BEE Charter first draft provides framework

Johannesburg, 09 Mar 2004

The first draft of the ICT Black Economic Empowerment (BEE) Charter was released today and gives the framework for the establishment of BEE implementation in the sector and provides recommendations for economic transformation.

The draft outlines overviews, objectives and challenges on six core elements. The core elements of the charter will include transformation indicators such as ownership, management and control, skills development, employment equity, enterprise development and preferential procurement. A residual element of the Charter will include co-ordinated sustainable programmes to bridge the digital divide.

Dali Mpofu, chairman of the information communication technology (ICT) empowerment working group, says the principles laid out in the first draft not only set out to enable the participation of black people in the sector but seek to achieve a substantial change in racial composition of ownership, management and control and compositions of companies.

"However, the Charter is not just about rules and regulations; there are clear needs and issues that need to be addressed, such as developing the right skills, bridging the digital divide and emphasising the need to grow this key sector of our economy," he says.

Mpofu says the Preferential Procurement part of the scorecard will be critical to government`s strategy on BEE.

"Preferential Procurement is what will make BEE success. The objective is to see an increase in spend on BEE enterprises. Successfully implemented, it will ensure the redistribution of incomes, skills development and transfer, as well as job creation," he says.

The working group has also proposed the formulation of an ICT BEE Council, which will be the custodian of the charter.

Mpofu says it will be made up of representatives from government, the sector and unions.

"The ICT BEE Council will be responsible for monitoring and reviewing the implementation of the charter. It will, together with Department of Trade and Industry, assign weighting for the various categories, which will be translated into points. Mid-term and Long-term targets will then will also be set in the scorecard," he says.

Although the specific scoring indicators have not been released as the working group would like to see more discussion on the principles, Mpofu says the task of the council will be to hold companies accountable in all areas.

"It has been suggested that in areas such as ownership, some companies be given exception in favour of work done in other areas. However, the concern that has been raised that other companies would then simply ignore a section of the scorecard if they don`t wish to adhere to it."

"The points scoring will therefore seek to address these issues," he says.

The ICT BEE Council will also collaborate with the President`s National Commission and other government and non-government organisation to meet formulate national projects to bridge the digital divide, Mpofu says.

The working group will now be embarking on a roadshow to promote the charter beginning in East London on 15 March and travelling to all nine provinces to end in Nelspruit, Mpumalanga, on 6 April.

The draft will be posted at www.ictcharter.org.za.