Broad-based Black Economic Empowerment Research Articles

Transnational Telecommunications Capital Expanding From South Africa into Africa: Adapting to African Growth and South African Transformation Demands

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South African pension fund conversions: Dealing with environmental change

Purpose: The purpose of this paper is to analyse South African pension fund conversions from defined benefit to defined contribution structures and to develop a model for dealing with environmental change. Design/Methodology/Approach: Qualitative research methodology was used. Industry experts were interviewed to obtain a macro view of the phenomenon and specific manifestations of the phenomenon were also considered in case studies.Feedback from semi-structured interviews was categorised into several emergent themes. Within-case and cross-case analyses were conducted. Findings: Results indicated that an environmental shock exerted a substantial influence on the course of events. Under these: Various factors combined to drive organisational evolution (i.e. adaptation to the environment). Adaptation speed was inappropriate and exceeded that which was required for sufficient thought. Uncertainty and vacuum circumstances arose leading to consequences that require redress. The relative power of the stakeholders changed and influenced the strategic outcome. An imbalance in stakeholder interests arose and ethical factors became consequential. Business acted to restore certainty for itself.Implications: This paper provides insight into organisational behaviour during periods of environmental shock. Environmental shock can be defined as "a condition that arises where business or societal rules are inadequate, or do not exist, to deal with unfolding events". An environmental shock has greater magnitude than a competitive shock, and can include several competitive shocks.Originality/Value: Analysis of pension fund conversions revealed organisational behaviour during periods of environmental shock and the emerging model can be applied in other instances of environmental shock, such as broad-based black economic empowerment (B-B BEE), land redistribution, sanctions and constitutional development.

Education and skills for development in South Africa: Reflections on the accelerated and shared growth initiative for South Africa

Abstract In July 2005, President Mbeki announced the launch of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA), a new development strategy designed to help the South African state meet the ANC's 2004 election pledges, namely: • halve unemployment; • halve poverty; • accelerate employment equity; and • improve broad-based black economic empowerment. AsgiSA outlines a very different development path from the current orthodoxy of the Millennium Development Goals and Poverty Reduction Strategy Papers in spite of the common commitment to halving poverty. This difference in approach encompasses the education and skills sector, where post-basic provision is given considerable attention. This paper seeks to explore why South Africa has taken this different approach, especially in education and skills development. It examines what the current evidence tells us about the strategy's likely success. Finally, it briefly considers the implications this case might have for the dominant model of African education and development.

LOAN PRODUCTS TO MANAGE LIQUIDITY STRESS WHEN BROAD-BASED BLACK EMPOWERMENT ENTERPRISES INVEST IN PRODUCTIVE ASSETS

Investments in productive assets by broad-based black economic empowerment (BEE) enterprises in South Africa (SA) during the 1990s have been constrained, in part, by a lack of access to capital. Even if capital can be sourced, BEE businesses often face a liquidity problem, as conventional, equally amortized loan repayment plans do not take into account the size and timing of investment returns, or there are lags in the adjustment of management to such new investments. This paper describes five alternative loan products to the conventional equally amortized loan: the single payment non-amortized loan; the decreasing payment loan; the partial payment loan; the graduated payment loan; and the deferred payment loan. Recent SA experience with the graduated payment loan and the deferred payment loan suggests that there is scope to alleviate the liquidity problem if a wholesaler of funds can offer such terms to private banks and venture capital investors who then on-lend to finance BEE asset investments that are otherwise considered relatively high credit risks. This would shift the liquidity problem away from the client to the wholesaler of the funds, but requires access to capital at favourable interest rates. Such capital could be sourced from empowerment funds earmarked by the private sector, donors and government.