THE transformation charters and codes of good practice have resulted in most black economic empowerment equity deals being broad based, says Trade and Industry Minister Mandisi Mpahlwa.

“These deals are bringing on board new entrants, including women, youth and to some extent communities,” he told the Business Unity SA-Chambers of Commerce and Industry SA small business conference.

He says many aspects of the codes are still misinterpreted. “For instance, the ownership code allocates points for new entrants and broad-based schemes.”

The economic interests and voting rights of black women are also an inherent part of the score. “If a company does not have black women shareholders who own 10% of the entire entity they cannot score full points for ownership.” Four of the 20 points of the ownership target relate to black women.

The awarding of points for black women in management helps integrate women into the economic mainstream and stresses the role they can play in nonexecutive positions in enterprises, he says. By promoting investment in skills development the codes will fast-track the upward mobility of blacks.

Noting that R10bn has been made available through the National Empowerment Fund, Mpahlwa says that, “applied correctly and within the spirit of its objectives”, the process will benefit all South Africans.

Gauteng premier Mbhazima Shilowa says the Gauteng Enterprise Propeller, a one-stop shop for small business development, has been allocated R300m over the next three years for financial and other support including tax advice, procurement opportunities and contract guarantees.

Gauteng’s provincial government has a procurement budget of about R6bn, he says, which can be used to stimulate the development of empowerment companies and small business. Large contracts will be broken down to include small businesses. Where appropriate, materials and equipment will be purchased in a separate tender process to alleviate the need for raising expensive working capital.

“We are also committed to pay suppliers no more than 30 days following receipt of the relevant documents.”