The current BEE Act, the First Code of Good Practice and the BEE strategy document, all released in 2003, are the cornerstones of government’s plan to give impetus to broad-based empowerment by 2014. This legislation has direct bearing on the current BEE requirements for your business, and as a consequence needs to be studied in some detail. Read the rest of this entry »
One of the biggest problems with BEE initiatives is that they become one person’s responsibility, and one person cannot change an organisation. Read the rest of this entry »
Economic interest is a participant’s right to share in the economic fruits of the business. The legal form of the distribution is not important, but normally comes in the form of dividends and capital gains. The Codes define it as a claim against the entity representing return on ownership of the entity similar in nature to a dividend right. Read the rest of this entry »
Direct ownership represents an identifiable natural person who holds an identifiable ownership stake with a right to participate in economic benefits and the right to exercise influence over the business in line with the voting rights owned. In terms of transformation, direct ownership is the first prize. Read the rest of this entry »
In any event, while perceived power symmetries may explain the willingness of both the ANC and the NP to enter into negotiations, the balance of power eventually shifted quite clearly to the ANC. The National Party sought, for example, a guaranteed white veto in the legislature (similar to that assured in Zimbabwe’s 1979 negotiations), and a leading role in writing the final constitution. Read the rest of this entry »
The parties involved in the structuring of a deal vary according to the size of the deal. The professional fees for listed deals can reach as high as R10 million rand just for the opinion of the various parties involved in the structure. Put in context with the size of the deals, however, this is not as extreme as it appears. QSE deals will need fewer and leis expensive professionals and the costs will be reduced to a fraction this amount. Read the rest of this entry »
In most instances, the business probably has most expertise in its own operational field. Ideally, the business should look to share this knowledge with Black business by contributing to an enterprise development beneficiary in the same field. In many circumstances, it makes no sense to share knowledge and operational capacity with a potential competitor. Before making a judgement on this comment, consider whether the beneficiary is actually a competitor or another business of similar nature servicing a different market. Read the rest of this entry »
Statement 700 provides Annexure 700A, which contains a benefit- factor matrix. The purpose of this matrix is to assign a benefit factor to the various types of contributions. Priority contributions will receive 100% recognition. Contributions that offer less substance are recognised at a lower benefit factor. Read the rest of this entry »
In Australia, despite the paradigm shift in macroeconomics from Keynesian demand management to the monetarist supply-side approach, empirical evidence still supported the use of expansionary fiscal and monetary policy and public sector job creation (for example, Mitchell, 1987a, 1987b, 1994, 1996; Mitchell et al., 1995). The solutions proposed, however, relied heavily on income policy guidelines and were not, in retrospect, comprehensive enough. Further, the stimulus that would be forthcoming was not conceived to be adequately focused to support environmental sustainability, a goal usually ignored in orthodox macroeconomics. In this context, the Job Guarantee reflects work that was conceived when this author was a fourth-year student at the University of Melbourne in the late 1970s. Read the rest of this entry »
BPO Government Assistance and Support Posted on December 8, 2006 by IT South African Government approved a Cabinet memorandum recommending substantial Government Assistance and Support for the accelerated development of the BPO (business process outsourcing) sector. The incentive scheme was formulated in partnership with the private sector through The Business Trust and is part of the Accelerated and Shared Growth Initiative for South Africa (ASGISA). The strategy includes marketing, easy entry into SA for the expansion of existing business process outsourcing operations, skills development, simplifying administrative procedures and other investment incentives.
