Programme director
EThekwini municipality Deputy Mayor, Councillor Logie Naidoo
Local and district municipality mayors present
Members of parliament present
Municipal managers and heads of departments present
Representatives from government departments
Representatives from chambers and the entire business community
Members of the media
Ladies and gentlemen
It gives us great pleasure to be part of this glittering occasion where we are honouring our successful businessmen in the Broad-Based Black Economic Empowerment (BBBEE) arena who have made us proud by bucking the trend, in spite of the fact that they were operating in a harsh economic terrain owing to the global economic downturn.
As we gather here this evening, history is being made in the city of Cape Town. The whole world is watching with keen interest to see how the 2010 FIFA World Cup draw is going to stand. All of us are on tenterhooks. The out comes of this draw are crucial and important to us as a Province as they will decide which among the 31 competing football communities are likely to be our residents at the start of this magnificent and the biggest sporting extravaganza on earth.
However, we must not forget that this draw is the beginning of what we were waiting for, which is to show the world the spirit of South Africa, warmth and friendliness of the people in this country. The draw has a history of holding the sale of tickets and bookings from international media, international delegates as well as internal arrangements from local people who are also waiting to see who is playing who and when. As the province of KwaZulu-Natal, we can proudly say that we are now ready.
Any world cup competition comes with many opportunities. Our government, together with its partners, has hosted a number of workshops, in particular with small, micro and medium enterprises, to apprise them of the opportunities that are attendant to hosting this spectacle and how these opportunities can be accessed. Over and above this we have put together a booklet which shows business opportunities in the province in the lead to the 2010 spectacle and beyond.
Our appeal is that our small businesses should grab these opportunities with both hands and utilise them as a springboard for future growth and expansion of their businesses. Here we refer, among others, to opportunities like providing accommodation, sports ware, our beautiful art and craft, places of entertainment and any clothing that might be needed by visitors.
During the day, in the hall next door we opened a platform of deliberations through a conference where we observed that, even during these unsettling economic times, all of us have not given up on the implementation of Broad-Based Black Economic Empowerment. The primary aim of the BBBEE is, as speaker after speaker asserted during today’s seminar, an initiative that is aimed solely at redressing the imbalances of our economic past and allowing the broader majority of our people to participate and benefit in the economy of South Africa.
The logic of this initiative is that for more people to benefit from the economy, then more people need to put their shoulder to the wheel to grow the economy. In other words all of us need to work together to grow the economic cake so that it can be distributed evenly. The BBBEE initiative, therefore, is less about stripping certain groupings of their economic power but is more about redistribution of the country’s wealth by growing it using the resources of all of our people.
This evening is indeed a special one for we have come to acknowledge and honour those who have excelled within the BBBEE sector. This evening’s awards ceremony is a physical expression of the success of our intervention in transforming our country’s economy.
As with no doubt it has been said earlier today, we meet at a time when the whole economy of the world is starting to recover from the economic downturn which was triggered by the lending crisis in the United States of America. The fact that seemingly, our country, like economic giants Germany, France and Japan, is on a path of recovery means that our economic fundamentals are sound.
Indeed as we honour those who have excelled in the BBBEE field, we are acutely aware of the extra challenges they had to negotiate in order to e at the pinnacle of their sector. Therefore, all those who were short listed are already winners. This is the kind of period where it was doubly difficult even to be short listed.
As we celebrate the innovation and resilience of these entrepreneurs, we need to accept that the pace of BBBEE implementation in our province has not been consummate with our potential, both in terms of human resources and natural resources. It must be remembered that the BBBEE initiative does not take away the need for innovation and enterprise among entrepreneur. What BBBEE does is that it provides opportunities for growth that would otherwise not have been available to the rest of prospective entrepreneurs.
BBBEEE is not an easy road to riches but an enabler of all inclusive economic growth and development. We all have observed how some among ourselves who have benefited from BBBEE have concentrated less on running their businesses and making them profitable but have jumped on a bandwagon to splash out on non-profit generating acquisitions such as expensive cars and overseas holidays which have no bearing in the growth of their businesses. These are people who give BBBEE a bad name and do not understand the need to empower fellow entrepreneurs. This is not BBBEE.
As government, we remain committed to pull out all the resources that will enable us to implement BBBEE in the province. In our department, for example, we have expanded our Economic Empowerment unit to cater for BEE complaints and compliance, as this is a relatively new and, unfortunately, at times an abused programme. We do need mechanisms to ensure that the intentions of the programme are not undermined. To this end we are the first province to appoint a BBBEE Advisory Council. Populated by women and men of integrity and vast experience in business, the council will on continuous basis advice the Premier on the following:
* achievements of BBBEE targets for the province
* establishment and implementation of Sector and Enterprise Charters
* implementation of BBBEE codes of good practice and
* new proposed strategies, programmes and instruments to implement in order to achieve BBBEE objectives.
