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National State of Transformation and Trend Analysis Sectoral Report B-BBEE COMMISSION a member of group

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  • National State of Transformationand Trend Analysis

    Sectoral Report

    B-BBEECOMMISSION

    a member of group

  • 2 - National State of Transformation and Trend Analysis Report

  • National State of Transformation and Trend Analysis Report -3

    Contents

    1. INTRODUCTION........................................................................................................................................................52. BEE SCORECARD RESEARCH......................................................................................................................................52.1. Methodology of BEE Scorecard Research at Sectoral Level...............................................................................................52.2. StatsSAIndustryClassifications.........................................................................................................................................62.3. Analysis at Industry Level..................................................................................................................................................72.4. Analysis at Major Division Level.................................................................................................................................82.4.1. Industry1-Agriculture,Hunting,ForestryandFishing.....................................................................................................112.4.1.1. Agriculture,Hunting&RelatedServicesMajorDivision11............................................................................................112.4.1.2. Forestry,Logging&RelatedServicesMajorDivision12.................................................................................................122.4.1.3. Fishing,OperationofFishHatcheriesandFishFarmsMajorDivision13........................................................................122.4.2. Industry 2 - Mining and Quarrying............................................................................................................................132.4.2.1. MiningofCoal&LigniteMajorDivision21 ............................................................................................................142.4.2.2. MiningofMetalsOres,ExceptGold&UraniumMajorDivision24................................................................................142.4.2.3. OtherMining&QuarryingMajorDivision25.................................................................................................................142.4.2.4. ServiceActivitiesIncidentaltoMiningofMineralsMajorDivision29............................................................................142.4.3. Industry 3 - Manufacturing.......................................................................................................................................142.4.3.1. Manufacture:FoodProducts&BeveragesMajorDivision30......................................................................................152.4.3.2. Manufacture:Wood&WoodProducts,Paper,PrintingAndPublishingMajorDivision32.........................................162.4.3.3. Manufacture:OtherNon-MetallicMineralProductsMajorDivision34.......................................................................172.4.3.4. Manufacture:BasicMetals,FabricatedMetalMajorDivision35.................................................................................172.4.3.5. Manufacture:ElectricalMachinery&ApparatusMajorDivision36.............................................................................172.4.3.6. Manufacture:Radio,Television&CommunicationEquipment;Medical,Precision&OpticalInstruments; Watches&ClocksMajorDivision37..............................................................................................................................182.4.3.7. Manufacture:TransportationEquipmentMajorDivision38........................................................................................182.4.3.8. Manufacture:Furniture&ManufacturingNECMajorDivision39...............................................................................182.4.4. Industry 4 - Electricity, Gas and Water Supply...........................................................................................................192.4.4.1. Electricity,Gas,Steam&HotWaterSupplyMajorDivision41.......................................................................................192.4.4.2. Collection,Purification&DistributionofWaterMajorDivision42................................................................................192.4.5. Industry 5 - Construction...........................................................................................................................................202.4.5.1. ConstructionMajorDivision50......................................................................................................................................202.4.6. Industry6-WholesaleandRetailTrade,RepairofMotorVehicles,MotorCyclesandPersonaland HouseholdGoods,HotelsandRestaurants.......................................................................................................................212.4.6.1. Wholesale&CommissionTrade,ExceptOfMotorVehicleAndMotorCyclesMajorDivision61..................................212.4.6.2. RetailTrade,ExceptOfMotorVehiclesAndMotorCycles;RepairOfPersonalHouseholdGoodsMajorDivision62....222.4.6.3. Sale,Maintenance&RepairOfMotorVehiclesAndMotorCycles;RetailTradeInAutomotiveFuel MajorDivision63............................................................................................................................................................22

