Academic literature on the topic 'Black Economic Empowerment (BEE)'
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Journal articles on the topic "Black Economic Empowerment (BEE)"
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Shava, Elvin. "Black Economic Empowerment in South Africa: Challenges and Prospects." Journal of Economics and Behavioral Studies 8, no. 6(J) (January 24, 2017): 161–70. http://dx.doi.org/10.22610/jebs.v8i6(j).1490.
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Abstract: The purpose of this paper is to assess if the Black Economic Empowerment act has brought new economic horizons for the historically disadvantaged South Africans, or it has contributed to further impoverishmentof the lower classes in communities. The paper based its argument on an extensive literature review which envisaged that, despite many years of its implementation, BEE has caused the emergence of classes resulting fromfraud and corruption, fronting, difficulties in registering status, political interference, and poor accountability strategies. The paper interrogates the implementation strategies of BEE in the local government context to assess whether historical imbalances have been addressed or not. The paper concludes that the government needs to revisit BEE as an economic empowerment policy to see whether it has benefited the black majority or not. The paper reiterates further that, BEE as a black economic emancipation blueprint requires proper implementation and alignment with other economic policies such as the National Development Plan to accelerate economic opportunities for the black majority. The paper recommends the government of South Africa through local municipalities to exercise monitoring and evaluation in the BEE procurement systems are prerequisites in safeguarding the manipulation and corrupt tendencies arising from the awarding of tenders in the local government.Key words: Black Economic Empowerment, South Africa, Challenges, Prospects
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P. Krüger, Louis. "Black economic empowerment in post-1994 South Africa: ANC curse and/or socialist/communist covenant?" Problems and Perspectives in Management 14, no. 3 (September 6, 2016): 162–78. http://dx.doi.org/10.21511/ppm.14(3-1).2016.03.
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After more than 21 years under the leadership of the African National Congress (ANC), post-1994 South Africa finds itself yet again embroiled in race-related politics. Government policies such as black economic empowerment (BEE) and employment equity (EE) have not brought about the economic growth, social development and political democracy that the late former President Nelson Mandela had envisaged and what the ANC had promised to all the people of South Africa. South Africa is currently disengaging itself from the West including the Unites States of America (USA) and certain European Union (EU) countries and appears to rather embrace and align itself with countries such as Russia and China that pursue socialist and communist ideologies. Both these two issues may have a profound impact on how businesses will be managed in the future. In an exploratory, qualitative study using a “5 Star” research methodology, the direct and indirect impacts of BEE policies were investigated and the possible movement in South Africa’s ideological stance was explored. BEE does not appear to have helped to bring about high economic growth to help to reduce unemployment and eradicate the high levels of poverty and inequality, and government graft and corruption have increased at all levels of government, including local municipalities. BEE appears to have become the ANC’s curse to economic, social and political progress and should be scrapped. A national debate should follow on whether the ANC’s current covenant with pro-socialism and pro-communism rather than Western free-market capitalism is the appropriate ideology for South Africa to pursue. Keywords: black economic empowerment (BEE), employment equity (EE), African National Congress (ANC), capitalism, socialism, communism. JEL Classification: M14, M21
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Horn, GS. "Black economic empowerment in the Eastern Cape automotive industry: Challenges and policies." South African Journal of Economic and Management Sciences 10, no. 4 (May 22, 2014): 490–503. http://dx.doi.org/10.4102/sajems.v10i4.1062.
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Original Equipment Manufacturers (OEMs) in South Africa are under pressure to meet the Black Economic Empowerment (BEE) policies and charters of the South African government by giving BEE suppliers additional opportunities to tender. However, many BEE suppliers, due to being historically disadvantaged, experience various problems which make it difficult for them to win tenders, including lack of finances, opportunities to tender and management and business skills, and problems with quality and capacity. This paper outlines these practical problems experienced by BEE suppliers, the effects of these problems on risk and complexity in the South African automotive industry and policies that address these problems and assist BEE suppliers to become A-rated suppliers. Data for the paper was obtained from interviews with: senior employees of the AIDC involved with supplier development training; middle managers of supplier quality and development departments at the three OEMs in the Eastern Cape Province; and BEE and small suppliers identified to undergo AIDC training. The findings of the study are that unless sufficient training is given to BEE and potential BEE suppliers, supply to OEMs will remain in the hands of existing established suppliers and very little transformation will occur within the automobile industry in South Africa.
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Rampersad, Renitha, and Swastika Juggernath. "Communicating transformation, Black Economic Empowerment, and social interventions amongst South African business." Corporate Ownership and Control 9, no. 3 (2012): 472–80. http://dx.doi.org/10.22495/cocv9i3c4art5.
