CONSULTANCY.CO.ZA / 01 MARCH 2018 - 14.57 / STAFF REPORTER
South African business process consultancy Rifle-Shot Performance Holdings (RSPH) has become the latest firm to jump on the B-BBEE bandwagon. The firm has formed a strategic partnership with Madala & Associates, which will offer it level 1 status in the B-BBEE Codes of Good Practice.
Enacted in 2003, the Broad-Based Black Economic Empowerment (B-BBEE) act is an attempt at ensuring that South Africa’s economic prosperity permeates to all segments of society, particularly historically oppressed communities such as those of ethnically black, coloured or Indian background.
Targeted at the business community, the scheme enumerates certain Codes of Good Practice in the domains of ownership, management control, skills development, enterprise development and socio-economic development, through which companies can gain points depending on how diverse and equitable the internal structure is.
On the question of B-BBEE, the South African business community has been divided over the last decades. Initially, most businesses rejected the act and criticised it for its restrictive and deterrent nature. However, in recent times, an increasing number businesses have embraced the act, realising that it may not be as restrictive as it first seemed.
This was the result of experts speaking out, highlighting the potential benefits of restructuring based on B-BBEE, and arguing that negative effects were due to poor management of restructuring efforts. Big Four professional services firm EY also released a study demonstrating how the scheme need not act as a deterrent for foreign investment.
A number of companies have begun to restructure, the latest of which is RSPH, a software consulting firm that lays emphasis on using real time data to predict market trends. The firm’s name, which features the term ‘Rifle-shot,’ is a play on the highly specialised and focused approach that the firm takes in its operations.
Partnering to comply
RSPH was established in 2001, and, in addition to offering strategic consulting for growth consulting, also distributes operational management software systems. In order to comply with B-BBEE stipulations, the firm has now signed an agreement with Madala & Associates, a consulting firm focused on business transformation, which is majority black female-owned and level-1-classified in the B-BBEE books.
The new partnership will bring a number of benefits to customers of both firms, in terms of increased engagement as well as the clearance to conduct business with state-owned companies (SOCs). RSPH leaders have reportedly been on the lookout for a suitable partner to become B-BBEE compliant since 2012.
Commenting on the new partnership, and its overall impact, CEO of RSPH Ian Huntly said, “Our company has committed decades of expertise, commitment and passion to revive and accelerate South Africa's manufacturing sector so as to create sustainable jobs, and considering Dilley and I have been collaborating in business since the 1980s, we believe our respective goals and shared company ethos will benefit the manufacturing industry as a whole.”
On the engagement with SOCs, he continued; “The SOCs in particular seek to invest their enterprise development (ED) and supplier development (SD) funds on companies that have growth potential and who can deliver superior goods on time and within budget. Many manufacturing companies struggle with balancing all three and this is where the expertise of RSPH is of particular benefit.”
LINK : https://www.consultancy.co.za/news/435/rsph-strikes-strategic-partnership-to-become-b-bbee-compliant
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER