Date: 02/09/2003
Source: Deputy Ministry of Trade and Industry
Title: Hendricks: Debate on Broad-based Black Economic Empowerment Bill, NA
DEBATE ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT BILL, SPEECH BY THE DEPUTY MINISTER OF TRADE AND INDUSTRY, LINDIWE HENDRICKS, National Assembly, 2 September 2003
Madam Speaker
Colleagues
Honourable Members
The Broad-based Black Economic Empowerment Bill is a significant piece of legislation as it seeks to structurally transform the patterns of ownership, management, skills levels, and enterprises in our economy. Minister Erwin has outlined in his address to this House how the Bill will achieve these objectives, while concurrently addressing the issues of broader economic growth in our country.
An important aspect of this Bill is that it starts to address the need for women entrepreneurs to be included in the structural transformation of our economy and for women entrepreneurs to benefit from the changes that will take place in South Africa. I do not need to remind this House of the negative impact that apartheid and colonialism had on black women in South Africa and how black women were deskilled, placed in the lowest levels of employment and economically disenfranchised.
The Bill seeks to achieve black women's equal participation in the economy through Section 2, which outlines the objectives of the Act. This includes the objective of "increasing the extent to which black women own and manage existing and new enterprises, and increasing their access to economic activities, infrastructure and skills training". Furthermore, the Bill in Section 9(3) highlights the need to "promote the achievement of equality of women" through issuing a code of good practice as well as this code allowing for the distinction between black men and women in the setting of targets.
By incorporating and specifically targeting women, who make up 60% of SMME and survivalist businesses in South Africa, this Bill fulfils its mandate of being a broad based document that starts to address the needs of the majority of our population. However, it is necessary that through this empowerment legislation, women who are concentrated in the lower echelons of the business community feel the impact of this policy and are empowered to move up the value chain and are able to grow their businesses in order to make a greater contribution to our economy. It is important for the economic development of our country that the potential of all of our people, both men and women are tapped into and utilised.
The challenge is therefore to ensure that in the implementation of the Bill that women's participation is included into the targets set by industries and sectors in their transformation charters, particularly in the areas of enterprise development, human resource development, procurement, and ownership and management. It will thus become necessary for the BEE Council to ensure that in their monitoring process they track the impact that BEE is having on women enterprises and women in the workplace. Through the use of the code of good practice it will be possible to set and monitor the targets for greater women's participation in Broad-based Black Economic Empowerment.
Another challenge is to ensure that the support structures such as the IDC and NEF that the Minister mentioned in his speech are geared towards the support of women enterprises. In addition, it will be necessary to have specific mechanisms that exclusively target women enterprises in the support that they offer. Because indeed lack of access to capital has been noted as one of the main factors retarding the development of black owned small and medium enterprises in South Africa. A report on South Africa 2002 by the Global Entrepreneurship Monitor rates finance as the second biggest problem facing entrepreneurs in South Africa after structural obstacles. The study says that only one third of black entrepreneurs who apply for finance get approval. "Lack of collateral is the most widespread problem facing 45% of unsuccessful applicants", the report notes. Such are the challenges that both the IDC and the NEF need to address.
Already women entrepreneurs have started to interrogate the Broad-based BEE strategy and at a workshop organised by the South African Women Entrepreneurs Network (SAWEN), women identified potential opportunities arising from the strategy as well as certain challenges posed by the strategy. Through SAWEN women entrepreneurs were able to make a formal submission to the Parliamentary Portfolio Committee on Trade and Industry on these challenges and were able to highlight their specific needs.
Organisations such as SAWEN and other businesswomen's associations will play a useful role in ensuring that the implementation of the BEE strategy is broad based and benefits women.
In conclusion, I would like to thank the Minister and the team that worked on the Bill for the effort that they have put into this process. I would also like to thank the Portfolio Committee on Trade and Industry and its Chairperson, Dr Rob Davies, for the way that they have handled the public hearings and for the amendments that they have made to the Bill. In particular, I would like to commend them for ensuring that women's economic empowerment and the equality of women has not only stayed on the agenda but that an additional clause on the need for the Bill to promote equality of women in the code of good practice has been included. I am pleased to be associated with this Bill and with your support of this Bill and support of women's enterprises we will be able to achieve the transformation and growth that our country requires.
