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:
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.
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.
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.
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 localproducers or local suppliers in South Africa, and for service industry enterprises labour is includedbut capped at 15%.2. Job creation – 50% of jobs created are for Black people provided that the number of Blackemployees 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 EMEand QSE beneficiaries to increase their operation or financial capacity.The above criteria will be applicable to entities as follows:
Assuredex, together with Empowerdex is able to assist with the following:
South-Africa’s first BEE verifications agency, Empowerdex, pioneered the empowerment verifications methodology and was actively involved in the drafting of the Codes of Good Practice. It is therefore perfectly positioned to guide your company through the maze of BEE and BEE-related legislation and regulations.
Empowerdex is a Level Two BEE contributor and SANAS accredited. It is also a founding member of the Association of BEE Professionals and is registered with the Independent Regulatory Board for Auditors.
Your organisation will receive a premier BEE rating from the market leader in BEE measurement. Contact your nearest office if you wish to make an inquiry.
We operate through a qualified team of 100 employees and we provide our services in every province. Our clients range from large, JSE-listed companies to Generic, QSE clients representing every industry in the country. Should you require a BEE certificate or further information on any of our services, please contact Empowerdex for more information.
Section 9 of the Broad-Based Black Economic Empowerment Act No. 53 of 2003 (BEE Act) legally provides for the issuing of Codes of Good Practice on broad-based black economic empowerment. Besides the dti's Strategy for Broad-Based Black Economic Empowerment and the BEE Act, drivers of transformation charter processes to date, have lacked a standard BEE framework from which to develop charters. Furthermore, some charters were developed even before the BEE Act and the Strategy document were released. Consequently, there exists substantial incomparability amongst charters, with respect to content as well as criteria for measurement. This results in entities in certain sectors with stricter measurement criteria being unfavourably disadvantaged when competing for business with entities in sectors with more lenient measurement criteria.
Transformation Charters may either be gazetted in terms of section 9 of the BEE Act, or in terms of section 12. Code 000 contained in the Codes of Good Practice includes a Statement on transformation charters as well as guidelines on the gazetting of charters.
A transformation charter gazetted in terms of section 9 of the Act means that the charter has been gazetted as a Code of Good Practice and that it therefore has the same status as the Codes. This effectively means that the charter becomes legally binding on organs of state and public entities.
A transformation charter gazetted in terms of section 12 of the Act expresses an industry's commitment to transformation but is not legally binding on organs of state and public entities.
In cases where transformation charters have not been gazetted as Codes, government will make use of the Codes of Good Practice as a means of BEE measurement
If the majority of the measured entity's turnover is derived as a result of gazetted sector related activities, then the relevant sector code will apply to such measured entity.
Vuyo Jack grew up in Dube, Soweto where he toyed with the idea of becoming a film director, before a family friend in merchant banking changed his mind. He then decided to study accounting which he sees as a critical basis for informed economic decision-making, in the sense that it is the central measure of business performance. He holds a BCom from Wits University and is a chartered accountant. Since co-founding Empowerdex, Vuyo was appointed as a member of the dti's BEE Task Team in 2003 and has advised both government departments as well as various corporates on matters of BEE.
A director of various companies including the Public Investment Corporation, Vuyo was also appointed by the minister of finance as a commissioner on the Davis tax review committee. He was nominated as a Young Global Leader by the 2009 World Economic Forum.
The son of Taiwanese entrepreneurs, Chia-Chao moved to SA in 1985. He has been instrumental in the evolution of Empowerdex from a ratings verification agency into a fully-fledged research and advisory firm. He started the influential Most Empowered Companies Survey in 2002, then in partnership with the Financial Mail and now with Business Report.
Chia-Chao formed part of the Empowerdex consortium which analysed the progress of BEE within the ICT industry, on behalf of the Department of Communications. In 2004, he was appointed by the Department of Environmental Affairs and Tourism to support the Tourism Charter's Steering Committee in the development of the Tourism BEE Charter. Chia-Chao holds a MCom in corporate finance from Wits University. He is a Chartered Accountant and holds the Chartered Financial Analyst designation.