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BLACK ECONOMIC EMPOWERMENT THE LEGISLATIVE
FRAMEWORK Broad-Based Black Economic Empowerment
Act, 53 of 2003 (BEE ACT) Mineral and Petroleum
Resources Development Act, 28 of 2002 (MPRD ACT)
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BLACK ECONOMIC EMPOWERMENT THE LEGISLATIVE
FRAMEWORK See also statutes such as
Preferential Procurement Policy Framework
Act, 5 of 2000 National Empowerment Fund Act,
105 of 1998 The Marine Living Resources Act, 18
of 1998 Land and Agricultural Development Bank
Act, 15 of 2002 Media Development and Diversity
Agency Act, 14 of 2002 Employment Equity Act, 55
of 1998
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• THE OBJECTIVES OF THE BEE ACT
• The promotion of economic transformation in order
  to enable the meaningful participation of black
  people in the economy.
• The achievement of a substantial change in the
  racial composition of ownership and management
  structures and in the skilled occupations of
  existing and new enterprises.
• Increasing the extent to which communities,
  workers, co-operatives and other collective
  enterprises own and manage existing and new
  enterprises and increasing their access to
  economic activities, infrastructure and skills
  training.

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• THE OBJECTIVES OF THE BEE ACT
• Increasing the extent to which black women own
  and manage existing and new enterprises and
  increasing their access to economic activities,
  infrastructure and skills training.
• The promotion of investment programmes that lead
  to broad-based and meaningful participation in
  the economy by black people in order to achieve
  sustainable development and general prosperity.
• The empowerment of rural and local communities by
  enabling access to economic activities, land,
  infrastructure, ownership and skills.
• The promotion of access to finance for black
  economic empowerment.

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BEE ACT DEFINITIONS BROAD-BASED BLACK ECONOMIC
EMPOWERMENT . means the economic empowerment of
all black people including women, workers, youth,
people with disabilities and people living in
rural areas through diverse but integrated
socio-economic strategies including
(a) increasing the number of black people that
manage, own and control enterprises and
productive assets (b) facilitating ownership
and management of enterprises and productive
assets by communities, workers, co-operatives
and other collective enterprises
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BEE ACT DEFINITIONS BROAD-BASED BLACK ECONOMIC
EMPOWERMENT Continued . (c) human resource
and skills development (d) achieving
equitable representation in all occupational
categories and levels in the
workforce (e) preferential procurement
and (f) investment in enterprises that are
owned or managed by black people.
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BEE ACT DEFINITIONS BLACK PEOPLE Section 1 of
the BEE ACT a generic term which means
Africans, Coloureds and Indians ..
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BEE ACT DEFINITIONS BLACK PEOPLE Definition in
section 1 of Statement 000 of the Code means
African, Coloured or Indian persons who
are natural persons and 1.3.1 are citizens
of the republic of South Africa by birth or
descent or 1.3.2 are citizens of the Republic
of South Africa by naturalisation before the
commencement date of the Constitution of the
Republic of South Africa Act of 1993 or
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BEE ACT DEFINITIONS BLACK PEOPLE Continued
1.3.3 became citizens of the Republic of
South Africa after the commencement date of
the Constitution of the Republic of South
Africa Act of 1993, but who, but for the
Apartheid policy that had been in place prior
to that date, would have been entitled to
acquire citizenship by naturalisation prior to
that date
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• MECHANISMS PROVIDED FOR THE ACHIEVEMENT
• OF BROAD-BASED BLACK ECONOMIC ACHIEVEMENT (BBBEE)
• The formulation of a strategy of BBBEE by the
  Minister of Trade and Industry (s 11).
• The formulation codes of good practice by the
  Minister of Trade and Industry (ss 9 and 10).
• The development of Transformation Charters for
  sectors of the economic (s 12).
• The establishment of the Black Economic
  Empowerment Advisory Council (ss 4-8).