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This paper illustrates the strategic responses of South African companies that have been challenged with corporate transformation due to Black Economic Empowerment (BEE). In this study we investigate the approach used by BEE compliant businesses in formulating and implementing communication strategies to ensure an informed workforce. This paper reports on findings which reveal that communication strategies have been put in place since the implementation of BEE and highlights that there is a moral obligation for the company to ensure that employees are made aware of their rights. Respondents agreed that the initial BEE implementation stages involved numerous misconceptions by staff, which placed a barrier on the effective implementation of BEE in the workplace.
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Dirkse van Schalkwyk, Riaan, and Louis P. Krüger. "The potential financial impact and influence of black economic empowerment (BEE) on private higher education institutions in South Africa: management alert." Problems and Perspectives in Management 17, no. 3 (July 25, 2019): 45–56. http://dx.doi.org/10.21511/ppm.17(3).2019.04.
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Education is considered an important pillar of economic development and a vital factor for nation building in post-1994 South Africa. Higher education (HE) is offered by government-subsidized universities and colleges, while there has been an increase in the number of private higher education institutions (PHEIs), which offer more expensive, unsubsidized tertiary education. While all state bodies and public entities are required to apply the provisions of the Broad-Based Black Economic Empowerment (B-BBEE) Act, this is not (yet) seemingly a requirement for PHEIs. This study used an adapted version of the “5 Star” research methodology to explore the potential financial impact and influence of the African National Congress’s (ANC’s) black economic empowerment (BEE) policy on PHEIs. The research shows that the BEE policy has the potential to financially impact and influence most of the components of the total quality service (TQS) framework for PHEIs in terms of preferential procurement from suppliers, company ownership, appointment of executive, middle and junior managers, employment of academic and administrative staff, and throughput of black student graduates. Management at PHEIs should be alerted to the fact that it is probably not merely a matter of IF, but rather WHEN the policy will start impacting on the financial stability and viability of PHEIs as BEE compliance becomes mandatory.
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Law, Kate. "“The Wild West World of BEE”: Black Economic Empowerment Reviewed." Safundi 11, no. 3 (July 2010): 313–23. http://dx.doi.org/10.1080/17533171003788154.
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Iheduru, Okechukwu C. "Black economic power and nation-building in post-apartheid South Africa." Journal of Modern African Studies 42, no. 1 (March 2004): 1–30. http://dx.doi.org/10.1017/s0022278x03004452.
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This paper evaluates the evolution and the implementation of the ANC government's commitment to fostering a black capitalist class or black economic empowerment (BEE) as a non-racial nation-building strategy. A substantial black bourgeois i.e. and other middle classes begun to emerge over the last decade, contrary to popular perceptions. The legitimating role assigned to the emergent black bourgeoisie by the ANC and the government is, however, threatens to turn the strategy into a nepotistic accumulation. This development is paradoxically threatening to re-racialise the country, widening black inequality gaps, and precluding the rise of a black bourgeoisie with a nurture capitalist agenda. Other equally powerful social groups have begun to challenge the prevailing strategy, compelling the government to explore a more accommodating strategy exemplified by the recent introduction by the government of ‘broad-based economic empowerment’. Should a less patrimonial, less racially and ethnically divisive BEE strategy emerge from this quasi-pluralist power play, such a change holds prospects for the creation of a ‘growth coalition’ capable of sustainable capitalist development and true empowerment of the black majority. That would be a positive development in terms of establishing and consolidating democracy in South Africa.
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van Heerden, Jakobus Daniël. "The interrelationship between the South African private equity industry and black economic empowerment." Corporate Ownership and Control 5, no. 3 (2008): 328–34. http://dx.doi.org/10.22495/cocv5i3c3p1.
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This paper investigates the relationship between the South African private equity industry and government’s black economic empowerment (BEE) legislation. As the private equity industry of South Africa was formalised only in 1999, literature and data regarding the industry is limited. The research is therefore more qualitative in nature, and is based on a combination of media and journal articles, domestic as well as global surveys, personal communication with experts in the industry and other relevant research. The study suggests that the need to earn black economic empowerment credentials is one of the major driving forces behind the growthexperienced in the South African private equity industry, and at the same time this growth leads to an accelerated BEE transformation process, resulting in an interrelationship between the industry and BEE.
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Wolmarans, Hendrik, and Kurt Sartorius. "Corporate social responsibility: the financial impact of black economic empowerment transactions in South Africa." South African Journal of Economic and Management Sciences 12, no. 2 (August 22, 2011): 180–93. http://dx.doi.org/10.4102/sajems.v12i2.275.
