Black Economic Empowerment

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Black Economic Empowerment Portfolio
Committee September 2002
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Table of Contents

• Introduction
• BEE Approach
• Rationale
• Engens BEE Vision
• Engens BEE Mission
• Structure

3
Table of Contents

• Areas of Focus/Strategy
• Shareholding
• Employees
• Retail Dealerships
• Business Partners SDCOs
• Suppliers Procurement
• Corporate Social Investment
• Challenges
• Conclusion

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BEE Approach
It is a process (and not an event) by which Engen
proactively and deliberately creates profitable
and sustainable business opportunities, to a
large section of the South African population,
who were previously disadvantaged/deprived.
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Rationale
To redress the economic exclusion and
marginalising of the majority of South Africans,
and through that, contribute in the creation of a
more equitable, sustainable and stronger economy.

• Value Creation

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Engens BEE Vision
A value creating company that in Employee make-up
and business operations both internally and
externally, reflects the demographic of the
markets in which we operate
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Engens BEE Mission
To contribute to the development and growth of
our BEE partners through the awarding of
meaningful opportunities to Historically
Disadvantaged South Africans (HDSA) to
facilitate the sustainability of their business
as well as expand their contribution to the South
African Economy.
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Structure

• Who is responsible?
• CEO driven process
• Management have targets incorporated on their
  performance contracts
• Dedicated department established in October 2001

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Areas of Focus / Strategy

• Shareholding
• Employees
• Retail Dealerships
• Business Partners
• Suppliers
• Communities/Social Investments

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Shareholding

• 1998 Petronas 80
• 1998 WAIH 20
• 2000 Engen 45 - Afric Oil

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Employees
EE Vision Engen will be recognised as the oil
industry leader, by 2004, having achieved or
exceeded a profile at all employee levels and
occupational categories which is 50 that of
national or regional demographics of the
economically active population in terms of race,
gender and disability.
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Employees
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Actual vs Target June 2002
Female Target 2004 22
Charter
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Retail Dealerships
Charter
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Retail Dealerships

• Target as per Charter 25 by 2010
• 2000 Engen target 40 in 2004
• 2003 34
• On course to exceed our target

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Business Partners - SDCOs

• Target as per Charter 25
• 22 Outlets
• 2 x 100
• 1 x 50
• 1 x 25
• Our target is minimum 30 equity in each outlet
  by 2004
• Conditional Renewal of Contracts

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Suppliers - Procurement
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Suppliers - Procurement

• Our Procurement is relationship and capacity
  building
• Encourage partnerships e.g. Maziya at the
  Refinery, mentorship programmes
• Set-up operations e.g. Plant n Idea
• Influence current Suppliers e.g. Rheem/Retail
  Service Construction

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Suppliers - Procurement

• SMME Training
• Lujeze Security
• Mondli Trucking and Waste
• Bonganjalo Scrap
• Gedeza Cleaning Services
• Internal Strategy of set asides

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Corporate Social Investments

• Education
• Micro Science Project
• Professional Teacher Development Programme (PDP)
• Collaborative Education with South Africans
  (CEWSA)
• Job Creation
• Afrikatourism 29 routes covering almost 9000km
  account for 4031 direct full-time jobs in season
  and 1933 part-time jobs

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Corporate Social Investments

• Peace Security
• Africa Peace Award
• National Sea Rescue Institute (NSRI)
• Community Policing Forums
• Arrive Alive
• Sports Development
• Athletics Development
• Basketball
• Motorsport Development

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Challenges

• Availability of Capital
• Fronting
• Heavy concentration on a few areas of business
• Skills development
• Proposed Pricing Changes (IBLC)

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Conclusion

• At Engen, we recognise that BEE is the agent for
  the creation of wealth and an engine for change
• Implementation is complex it requires,
  commitment, passion and skilful adaptation to
  change
• We recognise that there is a need to continuously
  communicate positively to reinforce the message

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Conclusion

• Endeavor to meet all strategic targets that are
  agreed to, from time to time
• We continuously monitor and track the performance
  of BEE targets
• We reaffirm our commitment to the cause of BEE we
  will meet and exceed the targets as agreed on the
  Charter

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Thank You