BEE Partner, South Africa Economy Watch

• The Ownership Level
• The Corporate Advancement Level
• The SMMEs (Small, Micro and Medium Enterprises) Outsourcement Level

A. The Ownership Level

The idea behind this level is that it is desirable, equitable and in the interests of nation building for every profit-making organisation operating in South Africa which previously had no black shareholders to begin to have them. The high profile formation of originally NAIL (New Africa Investments Limited) and RAIL (Real Africa Investments Limited), and subsequently the acquisition of significant stakes in Johnnic and JCI by black interests have been the most publicised manifestations of this level of empowerment.

These deals have also put organisations of size similar to Johnnic or JCI at a disadvantage in that there are now expectations of such organisations to do likewise, lest they be seen to be out of tune’ with the times. Whilst there is no specific percentage that tends to be expected, the norm which is beginning to be the starting point, lies between 25% and 30%.

These initiatives tend to be more of an event than a process.

B. The Corporate Advancement Level

This is the traditional view of black empowerment and has largely been thoroughly discussed and debated in the new South Africa. It essentially entails a process whereby an organisation actively and consciously seeks out, selects and recruits black (black is used inclusive of coloureds and Asians) employees with a view towards training and developing them for promotion to senior positions within the organisation.

Virtually all the different terms, except the new incarnation ‘empowerment‘, have been used to refer to these initiatives.

This level tends to be more of a process than an event.

C. The SMMEs Outsourcement Level

Although not generally spelled out, this level tends to be directed at black Small, Medium and Micro Enterprises. The expectation here is that well established organisations need to actively seek out these small, usually black fledgling businesses and help them to grow by providing them with contracts; what Clem Sunter refers to as the Dual

Logic economy. Sunter was referring here to the Japanese model where there is a huge army of small companies that are virtually permanent suppliers to the huge conglomerates. The concept of the Dual Logic economy has now been clothed mostly in black empowerment terms.

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