Mabele Fuels has developed a blueprint for the execution of a procurement structure that favours local emerging farmers. Farmers located in underdeveloped land areas will be encouraged, through cooperative agreements, to participate in supplying Mabele. This will result in Rural Economic, Agricultural and Infrastructural Development. It will also empower emerging farmers, restituted landowners, develop South Africa’s green economy and contribute to energy security.
The South African government’s Black Economic Empowerment (BEE) strategy promotes, inter alia, black ownership and management of enterprises, employment equity, skills development and preferential procurement. The overarching legislative document regarding BEE is the BEE Act 53 of 2003. The BEE Act establishes a legislative framework for the promotion of BEE and enables the Minister of Trade and Industry to issue codes of good practice on BEE.
Such codes were issued in December 2004 in draft form. When final, every state organ and public entity must take into account and apply these codes of good practice in:
- Determining qualification criteria for the issuing of licenses, concessions or other authorizations;
- Developing and implementing a preferential procurement policy;
- Determining qualification criteria for the sale of state-owned enterprises; and
- Developing criteria for entering into partnerships with the private sector.
The government’s strategy for measuring broad-based BEE in entities focuses on three core elements as follows:
- Ownership: This measures the voting equity and economic interest held by black people in an entity;
- Employment Equity: This looks at measures taken to diversify the complement of professional supervisory and management positions so as to reflect the broader South African society with an emphasis to develop black staff. The enabling legislation with regard to employment equity is the Employment Equity Act, 1998; and
- Preferential Procurement: This measures the procurement of goods and services from black-owned enterprises and/or black persons.