Summary of the KEY challenges in the Amended Codes of Good Practice

In this article we plan to dig into some of the key challenges in the Amended Codes of Good Practice and how we should resolve them.

The figure below is analogues to a Maslow’s Hierarchy of Needs view to resolve transformation interrelationships between issues.

The diagram refers to five key principle changes reflected in the ACoGP that need to be resolved in the right sequence as follows:

1. We need to refocus our skills efforts to include non-employees (unemployed people), such that our future skills pool is developed and equipped to become employed. We need to ensure that our learnership and artisanship processes are effectively used as work preparation and employee courtship processes, so that there is effective retention of our unemployed learners.
2. We need to be recruiting and training employees in proportion to the Economically Active Population (E.A.P).
3. We need to ensure that access to economic opportunity for small black-owned businesses is enhanced through supplier development. This will benefit both entrepreneurs and the jobs that are stimulated through this process. Malaysia utilised this to overcome the “twin economies” behaviour evident in their economy at the time. In South Africa the same concept could apply, namely: bringing established business and small informal business into supply partnerships to stimulate growth and competitiveness and mutual benefit. This manifests as a black ownership, small business focus in this pillar, as 95% of businesses in the country are small enterprises with the bulk of these being black-owned.
4. We need to ensure, as far as is economically viable, that our supply chains are localised, to enhance value added supply and job creation to meet Empowering Supplier criterion
5. We need to ensure that ownership (through broad-based, employee ownership or strategic partners) exceeds the 40% of the Net value points.

Transcend, has over the years, developed solutions that have helped companies develop B-BBEE strategies that make business sense, and can meet the above challenges.

Our expert consultants will help you with the following:

• Understand the current state of your business in relation to B-BBEE
• Assist with building a road map for the future; both short and medium term.
• Review all your processes and systems, to align them to your B-BBEE strategy
• Develop a team of resources that can manage the implementation of your initiatives
• Offer you a helping hand throughout the whole process.

Let us assist you with developing a B-BBEE plan against the amended codes that supports your business strategy and makes business sense.

Our BEE Consultants are trained to assist you on your transformation journey. Contact us and we will work with you in achieving your BEE goals.