under pressure owing to the decrease in ARM’s share price on the back of weakened commodity prices and the overall negative sentiment towards the mining sector.
Transformation is on everyone’s lips in 2016 but, unfortunately, it’s for the wrong reasons. Recent headline-grabbing stories of unprecedented racial tension have revealed a greater need to intensify efforts to achieve real transformation in South Africa.
In business, the Broad Based Black Economic Empowerment (B-BBEE) policy is key in economic and business transformation, but it doesn’t come without its challenges. Stalwart of the South African business solutions industry, Nashua, has made great strides not only towards meeting compliance criteria but also making a concerted effort to achieve true transformation beyond a scorecard.
Nashua’s Chief Human Resources Officer, Lindelwe Kunene says, “We acknowledge the need to constantly help employees accept and embrace change, while staying motivated and engaged in the process. It’s the only way for organisations to succeed and ensure a fair and all-inclusive business environment.”
We are many times faced with the the phenomenon of our White compatriots telling us to "get over it" and expecting us to "move on" from incidents of racial hatred or racial abuse, or indeed that we should not bemoan the effects of the centuries of colonialiasm and racist Apartheid laws abolished a mere two decades ago.
Well... It turns out that there have been studies on how Whites perceive Black Pain, both the physical pains as well as the emotional pains which Blacks endure. The perception that Blacks are able to endure more pain than Whites creates a cycle effect which subjects Blacks to even more pain.
Racial disparities exist, but what causes them can be complicated. Harvard anthropology student Jason Silverstein says it has to do with a lack of empathy. Host Michel Michel Martin talks with Silverstein about a Slate article he wrote titled, 'I Don't Feel Your Pain.'
Having a positive BBBEE scorecard propels your business into new levels of opportunity, says Lenore Kerrigan, Country Sales Director: Africa at Open Text.
Opportunities are usually disguised as hard work, so most people don't recognise them." Ann Landers
While the basic business imperatives of increasing revenue, decreasing costs and improving compliance remain critical for all businesses, from 1 May 2015 the Amended BBBEE codes came into effect bringing with them new regulatory requirements.
Having a positive BBBEE scorecard not only enhances these business imperatives, it propels your business into new levels of opportunity. This means that companies are feverishly working towards achieving their scorecard objectives so their business can gain competitive advantage and reap even greater rewards.
AFRICAN National Congress (ANC) secretary-general Gwede Mantashe says the governing party is concerned about the prospects for recession and further ratings downgrades, and that the government must do everything possible to stage a growth recovery. In practice, quite the opposite is happening — the policies of the government seem almost calculated to engineer a recession.
The Private Security Industry Regulation Amendment Bill requires foreign-owned businesses to transfer 51% of ownership to South Africans, creating uncertainty as to whether the government is intent on large-scale "indigenisation" along the lines of what is happening in Zimbabwe.
The Restitution of Land Rights Amendment Act came into force in July 2014, reopening the land claims window and causing uncertainty about investment in agriculture. The Property Valuation Act was introduced to allow the state to value land and movable assets identified for expropriation at below-market prices.
“By the time you realise your competitor has moved away from you it’s too late. If you want to be a clear industry leader, you need to be the disruptor.”
Vusi Thembekwayo is the founder of Motiv8 Merchant Services and a Dragon on South Africa’s Dragon’s Den.
It’s easy to get complacent when you do well and make targets. The problem is that your competitors are trying to figure out how they can outbox you in your own markets. That’s the warning from lead strategist, advisor and investor, Vusi Thembekwayo.
At 25, Thembekwayo served on the Operations board at Metcash Africa, a R17 billion business at the time. He was tasked with launching a new division, which he built to a R461 million turnover business before leaving to launch his own company.
Today, he’s acknowledged as a leader in understanding the challenges of growing market share in a declining economy. His advice is simple: to compete in this disruptive environment, you need to unlearn your own learnings. The single most important tool at your disposal is the ability to understand that what got you here won’t get you there.
Johannesburg - In a U-turn on Monday, the DA’s Joburg mayoral candidate, Herman Mashaba, ditched his controversial remarks on affirmative action and being classified as a black person.
The flip-flopping appeared to feed into the DA’s inconsistency on the critical issues of race, among others, according to an analyst. However, the official opposition was quick to rally behind Mashaba, labelling his latest remarks an “improved articulation of his stance”, and stated matter-of-factly he was not flip-flopping on the issue.
Speaking to The Star on the sidelines of the DA’s site visit to the Randburg labour centre on Monday, Mashaba said Black Economic Empowerment (BEE) enjoyed his support, and his previous remarks that he opposed the policy had been “twisted” to suit a political agenda.
The multimillionaire, who founded hair products company Black Like Me, had reportedly said the BEE policy was being used by government to divide people along racial lines, and that he did not want to be regarded as black but as a South African.
If blacks make up 80% of the South African population, then expectedly, they should be in control of 80% of the economy, land and social culture.
Black people were robbed of their land by colonialism, in the process also losing their heritage and economic prosperity. Twenty years after democracy and reconciliation, Black people in the majority remain poor and marginalized.
