Dissertations / Theses on the topic 'Black Economic Empowerment (BEE)'

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.

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.

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

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.

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

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.

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. Copyright
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

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.

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.

To integrate the previously disadvantaged population that suffered from the apartheid in South Africa, the government has implemented policies to let them participate in the country’s growing economy. These policies are called the Black Economic Empowerment (BEE) policies and are affecting both local and international businesses. Through a qualitative research method with a deductive approach, the research creates a deeper understanding of how Swedish firms adapt and commit as an effect of the BEE policies. Through already established internationalization theories, we created a theoretical framework as a platform to gather and analyze the empirical data. The theoretical implications show how the BEE policies can disrupt and challenge the commitment that is characterized in different entry modes. It also challenges previous research and brings up Swedish companies’ willingness to adapt with the policies and commit their resources in order to overcome the obstacles of BEE and benefit the growth of South Africa.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: This event study examines the effect that Black Economic Empowerment (BEE) announcements have on a companies' share price. The average mean return model is applied to study a sample of companies from the Financial Mail Top 200 Empowerment Companies list, 2007. The mean price change observed in a 7-day window around the event announcement is found to be significant relative to the calculated critical value. Results of the test statistic calculated relative to the probability shows that at a p-value of 0,00113, the result is significant and the null hypothesis is rejected at a 95% confidence level. This result of this study supports the fact that markets react positively to the announcements of BEE events.
AFRIKAANSE OPSOMMING: Hierdie studie ondersoek die verhouding tussen die verandering van 'n maatskappy se aandele prys wanneer hierdie maatskappy 'n aankondiging maak oor 'n Swart Ekonomiese Transaksie (SET). Die Financial Mail Top 200 Empowerment Companies 2007 lys is gebruik om maatskappye te kies vir die studie. Die gemiddelde verandering in aandele prys in a 7-dag venster rondom die SET aankondiging blyk merkwaardig te wees wanneer met 'n berekende kritiese waarde vergelyk word. Die toets statistiek bewys dat met 'n p-waarde van 0,00113 daar met 95% sekerheid die nul hipotese kan verwerp. Die resultaat van hierdie studie ondersteun die feit dat markte positief reageer teenoor maatskappye wat nuus oor SET transaksies aankondig.

Thesis (MBA)--Stellenbosch University, 2014.
Broad-based Black Economic Empowerment (B-BBEE) not only aims to readdress the racial imbalances of the apartheid era, but also seeks to promote social responsibility and empowerment of historically disadvantaged South African (HDSA) communities (Esser & Dekker, 2008). The transformation journey within the South African Liquid Fuels Sector has been a difficult and lengthy one. The South African Liquid Fuels Sector was amongst the first to receive its own Black Economic Empowerment (BEE) sector charter (Liquid Fuels Charter) in 2000. Although numerous transformation milestones have been achieved, the sector has been criticised for its slow pace in advancing transformation, which has in part contributed to the amendment of the B-BBEE Codes in 2013. The argument of slow transformation can be attributed to obstacles faced by those in industry tasked with implementing B-BBEE. There has been a deficiency in studies that have investigated transformation and the implementation of B-BBEE within the sector. As a result, the central objective of this study was to explore the B-BBEE implementation challenges faced by companies within the liquid fuels sector. A qualitative approach was employed for the collection of primary data and involved interviews with eight top and senior management representatives of Chevron South Africa (Pty) Ltd. The results emanating from the study revealed numerous implementation challenges. The study together with literature reviewed, highlights the need to address these challenges in order for B-BBEE implementation to yield the desired results for all stakeholders within the South African Liquid Fuels Sector. The study concludes that a lack of understanding of B-BBEE policy; alignment of internal party interests; overcoming internal biases; skills shortages and lack of experience by Black individuals; involvement of senior management in implementation process; co-ordination and structure required in B-BBEE implementation execution; communication within organisations; diversity/cultural awareness; and B-BBEE policy issues and skills attraction and retention are some of the issues impacting B-BBEE implementation within the South African Liquid Fuels Sector.

Due to South Africa's history of apartheid the current regime have implemented the Black Economic Empowerment (BEE) policy to rectify the discrimination against previously disadvantaged groups. The BEE policy gives incentives for companies to hire non-whites in higher positions, like management, and the ambition with this is to create equality. With a qualitative research method and using an abductive approach this study research how South African SMMEs are influenced by the BEE policy when they internationalize. This study concludes that South African SMMEs are differently influenced by the BEE policy when they internationalize. Furthermore, this research shows that the impact is highly dependent on the business owners ethnicity. The influence the BEE policy had on black owned business was predominantly positive. However, the effect the BEE policy had on white owned businesses was more complex. As far as this research shows, the influence the BEE policy had on SMMEs when they internationalize are an extension of how the BEE policy influenced them in the domestic market. The authors recommendation is that the relationship between BEE and internationalization is further investigated and that this study is complemented with a quantitative research.

This study investigates employees' perceptions of diversity and its impact on the workplace, as perceived by employees themselves. The focus will specifically be on external diversity factors such as culture, race and gender and to what extent these factors can possibly be linked to differences in perceptions of the influence of diversity in the workplace. We know that equality and diversity programmes should be aligned with an organisation's core strategic objectives. Not only is this alignment critical to achieving equality and diversity goals, but it also enables organisations to benefit from the business opportunities that diversity offers. To better understand the role and importance of diversity and gain insight into social systems, quantitative measures of diversity were examined by means of questionnaires. A major consideration for managers is the wide scope of behaviours, attitudes, and values of the diverse staff across socio–cultural boundaries, which are bound to affect organisational processes. Thus, it is crucial for managers to distinguish how staff of different socio–cultural backgrounds could be interacting within the organisation, and identify how perceptual effects may be manifested in multicultural group relationships.
Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007.
ENGLISH ABSTRACT: We critically assess the successes and failures of the economic phenomenon that is Black Economic Empowerment as represented by the Ownership Element of the Scorecard. We briefly evaluate the successes and failures of the first wave of BEE deals on the JSE and through the use of contemporary observations of this phenomenon as reported on by the media, we make the key assumption that these media reports are an unbiased account of the phenomenon. We critically assess the current status of BEE and find that progress has been made in terms of black ownership on the JSE, as well as on the legislative front, through the introduction of a comprehensive standardised measurement framework. The progress has in the main been extremely slow and limited. We also find that whilst funding models have improved, the success of BEE deals is still to a large extent dependent on stellar performance of the Stock Exchange and generous dividend policies. Disappointingly we also find that the debate about what constitutes broad-base BEE continues unabated as most deals continue to fail to meet public expectations of broad-base empowerment and equitable equity participation by all BEE deal beneficiaries.
AFRIKAANSE OPSOMMING: Hierdie studie bied 'n kritiese evaluering van die suksesse en mislukkings van die ekonomiese verskynsel genaamd swart ekonomiese bemagtiging (SEB) aan die hand van die eienaarskapelement van die telkaart. Die eerste vlaag SEB-transaksies op die Johannesburgse Effektebeurs (JEB) word kortliks beoordeel, waarna die media se eietydse waarnemings oor hierdie verskynsel tot die sleutelaanname lei dat sodanige mediaberigte 'n onbevooroordeelde weergawe van die stand van swart ekonomiese bemagtiging is. Die studie bied 'n kritiese beskouing van die huidige status van SEB, en dat daar wél vordering gemaak is met betrekking tot swart eienaarskap op die JEB, sowel as op wetgewende gebied deur die instelling van 'n omvattende, gestandaardiseerde metingsraamwerk. Vordering was egter tot op hede merendeels uiters stadig en beperk. Die studie bevind ook dat hoewel finansieringsmodelle verbeter het, die sukses van SEB-transaksies steeds in 'n groot mate van 'n goeie vertoning op die effektebeurs en ruimhartige dividendbeleid afhang. 'n Teleurstellende bevinding is dat die debat oor die werklike betekenis van breedgebaseerde SEB onverpoos voortduur namate die meeste transaksies versuim om aan die openbare verwagting van breedgebaseerde bemagtiging en gelyke aandeelhouding deur alle SEB-transaksiebegunstigdes te voldoen.

Important changes that have taken place within South African politics mean that most companies today are under pressure to implement affirmative action (AA) policies within their organisations (equity policies). These AA policies include employment equity (EE) policies and Black economic empowerment (BEE) policies. Company agendas now include aspects such as equality and social justice and organisations will continue to be evaluated in terms of how well they meet employment equity targets. Many employees and citizens in general view the process and implementation of these policies with great scepticism and even reluctance. It is important to understand and examine these perceptions because employee perceptions influence employee attitudes and behaviour and therefore have an effect on the success (or failure) of an organisation. The effective implementation of EE and BEE policies will to a large extent depend on whether or not these policies fit into the overall culture of an organisation or whether the organisational culture is adapted to accommodate these policies. Previously, corporate cultures largely ignored principles of diversity and difference. It is important that the question of whether this has changed or changed to a large enough degree be answered, especially with regard to the implementation of EE and BEE policies. Some EE and BEE programmes may fail because previous structures, cultural systems and management styles are adhered to without adapting these to suit the needs of these policies. Ultimately, employees’ perceptions of AA in their organisation, namely the EE and BEE policies that are implemented, influence the attitudes and behaviour of employees and ultimately the success of the organisation. These perceptions are related to the culture of the organisation. This study explores employee perceptions of equity policies, specifically EE and BEE, in terms of differences in demographic characteristics, including race, gender, age, years’ service and occupational level; as well as relative to the main factors of these equity policies, as confirmed by a factor analysis performed on the data, namely the importance, impact and clarity of these policies. The sample company’s organisational culture is also explored in terms of these equity policies and perceptions thereof. The ultimate goal of this research is to examine if any relationships exist between the implementation of organisational cultural practices in an organisation relative to equity policies and employee perceptions of these, and if any relationships do exist, to determine the nature of such relationships. The sample size in this study is 476 employees.
Dissertation (MA)--University of Pretoria, 2010.
Psychology
unrestricted

Republic of South Africa underwent through very significant changes. The discriminatory laws and provisions were cancelled, there were free elections maintained. The government is trying to empower black people. Black Economic Empowerment (BEE) is governmental strategy which seeks to diminish differences between white and so called historically disadvantaged inhabitants. This master thesis provides broad survey of this strategy and analyses its current results.