  • 4 - National State of Transformation and Trend Analysis Report

    2.4.6.4. Hotels&RestaurantsMajorDivision64................................................................................................................................222.4.7. Industry 7 - Transport, Storage and Communication............................................................................................................................232.4.7.1. LandTransport;TransportviaPipelinesMajorDivision71...................................................................................................232.4.7.2. WaterTransportMajorDivision72........................................................................................................................................242.4.7.3. AirTransportMajorDivision73............................................................................................................................................242.4.7.4. Supporting&AuxiliaryTransportActivities;ActivitiesofTravelAgenciesMajorDivision74................................................252.4.7.5. Post&TelecommunicationMajorDivision75.......................................................................................................................252.4.8. Industry 8 - Financial Intermediation, Insurance, Real Estate and Business Services............................................................................262.4.8.1. FinancialIntermediation,ExceptInsurance&PensionFundingMajorDivision81..............................................................262.4.8.2. InsuranceAndPensionFunding,ExceptCompulsorySocialSecurityMajorDivision82.......................................................272.4.8.3. ActivitiesAuxiliaryToFinancialIntermediationMajorDivision83........................................................................................272.4.8.4. RealEstateActivitiesMajorDivision84.................................................................................................................................282.4.8.5. RentingOfMachinery&Equipment,WithoutOperator,&OfPersonal&HouseholdGoodsMajorDivision85.................282.4.8.6. Computer&RelatedActivitiesMajorDivision86.................................................................................................................292.4.8.7. ResearchandDevelopmentMajorDivision87.......................................................................................................................292.4.8.8. BusinessActivitiesMajorDivision88.....................................................................................................................................302.4.9. Industry 9 - Community, Social and Personal Services.........................................................................................................................302.4.9.1. PublicAdministration&DefenceActivitiesMajorDivision91.............................................................................................312.4.9.2. EducationMajorDivision92..................................................................................................................................................312.4.9.3. Health&SocialWorkMajorDivision93................................................................................................................................322.4.9.4. OtherCommunity&PersonalServiceActivitiesMajorDivision94.......................................................................................322.4.9.5. ActivitiesofMembershipOrganisationsNECMajorDivision95...........................................................................................332.4.9.6. Recreational&SportingActivitiesMajorDivision96.............................................................................................................332.4.9.7. OtherServiceActivitiesMajorDivision99............................................................................................................................332.5. Top 3 Rating Agencies per Industry.....................................................................................................................................................343. DIRECTOR ANALYSIS BY MAJOR DIVISION...........................................................................................................................................343.1. MethodologyofDirectorResearch(Sectoral)..........................................................................................................................353.2. Keyfindingsareasfollows:......................................................................................................................................................353.2.1. %ofDirectorshipsHeldbyBlackIndividuals...........................................................................................................................363.2.2. %ofDirectorshipsHeldbyBlackSouthAfricans.....................................................................................................................363.2.3. %ofDirectorshipsHeldbyBlackSouthAfricanWomen.........................................................................................................373.2.4. %ofExecutiveDirectorshipsHeldbyBlackIndividuals...........................................................................................................373.2.5. %ofExecutiveDirectorshipsHeldbyBlackSouthAfricans.....................................................................................................373.2.6. %ofExecutiveDirectorshipsHeldbyBlackSouthAfricanWomen.........................................................................................383.2.7. %ofallDirectorshipsHeldbyBlackSouthAfricansClassifiedbyMarketCapitalisation.........................................................383.2.8. %ofallExecutiveDirectorshipsHeldbyBlackSouthAfricansbyMarketCapitalisation.........................................................393.2.9. %ofallDirectorshipsHeldbyBlackSouthAfricansClassifiedbyNumberofCompanyEmployees.......................................393.2.10. %ofallExecutiveDirectorshipsHeldbyBlackSouthAfricansClassifiedbyNumberofCompanyEmployees.......................40

  • National State of Transformation and Trend Analysis Report -5

    1. INTRODUCTION

    TheBroad-BasedEconomicEmpowerment(B-BBEE)CommissioncommissionedWhoOwnsWhom(Pty)Ltd(WOW)inAugust2016toconductaresearchstudyonthenationalstateoftransformation,collectandanalyserealtimedatabyeconomicsectorsontheB-BBEE,withthefocusbeingonB-BBEEcertificatesissuedandaffidavits. TheproposedresearchwastocollectandanalysedatawithregardtothestatusofB-BBEEcertificatesissuedbyverifica-tionagenciesfromApril2014toMarch2016andinlinewiththe5elementsofB-BBEEandpresenttheresultsaccordingtheIndustrySectorsasdefinedbyStatisticsSouthAfrica.Thesecondpartofthestudywastoanalysedirectorshipsatindustry levels.

