In this blog post we look at the challenges faced by multinational businesses in South Africa when it comes to compliance with the BBBEE codes. Our experts share advice on how skills development programmes can benefit the multinational business’ BEE rating.
BBBEE spotlight on the automotive industry
In the last quarter of 2016 the new BBBEE codes were in the spotlight with changes that has a serious impact on particularly the automotive industry. Because multinational vehicle manufacturers will now lose many points on the ownership element of the BEE scorecard, it is near impossible for them to maintain a level 4 rating.
This challenge is unfortunately true for all multinational businesses operating in South Africa. These companies are now being forced into some sort of ownership transaction, which could take years to finalise. For many industries, like the automotive industry, it is equally difficult to find black-owned businesses with which to trade for the procurement element of the BEE scorecard. And even this option usually has lengthy legal and regulatory processes to follow if suitable black-owned businesses are found.
Focus on skills development initiatives within Category B and C training
What multinational businesses should be focussing on while solving the dilemma of ownership and preferential procurement, is skills development. As a priority element of the scorecard, initiatives falling within Category B and C training will enable your business to achieve the maximum points under the skills development element, thereby helping your business’ overall rating. One of the advantages of a well-planned and strategic skills development programme, is that your company would be able to train community-based learners, which will have a further positive impact on the socio-economic development element of the scorecard.
Learnerships are categorised as Category C and at Triple E Training we offer NQF 1 to NQF 4 learnerships in business practice, and manufacturing and engineering related activities. The most popular learnership is the Business Practice NQF 4 qualification. Entry requirements for this learnership is ABET Level 3 for both numeracy and literacy. To become certified in this qualification learners must successfully pass eight subjects: Communication in English, Mathematics, Economic Management Sciences, Life Orientation, Technology, Human Social Sciences, Ethics, and Instruction and Planning.
The learnership is delivered on-site at the client’s premises and is presented as a simulation of theoretical knowledge and workplace learning of which your employees need to keep a learner log book. The exams are done as external assessments through the Independent Examination Board (IEB) and at the end of the learnership the NQF 1 qualification is issued by an accredited institution such as the Services SETA or MerSETA.
Because Triple E Training is a level 2 contributor and fully accredited by Umalusi, your company will also benefit on the procurement element of the scorecard, if you chose to outsource your skills development initiatives to us.
Get your free skills development needs analysis
For a free needs analysis by one of our experts in skills development programmes, call 010 597 7611 or contact us.