German-based enterprise software firm SAP unveiled a new empowerment deal which aims to achieve a 30% Black Ownership target in the BBBEE codes applicable to all South African IT companies.
SAP unveils second South African empowerment deal
By Gugu Lourie
In a move signaling its commitment to South Africa, SAP SA, a unit of German-based enterprise software firm SAP, is strengthening its Broad-Based-Black-Economic-Empowerment (BBBEE) credentials by concluding another empowerment transaction.
SAP South Africa will issue 19.5% shares to The SAP South Africa Empowerment Trust, the beneficiaries of which are previously disadvantaged black students. These beneficiaries will use the dividends received from SAP South Africa to pay for studies facilitated by the Maharishi Institute.
Exaggerated figures are a factor of the current BBBEE rules... and mixed with a number of other accounting adjustments that turn white money black, renders the black ownership values we see in BBBEE certificates misleading, Philisiwe Mthethwa wrote in a recent Business Opinion piece on IOL.
Black ownership must be distilled to reach 25%
by Philisiwe Mthethwa
The launch of the Black Industrialist Policy promises to accelerate South Africa’s economic transformation but the empowerment project might still be significantly held back if the equity leakage that comes with the rules of calculating black ownership, in particular accounting for mandated investments, is not reviewed.
New Generation Mindset (NGM), a Johannesburg-headquartered enterprise development and social economic development consultancy, has put out a call for black-owned tech startups to join its incubation programme in the Western Cape.
NGM says on their website that they aim to create an enabling environment for sustainable businesses and boost the government's efforts to create a more inclusive economic participation, especially for the previously disadvantaged individuals and communities, through Enterprise and Supplier development.
"Our strategic focus is on two areas of intervention: Enterprise Development and Social Economic Development, scoring the client weighted points in two codes of the B-BBEE scorecard for their single investment."
Hammanskraal - The Democratic Alliance would hasten the land reform process in South Africa if it were to come to power, party leader Mmusi Maimane said on Monday.
“Democrats, people are going to talk, saying the DA doesn’t want the land reform. What now? We have already advanced the land reform in the Western Cape faster than any other province. But we can’t just talk about rural land reform, we must also talk about urban land reform,” Maimane told supporters after a walkabout in Ramotse village in Hammanskraal, north of Pretoria.
VODACOM will be hard-hit by the draft amended broad-based black economic empowerment (BBBEE) code for the information and communications technology sector (ICT), in which a critical clause has been removed from the previous versions. That clause deemed any empowerment transaction worth R7.5bn or more as being equivalent to the required black ownership target of 30%.
Vodacom’s 2008 BEE deal, which was worth R7.5bn, gave its black shareholders only 6.25% of the company, far short of the 30% that is the new target for black ownership set in the draft code.
Given the congenital secrecy of the oil industry, it is remarkable that Chevron South Africa has allowed two senior managers to respond to the anguish of 70 or more Caltex service station operators at the way their contracts have been handled or cancelled.
The usual way of dealing with matters that have become public is to shield top managers behind statements issued by the media spokesperson. In the US, they call this “plausible deniability”. Thus if the statements are economical with the truth, or just plain wrong, they can always be denied. Senior heads are below the parapet. The buck does not stop at the top. It flies over. Another way is to keep opponents in court until they run out of money and retire broke. One hopes irate Caltex dealers are aware of this tactic.
On the other hand, the aggrieved dealers might club together in a class action. The more of them there are behind a court challenge, the more the smoke thickens, and of course the more suspicion that there must be a fire. This is best described as “Many Davids versus one Goliath”.
FCB Africa has concluded a BBBEE deal that it believes will have a profoundly positive influence on young black women as well as a major impact on South Africa’s economy in the years ahead.
In terms of the deal, which has an effective date of Tuesday, 1 December 2015, the Maharishi Institute in Johannesburg has acquired 15% of FCB Africa. The deal boosts FCB’s total black ownership to over 51% and rockets its total black female ownership to over 31%.
These shares will be held in a broad-based black economic empowerment trust, and 100% of all profits made in respect of these shares, once they are paid off, will be used to empower unemployed young women who will own an equity stake in the company, with a comprehensive career package that facilitates true lifelong empowerment, including access to university-level business degrees with a specialisation in advertising and digital marketing, industry-recognised vocational skills qualifications, full-time employment, personal development, soft skills training and ongoing hands-on coaching and mentorship.This holistic approach with a range of other support measures over a number of years, will assist these women to become measurably successful in South Africa’s economy. The move is targeted to strengthen the long-term pipeline of new industry professionals.
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.