MASS MAIL 25 OCTOBER 2005 - TO BEE OR NOT TO BEE

FOUNDATION FOR THE DEVELOPMENT OF AFRICA
"Participation Builds Unity"

"MADE IN AFRICA - FOR AFRICA"

FDA NEWSLETTER

MASS MAIL
25 OCTOBER 2005
TO BEE OR NOT TO BEE
AFRICA INDIGO - A POSITIVE MESSAGE
COMMENT OD AFRICA'S PRIORITY PROJECTS
UPCOMING EVENTS SERVING AFRICA
(All)

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The FOUNDATION FOR THE DEVELOPMENT OF AFRICA proudly presents you with the following information that may add value to Africa's development. Please direct any correspondence to: info@isupportafrica.com

TO BEE OR NOT TO BEE
AFRICA INDIGO - A POSITIVE MESSAGE
COMMENT OD AFRICA'S PRIORITY PROJECTS
UPCOMING EVENTS SERVING AFRICA

BEE OR BEE
A number of issues have recently been raised on the much proclaimed and localized (South Africa) issue of BEE - Black Economic Empowerment. A high profiled conference is currently underway, here in South Africa, to actually measure the impact of this important initiative, important if one had to take into account the actual objective of this initiative. The Foundation for the Development of Africa strongly recommends the phrase BEE - Black Economic Empowerment be changed to BEE - Building Entrepreneurial Enterprises.
See:
http://www.foundation-development-africa.org/africa_black_business/index.htm

AFRICA INDIGO - A POSITIVE MESSAGE
Over the last few years the Foundation for the Development of Africa has added it's endorsement to a number of publications we believe add value to Africa's development. These publications provide a positive message regarding Africa and her well-being. We have just included two more to this list of preferred magazines:
See:
http://www.foundation-development-africa.org/fda_endorsements/publications.htm

AFRICA INDIGO, a high-quality, glossy magazine is aimed at the business traveller in and to Africa, as well as business executives on holiday. Readers are updated on the most important happenings in the African business world, covering all industries, with a focus on the Triple Bottom Line issues.

I will be proudly contributing to the wide ranging editorial covering our beloved Africa. Readers will also enjoy the lighter side of Africa in the exclusive, up-market lifestyle pages, opening windows to the best adventures and other opportunities on the continent.

AFRICA INDIGO will be financially contributing towards the well-being of the Foundation for the Development of Africa within the framework of their CSI - Corporate Social Investment programme.

Please support this publication with your advertising - you will be indirectly contributing to the well-being of the Foundation for the Development of Africa

See:
http://www.africaindigo.com

COMMENT ON AFRICA'S PRIORITY PROJECTS
We have received a number of comments regarding the list of Africa's priority projects for Africa.

Most comments have one thing in common - How can we participate in these projects?

The total budget proposed for development projects in Africa amount to a staggering US$108,710,500,000.00 - this could make a massive difference to Africa's development if our people are allowed to participate.

We have published these comments on our website and would welcome your comments - see:
http://www.foundation-development-africa.org/africa_development/nepad/nepad_general/africa_priority_programme_project_detail_2005.htm

UPCOMING EVENTS SERVING AFRICA
Our website features the most comprehensive list of UPCOMING EVENTS SERVING AFRICA.
http://www.foundation-development-africa.org/africa_upcoming_events/index.htm

I will be actively involved as chair to a conference on a pet topic of mine - PPP Public Private Partnerships - this event should be considered as a 'must attend' event:

ENDORSED BY THE FOUNDATION FOR THE DEVELOPMENT OF AFRICA
23-25 November, Sandton, South Africa (Sandton Sun Hotel) A marcus evans EVENT - Public Private Partnerships in Practice - This conference will provide a host of issues including: Exploring the PPP Process from Establishment to Implementation through to Managing the PPP; Effectively managing the PPP - deciding who is responsible; Highlighting the commitment needed for the partnership to work; Tenacity as the key to a successful PPP; Successfully managing the PPP - creating a win-win situation for all parties; Identifying Types of Projects which are Suitable for PPPs
Contact: Hennie POTGIETER - +27 11 516-1073
Email: henniep@marcusevanssa.com
Visit Website: http://marcusevans.datapro.co.za/pdfs/SA495.pdf
PLEASE NOTE: This is a PETER METCALFE (http://www.metcalfe4africa.com) chaired event!