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Corporate social responsibility (CSR) has recently received considerable attention in literature. One of the vehicles by which companies can conform to CSR in South Africa is Black Economic Empowerment (BEE). In this regard, BEE has been employed to assist previously disadvantaged groups of investors obtain a larger share of the equity of South African listed companies. The question has often been asked whether the announcement of BEE transactions by listed companies increases shareholder wealth. This article tries to answer this question by examining the share performance of 125 BEE transactions involving 95 companies during the period January 2002 to July 2006. The results indicate a positive relation between BEE transaction announcements and shareholder wealth creation, but only during the last part of the period covered by the study.
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Van der Merwe, Cara Maria, and Petri Ferreira. "The association among the seven elements of the black economic empowerment score and market performance." South African Journal of Economic and Management Sciences 17, no. 5 (November 28, 2014): 544–56. http://dx.doi.org/10.4102/sajems.v17i5.627.
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The black economic empowerment (BEE) score consists of seven elements, namely ownership,management control, employment equity, skills development, preferential procurement, enterprisedevelopment and socio-economic development. The purpose of this study is to establish whether anassociation exists between an entity’s BEE elements and its share returns in the short term.Based on prior literature, it appears that the market reacts positively to an announcement of a BEE deal,although the literature also indicates that an entity’s BEE score, which includes all seven elements of theBEE score, bears a negative relationship to its share returns. Therefore the association between the variousBEE elements and share returns needs to be investigated. The study uses a multivariate regressionanalysis that controls for factors influencing share returns. The study includes the BEE element data asobtained from the survey of the top empowerment companies carried out by Empowerdex/Financial Mail forthe period 2005 to 2011.The results of this study indicate that a significant positive association exists between the managementcontrol element of the BEE score and the entity’s share returns. Furthermore, a significant negativeassociation exists between the ownership and preferential procurement elements of an entity and its sharereturns. This study contributes to the literature on BEE in the accounting and finance field in South Africa aswell as enhances the understanding and effect of BEE compliance through implementation of the genericscorecard as required by the 2007 codes of good practice. The results of this study would be of interest togovernment policy analysts, investors and managers.
Dissertations / Theses on the topic "Black Economic Empowerment (BEE)"
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Mparadzi, Andrea. "BEE - Basis, Evolution, Evaluation - A Critical Appraisal of black economic empowerment in South Africa." Master's thesis, University of Cape Town, 2014. http://hdl.handle.net/11427/4516.
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This paper is a reflection of the evolution of Broad-Based Black Economic Empowerment (BBBEE/BEE) and an evaluation of the current state of the programme. BEE is one of the most topical subjects in current South African (SA) economic discourse. Born of a need to remedy the ravages of Apartheid, BEE has evolved, and indeed continues to evolve, into one of the most elaborate and ambitious empowerment endeavours the world over. BEE aims to integrate a broad base of previously disadvantaged persons into the mainstream economy and to redistribute control over the country's economic resources. An elaborate and comprehensive regulatory framework has been crafted to bring these aims to fruition. This paper provides an overview of this framework, and through a methodical analysis of the governing instruments, the function and legal status of each instruments is clarified and the interrelationship between them is illustrated. It is argued that while this governing structure has aided BEE progress, advancement has been marginal. This can be attributed to the various hurdles that stand to hinder the initiative. This paper further highlights challenges that are both intrinsic and extrinsic to the regulatory framework, with a particular focus on problems of : financing; the broadness of broad-based BEE; fraud and; constraints of attitude. This author concludes that BEE, as a work in progress, is a programme that holds great prospects, if only the surmountable hurdles are overcome.
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Olivier, Dewald. "The perception of broad–based black economic empowerment across agricultural businesses / Olivier, D." Thesis, North-West University, 2011. http://hdl.handle.net/10394/7035.
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Broad Based Black Economic Empowerment could possibly be the utmost strategic issue, challenge, threat and potential opportunity facing businesses of all sizes, structures and shapes currently in South Africa. Broad–Based BEE is a government initiative to promote economic transformation in order to enable meaningful participation in the economy by black people. Broad–Based BEE is a reality and a business imperative. Broad–based BEE already have a huge impact in the way business is done in South Africa by large corporate entities, family businesses, small and medium sized businesses and professional practitioners. Broad–based BEE affects almost every participant in the South African economy. Broad–Based BEE can be divided into three components, which holds the seven elements of Broad–Based BEE, namely direct empowerment, human resource development and indirect empowerment. These elements include Equity Ownership, Management, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Corporate Social Investment.
