BEE should be aligned to the company broader strategy
It makes no business and transformational sense to conclude a BEE deal just for the sake of compliance and it's not in anyone's best interest. The policy of black economic empowerment (BEE) should not be narrowly viewed as only a moral initiative to redress the wrongs of the past but it should be viewed and practised as a pragmatic growth strategy that aims to realise the country's full economic potential.
It would not make sense for the company to conclude a BEE deal and not legitimately expect value added benefits. The BEE agenda is a value unlocking process and a transformation agenda, BEE players and companies alike, I hope understand this!
I expect the company to analysis its corporate strategy, align it with its transformation agenda before searching for a BEE partner. The company should have a clear vision of where it is going and what is its transformation agenda.
The BEE players as investors, I expect that (s)he would only invest in companies that have a clear corporate and transformation strategy or at least those companies that demonstrate the potential and the will to grow and incorporate transformation agenda in their overall growth strategy - that is a true BEE player, a transformational and a genuine investor.
BEE players and Black people in general, I hope and expect that they understand and acknowledge that BEE and other transformation policies are not free lunch. Race is NO substitute for competence and excellent quality service!
It is against this background that BEE players and Black people in general should appreciate the importance of excellent and quality service delivery, responsibility and self-pride. Not to say that Black people lack in this regard but to emphasise that the success or failure of the BEE and other policy is only measured by excellence and quality outcome. The envisaged outcome being to create a society that has equal opportunities for all our people (irrespective of race, gender, culture and religious ideology) be it at political, social or economic spheres - to paraphrase Mr. Jacob Zuma, ANC President.
It is therefore important that the companies assess very carefully what the BEE partner offers and determine whether the BEE partner qualifies perfectly in the long-term corporate and transformation strategy.
Senzo Masengemu is a former secretary general of the BMF Student Chapter, Natal Technikon (2001). He is currenlty a supervisor at KPMG Corporate Finance - KwaZulu Natal, Durban Office. The views expressed above are made in his personal capacity as such nobody else can be held accountable for them.
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