The provincial BBBEE Advisory Council will be responsible for the following:
* Preparing a comprehensive action plan that will ensure a fast-tracked BBBEE implementation in both the public and private sectors of KwaZulu-Natal
* Monitoring and measurement of progress made in the implementation of BBBEE in the KwaZulu-Natal province
* Providing strategic recommendations on BBBEE implementation in the province based on their collective thoughts and available researched information
* It should ensure that 50 percent of businesses are outsourced to BEE firms over the next five years
* It should monitor the affirmation of disadvantaged workers and ensure that such affirmation will be reflective of the demographic reality of the province, and that transformation is genuine and there is no tokenism
* It should also monitor skills transfer and the empowerment of women and people of colour on the boards.
It is my pleasure, ladies and gentlemen, to share with you the names of those who form the advisory council. They are:
* Dr Zweli Mkhize, Premier
* Roger Govender, acting Director-General
* Michael Mabuyakhulu, MEC for Economic Development and Tourism
* Willis Mchunu, MEC for Transport
* Ms Lydia Johnson, MEC for Agriculture and Rural Development
* Ms Carol Coetzee, Head of Department of
Economic Development and Tourism
* Ms Gabi Gumbi Masilela, Head of Department of Local Government and Traditional Affairs
* Dr FB Madlopha, Head of Department of Public Works
* Ndabo Khoza, Tourism KwaZulu-Natal
* Mr Zamo Gwala, Trade and Investment KwaZulu-Natal
* Mr Sipho Shabalala, Ithala Development Bank
* Ms T Mnyaka, Chairperson of Black Management Forum (BMF) in KwaZulu-Natal
* Mr PP Tango, President of Zululand Chamber
* Mr Comfort Ngidi, Attorney handling BBBEE matters
* Mr Don Mkhwanazi, one of the country’s BBBEE pioneers
* Ms Eunice Majola, National, Education, Health and Allied Workers’ Union (NEHAWU) provincial Chairperson
* Mr Basil Cele, Chairperson of KwaZulu-Natal National Union of Metal Workers South Africa (NUMSA)
* Mrs RM Lesoma, Champion of women empowerment
* Mr S Dlamini, President of KwaZulu-Natal youth
The Department of Trade and Industry is busy aligning the BBBEE Act and the
Preferential Procurement Policy Framework Act (PPPFA). These two pieces of legislation were not in line with each other hence they created difficulties in the implementation of BBBEE and to some extent to the BBBEE compliance itself.
We are witnessing an increasing number of companies complying with the BBEE act. Without a doubt these companies have benefited a lot in terms of procurement, permits, licenses and concessions. The major challenge that is facing us as government in forging ahead with the implementation of BBBEE is the issue of fronting. As government we are faced with numerous situations where we are opening up opportunities that are in one way or the other end up benefiting unintended target groups.
We have made it clear that we will not tolerate acts of fronting. We will continue to support and encourage companies that contribute towards skills development, enterprise development as well as those companies who procure from small, medium and micro-enterprises (SMMEs) sector. SMMEs are responsible for an estimated 50 percent to 60 percent of all new jobs created so buying from them will help in sustaining those jobs.
In order to facilitate Broad Based Black Economic Empowerment we need to increase the extent to which communities, workers, cooperatives and other collective enterprises own and manage existing and new enterprises and are increasing their access to economic activities, infrastructure and training skills.
Awards
Today we are here to honour companies that have pushed the boundary of excellence despite the prevailing economic climate. All of us here have a lot to learn from the recipients of Umyezane BBBEE Awards. They have proved that job creation and economic prosperity are not a far-fetched dream. This evening we will be presenting awards to the best provincial business organisations in the BBBEE as per the following categories:
* best owned and managed co-operative of the year
* best youth owned and business of the year
* best small, micro or medium enterprises of the year
* best black owned and managed business of the year
* best women owned and managed business of the year.
This year we also have a special award that we will give to the companies that have stood shoulder high above others. These companies, which have been trailblazers in the implementation of BBBEE, are listed in the Johannesburg Stock Exchange (JSE).
In conclusion, I would like to thank judges for their participation in the adjudication process, the sponsors and partners, Ethekwini Municipality and Absa Bank. Even in these difficult economic times, we had to recognise that achievement of our small and big businesses within the province of KwaZulu-Natal.
Have a happy festive season!
I thank you
Issued by: Department of Economic Development and Tourism, KwaZulu-Natal Provincial Government
4 December 2009
Source: Department of Economic Development and Tourism, KwaZulu-Natal Provincial Government (http://www.kznded.gov.za/)