The agricultural businesses in South Africa have implemented unique types of Broad–Based BEE strategies to conform to Broad–Based BEE. These strategies include shareholding by external Broad–Based BEE companies, and registering Broad–Based BEE employee trusts that obtains shareholding in the company. According to the AgriBEE Framework its vision is to pursue Broad–Based BEE in support of a United and Prosperous Agricultural Sector. The objectives of AgriBEE as described by the AgriBEE Steering Committee are to facilitate broad–based black economic empowerment in the agricultural sector by implementing initiatives to include Black South Africans at all levels of agricultural activity and enterprises along the entire agricultural value chain by following certain steps and ideologies.
The contribution of the agribusinesses has some clear indications of shortcomings within the industry as well as and indication of possible elements to be pursued in future. There are however also serious implications to the respondents actions and attitude towards Broad–Based BEE now and in future. It also very apparent that the agribusiness does not distance themselves from the Broad–Based BEE Act and its requirements as well as the consequences thereof.
The agribusiness industry is actively involved in Broad–Based BEE.Thesis (MBA)--North-West University, Potchefstroom Campus, 2012.
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Mogototoane, Samuel Rapulane. "Factors affecting the success of broad-based black economic empowerment mergers and acquisitions." Diss., University of Pretoria, 2012. http://hdl.handle.net/2263/22772.
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Mergers and acquisitions (M&As) are an ubiquitous feature of modern corporate landscape. Most are entered into for various synergistic (voluntary) reasons whilst some, such as broad-based black economic empowerment (BBBEE) M&As, are driven largely by legislative requirements. Research has shown that the factors that lead to the success or failure of voluntary M&As are many and complex.Whilst there is a plethora of literature regarding the success factors for voluntary M&As, there is, however, a paucity of academic literature on the qualitative factors that lead to the success or failure of BBBEE M&As, despite quantitative studies showing the benefits of BBBEE M&As. Because of the significance of BBBEE to the economic development of the country, policy makers, academics and business people need to fully understand such factors.Given the dearth of academic literature on the subject, a qualitative, exploratory study conducted by way of face to face, expert, semi-structured interviews, was undertaken to answer the research problem.The study found that whilst BBBEE M&As are similar, in some respects, to voluntary M&As, BBBEE M&As require different or additional success factors to those applicable to voluntary M&As. Some of these are: funding structure, transaction rationale, expectations‟ alignment, clear deliverables, active governance, operational involvement, relationship management, transformation and social investment.Dissertation (MBA)--University of Pretoria, 2012.
Gordon Institute of Business Science (GIBS)
unrestricted
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Buthelezi, Sfiso. "A critical analysis of Black Economic Empowerment funding structures and their impact on BEE effective ownership." Master's thesis, University of Cape Town, 2008. http://hdl.handle.net/11427/5767.
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Includes bibliographical references (leaves 58-61).In this study it is argued that Black Economic Empowerment is very important as a way of creating stable socio - economic stability in South Africa. We note that we are now at the stage where both the government and corporate South Africa have accepted that BEE is an economic imperative. This has resulted in policy adoption by the government and the private sector driven Sector Charters. Agreeing that 25% of the economy should be in black hands by 2014. It is argued in this research that reliance of BEE investors on debt funding, creates serious doubts about the attainability of this objective.
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Kuys, Wilhelm Cornelis. "Black economic empowerment transactions and employee share options : features of non-traded call options in the South African market." Diss., University of Pretoria, 2011. http://hdl.handle.net/2263/27305.
