Black Business Quarterly magazine and BBQ Awards achieve milestones in tough operating environment

South Africa’s premier journal for black business, Black Business Quarterly (BBQ), has been informing, educating and entertaining its readers since its inception in 1999. As an authoritative voice on trends and developments within the ever evolving black business fraternity, it has passed an acid test.

BBQ, which speaks directly to the upper echelons of black business – addressing issues affecting economic growth, black empowerment and co-operation throughout South Africa, the Southern African Development Community region and globally – has endeavoured over the years to produce content that is relevant and useful to its target market.

Since inception of the broad-based black economic empowerment (BBBEE) policy, South Africa has witnessed the emergence of highly respected, influential black leaders whose inspirational stories are legendary. Between 1999 and 2011, BBQ front covers were graced by such outstanding black luminaries as Nelson Mandela, Thabo Mbeki, Walter Sisulu, Wendy Luhabe, Cyril Ramaphosa, Basetsana Kumalo, Tokoyo Sexwale, Trevor Manuel and Khanyi Dhlomo, among others.

The 2009 launch of its digital version on www.bbqonline.co.za enabled BBQ to maintain an updated portal that kept its readers informed of current business trends and news shaping the growth of black business today.

The magazine showcases the comprehensive and sophisticated infrastructure, products and services available for and from black entrepreneurs.

The annual Van Ryn’s BBQ Awards – BBQ’s flagship event since 2002 – celebrates and showcases the history and epic journey of black business, honouring the people and organisations at the forefront of developing black enterprise. The aim of the event is to encourage and promote sustainable black businesses through recognition of leadership.

The awards cover 10 categories, and are open to black men and women, leaders of black-owned and empowered companies and organisations.

Previous Platinum winners:

• 2002 – Patrice Motsepe, executive chairperson of African Rainbow Minerals

• 2003 – Cheryl Carolus, executive chairperson of Peotona

• 2004 – Phuthuma Nhleko, former chief executive officer of MTN

• 2005 – Mbhazima Shilowa

• 2006 – Salukazi Dakile-Hlongwane, executive of Nozala Investments

• 2007 – Musa Zulu, artist

• 2008 – Professor Shirley Zinn, human resources director at Standard Bank

• 2009 – Mthunzi Mdwaba, Kelly Group deputy CEO

• 2010 – Philisiwe Buthelezi, CEO of the National Empowerment Fund

Retracing the roots

To celebrate the 10th anniversary of the BBQ Awards, we are going back in time, and recognising contributions made by past and present black business leaders in advancing and empowering black business.

In similar vein, we are paying tribute to the Black Management Forum (BMF) for its role in conceptualisation of the BEE Commission, which later laid the foundation for black people’s participation in the mainstream economy.

Transformation has now gone beyond business deals and shareholding in companies, and has progressed to creating decent jobs, skills development, transfer of skills and enterprise development – all contributing to the upliftment of disadvantaged communities.

Over the years, BBQ magazine and the BBQ Awards have played a significant role in acknowledging, advancing, promoting and providing a platform for black business excellence.

From the horse’s mouth –Gavin Pieterse

The historic 1994 democratic election was essentially a political settlement that did not, in its construct or future provisions, result in the systematic economic transformation of the country.

The new politically empowered ruling party proceeded on a path of reconciliation and nation-building, with a focused commitment to understand and manage the complex and disparate government machinery inherited.

Against a yardstick of one of the most progressive constitutions of its time, many of the lofty transformative ideals enshrined therein patiently assumed their place in a long queue of other social interventions, international trade matters, fiscal reform and a myriad other pressing national priorities.

The economic landscape would continue to be characterised by deep inequalities, a dearth of vibrant and active participation in the mainstream economy by the majority, skewed ownership and skills distribution patterns and minimal control over the productive assets of the country.

The ensuing period post-1994 relegated most black South Africans to bewildered spectators in the discourse on BEE, as the government appeared to remain hopeful that corporate South Africa would transform itself.

BEE activities during this period were characterised by high-profile ownership transfer strategies, to apparently well-connected and equally high-profiled individuals – a tactic borne out of a historic culture of Corporate South Africa, which was built on the largesse of government patronage.

The demand by black business, professionals and civil society to wrench control of the BEE debate and determination of a national strategy for economic transformation, found expression at the November 1997 national BMF Conference hosted by BMF Western Cape, under the leadership of then regional president Gavin Pieterse, at the Spier Wine Estate.

After two days of intensive deliberations, a resolution was adopted for the establishment of a BEE Commission to be initiated by the BMF, but made as inclusive as possible of other black professionals, business, civil society and academics, which would ultimately perform the function of developing a coherent BEE strategy for the country, under the auspices of the Black Business Council.

“The motivation for the establishment of the Commission is that the notion of true empowerment as defined by black people does not exist, nor does a common definition, or benchmark which serves as minimum requirement.

“Many deals are concluded by organisations, including government structures that fall far short of recognising the true aspirations of the marginalised black majority all in the name of black economic empowerment.” (BMF, Stellenbosch November 1997)

Pieterse, who was elected national deputy president at that annual general meeting, was mandated to drive the establishment of the BEE Commission on behalf of the BMF, to ensure maximum representation and create an operating structure.

This effort resulted in the gathering of the first BEE Commission meeting during May 1998, where Cyril Ramaphosa was elected chair and Gavin Pieterse deputy chair.

Professor Itumeleng Mosala was appointed supervising commissioner for research.

