Let me first take this opportunity to welcome all of you to this important session, which marks a launching pad of the national Broad-Based Black Economic Empowerment (BBBEE) road shows programme facilitated by the national Department of Transport.
Some of you would recall that 54 years ago we declared through the Freedom Charter that “the people shall share in this country’s wealth.” We, in the transport family, are proud that today we are bringing this insightful clause into reality.
I am also proud that while there are certain people who go about indicating the African National Congress (ANC)-led government has abandoned the Freedom Charter, we are today responding directly to the Freedom Charter. When we came to power in 1994, it was necessary to intervene in order to redress the systematic exclusion of the majority of South Africans from the mainstream of the South African economy.
It must be acknowledged that this exclusion restricted the creation of wealth and imposed underdevelopment of black communities and relegated them to being only of cheap labour. The denial of access to skills and reserved jobs was undermining the very purpose of growing the economy and the development of entrepreneurship, and thereby undermining the growth of the whole South African economy.
The Integrated Transport Sector B-BBEE Charter comprises of eight sub-sector charters, namely: Aviation, Bus, Forwarding and Clearing, Maritime Transport and Services Industry, Public Sector, Rail, Road Freight and Taxi. The Sector alone contributes around six percent to the Gross Domestic Product (GDP), as a result it is the South African heartbeat of the economy, hence without transport there cannot be trade and other more factors that make our economy to boom.
Details of these sub-sector charters will be unveiled during the breakaway sessions. The B-BBEE of the transport sector marks the landmark achievement that has been jointly drafted by a number of patriots, driven by a common desire to realize the economic emancipation for all our people.
This charter however, should not be seen in isolation to the whole economic thrust of our democracy. It is a contribution to the changing of the landscape of our country’s business environment, which is characterised by high levels of unemployment, shortages of skills, anti-competitive behaviours by many companies, price-fixing practices which create monopolies, business cronyism, and illiteracy.
Black Economic Empowerment (BEE) charters have been underutilised simply because of their focus on only one element, that of equity to the total exclusion of all the other six elements.
The intervention of the state through the launch of the Transport BEE Charter could not have come at a better time than the current global financial crisis. Although we as a country have been partially insulated from this financial global crisis as a result of economic fundamentals, we need to acknowledge that at certain time, the role of the state is important as we witness country after country, bailing out their financial institutions from the national fiscus.
The finalisation of this charter has been a long and protracted process, largely because of the complexities in the sector itself, but also because as we were trying to finalise it, there was also thinking in government about how we can make this strategic intervention to benefit as many of our people as possible.
The gazetting of the charters provided a legal framework for us as the transport sector. This should tell you that before the existence of BEE Act and the Codes of Good Practice, the transport sector was already ahead with the development of BEE charters. It was then necessary to align all the sub-sector charters after the issuing of the final Department of Trade and Industry (DTI) Codes of Good Practice on BEE.
Although today we are hosting the first road show in the country, I am delighted that there are already BEE transactions that predate this event. To name but a few, the SMIT Amandla Marine South Africa and African Maritime BEE transaction, Grindrod and Mawavune Women’s Investments, Timken Bearing Services South Africa and the Bokamoso Investment BEE Consortium, Anchor Industries and Anchor B-BBEE Staff Trust, Mediterranean Shipping Company and Black South African business circles, Super Group and Peu Investment, Comair and Thelo Group, BMC and Interstate Bus Line, the Unitrans and the PUTCO BEE deals. In addition, the Eastern Cape Transport Department has created Africa Best 350 as a BEE initiative.
This momentum must be maintained and I hope the event today will not only consolidate the deals already signed, but create an opportunity for the acceleration of BEE implementation in the transport sector though the entry of black enterprises including stokvels, women’s groupings, and collective bulk-buying methods to leverage-on for portions of stocks within the transport sector.
I would also like to warmly congratulate everyone who has made this event possible. I am confident that the successful implementation of the vision of the Integrated Transport Sector Broad-Based Black Economic Empowerment Charter will not only meet the objectives of Broad-Based Black Economic Empowerment Act but will contribute significantly to the overall developmental objectives of our government.
The transport sector has set an example, as this is the industry with a large number of diverse sub-sectors, showing Africa and the World what can be achieved when South Africans are working together in making sure that this country is a better place for all those who leave in it.
I urge you to embrace this legacy in your future business engagements! The most important thing about the BEE is to transform this country into non-racial and non-sexist society as enshrined in the Freedom Charter. We are convinced that the transport progress we have seen this month is indeed the sign of great achievement for the preparation of the 2010 FIFA World Cup.
In conclusion, I would like to commend officials from the national Department of Transport for working with us in preparation for this important session.
I hope that this will inspire all of us to continue to march together in pursuit of a common goal and objective the effective transformation of our economy.
I thank you.
Enquiries:
Ncedo Kumbaca
Tell No.: 043 604 7584
E-mail: nossy.mzini@dot.ecprov.gov.za
Issued by: Department of Transport, Safety and Liaison, Eastern Cape Provincial Government
20 October 2009
