Black economic empowerment (BEE) is driven by legislation and regulation and is a priority area for both government and ENS’ (Edward Nathan Sonnenbergs) private clients, requiring an innovative approach to finding appropriate business solutions. BEE is essentially a growth strategy targeting inequality and is therefore integral to the broadening of South Africa’s economic base by stimulating the economy and creating employment. The strategy is broad-based as is shown in the name of the legislation: the Broad Based Black Economic Empowerment Act of 2003.
The codes of good practice, which govern how companies do business in South Africa, allow global and multinational companies some flexibility in how they structure their empowerment deals and ENS’ competitive advantage in this field is demonstrated by the numerous empowerment transactions in which we have developed appropriate strategies and offered exceptional advice resulting in an highly effective solution for our clients.
We also offer services and assist clients in their obligation to advance and develop black and other previously disadvantaged employees as is part of the requirements of a sector-wide generic scorecard. This scorecard forms a vital part of the BEE Act of 2003 which measures companies’ empowerment progress in four areas:
Direct empowerment through ownership and control of enterprises and assets.
Management at senior level.
Human resource development and employment equity.
Indirect empowerment through: - preferential procurement, - enterprise development, and - corporate social investment (a residual and open-ended category).
This scorecard, as well as a scorecard for multinational companies, is defined and elaborated in the BEE codes of good practice.
ENS’ understanding of the requirements needed and our ability to assist clients in satisfying their BEE goals, whether in empowerment mergers and acquisitions or otherwise, means we are exceptionally well-placed to develop and offer advice in this important part of any business in South Africa.
Our speciality practice areas include:
Public private partnerships
Empowerment mergers and acquisitions
Structuring and documentation of empowerment transactions
