PetroSA Fuelling Empowerment through Broad-Based Black Economic Empowerment (B-BBEE)
Honouring our Mandate:
To PetroSA Transformation means the following:
- Contributing towards an inclusive society where the previously disadvantaged individuals are brought into the main stream of the economy;
- Enabling these individuals through various support measures to reach their full potential in participation and representation in critical structures of our economy;
- Fully capacitating these individuals with the right skills, expertise and knowledge to advance their business and career aspiration; so that ULTIMATELY such individuals can take up opportunities and their rightful place in changing the profile of the Oil and Gas Industry.
As a National Oil Company (NOC), our mandate is to drive transformation in the Oil and Gas industry. This includes making a significant contribution towards advancing the broader national objectives of the South African government such as economic growth, job creation and poverty alleviation, ultimately benefitting of all SA citizens.
In honouring our mandate, PetroSA continues to be at the forefront of spearheading transformation in the industry. This has been demonstrated by our B-BBEE 2014/15 audit results which placed PetroSA at B-BBEE contribution level 2 (from level 3) that is among the top performers in the industry. (Insert link to actual certificate)
Our organisational activities are rooted in and guided by two key legislative tools that have continued to influence our transformation interventions, namely the Petroleum and Liquid Fuels Charter (LFC) and the Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practices. We have contributed towards bringing about changes in business areas within the SA Oil and Gas industry. The following reflects on progress made in this regard:
Embracing B-BBEE Objectives as part of Business Strategy: In line with the newly revised B-BBEE Codes of Good Practice gazetted on 11 October 2013, PetroSA has already aligned its internal transformation strategy. This is geared towards supporting the key elements of the B-BBEE Codes of Good Practice, including Ownership, Management Control, Skills Development, Enterprise Supplier Development and Socio-Economic Development. Integral to the PetroSA Corporate Plan 2013-2017, our key objectives are to improve organisational capacity, demographics and effectiveness.
This will be achieved through the following:
- Promoting equal opportunity in all occupational categories and levels in the workplace via Employment Equity, with special emphasis on women and people living with disabilities; this agenda is driven by the organisations Employment Equity Forum and Women’s Council.
- Targeting skills enhancement through the development of critical and core competencies;
- Creating meaningful economic empowerment benefits through Preferential Procurement, primarily through B-BBEE sales;
- Driving the Enterprise and Supplier Development (ESD) Programme by providing business development support, including skills upgrades, technology transfer and access to funding for our current suppliers and customers; and
- Investing in the social upliftment of targeted groups through community social investment programmes.
Preferential Procurement: PetroSA supports the notion that preferential procurement is the most effective instrument to advance both the economic transformation of the South African economy and the participation of black people. Our procurement department has been geared towards facilitating the entry of B-BBEE compliant companies since 2002. Over the last 10 years, PetroSA supported Broad-Based Black Economic Empowerment (B-BBEE) with an enterprising preferential procurement programme. In 2003, procurement from black owned suppliers totaled a modest R 100 million. In 2014, over R9 billion was spent on broad based black empowered suppliers. PetroSA spent over R30 billion rands on preferential procurement to BBBEE Companies over the last 10 years.
To assist local B-BBEE enterprises to grow, create jobs and ultimately alleviate poverty, PetroSA continues to implement various interventions, which include the following:
- Awarding tenders either entirely or partially, to black owned enterprises;
- Permitting price matching for certain tenders;
- Allowing subcontracting and unbundling to assist B-BBEE suppliers that lack capacity for delivering the entire service required;
- Facilitating and encouraging joint ventures between B-BBEE and non-B-BBEE entities to enable transfer of skills and expertise;
- Arranging the expedition of early payment, which in this case may also include advance payments? In all instances the associated risk will be evaluated by the procurement and finance department; and
- Providing one-to-one and group training and advice relating to tendering on our E-Procurement System.