Black Economic Empowerment (BEE) is an initiative launched by the South African government to fast-track the upliftment of previously disadvantaged sectors of the country's population. BEE seeks to promote new opportunities for, and to increase the levels of participation of previously disadvantaged individuals and companies in the ownership, management and control of economic activities.
The government's Broad-based Black Economic Empowerment (BBBEE) strategy is a necessary intervention to address the systematic exclusion of the majority of South Africans from full participation in the economy in the past. The defining feature of the apartheid era was the use of race to restrict and severely control access to the economy by black persons. The consequences were restricted wealth creation and imposed under-development of black communities (including a lack of access to secondary and tertiary education) to ensure that they were, in the main, suppliers of cheap labour.
Broad-based Black Economic Empowerment means the economic empowerment of all black people, including women, workers, the youth, those with disabilities and the inhabitants of rural areas, through diverse but integrated socio-economic strategies. These include, but are not limited to:
The intention of the BBBEE Act is to redress the imbalances of the past. It was enacted to promote the achievement of the constitutional right to equality (as set out in the clause on equality in the Constitution). More particularly, the purpose is to increase broad-based and effective participation of black people in the economy and to promote a higher growth rate, increased employment and more equitable income distribution.
The purpose of the codes of good practice is to assist and advise both the public and private sectors in their implementation of the objectives of the Broad-based Black Economic Empowerment Act. The codes provide principles and guidelines to facilitate and accelerate the implementation of broad-based BEE in a meaningful and sustainable manner.
The purpose of this act is to achieve equity in the workplace by promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination and the implementation of affirmative action measures to redress the employment disadvantages experienced by designated groups. The goal is to ensure their equitable representation in all occupational categories and levels in the workforce.
The Preferential Procurement Policy Framework Act, No 5 of 2000 (PPPFA) and its regulations, provide a framework within which persons disadvantaged by unfair discrimination must be advanced once an organ of state implements a policy of preferential procurement.
The Skills Development Act aims to develop the skills of the South African workforce and to improve the quality of life of workers and their prospects for work. The intention is to improve productivity in the workplace and the competitiveness of employers, and to promote self-employment.
The Minerals and Petroleum Resources Development Act (MPRDA), was promulgated in May 2004 and became law in May 2005. The act recognises the state's sovereignty and custodianship over the country's mineral resources, and provides for equitable access to mineral resources, opportunities for historically disadvantaged South Africans (HDSAs), economic growth, employment and socio-economic welfare, and security of tenure. Meaningful and substantial participation of HDSAs in the mining sector is guided by principles contained in the Broad-based Socio-Economic Empowerment Charter. A scorecard for the charter has been introduced to facilitate its application in terms of the requirements of the MPRDA, for the conversion of all the 'old order' mining rights into new rights.
The provisions of the MPRDA have necessitated the establishment of the National Mining Promotion System (NMPS). This online system allows the department to improve mineral licensing administration, investment promotion and the registration of rights. The NMPS enables the department to improve on turnaround time when processing applications and to maintain the proper management and administration of mineral-related rights and permits.
The goal of the empowerment charter is to create an industry that will proudly reflect the promise of a non-racial South Africa. The scorecard is designed to facilitate the application of the charter in terms of the MPRDA requirements for the conversion of all the 'old order' rights into new rights within a five-year conversion window period, but recognising the full 10-year period.
The drivers of the charter are:
The objectives of the charter are to:
Regarding ownership targets, the charter (as read with the scorecard) requires each mining company to achieve the following HDSA ownership targets for the purpose of qualifying for the grant of new order rights:
The charter states that such transfers must take place in a transparent manner and for fair market value. It also states that the South African mining industry will assist HDSA companies in securing the financing for HDSA participation within the first five years.
All stakeholders undertake to create an enabling environment for the empowerment of the HDSAs by subscribing to the nine elements of the mining scorecard. They are:
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BBBEE is a necessary intervention to address the systematic exclusion of the majority of South Africans from full participation in the economy in the past