The full BEE Commission membership comprised the following people: Cyril Ramaphosa (chair), Gavin Pieterse (deputy chair), Moses Kgosana, David Moshapalo, Mzolisi Diliza, Saki Macozoma, Phinda Madi, Jabulani Sikhakhane, Vusi Montsho, Nozipho January-Bardill, Lot Ndlovu, Danisa Baloyi, JB Magwaza, Peter Vundla, Ruel Khoza, Salukhazi Dakile-Hlongwane, Sango Ntsaluba, Irene Charnley, Molefe Tsele, Itumeleng Mosala (supervising commissioner), Pamela Mgulwa and Jake Moloi.

Seconded as commission researchers were Duma Gqubule and Andrea Brown.

The BEE Commission set its objectives as follows:

• To gain insight into the BEE process, through empirical research and to make observations on the pace and results of BEE initiatives during the 1990s;

• To draw conclusions on the obstacles to meaningful participation of black people in the economy;

• To develop a powerful case for an accelerated National BEE Strategy, and to make recommendations on policies and instruments required to guide a sustainable strategy; and

• To develop benchmarks and guidelines to monitor the implementation of the National BEE Strategy.

The Commission conducted extensive research, and embarked on wide-ranging consultations.

A consultative conference was held on 30 September 2000. The views of these and subsequent discussions with stakeholders were incorporated into the report.

The terms of reference of the BEE Commission were as follows:

• To develop a clear and coherent vision and strategy for BEE;

• To construct a clear and unambiguous
definition for BEE;

• To find a way to integrate the empowerment project into the transformation of South African society;

• To identify the role of black women in the empowerment process;

• To determine the role of black business in the transformation process;

• To report on ways in which the management skills of black people can be developed;

• To explore ways in which black business can speak with a united voice on issues that directly affect them;

• To examine ways in which black business can ensure its business conduct and ethics remain credible at all times; and

• To come up with practical ways in which small business can be developed.

It is vital that the government, business and black professionals spearhead the BEE agenda; and that there be an in-depth understanding of its nature, form, effectiveness and legitimacy as a strategy of transformation.

For this reason, the Commission resolved that its recommendations on BEE should be based on “empirical investigations and research into the systemic, structural and process of empowerment initiatives and their outcomes. This approach should both ensure sound, effective recommendations and generate informed debate and functional knowledge on the requirements for feasible and sustainable empowerment initiatives.”

The Commission consequently designed the following terms of reference for the study and research undertaken on BEE:

• An inquiry into the structure and functions of the regulatory and legislative environment, aimed at facilitating BEE within the context of our national economic transformation;

• Research and evaluation conducted to investigate the nature, forms and outcomes of BEE in both the public and private sectors;

• A detailed investigation into the nature and form of economic empowerment initiatives, pertaining specifically to business transactions;

• An examination of the trickle-down effects of empowerment initiatives in the private and public domain on the quality of life of ordinary disadvantaged South Africans;

• The development of benchmarks and criteria as to what would constitute meaningful and sustainable empowerment initiatives in both private and public domains;

• The compilation of pronouncements on the efficacy, long-term consequences and benefit of empowerment initiatives and processes to date; and

• The formulation, popularisation and implementation of monitoring and evaluation mechanisms against which empowerment initiatives and transactions will be assessed.

The Black Business Council approved the final report of the BEE Commission, and proceeded to hand it over to the government at a meeting presided over by former president Thabo Mbeki, with economic cluster ministers in attendance during mid-2001.

Key role played by BMF

The BMF is a thought-leadership organisation that has, among other initiatives, taken interest in socio-economic transformation of our country, in pursuit of socio-economic justice, fairness and equity.

It continues to be vocal on these matters and has been subjecting Corporate South Africa to checks and balances, while encouraging participation of the broader South African stakeholders.

The BMF then spearheaded the BEE Commission, which was preceded by the Stellenbosch conference in November 1997.

The conference had embraced the vision for black people to direct and be in charge of the new vision for BEE. The objectives were as highlighted previously.

The Commission was further expected to develop a coherent strategy for BEE, to locate the empowerment project as part of transforming South Africa, and to examine ways in which black business can speak with a united voice.

The BMF has been championing the cause of BEE, and became a part of informing the Broad Based Black Economic Empowerment Act, 53 of 2003, which was promulgated in January 2004.

The goal of BBBEE was then envisioned to distribute wealth across the broad spectrum of South African society.

Subsequently, the BMF played a pivotal role in formulating the seven elements of the Codes of Good Practice (CoGP), to ensure there would be a way to measure and regulate BBBEE implementation.

Pillars that guide the CoGP are:

• Shareholder equity

• Management equity

• Employment equity

• Skills development

• Preferential procurement

• Enterprise development

• Corporate social responsibility

Alongside these developments, key sectoral charters were developed, for example:

• The Mining Sector Charter

• The Financial Sector Charter

• The Financial Sector Scorecard

• The ICT Sector Charter

• The Agriculture Sector Framework

• The Oil Industry Charter

• The Maritime Transport Strategy

While charters do not comprehensively deliver on the broader transformation goals and objectives, BBBEE continues to be one of the most comprehensive strategies addressing socio-economic transformation imperatives to date.

BBQ’s half century

December marks the 50th edition of Black Business Quarterly. It is a journey made possible by the all-weather support from advertisers, printers, distributors, contributors, subscribers, readers, the dynamic sales team, entire BBQ staff, management and all stakeholders.

Look out for this special occasion – and here’s to a lasting relationship!

BBQ correspondents