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B-BBEE Advisory

B-BBEE Transaction Analysis

Transaction impact analysis provides scenario analysis to forecast the impact of the transaction on the economic empowerment status of the acquirer and target firms. The service aims to reduce the potential risks associated with unsustainable empowerment structures. It aims to enhance the value of empowerment transactions to both entities.

The following forms of transaction analysis are available:

  • Pre- or post- transaction analysis and advisory services to assess the compliance of a B-BBEE deal in terms of the latest B-BBEE legislative and regulatory framework. This includes an assessment of the deal's robustness and the economic benefits flowing to black shareholders
  • Pre- or post-transaction analysis and advisory services to assess the impact of the sale of assets to BEE parties

Transaction analysis and advisory services can include a public opinion or statement by Empowerdex at the client's request. Over and above Ownership advisory we also offer implementation of the requirement of the amended BEE CoGP, including Sector Charters.

Empowerment Best Practice Analysis

The best practice analysis supports and guides companies in the design and implementation of empowerment initiatives. Empowerdex evaluates the proposed initiative against global and industry best practices and identifies any potential gaps. The findings from the analysis will highlight any risks and opportunities associated with the structure and will assist you in the effective and efficient implementation of empowerment initiatives.

B-BBEE Partnering

Empowerdex offers a BEE partnering service, tailored for medium-sized non-B-BBEE entities, wishing to expand the scope of their business and opportunities, as well as comply with the ownership element of the Codes of Good Practice, through the introduction of a B-BBEE partner.

For more information on these advisory services, contact Nomzamo Xaba on (011) 883 8548 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Empowering Supplier

On 11 October 2013, the Minister of Trade and Industry, Dr Rob Davies signed into law the Codes of Good Practice under S9(1) of the Broad-Based Economic Empowerment Act 53 of 2003.

These Codes came into effect immediately and with a transitional period ending on 10 October 2014.

In terms of these Codes, Companies operating in South Africa will need to show evidence of being Empowering Suppliers. This refers to B-BBEE compliant entities that comply with all the regulatory requirements of the country and meet the following criteria:

1. At least 25% of Cost of Sales, excluding labour cost and depreciation, must be procured from local
producers or local suppliers in South Africa, and for service industry enterprises labour is included
but capped at 15%.
2. Job creation – 50% of jobs created are for Black people provided that the number of Black
employees since the immediate prior verified B-BBEE Measurement is maintained.
3. At least 25% transformation of raw material/beneficiation which include local manufacturing,
production and/or assembly, and/or packaging.
4. Skills transfer – at least spend 12 days per annum of productivity deployed in assisting Black EME
and QSE beneficiaries to increase their operation or financial capacity.

The above criteria will be applicable to entities as follows:

  • EME’s and Start-ups are automatically recognised as Empowering Suppliers
  • QSE’s are required to meet at least 1 of the criteria
  • Generic Enterprises are required to meet at least 3 of the 4 criteria.

Assuredex, together with Empowerdex is able to assist with the following:

  1. Analyse your current status, to determine if you meet the requirements
  2. Getting your company geared to meet the requirements for Empowering Suppliers
  3. Analysing the gaps in your processes to be able to meet the Empowering Supplier
    requirements
  4. Devising and implementing strategies to meet the requirements for Empowering Suppliers
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Services

Key projects

  • Empowerdex worked with the National Empowerment funding, for a comparative analysis of B-BBEE funding instruments and Empowerdex performed an annual review of funding mechanisms in the South African market aimed at facilitating and furthering B-BBEE Ownership.
  • Empowerdex currently researches the most empowered companies (previously Top Empowerment Companies), an analysis is done for Most Empowered Companies, and all the results are published on the section of the independent newspaper and on the Empowerdex website.
  • Empowerdex works closely with the Chamber of Mines and its members in addressing the transformational challenges in the industry through a codes aligned Generic Sector Code.

 

Historical Key projects

  • Empowerdex was part of the team that consulted to the Department of Trade and Idustry with respect to the development od the Codes of Good Practice for broad-based black economic empowerment.
  • Empowerdex was actively involved with the Department of Agriculture is the updating of its AgriBEE initiative; it conducted a benchmark study, aligning the sector's draft transformation charter with the guidelines set out in the Codes of Good Practice and conduced countrywide briefings to farmers in both rural and urban areas.
  • Empowerdex completed a sector audit for the Department of Minerals and Energy to determine private sector compliance against Petroleum and Liquid Fuels Charter.
  • Empowerdex was appointed by the Department of Communication as a consultant to measure the level of economic empowerment in the ICT sect and was part of the research team which supported the ICT sector steering committee in the development of the first three drafts of the ICT sector charter.
  • Empowerdex was appointed by the Department of Environmental Affairs and Tourism (DEAT) to create a comprehensive BEE index for the tourism sector. It also consulted to the DEAT in developing a BEE scorecard for the tourism sector, as well as developing a BEE procurement tool for the department.
  • Empowerdex worked closely with SAPIA on a strategy for approaching the 2013 Codes Alignment process as it relates to the development of an industry code for the petroleum sector of South Africa.

Key clients

  • Sasol Limited
  • Pathcare
  • Tsogo Sun International
  • Toyota South Africa Motors
  • Hosken Consolidated Investments Limited
  • Illovo Sugar South Africa
  • Sun International
  • The Lion Match Company
  • Barloworld Limited
  • Bosch Group
  • Allied Electronics Corporation Limited (Altron)
  • Hulamin
  • Adcorp Limited
  • Tronox Mineral Sands
  • Liberty Group Holdings
  • Ithala Development Finance Corporation Ltd Ithala SOC Limited
  • Alexander Forbes
  • Astral Operations (Pty) Ltd
 
  • Netcare Limited
 
  • SAPPI Limited
 
  • Woolworths Ltd
 
  • Sishen Iron Ore Company (Pty) Ltd
 
  • Pioneer Foods Ltd
 
  • Exxaro Resources Limited
 
  • Chevron(Pty) Ltd
 
  • Kumba Iron Ore Limited
 
  • TFG Ltd
 
  • Public Investment Corporation SOC Limited
 
  • Oceana
  • CSIR
  • Mediclinic Southern Africa (Pty) Ltd
 

 

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