The White Supremacist System feeds from disadvantaged Black labour and consumerism, but does not adequately reinvest into Black upliftment and empowerment. This system, tagged to a senseless racism towards Black Africans, What have whites done for this country?
Herman Mashaba, the DA’s newly announced mayoral candidate for the City of Johannesburg, wants all racially based policies, such as broad-based black economic empowerment (BBBEE), scrapped. And if he were to hold the reins of power, he would immediately instruct Parliament to remove all laws that classified anyone a black person.
These plans have cast the spotlight on DA policy, which, until the eve of the 2014 general elections, struggled to reconcile a nonracial philosophy with a commitment to BEE. In a bid to explain its position during the lead-up to the 2014 election, the DA published a document in which it vowed to expand BEE legislation to make it more broad-based and prevent an already enriched elite from benefiting further.
Democratic Alliance (DA) leader Mmusi Maimane says a strong education system and economy is the only solution to the country's high unemployment rate. Maimane was speaking with informal traders at Njoli taxi rank at KwaZakhele in Port Elizabeth as part of the DA's drive to address the growing unemployment in the Nelson Mandela Metro.
He says government should invest in small businesses as they contribute significantly to the economy. Maimane met with informal traders from those selling fast foods to salon owners in one of the busiest taxi ranks in Port Elizabeth.He was accompanied by the DA mayoral candidate in Nelson Mandela Bay, Athol Trollip. Maimane says unemployment is becoming a problem in the country especially amongst the youth. He says small businesses need support as they contribute to the economy.
Revenue for the year was up by 1 percent at R62.7 billion
Barloworld on Tuesday released a “resilient” set of results for the year to the end of September 2015, saying it had increased its dividend by 8 percent in the year during which it had closed out its broad-based black economic empowerment transaction (B-BBEE) transaction.
A statement from the distributor of international brands that provide integrated rental, fleet management, product support and logistics solutions said the dividend for the year was 345 cents per share, 8 percent more than the 320 cents paid out the year before.
Barloworld said revenue for the year was up by 1 percent at R62.7 billion, mainly due to increased revenues in Automotive and Logistics, offset by reduced revenue in Equipment southern Africa, Equipment Russia and Iberia.
The industrial brand management company that was founded in South Africa said operating profit (before the R251 million charge in respect of the close-out of the 2008 broad-based black economic empowerment transaction) of just under R4 billion was 4 percent ahead of the prior year.
The Preferential Procurement Policy Framework Act has stirred up a hornet’s nest among transformation lobbyists, who have called for it to be scrapped. Instead, they say the state’s broad-based black economic empowerment (B-BBEE) trumping clause should be enforced.
Jimmy Manyi, president of the Progressive Professionals Forum, has called for the procurement act to be repealed, saying it gives too much weight to price instead of black empowerment. "It’s out of sync with the generic codes. But I’m not hearing what the (newly formed BEE) commission is going to do (about this discrepancy)."
The implications of the procurement act were "so vast that, if you were to deal with it through this trumping provision, most of the problems BEE companies (face) would be solved," said Mr Manyi.
The trumping clause states that, in the event of any conflict, the BEE act will take precedence over any other law that was in force prior to the date of the commencement of the act. Specifically, this relates to all other instruments of BEE, such as codes of good practice and sectoral charters. BEE lobbyists have backed the clause, saying it would help speed up lagging transformation. However, Mr Manyi said: "The Department of Trade and Industry is paying lip service to the trumping provision."
The first woman to own an aviation service is Sibongile Sambo, who is the founder and managing director of SRS Aviation – the first 100% black female owned aviation company that offers clients professional and personalized flight options to destinations around the world.
About Siza Mzimela
According to about.com, Siza Mzimela, founder and CEO of Fly Blue Crane, a start-up South African airline that began taking flights September 2015, with O.R. Tambo International Airport in Jozi as the airline’s operational hub.
The start-up has thus far been operating as an airline that offers low cost domestic routes within South Africa.
According to About.com, Mzimela has been vocal about eventually expanding her business to have more regional scope: “We hope to expand our flight destinations to Botswana, Namibia, Zimbabwe and the Democratic Republic of Congo. We currently have two 50-seat ERJ 145s. The airline will aim to keep its current rates in order to make flying affordable for both business and leisure travel.”
Black Economic Empowerment (BEE) should remain policy until the economy is transformed and black people have more ownership.
Chief Executive Officer of the National Empowerment Fund (NEF) Philisiwe Mthethwa says the NEF is an agency of the Department of Trade and Industry and is the only development finance institution exclusively mandated to grow broad-based black economic empowerment.
The NEF's Divisional Executive for Small Medium Enterprises (SMEs) and Rural Development, Setlakalane Molepo says it’s important for the NEF to continue to implement new BEE policies. "From 2003 when the BEE Act was introduced it has always been meant not to benefit few individuals, hence the changes that have been made to make sure that it becomes a broad based black economic empowerment. So, we are making sure that it touches as many people as it can.