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Employee share options and Black Economic Empowerment deals are financial instruments found in the South African market. Employee share options (ESOs) are issued as a form of non-cash compensation to the employees of the company in addition to their salaries or bonuses. Its value is linked to the share price and since there is no downside risk for the employee his share option is similar to owning a call option on the stock of his employer. Black economic empowerment (BEE) deals in this report refer to those types of transactions structured by listed South African companies to facilitate the transfer of a portion of their ordinary issued share capital to South African individuals or groups who qualify under the Broad-Based Black Economic Empowerment Act of 2003 (“the Act”). This Act requires a minimum percentage of the company to be black-owned in order to address the disproportionate distribution of wealth amongst racial groups in South Africa due to the legacy of Apartheid. These transactions are usually structured in such a way to allow the BEE partner to participate in the upside of the share price beyond a certain level but not in the downside which replicates a call option on the share price of the issuing company. The cost of both ESOs and BEE deals has to be accounted for on the balance sheet of the issuing company at its fair-value. Neither of these instruments can be traded and their extended option lifetimes are features that distinguish these deals significantly from regular traded options for which liquid markets exist. This makes pricing them a non-trivial exercise. A number of types of mathematical models have been developed to take the unique structure features into account to price them as accurately as possible. Research by Huddart&Lang (1995&1996) has shown that option holders often exercise their vested options long before the maturity of the transactions but are unable to quantify a measure that can be used. The wide variety of factors influencing option holders (recent stock price movements, market-to-strike ratio, proximity of vesting dates, time to maturity, share price volatility and wealth of option holder) as well as little exercise data publicly available prevents the options from being priced in a consistent manner. Various assumptions regarding the exercise behaviour of option holders are used that are not based on empirical observations even though the option prices are sensitive to this input. This dissertation provides an overview of the models, inputs and exercise behaviour assumptions that are recognized in pricing both ESOs and BEE deals under IFRS 2 in South Africa. This puts the reader in a position to evaluate all pricing aspects of these deals. Furthermore, their structuring are also analysed in order to identify the general issues related to them. A number of methods to manage the pricing issue surrounding exercise behaviour on ESOs have been considered for the South African market. The ESO Upper Bound-methodology showed that for each strike there is a threshold at which exercise will occur and the employee can invest the after-tax proceeds in a diversified portfolio with a higher expected return than that of the single equity option. This approach reduces the standard Black-Scholes option value without relying on assumptions about the employee’s exercise behaviour and is a viable alternative for the South African market. The derived option value represents the cost of the option. Seven large listed companies’ BEE transactions are dissected and compared against one another using the fair-value of the transaction as a percentage of the market capitalization of the company. The author shows how this measure is a more equitable way of assigning BEE credits to companies than the current practice which is shareholding-based. The current approach does not reward the effort (read cost) that a company has undertaken to transfer shares to black South Africans but only focuses on the amount that is finally owned by the BEE participants. This leaves the transaction vulnerable to a volatile share price and leads to transactions with extended lock-in periods that do not provide much economic benefit to the BEE participants for many years. Other inefficiencies in the type of BEE transactions that have emerged in reaction to the BEE codes that have been published by the South African government are also considered. Finally the funding model that is often used to facilitate these deals is assessed and the risks involved for the funder (bank) is reflected on.Dissertation (MSc)--University of Pretoria, 2011.
Mathematics and Applied Mathematics
unrestricted
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Meyer, Petrus Gerhardus. "Determinants of credit risk mitigation in lending to Black Economic Empowerment (BEE) companies, from a banker's perspective." Diss., Unisa, 2005. http://hdl.handle.net/10500/163.
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Credit risk mitigation that can be applied by commercial banks in assessing the lending decision /credit risk when advances and equity investments are considered for BEE classified companies.A research report presented to the Graduate School of Business Leadership, University of South Africa
The previous political dispensation limited black people’s participation in the South African economy. Poor credit records, lack of training, resulting in skills and capacity gaps further limited entry into the lending market. These aspects are considered the main limitations in obtaining finance for the Small, Medium and Micro Enterprises (SMMEs). This research report focuses on how credit risk can be mitigated by commercial banks in lending to Black Economic Empowerment (BEE) companies in the medium to large market. Exploratory research was conducted using various methods to achieve methodological triangulation. These methods consisted of a literature review, interviewing experts in the field and case studies. A qualitative research approach was followed. It was found that the lack of own contribution and security were still prevalent in the medium to large market, but the quality of management (little training and skills) was deemed not to be a limitation as suitable credit risk mitigants were identified. No credit risk mitigants were identified to mitigate poor credit records. It is postulated that by adopting and applying the identified credit risk mitigants, commercial banks can increase their success rate in lending to BEE companies. It will further assist in the transformation of black people and compliance with the Financial Services Charter. It is recommended that a similar study be conducted in the agriculture, hunting, forestry and fishing industry. The reasons why BEE companies applications are declined could also be investigated. Further studies could also explore other external factors such as economical, legal and social that could have an influence on the funding of BEE companies.
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Ramathe, Jacob. "The antecedents of customer experience in retail banking." Diss., University of Pretoria, 2010. http://hdl.handle.net/2263/25671.
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Customer experience in retail banking has become a key source of differentiation. Increased competition in the financial services industry and the global financial crisis caused financial institutions to find themselves in a difficult operating environment. A sustainable competitive advantage in the current environment cannot be achieved only through excellent service delivery, service quality and prices, but through the creation of memorable customer experiences. The current study expands on the conceptual framework for the creation of customer experience proposed by Verhoef, Lemon, Parasuraman, Roggeveen, Leonard and Schlesinger (2009). In this paper the nature and extent to which the determinants discussed by Verhoef et al. impact on the customer experience is assessed. Using a quantitative method, a survey questionnaire measuring customers’ perceptions about their experiences with the retail banking firms, was distributed to 1043 employees of the air transportation company. The study finds that the past experiences, brand and prices impacts more on customer experience than other determinants identified. The study also evaluates the impact of transformation and Black Economic Empowerment on customer experience. CopyrightDissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted
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Dyaphu, Zamikhaya William. "The role of BEE in transforming the petroleum industry in South Africa : progress made since the signing of the industry charter on empowerment." Thesis, Unisa, 2005. http://hdl.handle.net/10500/150.