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• CODES OF PRACTICE THEIR PURPOSE
• The Codes of Good Practice must be taken into
  account by organs of state and public entities
  when
• Determining qualification criteria for the
  issuing of licenses, concessions or other
  authorisations in terms of any law
• Developing a preferential procurement policy
• Determining qualifications for the sale of
  state-owned enterprises
• Developing criteria for entering into
  partnerships with the private sector.

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CODES OF PRACTICE THEIR PURPOSE Continued
. Private sector enterprises are encouraged to
apply the code in dealings between themselves.
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CODES OF PRACTICE THEIR CURRENT STATUS Current
versions have been published for comment but have
not yet been finally published.
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CODES OF PRACTICE THEIR CONTENT The generic
scorecard The Code of Practice identifies the
various elements of BEE, sets out in detail the
requirements for compliance with each of these
requirements and provides for a balanced
scorecard to measure and assess compliance with
BEE on the basis of the various elements of BEE.
These elements are Ownership (20 point
weighting) Management control (10 point
weighting) Employment Equity (10 point
weighting) Skills development (20 point
weighting) Preferential procurement (20 point
weighting) Enterprise development (10 point
weighting) Residual (10 point weighting)
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• CODES OF PRACTICE THEIR CONTENT
• The Code provides detailed guidelines dealing
  with the content and meaning of each of the
  above elements.
• Separate guidelines for qualifying small
  enterprises.
• Provision is made for processes and institutions
  for the verification of BEE status of
  enterprise

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• TRANSFORMATION CHARTERS
• Negotiated documents created by major
  stakeholders in defined sector of the economy.
• Designed to take into account the BEE imperatives
  in that sector, taking into account the
  circumstances of that sector.
• Will only be published in the Government Gazette
  by the Minister of Trade and Industries if it
  meets the requirements of section 12.
• They have no official standing in that they are
  not binding on organs of state or public
  entities. They are simply evidence of the
  commitment of all stakeholders to promote BEE.
• They may be converted into sector codes which
  enjoy equal status to that of the Code.
  However, where any uncertainty arises in the
  interpretation of a sector code, the contents of
  the Code will prevail.

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SOME OF THE CURRENT CHARTERS Maritime Transport
and Service Industry BEE Charter Forwarding and
Clearing Industry Charter Tourism BEE Charter and
Scorecard Financial Sector Charter Mining Charter
Petroleum and Liquid Fuels Industry Charter
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IMPORTANT ISSUES Company law requirements Forei
gn Companies and set offs Existing charters
that may not comply with the Code of Practice
when finalised.
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• MPRD ACT OBJECTIVES
• Introduces far-reaching changes into the Mineral
  Law regime in South Africa.
• Of relevance are the following objectives
• The promotion of equitable access to the nations
  mineral and petroleum resources to all people of
  South Africa
• The substantial and meaningful expansion of
  opportunities for historically disadvantaged
  South Africans, including women, to enter the
  mineral and petroleum industries and to benefit
  from the exploitation thereof
• That the holders of mining and production rights
  contribute to the socio-economic development of
  the areas in which they operate.

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MPRD ACT THE CHARTER Section 100 makes
provision for the development of a Board-Based
Socio-Economic Empowerment Charter for the
Mineral Industry that sets framework targets and
a timetable for effecting the entry of
historically disadvantaged South Africans into
the mining industry and to allow them to benefit
from the exploitation of mining and mineral
resources. This led to the establishment of the
South African Mining Industry Charter the first
of its type.
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MPRD ACT THE CHARTER Relationship with the
Code of Practice and the BEE ACT uncertain. The
Concept of the Historically Disadvantaged South
Africa.
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MPRD ACT THE CHARTER UNDERTAKINGS The
undertakings in the Mining Charter deal with -

• Human Resources Development
• Employment Equity
• Mine Community and Rural Development
• Housing and Living Conditions
• Procurement
• Ownership and Joint Venture
• Beneficiation
• Exploration and Prospecting
• Financing Mechanisms

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MPRD ACT COMPLIANCE WITH THE CHARTER The
Charter is taken into account when granting
various rights in terms of the MPRD ACT
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