BEE

We believe substance over form is vital when applying BEE. Most businesses respond to the legal form of a policy and spend money on legal advice to do the legal minimum for compliance. Substance means the contributions must contribute towards the objective of BEE.

“We always consider the question: ‘Will this contribution, directly or indirectly, result in a Black person gaining access to the mainstream economy?’ ” Johann van der Westhuizen, MD,
e-Logics.
 
Broad-based black economic empowerment is the result of an evolutionary process that started with the abolishment of apartheid.

In the history of South Africa, race, gender and disability have been used to exclude people. Exclusion by race was effected through legal means. Gender and disability were tacit exclusions often done behind closed doors. BEE adopts preferencial treatment of people previously excluded by law, thus meaning Black people.

Black people, according to the Broad-Based Black Economic Empowerment Act No. 53 of 2003 is, “a generic term which means Africans, Coloureds and Indians.” “Black people” becomes a specific term for the purpose of measuring BEE contributions. Black people is written with a capital B to denote beneficiaries of BEE.

QSE (Qualifying Small Enterprises)

When developing the BEE codes, the dti recognised that QSEs needed their own measurement systems. What happened in effect is that the same broad-based approach was retained but that the scorecard for a QSE is now a dramatically simplified version of the generic scorecard. Fewer requirements and a choice of 4 out of 7 elements means that small business owners can contribute to BEE through other ways than just ownership and management
elements.

The dti have specified a single turnover threshold for all sectors determines QSE qualification. “Any business generating an annual turnover less than R35 million will qualify as a QSE and may use the QSE Codes to measure their BEE contributions.” Vuyo Jack, 2007. Therefore e-Logics is a QSE.

The four chosen elements are Skills Development, Preferencial Procurement, Enterprise Development and Socio-Economic Development.

804/400


SKILLS DEVELOPMENT 12/25

The skills development element is measured by the adjusted skills development spent on learning programmes for Black people as a percentage of the leviable amount.

Learning program:

  • Entry-level Black employees spend 24 hours / month with senior manager receiving core skills training.
  • Total program duration: one year.

e-Logics spends 48% of the targeted amount on skills development.
805/500 PREFERENTIAL PROCUREMENT 13/25

Preferential procurement is a bold motivator of entrepreneurship in the Black population. Providing a start-up business with access to sustainable markets accelerated the business through the lean years when starting up.

e-Logics spends 53% of the targeted amount through Black empowered companies.
806/600 ENTERPRISE DEVELOPMENT 25/25

More than any other individual element, enterprise development offers the most probable platform for economic growth in South Africa.

Contributions made in the form of human resource capacity:

Enterprise development support for 100% Black owned EME, Batlagae.

Total service & support duration: 120 days.

Total cost to company is more than target as set out by the dti. Therefor e-Logics scores the maximum points of 25.
807/700 SOCIO-ECONOMIC DEVELOPMENT 25/25

The socio-economic development element is a request to businesses to play an active role in social upliftment.

Contributions made in the form of human resource capacity:

Support for education programmes at tertiary educational level at the University of Pretoria.
  • 52 days of the year free training & education.

Total cost to company is more than target as set out by the dti. Therefor e-Logics scores the maximum points of 25.
804/400

Skills Development

12/25
805/500

Preferential Procurement

 13/25
806/600

Enterprise Development

25/25
807/700

Socio-Economic Development

25/25
  TOTAL

 75/100
  e-Logics is a Level Three BEE contributor.