Black Economic Empowerment Portfolio Committee September 2002
Table of Contents Introduction BEE Approach Rationale Engen’s BEE Vision Engen’s BEE Mission Structure
Table of Contents Areas of Focus/Strategy Challenges Conclusion Shareholding Employees Retail Dealerships Business Partners – SDCO’s Suppliers – Procurement Corporate Social Investment Challenges Conclusion
BEE Approach It is a process (and not an event) by which Engen proactively and deliberately creates profitable and sustainable business opportunities, to a large section of the South African population, who were previously disadvantaged/deprived.
Rationale To redress the economic exclusion and marginalising of the majority of South Africans, and through that, contribute in the creation of a more equitable, sustainable and stronger economy. Value Creation
Engen’s BEE Vision A value creating company that in Employee make-up and business operations both internally and externally, reflects the demographic of the markets in which we operate
Engen’s BEE Mission To contribute to the development and growth of our BEE partners through the awarding of meaningful opportunities to Historically Disadvantaged South African’s (HDSA) to facilitate the sustainability of their business as well as expand their contribution to the South African Economy.
Structure Who is responsible? CEO – driven process Management have targets incorporated on their performance contracts Dedicated department established in October 2001
Areas of Focus / Strategy Shareholding Employees Retail Dealerships Business Partners Suppliers Communities/Social Investments
Shareholding 1998 – Petronas – 80% 1998 – WAIH – 20% 2000 – Engen – 45% - Afric Oil
Employees EE Vision: “Engen will be recognised as the oil industry leader, by 2004, having achieved or exceeded a profile at all employee levels and occupational categories which is 50% that of national or regional demographics of the economically active population in terms of race, gender and disability.”
Employees
Actual vs Target June 2002 Female Target 2004 = 22% Charter
Retail Dealerships Charter
Retail Dealerships Target as per Charter 25% by 2010 2000 Engen target 40% in 2004 2003 = 34% On course to exceed our target
Business Partners - SDCO’s Target as per Charter 25% 22 – Outlets 2 x 100% 1 x 50% 1 x 25% Our target is minimum 30% equity in each outlet by 2004 Conditional Renewal of Contracts
Suppliers - Procurement
Suppliers - Procurement Our Procurement is relationship and capacity building Encourage partnerships e.g. Maziya at the Refinery, mentorship programmes Set-up operations e.g. Plant ’n Idea Influence current Suppliers e.g. Rheem/Retail Service Construction
Suppliers - Procurement SMME Training Lujeze Security Mondli Trucking and Waste Bonganjalo Scrap Gedeza Cleaning Services Internal Strategy of set asides
Corporate Social Investments Education Micro Science Project Professional Teacher Development Programme (PDP) Collaborative Education with South Africans (CEWSA) Job Creation Afrikatourism: 29 routes covering almost 9000km; account for 4031 direct full-time jobs in season and 1933 part-time jobs
Corporate Social Investments Peace & Security Africa Peace Award National Sea Rescue Institute (NSRI) Community Policing Forums Arrive Alive Sports Development Athletics Development Basketball Motorsport Development
Challenges Availability of Capital Fronting Heavy concentration on a few areas of business Skills development Proposed Pricing Changes (IBLC)
Conclusion At Engen, we recognise that BEE is the agent for the creation of wealth and an engine for change Implementation is complex it requires, commitment, passion and skilful adaptation to change We recognise that there is a need to continuously communicate positively to reinforce the message
Conclusion Endeavor to meet all strategic targets that are agreed to, from time to time We continuously monitor and track the performance of BEE targets We reaffirm our commitment to the cause of BEE we will meet and exceed the targets as agreed on the Charter
Thank You