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Smal, Charles. "Factors and considerations in black economic empowerment deals in the small and medium size enterprises market." Thesis, Stellenbosch : Stellenbosch University, 2008. http://hdl.handle.net/10019.1/966.
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Thesis (MBA (Business Management))--Stellenbosch University, 2008.ENGLISH ABSTRACT: Business persons engaging in BEE deals, pertaining to ownership, encounter many obstacles and challenges relating to the formulation of appropriate structures and solutions during the deal process. The SMME market is arguably one of the most critical contributors towards the SA GDP and a sector of the economy with the most growth potential as noted from recent history, especially relating to BEE ownership. It is in the above frame of reference that the research report attempts to follow a logical flow of events that the business persons in the SMME market would encounter. The report therefore has a holistic approach to this market and although many of the concepts could be applied to a variety of industries and even to other market segments, based on size, the primary objective and research has been centred around SMME’s. The core concepts that are covered relate to: - Understanding the essence of BEE and BBBEE as well as Government’s role as conduit to empowerment. The various elements under the BEE scorecard will also be a prominent factor as ownership only accounts for a portion of the entire BBBEE rating. - Aligning the BEE deal to strategy is a crucial consideration and entails attracting the right partner and ensuring that the BEE transaction is directed at value creation, growth and sustainability of the business. The transaction should make strategic and economic sense. - Determining firm value is in all probability one of the most complex issues and business owners should merely attempt to understand and interpret the vastly complicated process that may be presented by business brokers or valuers that facilitate the BEE deal. The fair value concept and required adjustments could be influential in the valuation process as well as choosing the correct valuation methodology. - Business tax structure. This is also a complex process that may vary significantly from business to business. Certain legislative impediments are influential and various amendments may also influence future structuring of BEE deals. The use of SPV’s is a prominent theme highlighted in this research report as it is very often the most preferred structure. - The BEE deal. This may have to consider hybrid financial solution from various sources, such as senior debt, franchise funding, mezzanine debt including venture capitalists, non-traditional lending sources and alternative supporting or indirect funders to the business. The lending criteria principles relating to cash conversion cycle, free cash flow and sustainable growth rate have also briefly been covered. BEE transactions inevitably enter an area of uncertainty for business persons when it comes to drafting business plans, determining the BEE scorecard, structuring the new shareholding and many other factors. In other words, they may not have the necessary business or financial acumen to prepare a satisfactory business proposal to attract lenders to the deal. It is therefore crucial to understand the different elements of the BEE deal formulation process, which is exactly the intent of this research report.
AFRIKAANSE OPSOMMING: Besigheidspersone wat SEB-transaksies met betrekking tot eienaarskap aangaan, ondervind baie struikelblokke en uitdagings in verband met die formulering van toepaslike strukture en oplossings wanneer die transaksie aangegaan word. Die KMMO-mark is stellig een van die mees kritieke bydraers tot die SA BBP en ’n sektor van die ekonomie met die meeste groeipotensiaal, soos die onlangse geskiedenis ons geleer het, veral met betrekking tot SEB-eienaarskap. Dit is met bogenoemde in gedagte dat hierdie navorsingsverslag poog om ’n logiese vloei van gebeure te volg wat die sakepersone in die KMMO-mark sal teëkom. Die verslag het dus ’n holistiese benadering tot hierdie mark en hoewel baie van die konsepte op ’n verskeidenheid nywerhede en selfs op ander marksegmente, gegrond op grootte, toegepas kan word, is die primêre doelwit en navorsing op KMMO’s gerig. Die kernkonsepte wat behandel word, het betrekking op: - Begrip van die kern van SEB en BBSEB asook die Regering se rol as geleibuis tot bemagtiging. Die verskillende elemente van die SEB-telkaart is ook ’n belangrike faktor aangesien eienaarskap net ’n gedeelte van die algehele BBSEB-aanslag verteenwoordig. - Die inlynstelling van die SEB-transaksie met die strategie is ’n kritieke oorweging en behels die lok van die regte vennoot en die versekering dat die SEB-transaksie tot waardeskepping, groei en volhoubaarheid van die besigheid gerig is. Die transaksie moet strategiese en ekonomiese sin