Thabo Masombuka

Chief Executive Officer (CE0)

CSCC

TRANSFORMATION TRENDS IN THE CONSTRUCTION SECTOR 30 July 2014

BBBEE AS AN INSTRUMENTFOR ECONOMIC EMPOWERMENT

BBBEE DEFINED

“An integrated and coherent socio-economic process….which aims to redress past imbalances by transferring and conferring ownership,

management and control of South Africa’s financial and economic resources to the majority of its citizens and ensure broader participation

of black people in the economy in order to achieve sustainable development and prosperity” – BBBEE Strategy document

THE GAZETTING OF THE CONSTRUCTION SECTOR CODE

(CSC)The BBBEE STRATEGY promotes PARTNERSHIP & INDUSTRY ACTIVISM to foster economic transformation objectives.

Hence the Construction Sector Code was gazetted in June 2009 to achieve the following strategic objectives :

• The inclusion of BLACK PEOPLE in general and BLACK WOMEN in the OWNERSHIP and MANAGEMENT of construction companies and businesses.

• The acceleration of TECHNICAL SKILLS and CAPACITY OF BLACK YOUTH and PEOPLE WITH DISABILITY.

• To provide JOBS and EMPLOYMENT OPPORTUNITIES. 

• Building the ENTREPENEURIAL CAPACITY and SUSTAINABILITY of BLACK enterprises in the construction sector.

 

THE ROLE OF THE CSCC

• The CSCC is the EXECUTIVE AUTHORITY :

• Entrusted with OVERSEEING and MONITORING the IMPLEMENTATION of the Construction Sector Codes (CSC) of Good Practice by the Industry.

• Through industry programmes, responsible for the FACILITATION of the achievements of sector empowerment TARGETS.

• ALIGNMENT of Construction Charter with existing legislation

• Provide necessary GUIDANCE & BEST PRACTICE NOTES on the interpretation of the principles of the Construction Sector Code.

• LIAISON with and reporting to the regulatory stakeholders on the annual measurement of the construction sector code - BBBEE Advisory, DPW and the DTI .

• Creation of RELIABLE and ACCURATE industry specific empowerment data

BASELINE METHODOLOGY

The CSCC actively pursued the submission of industry BBBEE verified scorecards within the construction sector, including Contractors and BEPs.

Over 1770 (about 14% of the sample) of the 13500 commercially active companies were scoped.

This actively included the interpretation of 3530 BBBEE certificates Commissioned the services of independent service providers to :

OVERVIEW: INDUSTRY TRANSFORMATION:ALL SECTORS

Upward Trend: 64% in 2009 to 85% in 2013 Level 4 and above

18

6438

15 11 6 5 529

124

182

146

43 51

17 16 8

71

256

409

239

68 59

2351

6

95

179

438

169

4329

11 15 17

0

50

100

150

200

250

300

350

400

450

500

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Non-compliant

Num

ber o

f Sco

reca

rds

Number of Scorecards that achieve relevant Level Contributor Status

2009 2010 2011 2012 2013

OVERVIEW: INDUSTRY TRANSFORMATION:EMES

High Contributor to overall Industry Transformation

above Level 4: 55% contribution in 2009 and 45%

in 2013

4323

75

30

112

53

234

95

319

74

0

50

100

150

200

250

300

350

Level 3 Level 4

Num

ber o

f Sco

reca

rds

Detail Summary of level status: EME Entities-Total

2009 2010 2011 2012 2013

OVERVIEW: INDUSTRY TRANSFORMATION:LARGE ENTERPRISES

Upward Trend: 38% in 2009 to 65% in 2013 Level 4 and above (60% in 2012)

8 9 126

2 5 26

1923

1623

410

3

23

40

58

34 34

7 84

54

71

91

51

38

21

33

32

4653 56

35

21

412 12

0

10

20

30

40

50

60

70

80

90

100

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Non-compliant

Numb

er of

Score

cards

Detail Summary of level status: Large Enterprises-Total

2009 2010 2011 2012 2013

TRANSFORMATION TRENDS: LARGE CONTRACTORS

Average Ownership Score

Average Management Score

Average Employment Equity

score

Average Skills Development score

Average Preferential

Procurement score

Average Enterprise Development score

Average Socio-economic

Development score

2009 50% 42% 44% 46% 70% 71% 75%

2010 45% 52% 53% 48% 75% 60% 77%

2011 56% 50% 57% 48% 82% 64% 83%

2012 58% 53% 55% 46% 81% 65% 82%

2013 55% 60% 59% 50% 82% 70% 85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Aver

age E

lem

ent s

core

Average performance per Element: Contractor Large Enterprises

The CSCC is based at :

164 Katherine DrivePinmill Farm Office Park Ground Floor – G Block Sandton, Johannesburg

TEL : (011) 262 4644/5/6

www.cscc.org.za

WHERE TO FIND US