This study is aimed at determining the effect of Black Economic Empowerment on employees. The objectives of this study were:

• To conceptualize theoretically what Black Economic Empowerment entails and to identify the causes of the Broad Based Black Economic Empowerment Act.
• To determine the physical, emotional, psychological and social effect of BEE on employees and to elaborate on employees’ experiences
.
• To make recommendations regarding the implementation of BEE based on employees experiences.

This qualitative study endeavoured to answer the following research question: “What effect does BEE have on employees?” By answering this question, the researcher aimed to document experiences to understand the effect of this phenomenon on employees and to make recommendations regarding its implementation in the workplace. Probability sampling methods were used to select the respondents and data was gathered by using semi-structured interview schedules. These interviews were taped-recorded, transcribed and analysed by extracting themes and subthemes. The study was feasible as it was within the financial and practical means of the researcher. Permission was obtained from BOSASA to conduct the study, and use their resources, staff and data. The main themes that emerged from the data analysis are as follows:

• Support for BEE
• Criticism of BEE
• The role of communication
• Change leads to mental shifts
• Changes in the working environment affects employees
• Attitude towards change impacts on physical effects
• The importance of development in the implementation of BEE.

From the research findings, the following conclusions and recommendations were made: It can be concluded that there are different opinions regarding the implementation of BEE and we have to acknowledge that there are positive and negative effects thereof. BEE can hold mutual benefits for both employees and the organization, but it is important for open and reciprocal communication channels to be present whilst BEE is being implemented. It was also concluded that although BEE is a legislative process the individuals within the organization definitely experience the ripple effect of the changes that are implemented. On micro-level, it is recommended that all organizations where BEE is being implemented should have open communication channels between themselves and their employees. Opportunities for questions regarding clarity of processes being implemented should be part of the process and communication of information should be reciprocal and not just from a top down approach. On meso-level, it is recommended that different levels of management should receive training regarding BEE, what it entails and how it will be implemented. The reasons for its implementation and the benefits it holds for the organization and employees should be explored during these sessions. On macro-level, it is recommended that the marketing of BEE should become more prominent in the media in South Africa, including newspapers, television and billboards. The emphasis should shift from only reporting on the “large” BEE deals that are done, to the untold stories of the masses that daily experience the positive effects that BEE has had on them as “smaller” organizations and individuals. Organizations should assist in rectifying the harms of the past. It should not only be about implementing BEE for the purpose of getting business deals from government, but also about realizing its significance for the economic growth of our country. This will assist in eradicating fronting and create a culture that is open to change. Copyright
Dissertation (MSW)--University of Pretoria, 2008.
Social Work and Criminology
unrestricted

The purpose of this treatise is to ascertain the impact of economic downturn on Black Economic Empowerment (BEE) and Banks. This has been sparked by the huge speculations in the market as to what will happen to BEE and how will the banks cope in general with the impact of this scourge. It is imperative to understand the influence of the 2008+ economic downturn on socio-economic reconstruction and development in South Africa and the black economic empowerment and its funding mechanisms. The treatise has two phases the, namely the theoretical phase and a bit of narrative phase. In the theoretical phase the research study interrogates what the literature review reveals about the economic downturn, BEE as well as performances of different banks across the world. This shows the economic impact that the banks have had to endure during the economic downturn. This resulted in stock markets losing their value. The dividend earners were significantly affected including a sizeable number of BEE companies. The BEE companies are perceived to be too reliant on debt on to finance their deals and this treatise will look at various options of financing a BEE deal and what is deem to the most suited financing structure. The narrative phase involves semi-structured interviews that were conducted in order to ascertain the real impact that South African were faced with and how they have managed to steer clear of the turbulent waters. This also looked at how the BEE consultant views the current occurrences in the market.

