Feel good about empowerment – EconoBEE Newsletter – 2 September 2010

EconoBEE - BEE Points = Business

The BEE Scorecard is about points but empowerment should still make you feel good!

Yes, the measure of how empowered a business is, is based on points. Naturally the more points they have on their scorecard the better. However, when earning points a business should aim to earn points that can make a real difference and make themselves, their staff and the beneficiaries feel good. BEE is about true empowerment and feeling BEE Motivated.

It has been very refreshing to see more companies focusing on the scorecard. In-particular when we calculated ArcelorMittal’s points for their ownership deal and discovered that they had simply not used the right structures to earn points. It was really one of the first times the public could measure the effectiveness of the deal.

It is time to work hard on the scorecard and earn genuine points. Help people who previously did not have an opportunity, have an opportunity and ultimately grow the economy by creating more businesses, employing more people, teaching new skills and supporting South African business.

EconoBEE is a BEE Consultancy who assists companies prepare their BEE Scorecard for Verification by offering consulting services, management tools and training courses. We ensure a cost effective and efficient approach to Becoming BEE Compliant.

How to Structure your BEE Ownership Deal Properly

Johannesburg 15 September 2010

more info…

Feel good about Socio-economic Development

CSI: BBBEE’s Legacy

With all the negative publicity that often surrounds multi-million rand B-BBEE deals such as the recent ArcelorMittal deal, one may be inclined to wonder whether the benefits of broad based black economic empowerment are filtering down to the intended beneficiaries. Sekolo sa Borokgo Middle School and Matric Centre in Randburg, Johannesburg is proof of how social investment through strategic BBBEE planning can yield conspicuous results.

The Sekolo sa Borokgo Middle School and Matric Centre was founded in December 1992 with the intention to redress the blatantly apparent inequalities between township / rural schools and the then “model C” schools by providing children from disadvantaged backgrounds with the opportunity to succeed. Principal, Dave Rossouw postulates; “The devastating matric results obtained at township schools is not due to a lack of potential or ability of the students but can rather be attributed to a lack of quality education; which sets in motion an ever growing gap that perpetuates stationary social class progress for generation upon generation. Our aim is to break this loop and give students the tools to take control of their future.” 

As a registered Section 21, non-profit organisation, the middle school and matric centre rely heavily on the contributions made by donors. Recent contributions include the relocation of the school building to Randburg in 2007 and the construction of computer laboratories equipped with the latest technology such as laptops, data projectors and electronic interactive whiteboards. In addition, financial contributions of varying amounts received throughout the year accumulate to provide a significant share of the schools’ operational budgets. 

Rossouw revealed that the bulk of CSI contributions received by the school are in the form of bursaries, particularly in the faculties of Maths and Science. It is anticipated that the next focus area will be teacher learnerships. Such sustainable educational contributions bleed into the fabric of the various professional occupations by providing qualified and competent future participants in such academic industries.

Keith Levenstein, CEO of EconoBEE, a leading BBBEE consultancy in Johannesburg, is extremely excited by the changes he has personally witnessed at the school as a result of contributions made as part of a company’s BBBEE strategy. “Many corporations are moving away from mere donations and are taking a more focused look at what can be done through BBBEE to make a real difference to communities. This is fantastic news if one considers that the sole impetus of BBBEE is empowerment,” says Levenstein. He added; “Education is perhaps the best form of social development as it not only enhances the country’s skills pool but also stimulates future economic development.” 

As a result of the steady flow of support received annually, Sekolo sa Barokogo School has produced a number of success stories. Selokoane Morake used SSB school as the launching pad to rocket into his future. Awarded the Allan Grey Orbis Scholarship; he will enjoy the fruits of CSI with a fully paid bursary to study at university from 2011. In addition; he will receive an allowance for books and spending as well as exposure to business, mentorship and entrepreneurial skills development programmes. Selokoane was not only selected for his academic aptitude but also his intellectual imagination, initiative and courageous dedication. 

The mutually beneficial nature of strategic BBBEE social investment donations adds to the frequency of donations; and the resultant social awareness created is an added bonus. “At SSB we ensure that we offer our long list of donors the required certification in order for them to be able to obtain the necessary BBBEE points for their donations,”  commented Rossouw. 

Whilst BBBEE proponents wage war on tenderpreneurs and fronting; stories like Selokoane’s fulfil a much needed role urging advocates on to fight for the empowerment and upliftment of all South African communities; which is the projected legacy of BBBEE.

If you need strategic advisory assistance please contact EconoBEE or to support Sekolo sa Barokogo contact the principal Dave Rossouw – www.ssb.za.net


Feel good about Enterprise Development

How much can we claim for Enterprise Development?
Enterprise Development (ED) is about assisting beneficiary businesses to become economically and operationally viable. Your ED contribution should be 2% of your NPAT (net profit after tax) if you are a QSE, or 3% of NPAT if you are a generic company.

Case Study: Mabuya Glass Merchants cc
We were approached by Msizi Ngwenya to assist his business. He has just started a glazing company (if you need windows, or mirrors or anything to do with glass please do consider Msizi – his details are below).

At his request, and after many discussions we provided the following services to him:

  • Assistance with his BEE status – (Mabuya Glass a fully black owned company with a level 3 BEE Status)
  • Assistance in applying to become a vendor with some larger corporations
  • Design and printing of a letterhead and business cards
  • Design of a quoting form
  • Mentoring and advise on his business
  • Help with his business profile and printing thereof
  • Provision of an email address and fax number
  • Assistance with designing a Glass White Board

The following questions spring to mind:

Was this enterprise development? How much can we claim? What proof do we need?

  1. Was this ED?
    • Yes, Mabuya qualifies as an ED beneficiary because it is an EME or QSE and is more than 50% black owned.
    • Msizi was clearly informed that we would regard his business as one of our ED projects. He asked how much we would charge and we explained that there will be no charge – but perhaps in the future their may be some expenses that we will incur, and we would inform him beforehand.
  2. How much can we claim?
    • We can claim the direct cost to us. In our case time based on salary, – not consulting rate.
    • We can claim the cost of the printing/photocopying/paper that we used in this project.
    • We can claim any amounts as outstanding loans
  3. What proof do we need?
    • Documentary proof of the work we have done for Msizi:
      • Copies of the EME documents
      • Copies of the vendor forms we helped him fill in and documents we produced for him
      • An accounting reconciliation of all the expenses
    • We have everything in a neat file in our filing cabinet

The great thing about this project is we know we have helped someone who can succeed and who needed and wanted our help.

Finally a project we helped with was the now famous “Glass White Board” which is a spectacularly good looking white board made entirely of glass. We have a picture of this on our website.

Msizi operates in the Gauteng area, is a level 3 BEE contributor and can be contacted on 072 263 0130 or 011 483 1190. If you want his business profile please email glass@econoserve.co.za.

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EconoBEE Newsletter
2 September 2010

In this issue

  • Feel good about Socio-economic Development
  • Feel good about Enterprise Development?

In other news

About EconoBEE

EconoBEE is an expert BEE consultancy. EconoBEE help companys Become BEE Compliant, prepare for verification, earn maximum BEE Points and ensure that they achieve the BEE Level they need to get more business.

Our services include BEE Management Systems, Training, EME Pack, Completely Managed Services; consulting and advisory and Procurement Solutions.

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Fax: 011 483 1195
Email: info@econobee.co.za
Web: www.econobee.co.za


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That’s it for the time being.
Regards
Gavin and the EconoBEE Team

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