maak. - Die bepaling van stewige waarde is in alle waarskynlikheid een van die mees komplekse kwessies en besigheidseienaars moet bloot probeer om die enorme gekompliseerde proses te verstaan en te interpreteer wat deur besigheidsmakelaars en waardeerders wat die SEB-transaksie fasiliteer, voorgelê word. Die billikewaarde-konsep en die vereiste regstellings kan invloedryk op die waardasieproses asook die keuse van die korrekte waardasiemetodologie wees. - Besigheidsbelastingstrukturering is ook ’n komplekse proses wat aansienlik van besigheid tot besigheid verskil. Sekere wetlike struikelblokke is invloedryk en verskeie wysigings kan ook toekomstige strukturering van SEB-transaksies beïnvloed. Die gebruik van SDV’s is ’n prominente tema wat in hierdie dokument uitgelig word aangesien dit in die reël die verkieslikste struktuur is. - Die SEB-transaksie sal moontlik hibridiese finansiële oplossings van verskeie bronne soos seniorskuld, franchise-befondsing, tussenskuld insluitend waagkapitaliste, nie-tradisionele uitleenbronne en alternatiewe ondersteunende of indirekte befondsers van die besigheid moet oorweeg. Die uitleenkriteriabeginsels met betrekking tot kontantomskeppingsiklus, vry kontantvloei en volhoubare groeikoers word ook kortliks gedek. SEB-transaksies betree onvermydelik ’n gebied van onsekerheid vir sakepersone wanneer dit kom by die opstel van besigheidsplanne, die bepaling van die SEB-telkaart, die strukturering van die nuwe aandeelhouding en baie ander faktore. Met ander woorde, hulle kan moontlik nie die nodige besigheids- of finansiële vernuf hê om ’n bevredigende besigheidsvoorlegging op te stel wat uitleners na die transaksie sal aantrek nie. Dit is dus kritiek om die verskillende elemente van die formulering van die SEB-transaksie te verstaan, wat presies die doel van hierdie navorsingsverslag is.
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Anyetei, Stanley. "A selected analysis of announced Black Economic Empowerment equity transfer versus effective net equity interest BEE shareholding [electronic resource]." Master's thesis, University of Cape Town, 2011. http://hdl.handle.net/11427/9044.
Full textAbstract:
Includes bibliographical references.The equity transfer of Black Economic Empowerment deals has been the basis that still defines the Black Economic Empowerment landscape. Black Economic Empowerment concepts are identified with endeavours in South Africa to increase the participation of Black people in business and the mainstream economy. In recent years, equity transfer has been the main benchmark to signify the extent to which a company is empowered. This new construct is Black Economic Empowerment. Black Economic Empowerment is a concept, which is broadly accepted in principle, but is still controversial in its meaning and practice. This report looks at the commonly, agreed and understood Black Economic Empowerment net equity transfer of selected Black Economic Empowerment transactions versus the effective net equity transfer. Its also examines the role that funding structures, funding institutions, the government and private sector play in Black Economic Empowerment transaction. The effect of debt in Black Economic Empowerment transactions, and the impact it has on the effective transfer of net equity interest to Black people will also be examine in this report. The study will also look into the need for Affirmative Action, the state of Black Business and its historical development and its contribution to Black Empowerment. The successes of Black Economic Empowerment transaction are contrasted against the transaction failures, while the report examines the cause of these failures. The findings of the study concludes that only one percentage of the selected transaction in the study yielded a net effective interest greater or equal to the announced transaction.
Books on the topic "Black Economic Empowerment (BEE)"
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Kyle, Harris, ed. Broad-based BEE: The complete guide. Northcliff, South Africa: Frontrunner Publishing, 2007.
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Chahoud, Tatjana. Corporate Social Responsibility (CSR) and Black Economic Empowerment (BEE) in South Africa: A case study of German Transnational Corporations. Bonn: Deutsches Institut für Entwicklungspolitik gGmbH, 2011.
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Kalula, Evance. Understanding broad-based black economic empowerment. Cape Town: Juta Law, 2009.
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Trick or treat: Rethinking black economic empowerment. Auckland Park, South Africa: Jacana Media, 2010.
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Black economics: Solutions for economic and community empowerment. Chicago, Ill: African American Images, 1991.
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Baugh, Joyce A. Employee ownership as a strategy for black economic empowerment. leaf [64]-72: ill., 1991.