Thesis (MA)--University of Stellenbosch, 2004.
ENGLISH ABSTRACT: This study considers Black Economic Empowerment (BEE) in South Africa, and in particular, the various funding structures of Black Economic Empowerment transactions. Whilst these structures have a variety of forms, past experience has suggested some fundamental problems with the actual funding sources and structures. Various definitions and interpretations of Black Economic Empowerment within the context of this paper are discussed. Two BEE strategies are identified, one of which namely, the creation of a broader, more sustainable group of black entrepreneurs for South Africa will be the focus of this paper. The issue of entrepreneurial empowerment will remain an ongoing theme throughout all chapters in this paper. The second BEE strategy, namely, poverty alleviation and employment creation is only briefly discussed although its importance is not underestimated. From the study it is concluded that BEE ought not be a strategy aimed at the enrichment of a select group of black elite. Lessons learnt from past failures are also highlighted. A historical analysis of the provision of funding to historically disadvantaged people (HDP)1 in South Africa is presented. The theme of inequality in providing access to finance for black entrepreneurs and small businesses is looked at in this context. The historical analysis starts with the early years in South Africa and then focuses on the period 1990 – 1999. This report also provides a critical assessment of some of the biggest shortcomings of the pyramid structures and complex financial engineering of the first attempts of Black Economic Empowerment in the narrow sense of the word. It is established that the Special Purpose Vehicle funding structures of the late 1990s were a failure. Further, this study looks at current financing options and possible solutions. Some recent examples are also provided of BEE funding structures which seem to have worked. Traditional government institutions such as the Industrial Development Corporation, in particular, have also come a long way in developing more viable funding in transactions with BEE companies. It is also noted that recent alternative financing structures by the private sector are addressing some of the key challenges of BEE such as ownership, control and the promotion of sustainable black businesses for the transformed South African economic landscape going forward. However, many obstacles remain with the potential sources of funding of BEE such as traditional banks and life assurers in South Africa who are still not more accessible to the poor. Fundamental problems have also been identified in the analysis of the Development Finance Institutions (DFIs) of government such as the National Empowerment Fund, Khula Enterprises and the Land Bank which are also anticipated to play a crucial role in the provision of financing for BEE over the coming years. This study highlights the significant cost involved with the implementation of the BEE strategies. The single biggest challenge to the economic empowerment of the previously disadvantaged is access to funding. About the need for broad-based Black Economic Empowerment in South Africa, there is no dispute. But it is important that these costs are weighed against other sustainable development objectives. The private sector often seems to see BEE as a cost rather than an opportunity. But while the shortcomings of numerous empowerment initiatives, exacerbated by the 1998 stock market crash, may have caused the financial sector to get cold feet about these transactions, the sector can come up with some creative options that go beyond old problems. Therefore, the future role of government financed institutions together with the private sector remains critical in ensuring that these objectives are met. In conclusion, the discussion on the funding of Black Economic Empowerment in South Africa must be seen within the context of the political and economic landscape of the 1900s and then in particular, the history of the past ten years. Narrowly defined black economic empowerment has gained significant momentum in recent years due to the economic restructuring of the business sector which has been propelled by recent government legislation such as the Mining Charter, the Black Economic Empowerment Commission’s recommendations, the Department of Trade and Industry’s discussion documents and other legislation currently in the pipeline. However, the economic landscape still looks bleak. Real economic growth has been inadequate since large parts of our population are still unemployed. A significant hurdle still facing our economy is the high degree of wealth inequality that exists. It is within this context that one should assess the many policy and funding initiatives that have been taken and the strategies proposed to redress historical imbalances in the country. The paper itself is comprised of six parts. This executive summary only serves to provide a brief overview of the various areas covered in this study. Chapter One analyses the various definitions of the term Black Economic Empowerment, their relevance and the development of BEE in South Africa over the years. This leads to a discussion in Chapter Two on the problem statement, being the funding of BEE. Chapter Three is divided into seven sub-sections and provides a historical analysis of the funding obstacles facing black people since the early 1900s, then looks at developments of BEE since the early 1990s with a critical assessment of the failures of empowerment and the funding structures utilized during this period. Chapter Three also identifies various similarities and lessons learnt from examples of empowerment experiences in other countries. Chapter Four looks at the estimated size of the funding requirement and current sources of financing from the private and public sector. Certain conclusions are drawn from this overview. Chapter Five looks at the major risks facing the impact of BEE and the financing thereof in the future. Chapter Five also applies the criteria for appropriate funding of BEE to a recent BEE transaction in the form of a case study. Some possible solutions are also put forward in this section of the analysis. Chapter Six summarises and concludes. 1 Note that HDP incorporates all disadvantaged groupings such as the Black, Indian, Coloured populations of South Africa. In historical terms it also includes the various tribes that existed in South Africa during the early years as well as those who were slaves. Africa during the early years as well as those who were slaves.
AFRIKAANSE OPSOMMING: Hierdie studie ondersoek Swart Ekonomiese Bemagtiging (SEB) in Suid-Afrika, en in die besonder die verskillende befondsingstrukture van Swart Ekonomiese Bemagtigingstransaksies. Hoewel hierdie strukture ’n verskeidenheid vorms mag hê, het ondervinding getoon dat daar wesentlike probleme is wat die werklike befondsingsbronne en -strukture betref. Verskillende definisies en vertolkings van Swart Ekonomiese Bemagtiging binne die konteks van hierdie verhandeling word bespreek. Twee SEB-strategieë word geïdentifiseer, waarvan een, naamlik die daarstelling van ’n meer omvattende en meer volhoubare groep swart entrepreneurs vir Suid-Afrika, die fokuspunt van hierdie verhandeling sal wees. Die vraagstuk van entrepreneuriale bemagtiging sal ’n deurlopende tema in alle hoofstukke van hierdie verhandeling bly. Die tweede SEBstrategie, naamlik armoedeverligting en werkskepping word slegs vlugtig bespreek, alhoewel die belang daarvan nie onderskat word nie. ’n Gevolgtrekking van die studie is dat SEB nie ’n strategie behoort te wees wat op die verryking van ’n uitgesoekte swart elite-groep gerig is nie. Lesse wat uit mislukkings van die verlede geleer is, word ook belig. ’n Geskiedkundige ontleding van die voorsiening van befondsing aan voorheen benadeelde mense in Suid-Afrika word gebied. Die tema van ongelykheid in die bied van toegang tot finansiering vir swart entrepreneurs en klein besighede word binne hierdie verband bekyk. Die geskiedkundige ontleding begin met die vroeë jare in Suid-Afrika en fokus vervolgens op die tydperk 1990 – 1999. Hierdie verslag bied ook ’n kritiese evaluering van sommige van die grootste tekortkomings van die piramidestrukture en ingewikkelde finansiële geniëring van die eerste pogings tot Swart Ekonomiese Bemagtiging in die eng sin van die woord. Daar word bewys dat die Gespesialiseerde Voertuig-befondsingstrukture van die laat 1990’s ’n mislukking was. Hierdie studie kyk boonop na huidige finansieringsopsies en moontlike oplossings. ’n Aantal onlangse voorbeelde van SEBbefondsingstrukture wat klaarblyklik suksesvol was, word ook gebied. Tradisionele regeringsinstansies, soos die Nywerheidsontwikkelingskorporasie in die besonder, het ook heelwat vordering getoon wat die ontwikkeling van meer lewensvatbare befondsing in transaksies met SEB-maatskappy betref. Daar word ook gelet op die feit dat onlangse alternatiewe finansieringstrukture deur die privaat sektor sommige van die sleuteluitdagings van SEB, soos eienaarskap, die beheer en bevordering van volhoubare swart besighede vir die transformerende Suid-Afrikaanse ekonomiese landskap, aanspreek. Daar is egter steeds talle struikelblokke wat die potensiële befondsingsbronne van SEB betref, soos tradisionele banke en lewensversekeraars in Suid-Afrika wat steeds nie meer toeganklik vir die armes is nie. Wesentlike probleme is ook geïdentifiseer in die ontleding van die regering se Ontwikkelingsfinansieringsinstansies, soos die Nasionale Bemagtigingsfonds, Khula Enterprises en die Landbank, wat na verwagting ook ’n beslissende rol in die voorsiening van finansiering vir SEB in die komende jare sal speel. Hierdie studie belig die aansienlike koste wat by die implementering van die SEBstrategieë betrokke is. Die grootste enkele uitdaging vir die ekonomiese bemagtiging van voorheen benadeeldes is toegang tot befondsing. Die behoefte aan omvattende Swart Ekonomiese Bemagtiging in Suid-Afrika word nie betwis nie. Maar dis belangrik dat hierdie koste opgeweeg moet word teen ander volhoubare ontwikkelingsdoelwitte. Dit wil voorkom asof die privaat sektor SEB as ’n uitgawe eerder as ’n geleentheid beskou. Maar alhoewel die tekortkominge van talle bemagtigingsinisiatiewe, wat deur die ineenstorting van die aandelemark in 1998 vererger is, daartoe kon gelei het dat die finansiële sektor bra lugtig vir hierdie transaksies is, kan die sektor tog met skeppende opsies vorendag kom om ou probleme die hoof te bied. Die toekomstige rol van staatsgefinansierde instansies in samewerking met die privaat sektor bly dus deurslaggewend om te verseker dat hierdie doelwitte bereik word. Kortom, die bespreking van die befondsing van Swart Ekonomiese Bemagtiging in Suid-Afrika moet gesien word binne die konteks van die politieke en ekonomiese landskap van die 1900’s en die geskiedenis van die afgelope tien jaar in die besonder. Eng gedefinieerde swart ekonomiese bemagtiging het in die laaste paar jaar aansienlike stukrag verkry danksy die ekonomiese herstrukturering van die sakesektor, wat verder aangedryf is deur onlangse regeringswetgewing soos die Mynbouhandves, die aanbevelings van die Swart Ekonomiese Bemagtigingskommissie, die Departement van Handel en Nywerheid se samesprekingsdokumente en ander wetgewing wat tans beplan word. Die ekonomiese landskap lyk egter steeds allesbehalwe rooskleurig. Reële ekonomiese groei is onvoldoende aangesien groot gedeeltes van ons bevolking steeds werkloos is. ’n Betekenisvolle struikelblok wat ons ekonomie steeds in die gesig staar, is die groot mate van ongelyke welvaart wat bestaan. Dit is binne hierdie verband wat die talle beleids- en befondsingsinisiatiewe geëvalueer moet word wat onderneem is en strategieë wat voorgestel is om die geskiedkundige wanbalanse in die land aan te spreek. Die verhandeling self bestaan uit ses afdelings. Hierdie inleiding dien slegs om ’n bondige oorsig te gee van die onderskeie temas wat in hierdie studie gedek word. Hoofstuk Een ontleed die verskillende definisies van die uitdrukking Swart Ekonomiese Bemagtiging, hul tersaaklikheid en die ontwikkeling van SEB in Suid- Afrika oor die jare. Dit gee aanleiding tot ’n bespreking in Hoofstuk Twee van die probleemstelling, naamlik die befondsing van SEB. Hoofstuk Drie is in sewe onderafdelings verdeel en bied ’n geskiedkundige ontleding van die befondsingstruikelblokke wat swart mense sedert die vroeë 1900’s in die gesig staar, waarna dit ontwikkelings op die gebied van SEB sedert die vroeë 1990’s ondersoek, met ’n kritiese evaluering van die mislukkings van bemagtiging en die befondsingstrukture wat in hierdie tydperk toegepas is. Hoofstuk Drie identifseer ook verskillende ooreenkomste tussen en lesse wat geleer is uit voorbeelde van bemagtigingsondervinding in ander lande. Hoofstuk Vier kyk na die geskatte omvang van die nodige befondsing, asook huidige bronne van finansiering uit die privaat en openbare sektor. Sekere gevolgtrekkings word aan die hand van hierdie oorsig gemaak. Hoofstuk Vyf belig die grootste risiko’s wat die impak van SEB in die gesig staar, asook die toekomstige finansiering daarvan. Hoofstuk Vyf pas boonop die kriteria vir genoegsame befondsing vir SEB op ’n onlangse SEB-transaksie in die vorm van ’n gevallestudie toe. ’n Aantal moontlike oplossings word ook in hierdie afdeling van die ontleding gebied. Hoofstuk Ses vat saam en kom tot ’n slotsom.

The Government of South Africa has placed a lot of emphasis on economic growth and the involvement of Black people in the mainstream of the economy. The implementation of Broad-Based Black Economic Empowerment (B-BBEE) created opportunities for direct empowerment of Black females in ownership and management. The Construction Industry is being challenged to increase the number of Black females in management and ownership levels. Due to the nature of the Industry, only a small population of females considers Construction as a career option. The Industry has also lost a significant number of skilled Engineers and is experiencing a shortage of skilled managers in Middle and Senior Management Levels. The research problem questioned the current state of empowerment for Black women in the Construction Industry as measured against the B-BBEE Scorecard. The literature review focused on the requirements of the B-BBEE scorecard and Construction Charter. The second phase focused on gender equality and the achievements of women in Construction. The research design was done by using questionnaires to the South African Federation of Civil Engineering Contractors (Safcec) members in the Eastern Cape. The research design and survey aimed to determine the status of empowerment in the Construction Industry. With reference to both the literature review and the empirical findings the state of female empowerment can be determined. Therefore iv recommendations and opportunities for further research in this regard can be identified.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007.
ENGLISH ABSTRACT: The Western Cape tourism industry offers a variety of attractions and has the potential to grow further in the next couple of years. According to the statistics provided by Cape Town Routes Unlimited (CTRU) the province is among the three provinces that received the highest number of tourists in the last few years. The critical challenge that the province now needs to look at, is the participation of previously disadvantaged individuals in the mainstream tourism industry. Tourism stakeholders see Black Economic Empowerment (BEE) as an important vehicle for transformation. Although little progress has been made so far, there is a will among all stakeholders to transform the tourism industry. Some of the key challenges raised by the study on the efforts towards greater BEE were lack of finance for BEE businesses, access to the market and lack of skills. Professionalism and good quality service of international standards was also seen to be very important by respondents. The report also looks at two successful deals that were brokered in the tourism industry, namely one by Sun International and the other, the merger between Grass Route Tours and African Eagle Day Tours. In the fieldwork twenty businesses were interviewed, ranging from accommodation and tour operator to restaurants. This was not a random sample, but rather an attempt to target those that were part of the database of Cape Town Routes Unlimited (CTRU). The research tool used by the author of this report was a qualitative and quantitative structured questionnaire. The responses shed further light on some of the Black Economic Empowerment challenges faced by the Western Cape tourism industry. These results will supplement information already available to Cape Town Routes Unlimited. Eventually the findings will be tabled and recommended to relevant stakeholders for action.
AFRIKAANSE OPSOMMING: Die Weskaapse toerismebedryf bied ‘n verskeidenheid aantreklikhede en het die potensiaal om te groei oor die volgende paar jaar. Cape Town Routes Unlimited (CTRU) statistieke toon dat die Weskaap een van die drie provinsies landwyd is wat die meeste toeriste groei oor die laaste paar jaar getoon het. Die Weskaap se grootste uitdaging is nou om meer geleenthede in die hoofstroom van die bedryf te bied aan die voorheen onderdrukte individuë. Oor die algemeen beskou belangegrope in die bedryf die BEE as ‘n belangrike middel tot transformasie. Die vordering is tot dusver egter nog maar min, alhoewel daar eenstemmigheid bestaan om die toerismebedryf te omskep en te transformeer. Die studie toon die grootste struikelblokke tot vinniger BEE as die volgende: ‘n tekort aan finansiering vir BEE besighede asook ‘n tekort aan ondervinding en bekwaamheid. Professionalisme sowel as dienskwaliteit (vergeleke met internasionale standaarde) word ook as belangrik beskou. Twee suksesvolle BEE–onderhandelinge word in die studie in besonderhede bespreek, naamlik Sun International en die samesmelting van Grass Route Tours and African Eagle Day Tours. Die studie verwerk onderhoude wat gevoer is met twintig besighede wat akkommodasie, toeroperateurs sowel as restaurante ingesluit het. Dit omvat nie ‘n steekproef nie, maar is gebaseer op die CTRU databasis. Die onderhoude is gevoer met ‘n gestruktureerde kwalitatiewe en ‘n kwantitatiewe vraelys. Uit die terugvoerings het verdere BEE stuikelblokke vorendag gekom. Dit is aanvullend tot informasie verkry vanaf CTRU. Al hierdie resultate sal in verwerkte vorm aan belanghebbende groepe beskikbaar gestel word.

