Thabo Masombuka Chief Executive Officer (CE0) CSCC TRANSFORMATION TRENDS IN THE CONSTRUCTION SECTOR 30 July 2014

BBBEE AS AN INSTRUMENT FOR ECONOMIC EMPOWERMENT BBBEE DEFINED “An integrated and coherent socio-economic process….which aims to redress past imbalances by transferring and conferring ownership, management and control of South Africa’s financial and economic resources to the majority of its citizens and ensure broader participation of black people in the economy in order to achieve sustainable development and prosperity” – BBBEE Strategy document

THE GAZETTING OF THE CONSTRUCTION SECTOR CODE (CSC) The BBBEE STRATEGY promotes PARTNERSHIP & INDUSTRY ACTIVISM to foster economic transformation objectives. Hence the Construction Sector Code was gazetted in June 2009 to achieve the following strategic objectives : The inclusion of BLACK PEOPLE in general and BLACK WOMEN in the OWNERSHIP and MANAGEMENT of construction companies and businesses. The acceleration of TECHNICAL SKILLS and CAPACITY OF BLACK YOUTH and PEOPLE WITH DISABILITY. To provide JOBS and EMPLOYMENT OPPORTUNITIES. Building the ENTREPENEURIAL CAPACITY and SUSTAINABILITY of BLACK enterprises in the construction sector.

THE ROLE OF THE CSCC The CSCC is the EXECUTIVE AUTHORITY : Entrusted with OVERSEEING and MONITORING the IMPLEMENTATION of the Construction Sector Codes (CSC) of Good Practice by the Industry. Through industry programmes, responsible for the FACILITATION of the achievements of sector empowerment TARGETS. ALIGNMENT of Construction Charter with existing legislation Provide necessary GUIDANCE & BEST PRACTICE NOTES on the interpretation of the principles of the Construction Sector Code. LIAISON with and reporting to the regulatory stakeholders on the annual measurement of the construction sector code - BBBEE Advisory, DPW and the DTI. Creation of RELIABLE and ACCURATE industry specific empowerment data

BASELINE METHODOLOGY The CSCC actively pursued the submission of industry BBBEE verified scorecards within the construction sector, including Contractors and BEPs. Over 1770 (about 14% of the sample) of the commercially active companies were scoped. This actively included the interpretation of 3530 BBBEE certificates Commissioned the services of independent service providers to :

OVERVIEW: INDUSTRY TRANSFORMATION: ALL SECTORS Upward Trend: 64% in 2009 to 85% in 2013 Level 4 and above

OVERVIEW: INDUSTRY TRANSFORMATION: EME S High Contributor to overall Industry Transformation above Level 4: 55% contribution in 2009 and 45% in 2013

OVERVIEW: INDUSTRY TRANSFORMATION: LARGE ENTERPRISES Upward Trend: 38% in 2009 to 65% in 2013 Level 4 and above (60% in 2012)

TRANSFORMATION TRENDS: LARGE CONTRACTORS

The CSCC is based at : 164 Katherine Drive Pinmill Farm Office Park Ground Floor – G Block Sandton, Johannesburg TEL : (011) /5/6 WHERE TO FIND US