Should you wish to add your event to our list of UPCOMING EVENTS SERVING AFRICA - Please send us your event detail: events@isupportafrica.com

For Africa to succeed in her efforts to develop and prosper ALL of Africa need to take hands - Caring FOR Africa is a way of life - caring ABOUT Africa is a 9 to 5 job!

HOW CAN I SUPPORT AFRICA?
Should you wish to participate in our "HOW CAN I SUPPORT AFRICA?" campaign - A campaign to mobilize the world to 'take hands' in support of Africa and her people!

First - Add your name to a growing list of names proclaiming - "YES! I support Africa"!
http://www.isupportafrica.com/isagen/names/index.htm

Secondly - Showcase and promote your business; business opportunities; investment opportunities and a host of issues adding value to Africa's development.
http://www.isupportafrica.com/isagen/business/index.htm

Our FDA PARTNERS provide a host of services and expertise in support of Africa's development - see:
http://www.fdapartners.net/partners/services.htm

We need you to support our efforts - please participate:
http://www.foundation-development-africa.org/fda_info/how_then_can_i_support_fda_africa.htm

Take care

COMMENTS RECEIVED

15 March 2006
Hi Peter
I have been watching the web site for several months and it is great to see the developments and exponential growth of interest. I have been involved in BEE (the SA version) for several years. Initially the focus on SME development was a hot potato that had a lot of horror stories. It is interesting to note that organizations are really trying to come to grips with how to kick-start this process.
As in so many areas of the South African transformation process, we are dealing with issues that do not have effective models that can be adopted from else-where in the world. These models have to be championed by organizations that are willing to be on the "bleading" edge.
I was encouraged to read the comments by Lloyd Liebenberg from WorkMed South Africa, outlining five areas that need to be addressed, namely,
1) Mentoring process.
2) A helpline with frameworks for policies and procedures,
3) A SARS Tax compliance helpdesk
4) A BEE advisory service.
5) Software to properly run a business.
I believe that all of these services are available, but lack the champion -with finances - to create the economies of scale to make this viable.
Currently there are a lot of organizations concentrating on the top echelon of companies, where large consulting fees can be charged. These best practices need to come into their own for the full strata of the economy. If this is not achieved, the SME market is going to be further marginalised instead of being placed in the fore-front of our societal change process.
Regards
Ian McDougall
Odirile Investment Holdings
South Africa

25 October 2005
Hi Peter,
In line with your contributions to Africa Indigo I thought you may be interested in a positive story in Africa:
M-Banking in Africa - showing signs of growth (See: SPECIAL PROJECTS SERVING AFRICA)
Ingrid Lotze
eCommunications
South Africa