Thesis (MDF)--Stellenbosch University, 2011.
This study considers the impact that the particular funding structure used in the financing of black economic empowerment (BEE) transactions has on the expected outcome. Various structures are evaluated, each with their particular advantages and disadvantages. The report details the history of South Africa, the Industrial Development Corporation (IDC), as well as the black economic empowerment phenomenon. An in-depth commentary on the financing structures used for BEE transactions within the IDC is presented together with a new, remodeled structure to be used in the analysis as part of a comparative study to determine whether the existing preferential Vanilla Special Purpose Vehicle (SPV) structure garners the most appropriate result for the BEE entrepreneur. The statistical study tests whether the Vanilla SPV structure, where the financier is reliant on dividends for the repayment of their preference shares, is a better structure than the reworked SPV structure, where the financier is reliant on free cash flow for repayment. The results infer that access to free cash flow is preferred by both the financier, as well as the BEE party, as vesting is higher and the bullet payment required to attain that vesting is significantly lower.

Includes bibliographical references (leaves 177-187).
This study develops a theoretical framework for Broad-Based Black Economic Empowerment, using a Human Capital Development approach. This framework is then employed to evaluate the Codes of Good Practice on Broad Based Black Economic Empowerment (BBBEE) (Department of Trade and Industry, 2005; 2007). A 'mixed methods research approach' is utilized, in some kind of triangulation. Three research methods are used starting with focus groups; then content analysis and finally descriptive analysis. Phase one utilizes focus groups to construct the key elements of the Draft BBBEE Scorecard for Employment Equity; Skills Development and Organisational Transformation (2005). In phase two, content analysis (documentation analysis) is applied to compare and contrast the draft BBBEE Scorecard of 2005 with the final BBBEE Scorecard of 2007, using the human capital development framework for the propositions. The third phase is designed to test proposition three, which enquires into the actual implementation of BBBEE by employers. This phase utilizes secondary data from various official reports of the Commission for Employment Equity (2000-2007) to measure the nature and extent of progress on Employment Equity; Skills Development and Management Control by employers, in relation to the BBBEE policy and its targets. The BBBEE Scorecards for Employment Equity and Skills Development are found to be generally in line with human capital development principles. The Organisational Transformation Index that was in the 2005 Draft BBBEE Scorecard is found to be a useful mechanism for moving away from a transaction-based approach to BBBEE toward a transformation-based approach. To this effect, the absence of the Organisational Transformation Index in the final Codes and Scorecards of 2007 is lamented. A recommendation is made for more emphasis to be placed on the transformation of companies/ organisations. The leadership role of Chief Executive Officers and their top management in the BBBEE process is propagated. At the leadership level, the Transformational Leadership approach is posited as the one that holds a better chance of driving BBBEE successfully. Quo Vadis; the study recommends two different theoretical frameworks; a Human Capital Development framework for BBBEE at the macro-level (national policy and strategy) and the Transformational Leadership-Organisational Transformation one at the micro-level. BBBEE, it is held; ought to be integrated into the country's new National Industrial Policy Framework. Conversely, the BBBEE targets and goals should also be aligned to the country's long-term socio-economic growth strategies.

Includes bibliographical references
This thesis aims to compare BEE with the economic empowerment strategies of Afrikaner nationalism in order to root discussion around Broad Based Black Economic Empowerment within a context of economic nationalism. This approach avoids narrow critiques of BEE as affirmative action and provides a fresh historical perspective to the ANC’s efforts at transformation and redress. The comparison allows for insight to the different levels of success achieved by the economic nationalist strategies of Afrikaner empowerment and Broad Based Black Economic Empowerment. This thesis explores micro-studies to illustrate the complex issues raised by empowerment policies of Afrikaner (post 1924) and African nationalism (post 1994). In particular this serves to offer an alternative perspective the more common broad political approaches to BEE and highlights the policy’s effect at a micro-level.

Much has been said and written about the reasons for the slow progress of the Black Economic Empowerment interventions in South Africa. This research paper aims to explore the meaning of empowerment in the South African context, with the objective of uncovering what real and holistic empowerment means given the particular history of the country. Apartheid, through its social re-engineering intervention, targeted the minds of both whites and blacks to send an unequivocal message to each racial group about their superiority and inferiority as a race, respectively. Suffice to say; to have a nation whose majority still harbours feelings of inferiority would not only impede the progress of BEE interventions but pose a serious restraint to economic growth. It requires directed and deliberate effort to reverse a habit or to renew a mind-set; to that end this research assesses whether the current BBBEE policy is an adequate antidote to the effects of Apartheid on the minds of blacks. This study concludes that psychological empowerment is a necessary condition for economic empowerment; indicating that the current BBBEE policy is less efficacious as it does not address the essence of psychological disempowerment.
Dissertation (MBA)--University of Pretoria, 2011.
Gordon Institute of Business Science (GIBS)
unrestricted

Organisations are continuously re-engineering human resource strategy in order to attract, motivate and retain the best possible talent possible. This is a continuous process because strategies are quickly copied and replicated within industries. Share schemes have been used over a long period of time to attract, motivate and retain employees. The dawn of democracy in South Africa has seen the introduction of broad based black economic empowerment share schemes in a number of organisations. Organisations implemented these share schemes not only to improve BEE score rating but to motivate and retain employee.This research studies the impact that B-BBBEE share schemes have had on employee motivation and retention at a South African organisation.
Dissertation (MBA)--University of Pretoria, 2012.
Gordon Institute of Business Science (GIBS)
unrestricted

Includes abstract.
Includes bibliographical references.
There is uncertainty about how best to determine the final payoff at maturity of various BEE transactions entered into by a number of South African companies. This thesis attempts to develop a method which will price these transactions accurately based on a sample of transactions entered into between 2004 and 2011. The primary valuation methods which will be used are Real Options Valuations, Risk–Neutral Valuations, Implied Trinomial Tree Valuations and valuations performed using the Black-Scholes-Merton Model. Various amendments to each of these methods are introduced in order to correct for pricing biases inherent in each valuation model.

Thesis (PhD)--Stellenbosch University, 2013.
This study investigated the implementation of broad-based black economic empowerment (BBBEE) policy in the hotel industry of South Africa. BBBEE aims to accelerate the inclusion of black people into the economy through company ownership, human resource, and enterprise and community development. Although black people represent 91 per cent of South Africa’s population, the economy is controlled by a small white population. Studies have shown slow adoption and resistance to the BBBEE policy by the private sector, including in the hotel industry. Therefore, the research problem was the nature of compliance with, and the implementation of, black empowerment policy in the hotel industry. The main objective of the study was to investigate whether a framework for the effective implementation of black empowerment policy could be developed, given the centrality of hotels in the tourism value chain. The specific objectives were to determine the nature of the disconnect on BBBEE, to identify factors which facilitated or inhibited implementation, and to explore solutions for enhancing BBBEE implementation in the hotels. A quantitative investigation of 611 hotel general managers constituted the core of the dissertation’s content and contribution. Data from 178 respondents was analysed using descriptive and correlational statistical methods. The development of the quantitative research instrument was substantiated by the preliminary qualitative study of five hotel group executives. The mixed methods approach was appropriate for investigating the dual structure (group and unit) of the hotel industry. The results indicated that hotels were recording progress on human resource development although compliance levels did not meet the required BBBEE targets. On enterprise development, the hotels’ engagement with small black enterprises was low both quantitatively and qualitatively. Furthermore, hotel group leaders indicated that the tourism-specific BBBEE charter presented bureaucratic challenges, as tourism straddles several industries which required different BBBEE certification. The study has developed an empowerment framework of solutions for achieving success in BBBEE in hotels. The primary factors determining success are the provision of performance targets and incentives for general managers, and if the hotel manager supports BBBEE policy. Furthermore, exogenous factors such as the star rating and location of a hotel also impact on BBBEE implementation. A quantitative investigation of 611 hotel general managers constituted the core of the dissertation’s content and contribution. Data from 178 respondents was analysed using descriptive and correlational statistical methods. The development of the quantitative research instrument was substantiated by the preliminary qualitative study of five hotel group executives. The mixed methods approach was appropriate for investigating the dual structure (group and unit) of the hotel industry. The results indicated that hotels were recording progress on human resource development although compliance levels did not meet the required BBBEE targets. On enterprise development, the hotels’ engagement with small black enterprises was low both quantitatively and qualitatively. Furthermore, hotel group leaders indicated that the tourism-specific BBBEE charter presented bureaucratic challenges, as tourism straddles several industries which required different BBBEE certification. The study has developed an empowerment framework of solutions for achieving success in BBBEE in hotels. The primary factors determining success are the provision of performance targets and incentives for general managers, and if the hotel manager supports BBBEE policy. Furthermore, exogenous factors such as the star rating and location of a hotel also impact on BBBEE implementation. This study builds on, and adds value to previous studies by moving beyond the investigative mode to identifying practical policy options for successful transformation of the hotel industry. The proposed framework acknowledges the diverse nature of the tourism product, and provides potential solutions to enhance the hotel managers’ ability to anticipate and incorporate factors impacting on BBBEE implementation. The framework adds theoretical value to affirmative action discourse by suggesting a conceptual shift from a race-based approach to an alternative one which would incorporate sustainable tourism and ethical governance concerns. Such an approach would maximise BBBEE potential in the hotel industry of South Africa for beneficiaries and communities. Additional research is recommended to substantiate the hypothesis with a broader sample as the study was limited to hotel managers.

