Are You BEE Competitive?

BEE BEST PRACTICEA Model for BEE in South Africa

Are You BEE Competitive?

WHY BEE?The first Question

Are You BEE Competitive?

Why BEE?Contributing Economy

Non- Contributing Economy

Are You BEE Competitive?

WHAT IS BEE?

Are You BEE Competitive?

History of BEEPRE-BEE

1994 2003

NARROW BASED BEE

2007

BROAD BASED BEE

2010

May ‘09 – Tourism Codes

June ‘09 – Construction Codes

June ‘09 – Forest Codes

August ‘09 – Transport Codes

Are You BEE Competitive?

BEE in the EconomyEXEMPTED

MICRO ENTERPRIS

E

QUALIFYING SMALL

ENTERPRISE

GENERIC ENTERPRIS

E

Turnover less than R5m

Exempt of Rating

Turnover between

R5m & R35m

Best 4 Elements

Turnover more than R35m

All 7 ElementsMeasured

Are You BEE Competitive?

The ScorecardELEMENT EME QSE GENERIC

Ownership 0 25 20

Management & Control 0 25 10

Employment Equity 0 25 15

Skills Development 0 25 15

Preferential Procurement 0 25 20

Enterprise Development 0 25 15

Socio-Economic Development 0 25 5

0 100 100

Are You BEE Competitive?

BEE Recognition TableBEE Points BEE Status Procurement

Recognition100+ 1 135%85-100 2 125%75-85 3 110%65-75 4 100%55-65 5 80%45-55 6 60%40-45 7 50%30-40 8 10%

Are You BEE Competitive?

Preferential ProcurementProcurement Department

Traditional Supplier Emerging Supplier

Are You BEE Competitive?

Preferential ChallengeProcurement Department

Traditional Supplier Emerging Supplier

SAFE RISKY

Are You BEE Competitive?

Preferential ChallengeSAFE RISKY

Traditional Supplier Emerging Supplier

Are You BEE Competitive?

Preferential ChallengeSAFE RISKY

PAID ASSETS YES

FINANCE COST PRIME – 2

SYSTEMS STRONG

EFFICENCIES GOOD

Traditional Supplier Emerging Supplier

Are You BEE Competitive?

Preferential ChallengeSAFE RISKY

PAID ASSETS YES

FINANCE COST PRIME – 2

SYSTEMS STRONG

EFFICENCIES GOOD

Traditional Supplier

PAID ASSETS NO

FINANCE COST PRIME +2

SYSTEMS WEAK

EFFICIENCIES DEVELOPING

Emerging Supplier

Are You BEE Competitive?

Preferential ChallengeSAFE RISKY

PAID ASSETS YES

FINANCE COST PRIME – 2

SYSTEMS STRONG

EFFICENCIES GOOD

Traditional Supplier

PAID ASSETS NO

FINANCE COST PRIME +2

SYSTEMS WEAK

EFFICIENCIES DEVELOPING

ECONOMIES OF SCALE FLEXIBILITY

Emerging Supplier

Are You BEE Competitive?

Preferential Procurement

Black Women Owned

5%Black Owned

10%SMALL

10%BEE

50%

Are You BEE Competitive?

WHAT IS SUSTAINABLE BEE™The Economic growth model behind BEE

Are You BEE Competitive?

SED

Enterprise Development

Preferential ProcurementManagement

Ownership

Employment Equity

Skills Development

| Employment | | Self-Employment |

| Existing Management|

Are You BEE Competitive?

SED

Enterprise Development

Preferential ProcurementManagement

Ownership

Employment Equity

Skills Development

| Employment | | Self-Employment |

| Existing Management|