25 October 2005
Hi Peter,
An interesting comment you made below about BEE.
I personally hate politically correct speech, or, in fact any form of trying to misrepresent something by couching it in more euphemistic terms.
However, you have hit the nail firmly on the head.
As a white South African, BEE to me is not about race, it's about economic development of groups that were undisputedly denied many priviledges under apartheid which has significantly stifled their development. To this end BEE is all about justice and doing what is right. The pie has to be shared more equitably, and lets face it: If all the previous people who could not afford to eat pie are able to eat pie in the future, can you imagine how big the pie will have to become in order to go around.
In other words it makes perfect economic sense.
What doesn't make sense is the manner in which it (BEE) is being done. Big corporates have the resources to throw at things like BEE compliance and can appoint specific people to drive their employment equity, skills development, social responsibility, enterprise development and so on.
A survey was done by SBP and notes that compliance costs represent 8.3% of turnover for businesses with a turnover of less than R1 million whereas for businesses with sales of more than R1 billion it is only 0.2% of turnover.
So SMME's are under enormous financial pressure when it comes to regulatory compliance.
Then Trevor threw us a bone and did away with RSC levies and made a few other small concessions for SMME's which really don't help very much. You see the problem is a bit deeper. SMME's are mainly founded on a certain product, skill, expertise which is marketable and the founder of the business sees an opportunity. However, although the founder may have skills in a certain area he/she may not know anything about all the other areas of business: marketing, bookkeeping, tax compliance, payroll, managing staff, drawing up contracts and the list goes on.
How does this person obtain all the other information and skills to successfully start and run the business as a healthy, growing concern?
How on earth is this poor individual supposed to develop things like an employment equity policy or a workplace skills plan?
The short answer is they can't and are therefore forced to throw money at it by contracting someone's expertise.
This is where the real expense lies for SMME's. It costs money to employ consultants. It takes a lot of time to develop proper policies and procedures to comply with BEE, tax compliance etc and this time is very costly to an SMME. Remember that even if you stripped away all the compliance problems it is DAMN hard to run a business successfully and it requires 100% of the founder's time.
There are all these foundations and organisations like the DTI, SBP and the like. Its acronym heaven out there. But do yourself a favour and try and get some actual information or assistance that will ACTUALLY help you.
What we need:
1) A mentoring process for at least the first year of operation and perhaps beyond.
2) A helpline to assist with questions and that can provide us with frameworks for policies and procedures, eg Draw up a quote, basic costing principles and profit margins, staff leave policies etc etc. They can also assist with legal compliance issues like OHSAct, basic conditions of employment etc
3) A SARS consultant/helpdesk to assist with Tax compliance
4) A BEE advisory service that can assist with development of policies/procedures and help source equity partners. Or a subsidy to assist in paying a consultant.
5) Free open source software to properly run a business from the books to e-mail and internet so that we are not crippled by license fees. Or a subsidy of some kind.
I could write a book but you get the idea. Information and expertise are our biggest costs and in order to Build Entrepreneurial Enterprises we have to find a way to get that knowledge to the small businessman to assist him/her in establishing and running a successful business. And it cannot be available to PDI's only because job creation is job creation and the employed person will not be whining about what colour their employer is. Jobs empower people, end of story.
Anyway, thanks for listening to my long winded rant. Enjoy your day !
Kind regards,
Lloyd Liebenberg
WorkMed
South Africa

25 October 2005
Dear Peter
It is with dismay to realise that there are people in this country who want to see a revolution led by disgruntled Black peolpe who have not seen the fruits of our freedom.
To suggest that BEE be renamed to some phrase relevant to you smacks of ignorance of the plight of Black people.
You cannot suggest that the damage done as of 6 April 1652 to be undone within 11 years.The Dutch East Indian Company had a deliberate plan to colonise Afrika and exploit its people and resources to the detriment of Afrika. What followed thereafter is history as they say.
Therefore you need to learn that for us to restore the land and wealth to the indigenous people, a deliberate plan from the present government has to be introduced to rectify the past. It is thus important that we have Affirmative Action and Broad Based Black Economic Empowerment.
The flaws that have been uncovered like few individuals gaining have to be removed so that everyone shares in the wealth.
It is thus too early to suggest we change the phrase whereas we have not even started empowering people.
For instance we have unscrupolous White business people who utilise the every same concept by making hungry Blacks to front for them. That suggests that some of your White compatriots want to see the perpetuation of White capital at the expense of Black misery. So you see we cannot even begin to change any phrases just to sound politically correct.
Rather allow us to define our circumstance so as to react to it in a way that seeks to build the country. Thereafter, we invite you to conferences and workshops that bring solutions to our plight we is simply Blacks are still excluded from the mainstream economy due to the legacy of the past. The few Blacks who have joined, you and me know how they squeezed through and that's by way of connections.
So in future lets make it a point that certain objectives are achieved before we change any phrases. We for instance stopped calling our government the 'apartheid government' because we succesfully removed it. Now it's the time to empower Blacks so as to have a happy nation.
I think we need to draw some inspiration from the people of Malaysia.
Regards,
Phemelo
Phemelo SEDITI
Fanyakazo
South Africa

All the peoples of South Africa need to learn from the past, then we have to let go of the past and look to the future - together.
Only then will we succeed in making this a better country for ALL - not just a select few.
Lets refrain from using terminology like "You/Us Blacks" and "Us/You Whites"
Peter METCALFE

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