Includes abstract.
Includes bibliographical references.
The purpose of this study is to evaluate the financial impact of Black Economic Empowerment (BEE) transaction announcements on shareholder value. The study investigated 49 BEE transactions (classified as 28 disposals, 9 acquisitions, 9 employee share schemes and 3 broad based schemes) over a testing period of 72 months between 2000 and 2008.

This study focused on Black Economic Empowerment and gender in the liquid fuels industry. It explored the possible means of empowerment and questions the seriousness of organizations to institute programmes that are gender sensitive. The liquid fuels industry in South Africa served as the pinnacle of the apartheid state. It possessed the strength to survive the onslaught of the economic sanctions imposed as a result of apartheid. It was because of these stringent economic sanctions that it was forced to survive on its own with limited assistance. The advent of democracy in 1994 gave this industry the impetus to grow in terms of Gender and Black Economic Empowerment.

Thesis (MBA (Business Management))--Stellenbosch University, 2008.
ENGLISH ABSTRACT: This study’s objective was to investigate what black economic empowerment (BEE) means to Namibians and what impact it has had on development in Namibia. The study also did research in South Africa for the purpose of benchmarking. Namibians in general understand and embrace BEE, but it is clear from the study that Namibians are highly skeptical about its impact in terms of empowering those who were previously disadvantaged. The purpose of BEE is to empower black people. The challenge, however, is that seventeen years after independence there is no policy yet on BEE in Namibia. Critics of affirmative action argue that it is not worthwhile empowering only certain groups of people and excluding the able-bodied, white male Namibians while the country has adopted the policy of national reconciliation, irrespective of what happened in the past. They argue that it would be fair to select people based on class, rather than race, gender or ethnicity. It is true that the picture painted so far on empowerment is skewed, but it is important to note that BEE is not about empowering the black elite or the middle class at the expense of those who really need to be economically empowered; it is about allowing every citizen of the country to participate fully in the economic development of his/her country. The research was conducted in Namibia and also partly in South Africa, as it used progress on BEE in South Africa as a yardstick. In Namibia, statements made by leaders in different sectors were studied and analysed, since there is no written policy on BEE. The study conducted surveys on businesses, including companies that have benefited from BEE, state owned enterprises, government institutions and small and medium enterprises. Individuals were also selected across the broad spectrum, of whom some were interviewed face-to-face and others through questionnaires. The study repeated the same process in South Africa, the only difference being that in South Africa it included study and analysis of policy documents. The aim of the study was to find out how far Namibia has gone in empowering its people and how this compares to neighbouring South Africa. The analysis was done in the following way: data from different sectors were compared and also assessed against targets set by different sectors or industries in their sectoral charters. Data from different industries in Namibia were also compared to similar industries in South Africa. In order to determine whether there has been any progress in terms of BEE since Namibia’s independence eighteen years ago, the results obtained during this study were compared to the figures that were available at the time of independence. The study has established that, although the Namibian government had set up a committee headed by the Office of the Prime Minister to come up with a legislative framework for the drafting and implementing of BEE policy in 2000, no such policy exists to date. All the companies included in this study indicated that they have submitted their affirmative action (AA) reports to the office of the Employment Equity Commissioner and that they adhere to this policy; yet the study has established that most of the companies do not adhere to the AA policy. There is a high degree of income disparity in Namibia, where the richest 10% of the population receives 65% of the total income. The study also found that Namibia does not have any shares in companies that were established after independence, especially in the mining industry, whereas mining is the backbone of Namibia’s economy. According to the findings of this study, with regard to the BEE agreements announced and signed so far, only those who already have wealth or are well-connected benefit from these deals. There is no controlling mechanism in place for BEE agreements and, as a result, companies choose who they want to do business with. In South Africa, the study has established, the majority of the companies have their own broad based black economic empowerment (BBBEE) policies and all the industries have either implemented or drafted their industry BBBEE charters. Although the government has laid down a good foundation for the rest of the institutions to build on, South Africa still has a long way to go, because the majority of its people are still living in abject poverty. The study established that people sitting on the committee to draft the BEE policy are permanently employed in other positions within the Government and when it comes to prioritizing jobs, BEE is not regarded as one of the most important topics. It recommends that the government appoint people on the committee either permanently or on a fixed-term contract basis, so that these people can concentrate only on drafting and implementing the BEE policy. In line with the annual AA reports submitted, businesses should submit annual BEE reports to the government. This would ensure that some efforts are made to address BEE and, as is the case with AA, most of the companies, if not all, should be required to appoint BEE coordinators in their structures to drive the process. It is also recommended that there must be a graduating system whereby companies and individuals who have attained a certain level with regard to BEE should graduate out of the system in order to give others a chance to benefit. Businesses that have never benefited before should get preference when awarding tenders and quotas. Lastly, the study recommends that the Namibian government create a fund to which all registered companies would be required to contribute a certain percentage of their profits. These funds would be used for skills development, since skills development and transfer are the most important components of economic empowerment. The study has found that many firms have good governance, they practice diversity, they are doing very well financially and their company policies also state that they reward their employees in an unbiased way; but that can, nevertheless, not be taken as a guarantee to success in BEE. There is a fast-growing middle class of black people in Namibia, but the most important thing for Namibia, however, is to determine how this middle class can contribute to the creation of wealth for the majority of Namibians. Although there are clear indications in South Africa that there is a strong presence of BEE, at least for middle class black people, much remains to be done to address the issue of poverty. Finally, there are government policies and legislations that were created to advance black people, but the success of these policies and regulations depends on the management strategies that can create a conducive environment for black people. The corporate culture in private and public institutions needs to change so as to accept and accommodate black people in order for them to make a significant contribution to the economic development of Namibia.
AFRIKAANSE OPSOMMING: Die doel van hierdie studie was om vas te stel wat swart ekonomiese bemagtiging (SEB) vir Namibiërs beteken en watter invloed dit op ontwikkeling in Namibië gehad het. Om ‘n maatstaf te stel het die studie ook navorsing in Suid-Afrika gedoen. Hoewel Namibiërs in die algemeen SEB verstaan en aanvaar, is dit uit die studie duidelik dat hulle hoogs skepties is oor die impak wat dit gehad het in die bemagtiging van voorheen benadeeldes. Die doel van SEB is om swartmense, vrouens en mense met gestremdhede te bemagtig. Die uitdaging is egter dat daar in Namibië sewentien jaar na onafhanklikheid steeds geen beleid ten opsigte van SEB is nie. Kritici van regstellende aksie redeneer dat dit nie verdienstelik is om sekere groepe te bevoordeel terwyl bekwame blanke Namibiese mans uitgesluit word nie.; dit terwyl die land ’n beleid van nasionale rekonsiliasie aanvaar het, in weerwil van gebeure in die verlede. Hulle reken dat dit regverdig sou wees om mense eerder op grond van klas as ras, geslag of etnisiteit te selekteer. Toegegee dat ’n skewe beeld van bemagtiging sover voorgehou is; tog is dit belangrik om te besef dat die doel van SEB is om elke burger van die land die geleentheid te gee om ten volle in ekonomiese ontwikkeling te deel en nie om die swart elite of middelklas te bevoordeel ten koste van dié wat werklik behoefte aan bemagtiging het nie. Navorsing is in Namibië gedoen en ook gedeeltelik in Suid-Afrika om vordering ten opsigte van SEB in dié land as maatstaf aan te wend. Die navorsing bestudeer en analiseer uitlatings deur leiers in verskillende sektore in Namibië, aangesien daar geen geskrewe SEB beleid is nie. Opnames is gedoen van besighede, insluitend maatskappye wat bevoordeel is uit SEB, ondernemings in staatsbesit, regeringsinstellings en klein en medium ondernemings. Daar is ook insette verkry van ’n breë spektrum van individue – deur persoonlike onderhoude of deur middel van vraelyste. Hierdie proses is in Suid-Afrika herhaal, waar ’n studie en analise van beleidsdokumente ingesluit is. Die doelwit met hierdie studie was om vas te stel hoe ver Namibië gevorder het in die bemagtiging van sy mense en hoe dit met die situasie in Suid-Afrika vergelyk. Die analise is soos volg gedoen: data van verskillende sektore is vergelyk en ook evalueer teen doelwitte wat in die handves van verskillende sektore of industrieë uiteengesit is. Data van industrieë in Namibië is ook vergelyk met soortgelyke industrieë in Suid-Afrika. Om vas te stel of enige vordering ten opsigte van SEB gemaak is sedert Namibië se onafhanklikheid agtien jaar gelede, is die navorsingsresultate van hierdie studie vergelyk met syfers wat op daardie tydstip beskikbaar was. Die studie het vasgestel dat die Namibiese regering in 2000 ’n komitee onder leiding van die Kantoor van die Eerste Minister aangestel het om ’n wetgewende raamwerk vir die opstel en implementering van ’n SEB beleid daar te stel. Tot op hede is daar egter nog nie so ’n beleid geformuleer nie. Al die maatskappye wat ingesluit is in hierdie studie het aangedui dat hulle regstellende aksie (RA) verslae aan die kantoor van die Diensbillikheid Kommissaris lewer en dat hulle hierdie beleid volg. Nogtans het die studie vasgestel dat die meeste van die maatskappye nie die RA voorskrifte nakom nie. Daar bestaan groot ongelykheid ten opsigte van inkomste in Namibië, waar die rykste 10% van die bevolking 65% van die inkomste verdien. Die studie het ook gevind dat Namibië geen aandele besit in maatskappye wat na onafhanklikheid tot stand gekom het nie, veral in mynbou, wat eintlik die ruggraat van die ekonomie vorm. Volgens die bevindinge van hierdie studie bevoordeel SEB ooreenkomste slegs diegene wat reeds rykdom besit of die regte verbintenisse het. Daar is geen beheermaatreëls in plek vir SEB ooreenkomste nie en gevolglik kies maatskappye met wie hulle besigheid wil doen. Tydens die studie is vasgestel dat die meerderheid maatskappye in Suid-Afrika hulle eie beleid het met betrekking tot breë-basis swart ekonomiese bemagtiging (BBSEB) en dat die industrieë hulle BBSEB industrie handves implementeer of opstel. Hoewel die regering ’n goeie grondslag gelê het vir ander instansies om op voort te bou, het Suid-Afrika nog ’n lang pad om te gaan, aangesien die meerderheid van die land se mense nog in groot armoede leef. Die studie het gevind dat die lede van die komitee wat die SEB beleid moet ontwerp voltydse posisies binne die regering beklee en dat SEB nie as ’n prioriteit gesien word nie. Daar word dus aanbeveel dat die regering mense permanent of op ‘n vaste termyn kontrak basis op die komitee aanstel, sodat hierdie persone op die opstel en implementering van die SEB beleid kan konsentreer. Indien vereis sou word dat besighede jaarliks RA verslae aan die regering inhandig, in lyn met die jaarlikse SEB verslae, sou dit verseker dat ’n poging aangewend word om SEB aan te spreek. Soos die geval is met RA, behoort van die meeste maatskappye, indien nie almal nie, verwag te word dat hulle SEB koördineerders in hulle strukture aanstel om die proses te dryf. Daar word ook aanbeveel dat ’n graduering sisteem ingestel word deur middel waarvan maatskappye en individue wat ’n sekere prestasievlak ten opsigte van SEB bereik het uit die sisteem gradueer om ander ’n kans te gee om voordeel te geniet. Besighede wat nog geen voordeel getrek het nie sou dan voorkeur geniet tydens die toeken van tenders en kwotas. Laastens beveel die studie aan dat die Namibiese regering ’n fonds skep waartoe alle geregistreerde maatskappye ’n seker persentasie van hulle wins moet bydra. Hierdie fonds sou aangewend word vir die ontwikkeling van vaardighede, aangesien die ontwikkeling en oordrag van vaardighede die belangrikste komponent van ekonomiese bemagtiging is. Hoewel die studie gevind het dat baie firmas goeie bestuur toepas, diversiteit beoefen, finasieel goed vaar en hulle beleid voorskryf dat werknemers sonder vooroordeel beloon word, verseker dit nie suksesvolle SEB nie. Daar is ’n vinnig-groeiende swart middelklas in Namibië en dit is belangrik om vas te stel hoe hierdie middelklas kan bydra om welstand te skep vir die meerderheid Namibiërs. Ten spyte van duidelike bewyse dat SEB in Suid-Afrika toegepas word, kan baie meer nog gedoen word om die probleem van armoede aan te spreek. Die sukses van die beleid en wetgewing wat deur die regering ingestel is om swart vooruitgang te ondersteun hang uiteindelik daarvan af dat ‘n omgewing geskep word wat bevorderlik is vir die benutting van geleenthede. Die korporatiewe kultuur in beide private en openbare instellings moet sodanig verander dat swartmense aanvaar en tegemoet gekom word, sodat hulle betekenisvol tot die ekonomiese ontwikkeling van Namibië kan bydra.

