1. Local Content Some learnings from South Africa JB Renard 2PR Consulting Think Tank Energie pour l’Afrique

2. BEE – SOUTH AFRICA CONTEXT 1994 – End of Apartheid 2000 – Petroleum and Liquid Fuels Charter 2001 – BEE Commission Report 2004 – BEE First Act 2005 – BEE Codes of Good Practice – first codes 2007 – BEE Scorecards (measuring compliance with codes) 2013 – Next Elections – and then? 2PR Consulting 2PR Consulting

3. BEE SCORECARD Equity Ownership Management Control Preferential Procurement Enterprise Development Social Investment Employment Equity Skills Development Code 100 Code 200 Code 300 Code 400 Code 500 Code 600 Code 700 Total Subject Area Weight Code 20 pts 10 pts 20 pts 15 pts 5 pts 15 pts 100 85 75 65 55 45 40 30 0 Non Compliant Level 8 Level 3 Level 4 Level 5 Level 6 Level 2 Level 1 Level 7 * * Level 1 is achievable through bonus points BEE Status 2PR Consulting 2PR Consulting

4. AND NOW IN SOUTH AFRICA A Complex Balancing act Attracting foreign investment Remaining an example for the Region Delivering on promises to HDSA Dealing with poverty and unemployment The most complex political context since 1994 Tensions within ANC (eg Malema “case”) End of ANC hegemony in sight Marikana December ANC Conference /next Presidency a turning point? 2PR Consulting 2PR Consulting

5. CONCLUSIONS Localisation is good Business, Big Business to show the Way No large developing country has done it before Intend & Principles are right (Inc. Long timeframes) Rules & Scorecards good but Perversion of the System (e.g. few happy rich) Focus on Skills and Enterprise Development vs. Ownership Role of Large Companies to develop People and Enterprises to International Standards 2PR Consulting 2PR Consulting