The Eastern Cape Development Corporation (ECDC) has developed a robust policy that will support local entrepreneurs in optimizing their efforts in meeting the requirements of the Broad Based Black Economic Empowerment Act 53 of 2003 as well as facilitating greater black participation in the economy.

Enterprise Development Services manager Belinda Vabaza outlined the strategy at a workshop held together with its black economic empowerment partner, BEEOnline, one of only 40 nationally accredited agents.

She says ECDC’s strategy comprises three pillars which aim to responsibly fulfill the corporation’s BEE mandate.

“The act, which was legislated two years ago, has not found the necessary support for a myriad of reasons. One such reason is that there has been a fair amount of confusion around its implementation. In some cases, some companies have been challenged in finding appropriately skilled black suppliers. One of the pillars of our strategy talks directly to this issue because we will be developing a robust database with the assistance of BEEOnline,” she explains.

“BEE is an area that ECDC has a great passion for. We are highly motivated by the challenges and aim to help big companies find their black suppliers. Putting these two groups together will go a long way in ensuring that the BEE programme gains momentum and is successful.”

BEEOnline’s Guy Taylor also shared with the 60-strong group details on the much-talked about scorecard.

“Government has moved away from ownership as means of gauging black economic. Now companies have to demonstrate their commitment to black economic empowerment through six other areas: management control, employment equity, skills development, preferential procurement, enterprise development and residual which incorporates corporate social investment initiatives,” he explained.

ECDC’s three-pillar helps companies provide the necessary inputs into the scorecard by providing an updated and functional BEE supplier database, creating better understanding of BEE procurement practices as well as facilitating sustainable opportunities. Furthermore, the corporation will conduct a diagnosis of a company’s strengths and weaknesses as well as a development plan on how these deficiencies can be addressed and how its strengths can be capitalized upon.

The corporation believes it is able to provide an infrastructure that ensures that there is easier access to the information, improved support facilities for BEE suppliers such as being BEE-verified or rated.

Over 40 000 companies nationwide are required to comply with the requirements of the national accreditation board.

“The scorecard process should be seen as an opportunity because a company’s credentials can be improved once a rating has been established. The company will immediately be able to establish the strengths and weaknesses of a company,” ends Vabaza.

The scorecard process will be conducted annually.