Abstract The article reflects on the progress the South African government is making in realising the imperatives of a developmental state. It examines contemporary engagements on the issue of a developmental state. At the outset, the article unpacks the theoretical antecedents of a developmental state to develop a framework for analysis. In the context of this framework, the article argues that a developmental state is premised on two dimensions, namely social and economic. These dimensions are used as a framework to understand how South Africa fares as a developmental state. In engaging with this question, the article makes an observation that, notwithstanding service delivery challenges in the country, the government is seemingly making significant strides in its attempts to realise the social imperatives of a developmental state. On the economic front, a similar deduction is difficult to make as debates in this regard are so polarised. The article recommends that research on Black Economic Empowerment and its impact in maximising citizen participation in the mainstream economy should be undertaken.

This study investigates how white and foreign-owned mining companies have complied with the Mining and Petroleum Resources Development Act (MPRDA) and Mining Charter, the core of the Broad- Based Black Economic Empowerment (B-BBEE) policy in South Africa‟s mining industry. The Mining Charter demands that white and foreign-owned companies transfer 15 per cent equity to blacks by 2009, increasing to 26 per cent by 2014. It also demands 40 per cent black control and management of mining companies regardless of the shareholding that blacks own. The study used a sample of 72 mining companies to explore broad aspects; these include changes in equity ownership (company shareholding and mining assets) and in particular mining deals concluded by white and foreign-owned companies with blacks between 1990 and 2012. It also explored black representation on the board and management of mining companies and conducted interviews with 35 executives from 27 mining companies. The study findings are that equity targets are low and reached only 7.4 per cent (R1.8trillion- £163billion) of the total market capitalisation of the Johannesburg Stock Exchange (JSE) as per 12 July 2011. However there is an emergence of large black owned-owned companies (those with 50 + 1 share) such as African Rainbow Nation, Exxaro, Shanduka Resources and Royal Bafokeng, empowered enterprises (25 +1 share) and a broad category of beneficiaries including consortiums, community shareholders and Employee Share Ownership groups which some hold small amount of shares (between 1-5 per cent). Most deals however were concluded by the Anglo American and BHP Billiton. Out of the 468 board members and 226 managers identified, black representation on the board and top management of white and foreign-owned companies was 25.9 and 18.5 respectively. In companies where blacks have majority shareholding board membership was 53.7 per cent and top management at 35.7per cent. The study has highlighted impediments faced by blacks in the mining industry. They lack capital, some are in debts and others liquidated, use poor technology and face difficulties in accessing land and export markets. The first main argument of the study is that the impediments and lack of government support limits their success and survival in the industry. The second is that ownership structure determines control in the mining industry. The reasons are historical, as the industry‟s corporate structure was and is still concentrated, has cross shareholding, significant control of assets by financial institutions and families and low voting shares are conditions are used in empowerment mining deals. This is challenging to the attainment of the 40 per cent target of control and management demanded by the Charter. The conclusion from this study is that the entire B-BBEE implementation process in the mining industry is controlled by the white and foreign-owned companies. They have a free hand in the choice of black-owned companies; which assets to have full ownership and which to offer shares or sell to blacks; the type of shares they offer; the conditions to attach to the transactions; and the manner that they deal with their community partners. This situation arose mainly because blacks lack their own funds and face a host of impediments. Unless the government establishes institutions to guide and monitor implementation of its B-BBEE policy and puts in place support mechanisms for black entrepreneurs, black equity ownership and attainment of management and control of mining assets will remain limited.

The South African history and the issue of apartheid lead partially to the exclusion of South Africa from the global economy due to sanctions from first world countries. In an effort to become part of the global economy South Africa needed to restructure its economy. Prior to 1994 the economy of South Africa was characterized by the participation of a small number of actively contributing citizens. The first democratic election in 1994 was won by the African National Congress (ANC) who made their intentions of transformation very clear right from the start. In an attempt to transform the economy to include the majority of South Africans the Government developed a number strategies and programs. The most controversial legislation passed was the Broad-Based Black Economic Empowerment Act (53/2003). This Act aims to include previously disadvantages individuals to the economy and laid down certain requirements for all business with an annual turnover of R5 million and more. These requirements entail the participation of previously disadvantaged individuals in management and ownership structures. Preferential procurement and skills development are also part of the legislation. Family businesses have made a positive contribution towards the South African economy for hundreds of years. The composition of a family business is complex and involves the balancing of work related issues and home related issues. The greatest reward for family business owners is the knowing that they will leave behind a legacy. The primary objective of this study is to assess the impact of Broad-Based Black Economic Empowerment on small and medium-sized family businesses in South Africa, and to make recommendations to family businesses relating to the management of this issue. The research was conducted by means of a literature and empirical study. The literature study was divided into two sections. The first section studied family businesses to gain insight into family businesses and topics include: the definition of a family business, the family business system, communication and conflict and the succession process. The second part of the literature study dealt with Broad-Based Black Economic Empowerment and highlighted aspects like: the South African history, the fostering years and the implementation of an idea and the legislative framework. The literature study formed the basis for the assessment of the impact of Broad-Based Black Economic Empowerment on family businesses. Specific indicators were empirically tested in practice by means of a developed questionnaire where-after the results were assessed. Based on the findings of the empirical study, it was concluded that the majority of family business owners do not believe that Broad-Based Black Economic Empowerment are successfully addressing the critical issues that could lead to the achievement of Government's goals.
Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.

