As the ICT industry awaits the completion of its BEE charter, black empowerment experts say the Department of Trade and Industry`s (DTI) Codes of Good Practice will have a great impact on the future of South African companies.
Speakers at the Financing Black Empowerment Partnerships event at the Sandton Convention Centre yesterday said creating value, skills and education, are key to successful BEE partnerships.
Mannie Hirsh, director of Gestalt Corporate Engineers SA, said: "In the near future, if a company does not reach level four of the scorecard, then that company will not be as successful as it should."
According to the DTI`s codes, a scorecard of up to 40 (level 4) is considered to imply a limited BEE contribution, while a score above 40 is considered to imply a satisfactory BEE contribution.
Hirsh said until now transformation has meant swapping some white equity for some black equity. "There`s now a new game and that is how to leverage the scorecard to build a BEE competitive strategy."
Maximising the scorecard dictates a re-evaluation and re-integration of present corporate empowerment policies. He said. "The process starts with the decision to create an equity opportunity for the right empowerment partner."
Whites in SA must share trade secrets as they have enormous experience from years of doing business.
Lebo Gunguluza, president, Black Entrepreneurs SA
President of Black Entrepreneurs SA Lebo Gunguluza said one of the many challenges facing [discipline]black business is that banks are reluctant to give out loans to new companies.
"The banks want to be assured that they will get back their money back," said Gunguluza. "The problem [often] lies with some black businesses that have no record of financial [discipline]. Some get government tenders and spend the money on luxuries, forgetting that there`s a job to be done and that they would have to pay back the bank."
He also criticised some black businesses that get government contracts and sub-contract to white counterpart with an aim to keep the bigger share of the money. "That mentality sets us back in terms of growth."
He said black people need to be taught project management skills and how to manage finances. "We need to develop black people as sustainable suppliers and [teach them] how to be responsible as well as how to keep a track record of finances for future business deals and partnerships.
"Whites in SA must share trade secrets as they have enormous experience from years of doing business that will ensure sustainability of businesses," he concluded.
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