    2. BEE SCORECARD RESEARCH

    2.1. Methodology of BEE Scorecard Research at Sectoral Level

    WOWmaintainsadatabaseof15,261SouthAfrican,AfricanandInternationalcompaniesoperatingin280businesssec-torsasdefinedbytheStandardIndustrialClassificationCode(SICC)providedbyStatisticalServicesSouthAfrica.Forthepurposeofthisstudy,researchwasrestrictedtocompanieswhereratinginformationwasavailablefortheperiod1April2014to31March2016.Forthepurposesofsectoralanalysisandtoavoidduplication,onlylatestratinginformationforacompanyovertheperiodwasused.

    CompanieswereassessedastowhetheraBEECertificatehadbeenmadeavailableandtheaverageofblackownershipandblackfemaleownershipisshownlinkedtoeachfiletypecaptured.

    File Type Companies Black Ownership Average Black Female Ownership Average

    Affidavit 57 34.78 14.19BEECertificate 4171 32.22 10.56BEEStatusLetter 19 20.50 12.22BEEVerificationLetter 8 16.97 1.71OwnershipCertificate 5 80.45 14.94NoFileattached 1001Total 5261

    ElementsoftheBEECertificatewerecapturedontoadatabase.Inordertoequatetheoldelementswiththenewele-ments,themergedelementswerecalculatedasfollows: TheoldManagementControlandEmploymentEquityelementswerecombinedataratioof47.368%:52.632%forthenewelementManagement Control. TheoldPreferentialProcurementandEnterpriseDevelopmentelementswerecombinedataratioof62.5%:37.5%toobtainthenewelementEnterprise and Supplier Development.

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    2.2 StatsSA Industry Classifications

    1 Agriculture, Hunting, Forestry and Fishing 11 Agriculture, Hunting & Related Services 12 Forestry, Logging & Related Services 13 Fishing, Operation of Fish Hatcheries and Fish Farms

    2 Mining and Quarrying 21 Mining of Coal & Lignite 23 Mining of Gold & Uranium Ore 24 Mining of Metals Ores, Except Gold & Uranium 25 Other Mining & Quarrying 29 Service Activities Incidental to Mining of Minerals

    3 Manufacturing 30 Manufacture : Food Products & Beverages 31 Manufacture : Textiles, Clothing & Leather 32 Manufacture : Wood & Wood Products, Paper, Printing And Publishing 33 Manufacture : Coke, Refined Petroleum Products & Chemicals 34 Manufacture : Other Non-Metallic Mineral Products 35 Manufacture : Basic Metals, Fabricated Metal 36 Manufacture : Electrical Machinery & Apparatus

    37 Manufacture : Radio, Television & Communication Equipment; Medical, Precision & Optical Instruments; Watches & Clocks

    38 Manufacture : Transportation Equipment 39 Manufacture : Furniture & Manufacturing NEC

    4 Electricity, Gas and Water Supply 41 Electricity, Gas, Steam & Hot Water Supply 42 Collection, Purification & Distribution of Water

    5 Construction 50 Construction

    6 Wholesale and Retail Trade, Repair of Motor Vehicles, Motor Cycles and Personal and Household Goods, Hotels and Restaurants 61 Wholesale & Commission Trade, Except Of Motor Vehicle And Motor Cycles 62 Retail Trade, Except Of Motor Vehicles And Motor Cycles; Repair Of Personal Household Goods 63 Sale, Maintenance & Repair Of Motor Vehicles And Motor Cycles; Retail Trade In Automotive Fuel 64 Hotels & Restaurants

    7 Transport, Storage and Communication 71 Land Transport; Transport via Pipelines 72 Water Transport 73 Air Transport 74 Supporting & Auxiliary Transport Activities; Activities of Travel Agencies 75 Post & Telecommunication

    8 Financial Intermediation, Insurance, Real Estate and Business Services 81 Financial Intermediation, Except Insurance & Pension Funding 82 Insurance And Pension Funding, Except Compulsory Social Security 83 Activities Auxiliary To Financial Intermediation 84 Real Estate Activities 85 Renting Of Machinery & Equipment, Without Operator, & Of Personal & Household Goods 86 Computer & Related Activities 87 Research and Development 88 Business Activities