Since 1994 the South African Government introduced legislation to provide new economic opportunities to all people in South Africa, particularly those who were previously disadvantaged. In 2004 the Broad-Based Economic Empowerment Act (53/2003) was promulgated, which led to some robust debates in different sections of the population. The purpose of this Act is to substantially increase the number of black people having ownership and control in enterprises and especially in the priority sectors identified by the Government. Promotion of small and medium-sized enterprises is a key element in the Government's strategy of addressing the imbalances of the past and to create employment and income generation. It is estimated that there are 2.5 million small and medium-sized enterprises in South Africa and that these enterprises contribute between 52% and 57% to the country's Gross Domestic Product. The Metal and Engineering industry constitutes 29.3% percent of formal manufacturing employment and employs over 300 000 people. The small and medium-sized enterprises in this sector are mainly owned by artisans, very few have employees and a relatively high annual turnover. The primary objective of this study is two fold; firstly to investigate the impact of Broad-Based Black Economic Empowerment (BBBEE) on white-owned small and medium-sized businesses in the Metals and Engineering sector, secondly, to make practical recommendations to these small and medium-sized businesses on the management of these issues. The research was conducted by means of a literature and empirical study. The literature study was divided into two sections. The first section studied Broad-Based Black Economic Empowerment and highlighted aspects such as: the history, policy objectives and the policy instruments used to achieve Broad-Based Black Economic Empowerment. A major focus of the section on Broad-Based Black Economic Empowerment was the codes governing qualifying small enterprises. The second part of the literature study dealt with the Metals and Engineering industry and highlighted aspects such as: the structure of the industry, employment levels, the structure of employment and employment by small and medium-sized enterprises. The literature study formed the basis for the assessment of the impact of BroadBased Black Economic Empowerment on qualifying small enterprises in the Metals and Engineering sector. Specific indicators were empirically tested in practice by means of a developed questionnaire where-after the results were assessed. Based on the findings of the study, it was concluded that the majority of owner-managers of small and medium-sized enterprises in the Metals and Engineering industry do not believe that there are substantial advantages in the implementation of Broad-Based Black Economic Empowerment. Practical recommendations were also made to guide and support owner-managers through this highly emotional, but critical important, issue that can ultimately ensure the future continuity of the white-owned small businesses.
Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2010.

Dissertation submitted in fulfilment of the requirements for the degree Magister Technologiae: Marketing in the Faculty of Business at the: CAPE PENINSULA UNIVERSITY OF TECHNOLOGY, 2009
Black Economic Empowerment (BEE) aims to enable Black people in South Africa (SA), as legislatively classified, to make a noteworthy contribution to the local economy by irreversibly altering the racial profile of ownership, management echelons and all employment levels of existing and new organisations. This ambitious strategy hopes to encourage economic transformation by eliminating unfair discrimination; applying affirmative action (AA) policies; empowering Black women and facilitating access to land, infrastructure, economic activities, ownership, as well as training and skills development (SA. DTI, 2004a:4-5). The transformation process in SA has been a lengthy and complex one, with the government slowly enacting enabling legislation. The Broad-Based Black Economic Empowerment (BBBEE) Codes of Good Practice was gazetted on 9 February 2007 and this significant piece of legislation has provided a framework to guide and measure transformation activities. The advertising industry has been criticised for its slow empowerment advancement, which led to two parliamentary hearings in the early 2000s to investigate allegations of racism and poor transformation progress. The Association for Communication and Advertising (ACA) gave full cooperation during the parliamentary hearings and has been a main driving force of transformation within the advertising industry. The ACA’s dedication resulted in the Marketing, Advertising and Communication (MAC) sector charter being gazetted on 29 August 2008 (Jones, 2008). There are few studies that have effectively investigated transformation and BEE progress within the South African advertising industry over recent years. Of these, none has yielded rich qualitative BEE data. Therefore, the main objective of this study was to explore progress made by advertising agencies towards transformation in the Cape Peninsula, as well as the challenges and benefits that result from implementing BEE measures in terms of BBBEE ownership and Employment Equity (EE). These elements have been thoroughly examined by utilising a multiple case study approach and by interviewing the top twelve traditional full-service advertising agencies through use of a semi-structured interview guide, which primarily generated in-depth qualitative data. Cape Town based advertising agencies readily provided a wealth of data, which illuminated numerous previously unexplored positive and negative BEE issues. Recent BEE internal advertising agency documents, literature, surveys and other research studies were used to corroborate and verify the findings in order to reach a consensus, compromise or disagreement in the subsequent discussion. The advertising industry has employed a multitude of innovative BEE strategies to facilitate transformation progress and to address a number of inherent problems. This has resulted in several success stories and numerous benefits as Cape Town based advertising agencies have embarked on their varied transformation journeys. The recommendations of this study would be useful to the national advertising industry, other sectors and government to assist in streamlining the transformation process in SA.

There has been some concern that the pace of expectations being built up regarding the transfer of ownership of the economy into the hands of the previously disadvantaged was not allowing for the due diligence and analysis of the implications of such transactions. Tax legislation relating to the transfer of assets is also not seen to be consistently conducive to this process. The focus of this thesis is taxation and a critical analysis of how the current tax legislation affects most of the transactions which usually form the basis of black economic empowerment. It is argued that tax policy is one of the fundamental instruments available to government to encourage the process of black economic empowerment. It is therefore important to assess whether or not current tax legislation is supportive of the process of black economic empowerment and to suggest ways in which it can be amended to serve this purpose. By means of a literature review and a case study of a Black Economic Empowerment deal in the financial sector, the thesis examines various sections of the Income Tax Act, 58 of 1962, which may have a bearing on black economic empowerment transactions and structures, including corporate restructuring rules, the taxation of trusts, inter-company loans, the use of hybrid financial instruments, the taxation of small business corporations, employee share incentive schemes, connected persons rules and value-shifting arrangements, the general deduction formula and the deductibility of interest incurred on amounts raised to acquire shares. It appears that although some aspects of the current tax legislation lend themselves to assisting black economic empowerment transactions, there are still areas where much improvement is required.
KMBT_363

Philosophiae Doctor - PhD
With the advent of democracy, the ANC government was faced with the problem of addressing abject poverty, persistent unemployment and rank economic inequality that beset black South Africans under apartheid. To address these problems in a structured and comprehensive fashion, the Broad-Based Black Economic Empowerment Act 53 of 2003 (BBBEE Act) was promulgated. Several economists believed that growth in the economy is the bedrock upon which black economic empowerment would provide the foundation to correct these economic problems. This study sought to interrogate black economic empowerment as a means to address economic inequality and unemployment. The method of analysis and critique employed in this study is based on theories that Marx formulated in Capital: A Critique of Political Economy. In particular, this study draws on Marx’s theories of fictitious capital, surplus value production and appropriation, and the creation of the industrial reserve army. The thesis uses the theory to examine two BEE cases namely the Sanlam and Sasol equity transactions. It also analyses the relationship between productive capital and fictitious capital through an examination of Lonmin plc and Shanduka Pty Ltd, with a focus on the use of labour power to produce surplus value. Finally, it looks briefly at Sanlam and Sankorp to understand the rise of the black middle class in South Africa. Ultimately, this study charts a Marxist path to explain why black economic empowerment is unable to address economic inequality and unemployment. At the centre of this study is the problematisation of the capitalist mode of production on which black economic empowerment rests. The central argument advanced is that the very capitalist structure upon which this growth strategy was based, in fact laid the foundation for the reproduction of these self-same phenomena.

This study sought to highlight the concept of Black Economic Empowerment (BEE) as it applies to South Africa. BEE as a new concept in South Africa is likely to be faced with a number of challenges. Of note is how a number of pieces of legislation were generated to help create an environment for the implementation of BEE policy. What was illuminated in the study is the fact that in spite of the many policies having been generated, there seems to be a lack of understanding in terms of how these policies should be implemented. Self-evident in this study is the perception embraced by a number of stakeholders with regard to the implementation of BEE through public-private partnership. The perceived differences of opinion are not only reflected among-policy makers from different political parties, but also within the wider spectrum of South African society and workers’ movements. Differing views in terms of the actual implementation of the policy became evident in this study. The differing views seem to be premised around what can be portrayed as the niche that the concept of BEE occupies in the society at large. At the centre of this debate is the recycling of beneficiaries of BEE, which is seen to be consistent and invariable and may be perceived to be defeating the purpose of BEE through PPP. A number of questions were raised in this regard, which provided justification for the researcher to put the past and the present practices in juxtaposition. The study found that procurement processes and procedures were central to the discussion of BEE through PPP. Against this backdrop, the supply chain management system played a dominant role. The introduction of policy frameworks such as Preferential Procurement Policy Framework Act, 2000; Public Financial Management Act, 1999; the Constitution, 1996 and the Broad Based Black Economic Empowerment Act, 2003 provide an enabling environment for BEE through PPP to be a reality. The dominant discourse on BEE has been whether it indeed achieves what it set out to achieve, i.e. poverty alleviation. It is interesting that this discourse as addressed in this study seems to place in perspective the difference between economic growth and economic development, which seemed to have not yielded similar outcomes. Against this backdrop, the effect of BEE has been placed under scrutiny, with reference to the generally accepted determiners of economic growth such as gross domestic product (GDP). The study further focused on the effect of BEE in the rural areas in the midst of the perceived levels of illiteracy. Though the effect of BEE on women and youth was looked at, this has not been done in isolation from the realities facing this sector, such as a lack of skills perceived to have stemmed from the past policies of institutionalised segregation. The researcher has however argued that perhaps a new empowerment strategy had to be found based on poverty alleviation for the poor irrespective of the colour of their skin, political affiliation or gender; namely an empowerment strategy that looks into the future. The good policies referred to earlier are likely to fall prey to rampant greed as referred to by former president, Mbeki (2006). It appears the new measures will have to be put in place to curb the scourge of greed currently experienced, often masqueraded under affirmative action, affirmative acquisition or even affirmative discrimination and discrimination against the poor. This indeed feeds into the re-emergence of a new class struggle and sows the destructive seeds of interracial conflict and disharmony.
Thesis (PhD)--University of Pretoria, 2013.
School of Public Management and Administration (SPMA)
unrestricted

