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Black Economic Empowerment Portfolio Committee September 2002

Black Economic Empowerment Portfolio Committee September 2002. Table of Contents. Introduction BEE Approach Rationale Engen’s BEE Vision Engen’s BEE Mission Structure. Table of Contents. Areas of Focus/Strategy Shareholding Employees Retail Dealerships Business Partners – SDCO’s

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Black Economic Empowerment Portfolio Committee September 2002

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  1. Black Economic Empowerment Portfolio Committee September 2002

  2. Table of Contents • Introduction • BEE Approach • Rationale • Engen’s BEE Vision • Engen’s BEE Mission • Structure

  3. Table of Contents • Areas of Focus/Strategy • Shareholding • Employees • Retail Dealerships • Business Partners – SDCO’s • Suppliers – Procurement • Corporate Social Investment • Challenges • Conclusion

  4. BEE Approach It is a process (and not an event) by which Engen proactively and deliberately creates profitable and sustainable business opportunities, to a large section of the South African population, who were previously disadvantaged/deprived.

  5. Rationale To redress the economic exclusion and marginalising of the majority of South Africans, and through that, contribute in the creation of a more equitable, sustainable and stronger economy. • Value Creation

  6. Engen’s BEE Vision A value creating company that in Employee make-up and business operations both internally and externally, reflects the demographic of the markets in which we operate

  7. Engen’s BEE Mission To contribute to the development and growth of our BEE partners through the awarding of meaningful opportunities to Historically Disadvantaged South African’s (HDSA) to facilitate the sustainability of their business as well as expand their contribution to the South African Economy.

  8. Structure Who is responsible? • CEO – driven process • Management have targets incorporated on their performance contracts • Dedicated department established in October 2001

  9. Areas of Focus / Strategy • Shareholding • Employees • Retail Dealerships • Business Partners • Suppliers • Communities/Social Investments

  10. Shareholding • 1998 – Petronas – 80% • 1998 – WAIH – 20% • 2000 – Engen – 45% - Afric Oil

  11. Employees EE Vision: “Engen will be recognised as the oil industry leader, by 2004, having achieved or exceeded a profile at all employee levels and occupational categories which is 50% that of national or regional demographics of the economically active population in terms of race, gender and disability.”

  12. Employees

  13. Actual vs Target June 2002 Female Target 2004 = 22% Charter

  14. Retail Dealerships Charter

  15. Retail Dealerships • Target as per Charter 25% by 2010 • 2000 Engen target 40% in 2004 • 2003 = 34% • On course to exceed our target

  16. Business Partners - SDCO’s • Target as per Charter 25% • 22 – Outlets • 2 x 100% • 1 x 50% • 1 x 25% • Our target is minimum 30% equity in each outlet by 2004 • Conditional Renewal of Contracts

  17. Suppliers - Procurement

  18. Suppliers - Procurement • Our Procurement is relationship and capacity building • Encourage partnerships e.g. Maziya at the Refinery, mentorship programmes • Set-up operations e.g. Plant ’n Idea • Influence current Suppliers e.g. Rheem/Retail Service Construction

  19. Suppliers - Procurement • SMME Training • Lujeze Security • Mondli Trucking and Waste • Bonganjalo Scrap • Gedeza Cleaning Services • Internal Strategy of set asides

  20. Corporate Social Investments • Education • Micro Science Project • Professional Teacher Development Programme (PDP) • Collaborative Education with South Africans (CEWSA) • Job Creation • Afrikatourism: 29 routes covering almost 9000km; account for 4031 direct full-time jobs in season and 1933 part-time jobs

  21. Corporate Social Investments • Peace & Security • Africa Peace Award • National Sea Rescue Institute (NSRI) • Community Policing Forums • Arrive Alive • Sports Development • Athletics Development • Basketball • Motorsport Development

  22. Challenges • Availability of Capital • Fronting • Heavy concentration on a few areas of business • Skills development • Proposed Pricing Changes (IBLC)

  23. Conclusion • At Engen, we recognise that BEE is the agent for the creation of wealth and an engine for change • Implementation is complex it requires, commitment, passion and skilful adaptation to change • We recognise that there is a need to continuously communicate positively to reinforce the message

  24. Conclusion • Endeavor to meet all strategic targets that are agreed to, from time to time • We continuously monitor and track the performance of BEE targets • We reaffirm our commitment to the cause of BEE we will meet and exceed the targets as agreed on the Charter

  25. Thank You

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