Broad-Based Black Economic Empowerment
Broad-Based Black Economic Empowerment (“BBBEE”) is a central part of South Africa’s economic transformation strategy. A multi-faceted “broad-based” approach has been adopted which aims to increase the number of previously disadvantaged individuals benefiting from the South African economy. The core elements of BBBEE in South Africa are:
• Direct empowerment
Management and control
• Human resources development
• Indirect empowerment
• Social economic development
All group operating subsidiaries are subject to an annual independent BBBEE verification audit by a South African National Accreditation System (“SANAS”) accredited verification agency. The scorecards issued are used as the basis for internal target setting and measurement of transformation progress.
The group is proud of its empowerment credentials and the progress it has made with respect to transformation. The group has an overall consolidated rating of a Level 3 (2012: Level 4) contributor to BBBEE using the construction charter codes and scores highly in the equity ownership, procurement, enterprise development and social economic development elements of the scorecard. The employment equity and skills development elements of the scorecard are focus areas for management in the medium-term.
In the Construction Division, Raubex Construction, Roadmac Surfacing and Roadmac Surfacing Cape have achieved a level 2 status, this puts them on a competitive footing with their peers during tender evaluation.
In the Materials Division, the commercial quarries have been empowered through the establishment of an Employee Trust and a Community Development Trust which hold a 26% interest in the underlying quarry entities in compliance with the requirements of the Department of Mineral Resources.