1. 1 BROAD BASED BLACK ECONOMIC EMPOWERMENT ACT 53 of 2003 Assented to 1 January 2004 Commencement – to be proclaimed

2. Aim of Act  To creating a legislative framework for promoting black economic empowerment  To empower minister to issue code of good practice and publish charters  To establish BEE Advisory Council

3. Preamble  Whereas:  Under apartheid, race was used to control access to SA’s resources and access to skills  SA economy still excludes majority from assets and advanced skills  SA economy performs below its potential because of low level of income earned and generated by this majority  Unless steps taken, SA’s stability and prosperity may be undermined for all

4. The legislation is enacted to address:  The constitutional right to equality  Increase broad based participation of black people in the economy  Promote a higher growth rate  Increase employment  promote equitable income distribution; AND  To establish a national policy on BBBEE to  Promote the economic unity of the nation  Protect the common market  Promote equal opportunity  Promote equal access to government services

5. Definitions  Black people– African Coloured and Indian  Broad based black economic empowerment –means empowerment of all black people – including – women, youth,disabled, rural people, by way of:  Increasing black people in managing, owning and controlling enterprises and assets  Facilitating ownership and management by communities, workers, co-operatives etc  h.r.and skills development  Achieving equitable representation in all occupational categories  Preferential procurement  Investment into black enterprises

6. cont  Organ of state – national/provincial department  Municipality  Parliament  Provincial legislature  etc

7. Objectives of the act  To facilitate bbbee by:  Promoting economic transformation enabling meaningful participation of blacks in the economy  Changing racial composition of ownership and management and skilled occupations of existing and new enterprises  Increasing community, worker ownership – and their access to economic activities, infrastructure and skills training

8. Objectives of the act cont  Increasing black women ownership and management -and their access to economic activities, infrastructure and skills training  Promoting investment programmes that lead to blacks fully participating in the economy  Empowering rural an local communities by enabling access to economic activities land ownership and skills  Promoting access to finance for black economic empowerment

9. interpretation  Interpret so as to give effect to these objectives  So as to comply with the Constitution

10. BEE ADVISORY COUNCIL  MUST:  Advise gov’t on black economic empowerment  Review progress  Advise on codes of good practice  If requested advise on draft charters  Facilitate partnerships between state and the private sector  COMPOSITION INCLUDES:  The president = chairperson  Minister of Trade and Industry  3 cabinet ministers  Between 10 and 15 members representing:  Unions  Business  Community organisations  academics

11. CODES OF GOOD PRACTICE  Minister may issue codes that may include:  Interpretation of bee and definition of different categories of black empowerment entities  Preferential procurement qualification criteria  Indicators to measure bee and the weighting to be attached to these indicators  Guidelines on drafting of charters  Codes may specify  Targets consistent with the objectives of the act  Period within which to achieve targets  To promote S9(2) of the Constitution – and to promote equality of woman, code targets can distinguish between black men and black women

12. Code cont  Code Status – state and public entities to apply if and where possible, in:  Considering issuing of licences, concessions, or other authorisations  Implementing preferential procurement policy  Determining qualification criteria for sale of state owned enterprises  Criteria for partnerships with the private sector

13. Strategy for BEE  Minister must issue a BEE strategy which must:  Provide an integrated approach to BEE by state, public entities, the private sector, NGO’s, local communities  Develop a plan for financing BEE  Provide a system for preparation of BEE plans and to report on the plans

14. Transformation Charters  Minister will publish and promote a charter if satisfied it has:  Been developed by major stakeholders in the sector  Advances the Act

15. Support an Services of Council  The DTI to support the Council with funds approved by Parliament