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Reona Strydom | 26 October 2023

The history of South Africa has resulted in a disparity in economic and opportunities disparity based on race and has resulted in many Black people in South Africa not enjoying the same opportunities presented to the rest of the country.

The purpose of Broad Based Black Economic Empowerment (B-BBEE) is therefore to bridge the gap between formal and substantive equality to ensure that all people in South Africa enjoy the right to equality.

And in today's dynamic business landscape, understanding and implementing a robust B-BBEE strategy is paramount as it will help you achieve your B-BBEE goals and reach the B-BBEE levels you need for your business. Reona Strydom, Technical Specialist at The BEE Chamber, emphasises the importance of having a well-crafted B-BBEE strategy in place. “Meaningful B-BBEE transformation involves a comprehensive and sustained effort that goes beyond compliance and is closely tied to the development and implementation of a comprehensive B-BBEE strategy, aiming to create lasting positive impacts on individuals, communities, and the broader economy. It requires a commitment to social responsibility, inclusivity, and shared economic prosperity. Companies need to integrate these principles into their business operations and corporate culture to contribute meaningfully to B-BBEE objectives.” With this in mind, Strydom provides valuable insights into what businesses need to know to navigate this crucial aspect of their operations successfully. Getting started The first step in formulating a B-BBEE strategy is to set clear goals. “These goals should include the aim to maintain or improve your B-BBEE status, align initiatives with your transformation plan, and integrate B-BBEE with your overall business strategy,” says Strydom. Analysis To move forward effectively, a business must analyse its current B-BBEE results and scoring. This will lead to Identifying shortfalls and gaps in the current strategy, and assess potential risks and how they might affect the business. “Be prepared to adapt to any necessary changes in your business operations, this is essential for success.” Objectives Define clear objectives for the B-BBEE strategy. Plan and implement new initiatives that align with the business goals and consider the budget constraints and allocate resources wisely. Ensure that responsible parties within the business understand both what needs to be done and why it is crucial for business success. Implementation plans and timelines “Determine what is practical and feasible within your business. Research challenges commonly faced in your industry regarding B-BBEE compliance and then lay the groundwork with thorough preparation to minimise disruptions during implementation – but also understand that you may need to be nimble and adjust to get the right plans in place.” Strategic considerations per element Ownership: Recognise that ownership is a long-term commitment. Manage associated risks wisely, understanding that there is no one-size-fits-all solution. Ensure that Black ownership is meaningful and leads to active participation in decision-making processes, rather than being symbolic. “Once you find the correct ownership structure, it can yield a return on investment (ROI) and ensure the longevity of your B-BBEE initiatives.” Management control: “Consider reviewing your human capital environment to identify skills gaps and operational challenges. Programmes like Learnerships, Apprenticeships, Internships, or Youth Employment Service (YES) can help address these issues. Implement inclusive recruitment, retention, and promotion practices to ensure that Black employees have equal opportunities for career advancement.” Skills Development: Skills Development is linking training initiatives to career development, alignment with the needs of both individuals and the business. Businesses can facilitate opportunities for Black people and employees, either within a measured entity or through placement in suppliers or Enterprise and Supplier Development (ESD) beneficiaries. By investing in Bursary, Learnership, Apprenticeship and Internship programmes to develop future workforce members, businesses can build capacity in areas with a shortage of skilled Black professionals. Preferential procurement: “Review your current procurement strategy and identify opportunities for future supplier diversity in alignment with your Enterprise Development (ED) programme. Consider timeframes for implementation and apply pressure to your non-compliant suppliers. By increasing spend with micro and small businesses, you will enhance your B-BBEE score.” ESD and SED: Evaluate if the Socio-Economic Development (SED) initiatives currently in place can support the business objectives. Connect an SED programme with the ESD programme by planning for the absorption of SED beneficiaries into the business supply chain. Make job creation a condition for support given to ESD beneficiaries. Strydom emphasises that a well-thought-out B-BBEE strategy is not just a compliance requirement but a strategic imperative. “By aligning B-BBEE initiatives with your overall business goals and considering these key elements, businesses will not only maintain their competitiveness but also drive sustainable growth and empowerment in South Africa.”

‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.


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