03 Mar BBBEE – Transformation in the Industrial Sector
The Department of Trade and Industry is pushing for more BBBEE transformation and announced last month that it will create a hundred black industrialists over the next three years.
The Industrialists will be involved in productive sectors of the South African economy. This forms part of governments programme for economic transformation.
There has been an aim to get more black businesses involved to transform current society and ultimately employ the youth. This is where BBBEE (Broad Based Black Economic Empowerment) will ensure the inclusion of black people in the mainstream of the local economy. In order to ensure effective transformation it was announced that there will be certain changes to the Preferential Procurement Policy Framework Act. This act was initially established in 2000 but was further amended in December 2011. This act was created to ensure the preferential procurement of services by the previously disadvantaged and applies specifically to contracts entered into by state agencies and departments. There is belief that the PPPFA needs further change to effectively assist the black industrialist as well as guide government entities on how to calculate points for both price and categories of preference.
Government and its agencies are also offering refunds and incentives to businesses in order to encourage the hiring of both young and unskilled labour. With the creation of the hundred black industrialists, government has stated that there will be financial support as well as the establishment of an advisory panel. With government’s decision to purchase 75% of services and goods locally there is a goal to strengthen the black industrialist’s access to markets as well as ease inequality in the Industrial sector.