Gauteng Economic Development on launch of BBBEE Strategy

18 April 2006

Broad Based Black Economic Empowerment (BBBEE) in Gauteng received a major
boost following the launch today, 18 April 2006, of the Gauteng Broad Based
Black Economic Empowerment Strategy. The Strategy will come into effect as from
1 July 2006.

The launch of the Strategy follows a lengthy process of consultation with
major stakeholders in Gauteng. “What we are presenting today is reflective of
the views of all stakeholders in Gauteng,” said Gauteng MEC for Economic
Development, Paul Mashatile.

The Strategy is expected to substantially increase the impact made by the
Gauteng Provincial Government in promoting BBBEE and will ensure that by 2009,
up to 70% of government procurement is done through broad based economically
empowered companies. It will also assist the provincial government’s efforts to
support small, medium, and micro enterprises as well as cooperatives.

Speaking at the launch Gauteng Premier Mbhazima Shilowa said: “we need to
send a clear message to that time for white monopoly capital to pay lip service
to economic transformation and empowerment, especially for women, will not be
rewarded.”

Shilowa called on the private sector to also play a role in the success of
broad based economic empowerment. He said the private sector is expected to
exceed the targets that are set in the Strategy. “In addition, the private
sector has a role to play in supporting the growth of small, micro and
cooperative enterprises through enterprise development programmes in
partnership with the provincial government as well as in designing innovative
financing options to address development objectives including in housing,
health and infrastructure.”

Among others the Strategy sets the following targets to be achieved by
2009:
* 70% of the provincial government’s procurement will be from;
* BBBEE enterprises;
* 20% from small BBBEE enterprises;
* 5% from micro BBBEE enterprises;
* 30% on goods manufactured in South Africa;
* 15% on black woman owned enterprises.

Enquiries:
Percy Mthimkhulu
Cell: 082 379 1913

Issued by: Department of Economic Development, Gauteng Provincial
Government
18 April 2006