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Local Content Some learnings from South Africa

Local Content Some learnings from South Africa. JB Renard 2PR Consulting. Think Tank Energie pour l’Afrique. BEE – SOUTH AFRICA CONTEXT. 1994 – End of Apartheid 2000 – Petroleum and Liquid Fuels Charter 2001 – BEE Commission Report 2004 – BEE First Act

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Local Content Some learnings from South Africa

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  1. Local ContentSome learnings from South Africa JB Renard 2PR Consulting Think Tank Energie pour l’Afrique

  2. BEE – SOUTH AFRICA CONTEXT • 1994 – End of Apartheid • 2000 – Petroleum and Liquid Fuels Charter • 2001 – BEE Commission Report • 2004 – BEE First Act • 2005 – BEE Codes of Good Practice – first codes • 2007 – BEE Scorecards (measuring compliance with codes) • 2013 – Next Elections – and then? 2PR Consulting

  3. Level 1 * 100 Level 2 85 75 65 55 45 Level 3 Level 4 Level 5 Level 6 40 30 Level 7 Level 8 Non Compliant 0 BEE SCORECARD Subject Area Code Weight BEE Status Equity Ownership Code 100 20pts ManagementControl Code200 10pts EmploymentEquity Code300 15pts Skills Development Code400 15pts Preferential Procurement Code 500 20pts EnterpriseDevelopment Code 600 15pts Social Investment Code 700 5pts Total 100 * Level 1 is achievable through bonus points 2PR Consulting

  4. AND NOW IN SOUTH AFRICA • A Complex Balancing act • Attracting foreign investment • Remaining an example for the Region • Delivering on promises to HDSA • Dealing with poverty and unemployment • The most complex political context since 1994 • Tensions within ANC (egMalema “case”) • End of ANC hegemony in sight • Marikana • December ANC Conference /next Presidency a turning point? 2PR Consulting

  5. CONCLUSIONS • Localisation is good Business, Big Business to show the Way • No large developing country has done it before • Intend & Principles are right (Inc. Long timeframes) • Rules & Scorecards good but Perversion of the System (e.g. few happy rich) • Focus on Skills and Enterprise Development vs. Ownership • Role of Large Companies to develop People and Enterprises to International Standards 2PR Consulting

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