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What is BEE?

 

Black Economic Empowerment was introduced in the 1990’s to address the redistribution of wealth to ensure the future viability of the south African economy. This led to the introduction of the Black Economic Empowerment Act in 2003 and subsequently the Codes of Good Practice on the 9th of February 2007. This guiding Principle of this Act is that transformation should benefit the population as a whole over the long term.

 

The focus of transformation is to alleviate poverty, build capacity, ensure skills transfer and develop new black businesses.

 

Who are classified as black?

 

All African, Coloured Chinese or Indian persons who where SA citizens by birth or decent.

 

Nesh Freight started its transformation in 2005, on our first audit we reached level 6 compliance, in 2006 we reached level 4 compliance, in 2007 we reached level one compliance and peaking at number 23 on the top 200 rated companies list, in 2008 we managed to sustain level one and reach 23 in the country again.

 

The components of the BEE scorecard are broken down into the following categories:

 

• Ownership: Who owns the company?
• Management Control: Senior or top management who make or implement the strategic decisions.
• Employment Equity: This relates to the distribution of black employees in Junior Middle or Senior Management.
• Skills Development: This means the training of your own employees preferentially the black employees.
• Preferential procurement: Do you purchase goods from black owned enterprises or enterprises with a good scorecard?
• Enterprise Development: Do you assist black owned businesses to improve?
• Socio-Economic Development: Do you make contributions towards black employees or for the greater good of black beneficiaries?

 

BEE is fast becoming part of every business. It is alive and growing all the time. We, as citizens of SA need to make it work for the people’s sake. The new economic village is forming and the only way to get to new markets is with a BEE scorecard.