Issued by Deputy Ministry of Trade and Industry
2 September 2003
Source: Deputy Ministry of Trade and Industry
Title: Hendricks: Debate on Broad-based Black Economic Empowerment Bill, NA
DEBATE ON BROAD-BASED BLACK ECONOMIC EMPOWERMENT BILL, SPEECH BY THE DEPUTY MINISTER OF TRADE AND INDUSTRY, LINDIWE HENDRICKS, National Assembly, 2 September 2003
Madam Speaker
Colleagues
Honourable Members
The Broad-based Black Economic Empowerment Bill is a significant piece of legislation as it seeks to structurally transform the patterns of ownership, management, skills levels, and enterprises in our economy. Minister Erwin has outlined in his address to this House how the Bill will achieve these objectives, while concurrently addressing the issues of broader economic growth in our country.
An important aspect of this Bill is that it starts to address the need for women entrepreneurs to be included in the structural transformation of our economy and for women entrepreneurs to benefit from the changes that will take place in South Africa. I do not need to remind this House of the negative impact that apartheid and colonialism had on black women in South Africa and how black women were deskilled, placed in the lowest levels of employment and economically disenfranchised.
The Bill seeks to achieve black women's equal participation in the economy through Section 2, which outlines the objectives of the Act. This includes the objective of "increasing the extent to which black women own and manage existing and new enterprises, and increasing their access to economic activities, infrastructure and skills training". Furthermore, the Bill in Section 9(3) highlights the need to "promote the achievement of equality of women" through issuing a code of good practice as well as this code allowing for the distinction between black men and women in the setting of targets.
By incorporating and specifically targeting women, who make up 60% of SMME and survivalist businesses in South Africa, this Bill fulfils its mandate of being a broad based document that starts to address the needs of the majority of our population. However, it is necessary that through this empowerment legislation, women who are concentrated in the lower echelons of the business community feel the impact of this policy and are empowered to move up the value chain and are able to grow their businesses in order to make a greater contribution to our economy. It is important for the economic development of our country that the potential of all of our people, both men and women are tapped into and utilised.
The challenge is therefore to ensure that in the implementation of the Bill that women's participation is included into the targets set by industries and sectors in their transformation charters, particularly in the areas of enterprise development, human resource development, procurement, and ownership and management. It will thus become necessary for the BEE Council to ensure that in their monitoring process they track the impact that BEE is having on women enterprises and women in the workplace. Through the use of the code of good practice it will be possible to set and monitor the targets for greater women's participation in Broad-based Black Economic Empowerment.
Another challenge is to ensure that the support structures such as the IDC and NEF that the Minister mentioned in his speech are geared towards the support of women enterprises. In addition, it will be necessary to have specific mechanisms that exclusively target women enterprises in the support that they offer. Because indeed lack of access to capital has been noted as one of the main factors retarding the development of black owned small and medium enterprises in South Africa. A report on South Africa 2002 by the Global Entrepreneurship Monitor rates finance as the second biggest problem facing entrepreneurs in South Africa after structural obstacles. The study says that only one third of black entrepreneurs who apply for finance get approval. "Lack of collateral is the most widespread problem facing 45% of unsuccessful applicants", the report notes. Such are the challenges that both the IDC and the NEF need to address.
Already women entrepreneurs have started to interrogate the Broad-based BEE strategy and at a workshop organised by the South African Women Entrepreneurs Network (SAWEN), women identified potential opportunities arising from the strategy as well as certain challenges posed by the strategy. Through SAWEN women entrepreneurs were able to make a formal submission to the Parliamentary Portfolio Committee on Trade and Industry on these challenges and were able to highlight their specific needs.
Organisations such as SAWEN and other businesswomen's associations will play a useful role in ensuring that the implementation of the BEE strategy is broad based and benefits women.
In conclusion, I would like to thank the Minister and the team that worked on the Bill for the effort that they have put into this process. I would also like to thank the Portfolio Committee on Trade and Industry and its Chairperson, Dr Rob Davies, for the way that they have handled the public hearings and for the amendments that they have made to the Bill. In particular, I would like to commend them for ensuring that women's economic empowerment and the equality of women has not only stayed on the agenda but that an additional clause on the need for the Bill to promote equality of women in the code of good practice has been included. I am pleased to be associated with this Bill and with your support of this Bill and support of women's enterprises we will be able to achieve the transformation and growth that our country requires.
Issued by Deputy Ministry of Trade and Industry
2 September 2003
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