Thesis (MPhil)--University of Stellenbosch, 2007.
ENGLISH ABSTRACT: Socio-economic transformation has been a central point on the agenda of the South African government since 1994. The deeply embedded inequality that is portrayed by socio-economic statistics of the time, justifies this mandate. The Black Economic Empowerment (BEE) strategy is meant to play a key role as an integrated legislative approach towards transformation. However, BEE is an emotionally laden subject that, as a strategy for transformation, attracts criticism from many different sources. The complexities surrounding BEE warrant us to ask whether the current approach towards socio-economic transformation (through BEE) is a legitimate way to address the problems of inequality, unemployment and poverty that the country face. Jürgen Habermas’s theory of democratic law provides us with a theoretical framework that we can use to understand the dynamics of BEE as instrument for transformation. According to Habermas, law can work as a mechanism of social integration in a democratic country like South Africa. Habermas argues that social integration can only take place through law if it is factual and normative at the same time. This also applies to BEE as a law in South Africa. For a law to be accepted as normative, it needs to be seen as legitimate, thus morally and ethically acceptable. These are all prerequisites for the legislated BEE strategy in order to enable social integration. The linkage of Habermas’s theory of democratic law and the practical example of BEE legislation in South Africa, leads to a better understanding of the complexities that surrounds the issue of institutionalised and legislated socio-economic transformation. It does not necessarily provide infallible solutions, but important insight into the current problems.
AFRIKAANSE OPSOMMING: Sedert 1994 is sosio-ekonomiese transformasie ‘n sentrale punt op die agenda van die Suid-Afrikaanse regering. Hierdie mandaat word geregverdig deur die diepliggende ongelykheid wat sigbaar is in die ontwikkelingstatistiek van die tyd. Die Swart Ekonomiese Bemagtiging (SEB) –strategie is veronderstel om ‘n sleutelrol te speel as ‘n geïntegreerde wetlike benadering tot transformasie. SEB is egter ‘n emosioneel-belaaide onderwerp wat as strategie vir transformasie kritiek ontlok van baie verskillende oorde. Die kompleksiteite rondom SEB regverdig ons om te vra of die huidige benadering tot sosio-ekonomiese transformasie (deur SEB) die mees legitieme manier is om die probleme van ongelykheid, werkloosheid en armoede aan te spreek wat die land in die gesig staar. Jürgen Habermas se teorie vir demokratiese regspraak dien as ‘n teoretiese raamwerk wat ons kan inspan om die dinamika van SEB as instrument vir transformasie te verstaan. Na aanleiding van Habermas kan wet werk as ‘n meganisme vir sosiale integrasie in ‘n demokratiese land soos Suid-Afrika. Habermas verduidelik verder dat sosiale integrasie net kan plaasvind deur ‘n wet as die wet terselftertyd feitelik en normatief is. Dit is ook van toepassing op SEB, as ‘n wet in Suid-Afrika. Vir ‘n wet om normatief te wees, moet dit gesien word as legitiem, dus moreel en eties aanvaarbaar. Hierdie is alles voorvereistes waaraan die wetlike SEB strategie moet voldoen om sosiale integrasie te kan bewerkstellig. Die analogie tussen Habermas se teorie vir ‘n demokratiese regstelsel en die praktiese voorbeeld van SEB in Suid-Afrika, lei tot beter begrip vir die kompleksiteite rondom die kwessie van geïnstitusionaliseerde en wetlike sosio-ekonomiese transformasie. Onfeilbare oplossings word nie noodwendig verskaf nie, maar wel insig in die huidige probleme.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: The Broad-Based Economic Empowerment Act, No. 53 of 2003, and its Codes of Good Practice on Black Economic Empowerment are the cornerstones of a strategy implemented by the South African government to transform the economy to an inclusive one where all citizens have equal opportunities to contribute to the economic growth of the country. The process of Broad-Based Black Economic Empowerment has a direct impact on the operational activities of all businesses in all business sectors, including the agricultural sector. The main aim of this study is to compile a comprehensive Broad-Based Black Economic Empowerment strategy for Overberg Agri Limited. The strategy is based on the implementation of initiatives aimed at compliance with the seven pillars of black economic empowerment as incorporated in the Codes of Good Practice on Black Economic Empowerment. A critical analysis of the legislative framework and executive governmental decrees governing Broad-Based Black Economic Empowerment shows that the government of South Africa followed a structured legislative approach to the drafting and implementation of legislation aimed at creating an equitable society by addressing the inter-related issues of human rights, employment equity, skills development, allocation of natural resources and black economic empowerment. Overberg Agri Limited partially addressed its significant non-compliance with the Generic BEE Scorecard by entering into an agreement with Thembeka Capital. However, this transaction only addressed the ownership requirement of Broad-Based Black Economic Empowerment and had a limited effect on enhancing the black economic empowerment status of Overberg Agri Limited. Overberg Agri can achieve its goal of Level 4 Broad-Based Black Economic Empowerment status by: • Reorganising its business structure in terms of core agricultural and non-core business activities; • Selling significant stakes in non-core business entities to black shareholders; • Entering into other joint ventures with black businesses; • Addressing all seven elements of the B-BBEE scorecard and making the required resources available for this. This research report provides value due to the fact that it adequately addresses the research problem. It also followed the proposed research procedure in addressing the research problem and it provides the foundation for a general application of its findings.
AFRIKAANSE OPSOMMING: Die Breëbasis Swart Ekonomiese Bemagtigingswet, Nr. 53 van 2003, en die generiese kodes vir goeie praktyk ten opsigte van swart ekonomiese bemagtiging vorm die hoekstene van die strategie wat deur die Suid-Afrikaanse regering geïmplementeer is om die ekonomie te omskep in 'n inklusiewe een waar alle landsburgers gelyke geleenthede gegun word om 'n bydrae te lewer tot die ekonomiese groei van die land. Die proses van Breëbasis Swart Ekonomiese Bemagtiging het 'n direkte invloed op die operasionele bedrywighede van alle besighede in al die besigheidsektore, insluitend die landbousektor. Die hoofdoel van hierdie studie is om 'n omvattende Breëbasis Swart Ekonomiese Bemagtigingstrategie vir Overberg Agri Beperk op te stel. Die strategie is gebaseer op die implementering van inisiatiewe wat gemik is op voldoening aan die vereistes van die sewe pilare van swart ekonomiese bemagtiging soos uiteengesit in die generiese kodes vir goeie praktyk vir swart ekonomiese bemagtiging. 'n Kritiese analise van die wetgewende raamwerk en uitvoerende regeringsbesluite wat 'n invloed het op Breëbasis Swart Ekonomiese Bemagtiging dui aan dat die Suid-Afrikaanse regering 'n gestruktureerde wetgewende benadering gevolg het in die opstel en implementering van wetgewing wat daarop gemik is om 'n regverdige samelewing te skep deur aandag te skenk aan die interafhanklike kwessies van menseregte, gelyke indiensneming, vaardigheidsontwikkeling, toekenning van natuurlike hulpbronne en swart ekonomiese bemagtiging. Overberg Agri Beperk het sy aansienlike gebrek aan voldoening aan die voorskrifte van die generiese swart bemagtigingstelkaart gedeeltelik aangespreek deur 'n ooreenkoms met Thembeka Capital aan te gaan. Die transaksie skenk egter slegs aandag aan die eienaarskapvereiste van Breëbasis Swart Ekonomiese Bemagtiging en het 'n beperkte uitwerking op die verhoging van die swart ekonomiese bemagtigingstatus van Overberg Agri Beperk gehad. Overberg Agri Beperk kan sy teiken van Vlak 4 Breëbasis Swart Ekonomiese Bemagtigingstatus bereik deur: • Sybesigheid struktuur te herstruktureer ten opsigte van kern- en nie-kernbesigheidsaktiwiteite; • Aansienlike aandeelhouding van nie-kernbesigheidsentiteite aan swart aandeelhuers te verkoop; • Gesamentlike ondernemings met swart besighede te begin; • Aandag te skenk aan al sewe elemente van die Breëbasis Swart Ekonomiese Bemagtigingtelkaart en die hulpbronne beskikbaar te stel wat daarvoor benodig word. Die ondersoekverslag is van waarde aangesien dit die ondersoekvraag volledig aanspreek, die voorgestelde ondersoekprosedure gevolg het en 'n basis skep vir die algemene toepassing van die bevindinge.

Since the first democratic election in South Africa in 1994, there has been many policies aimed at empowering previously disadvantaged people especially women. In 1994 the Reconstruction and Development Programme (RDP) was adopted as a policy framework to guide in the transformation of South Africa. The White Paper on the development of small business was published in 1995. The White Paper indicated that the government encouraged the South Africans to be engaged in entrepreneurship. It stated that, the small, medium and micro enterprises (SMME's) are a driving force in addressing growth and equity in South Africa. Black Economic Empowerment (BEE) emerged in the mid 1990's. The aim was to encourage black people to take part in all aspects of the South African economy. The government refined the concept Black Economic Empowerment to Broad-Based Black Economic Empowerment with the aim of improving BEE. Broad-Based Black Economic Empowerment (BBBEE) aimed at promoting the achievement of the constitutional right to equality and increasing broad-based and effective participation of black people in the economy. It also aimed at promoting a higher growth rate, increased employment and more equitable income distribution. BBBEE was regarded as a project of re-distribution of productive resources to the benefit of groups of historically disadvantaged people. In reality BBBEE has been a process that provides enhanced opportunities for black individuals rather than groups. BBBEE has created a black capitalist class. Women especially blacks were the most disadvantaged group, and BBBEE was supposed to develop women, especially women entrepreneurs. This study, however, indicated that BBBEE did not succeed in the development of women entrepreneurs on the ground level. Women are motivated to take part in entrepreneurship, but they do not get enough support from the government. There are many obstacles that inhibit the growth of women entrepreneurs, such as the lack of financial support and business skills. Women also lack self-confidence. The development of women entrepreneurs can improve the economic status of the country. Empowering women entrepreneurs and ensuring that they are also in the fast lane of BBBEE deals, could have a positive spin on job creation and poverty alleviation in South Africa.
Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.

Thesis (M.S.)--Michigan State University. Dept. of Agricultural Economics, 2008.
Title from PDF t.p. (viewed on Aug. 4, 2009) Includes bibliographical references (p. 121-127). Also issued in print.