Find full textBook chapters on the topic "Black Economic Empowerment (BEE)"
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Harris, Paul Kenneth. "Vision der FirstRand-Gruppe von der Black Economic Empowerment (BEE) Transformation innerhalb der Organisation." In Herausforderung Transformation, 189–97. Berlin, Heidelberg: Springer Berlin Heidelberg, 2010. http://dx.doi.org/10.1007/978-3-642-02528-0_15.
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Mzezewa, Sinikiwe. "Black Economic Empowerment." In Encyclopedia of Sustainable Management, 1–3. Cham: Springer International Publishing, 2019. http://dx.doi.org/10.1007/978-3-030-02006-4_925-1.
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Ndhlovu, Finex. "Chimurengas, Indigenisation, Black Economic Empowerment." In Language, Vernacular Discourse and Nationalisms, 135–205. Cham: Springer International Publishing, 2018. http://dx.doi.org/10.1007/978-3-319-76135-0_5.
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Murove, Munyaradzi Felix. "Black Economic Empowerment and the Post-Apartheid South African Quest for the Domestication of Western Capitalism." In Fairness in International Trade, 47–67. Dordrecht: Springer Netherlands, 2010. http://dx.doi.org/10.1007/978-90-481-8840-6_4.
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Vilakazi, Thando, and Teboho Bosiu. "Black Economic Empowerment, Barriers to Entry, and Economic Transformation in South Africa." In Structural Transformation in South Africa, 189–212. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780192894311.003.0009.
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One of the key challenges of South Africa’s democratic project has been supporting the effective participation of the previously excluded black majority in the economy. The broad-based black economic empowerment (BBBEE) policy, as the primary tool employed to drive racial transformation, is assessed and found to have had a limited impact, although there has been some progress. The chapter considers the link between structural transformation and black economic empowerment in three key parts. First, relevant literature is drawn on to build the argument that inclusion matters for structural transformation. Second, is an examination of the factors that have underpinned the challenges with the implementation of BBBEE to open up the economy for broader participation, including its limited focus on key barriers to entry, and the implications for structural transformation in South Africa. Third, the chapter presents a case study based on a survey of applicants under the government’s ‘black industrialists scheme’ as a critical evolution from, and alternative to, the approach followed with BBBEE, as it is able to contribute to both racial and structural transformation of the economy. The chapter concludes with a reflection on the roles of black economic empowerment and the black industrialists scheme, barriers to entry, and structural transformation of the economy.
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Desai, Ashwin, and Goolam Vahed. "Political Connection, Crassness, and Capital Wars." In A History of the Present, 295–318. Oxford University Press, 2019. http://dx.doi.org/10.1093/oso/9780199498017.003.0013.
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The other aspect to black upliftment is Black Economic Empowerment (BEE), which aims to provide economic opportunities for black businessmen and women. This chapter shows how some Indian business people have taken advantage of political connections to accumulate vast amounts of wealth and how this has led to anti-Indian sentiment, especially the Gupta family who acquired notoriety for their relationship to the former South African president, Jacob Zuma.
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"Conclusion: Black Economic Empowerment and Transformation." In Communication and Democratic Reform in South Africa, 323–56. Cambridge University Press, 2001. http://dx.doi.org/10.1017/cbo9780511510151.008.
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Wallace, Sherri Leronda. "Minority Procurement: Beyond Affirmative Action to Economic Empowerment." In Leading Issues in Black Political Economy, 483–508. Routledge, 2018. http://dx.doi.org/10.4324/9781351320443-34.
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Manning, Claudia, and Nokuzola Jenness. "Origins, trends and debates in black economic empowerment." In The Oxford Companion to the Economics of South Africa, 313–21. Oxford University Press, 2014. http://dx.doi.org/10.1093/acprof:oso/9780199689248.003.0041.
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"Foreign investment, black economic empowerment and militarised patronage politics in Zimbabwe." In 'Progress' in Zimbabwe?, 75–90. Routledge, 2013. http://dx.doi.org/10.4324/9781315873886-11.
Full textConference papers on the topic "Black Economic Empowerment (BEE)"
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Kola, Katlego, Thembelihle Ndlovu, Millicent Motloung, and Omokolade Akinsomi. "THE EFFECTS OF THE BLACK ECONOMIC EMPOWERMENT (BEE) POLICIES ON THE RISKS AND RETURNS OF LISTED PROPERTY COMPANIES IN SOUTH AFRICA." In 14th African Real Estate Society Conference. African Real Estate Society, 2014. http://dx.doi.org/10.15396/afres2014_107.
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"The Effects of the Black Economic Empowerment (BEE) policies on the Risks and Returns of Listed Property companies in South Africa." In 21st Annual European Real Estate Society Conference. ERES, 2014. http://dx.doi.org/10.15396/eres2014_190.
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