    9 Community, Social and Personal Services 91 Public Administration & Defence Activities 92 Education 93 Health & Social Work 94 Other Community & Personal Service Activities 95 Activities of Membership Organisations NEC 96 Recreational & Sporting Activities 99 Other Service Activities

    Industry and Majory Division DescriptionTwo-DigitCode

  • National State of Transformation and Trend Analysis Report -7

    2.3 Analysis at Industry Level

    Percentages Achieved Against Component Targets

    Recognition Levels and Black Ownership

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    2.4. Analysis at Major Division Level

    0.00

    20.00

    40.00

    60.00

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    100.00

    120.00

    Ownership

    0.00

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    80.00

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    120.00

    ManagementAndControl

  • National State of Transformation and Trend Analysis Report -9

    0.0010.0020.0030.0040.0050.0060.0070.0080.0090.00

    SkillsDevelopment

    0.00

    20.00

    40.00

    60.00

    80.00

    100.00

    120.00

    EnterpriseAndSupplierDevelopment

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    SocioEconomicDevelopment

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    0.00

    10.00

    20.00

    30.00

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    50.00

    60.00

    AverageofBEEBlackOwnership

    0.00

    5.00

    10.00

    15.00

    20.00

    25.00

    AverageofBEEBlackFemaleOwnership

  • National State of Transformation and Trend Analysis Report -11

    2.4.1. Industry 1 - Agriculture, Hunting, Forestry and Fishing

    TheagriculturalsectorcomprisestheAquaculture,ForestryandHuntingsub-sectors. Theindustrycharterwhichsetsanownershiptargetof30%wasestablishedin2009andmaturesaftertenyears.During2015theMinisterconfirmedthatthecharterremainstheprevailinglegislationforthesector.

    ThesectorhasstatisticallyperformedwellintheEnterpriseDevelopment,SocialDevelopmentandOwnershipcompo-nentsofthescorecardbutfallsshortonManagementandSkillsDevelopmentwiththeForestrysub-sectorscoringthelowestonManagement.

    ThesectorreflectsthenationalstatisticaltrendofhighBBEEErecognitionlevelscontrastingwithlowblackandblackwomenownershipscores.BBEEErecognitionlevelsexceed90%withblackownershiplargelybelow40%andblackwom-enownershipbelow20%.

    Auniquefeatureoftheindustryisthatbonusincentivespointsareearnedforthesaleoflandbywhitefarmerstoblackfarmers.Anoriginalfeatureoftheforestryindustryisthecreationofthousandsofsmallblackwomenfarmerswhoareassistedinthestart-upandtreegrowingstagesofplantationdevelopmentandareguaranteedamarketfortheproduct.

    ThenumberofcompaniesscoringLevel5andaboveincreasedfrom63.04%to71.43%year-on-yearandoverthesameperiodtherewasasignificantincreaseinthenumberofcompaniesreachingLevel2,from10.87%to33.33%.

    2.4.1 Agriculture, Hunting & Related Services Major Division 11

  • 12 - National State of Transformation and Trend Analysis Report

    2.4.1.2. Forestry, Logging & Related Services Major Division 12

    2.4.1.3. Fishing, Operation of Fish Hatcheries and Fish Farms Major Division 13

  • National State of Transformation and Trend Analysis Report -13

    2.4.2. Industry 2 - Mining and Quarrying

    Thissectorcomprisestheminingofcoal,preciousmetals,ironandquarrying.

    Theindustrycharter,whichsetanownershiptargetof26%by2014,iscurrentlybeingre-negotiatedbytheindustryandthestate.Thisdiscussionincludestheonceempowered,alwaysempoweredprinciple.Theissueandretentionofmininglicencesisdependentontheadherencetoregulationwhichisamotivationforallpartiestoachieveclarityinthisregard.

    Thesectorhasstatisticallyperformedwell intheEnterpriseDevelopment,SocialDevelopmentandOwnershipcompo-nentsofthescorecardbutfallsshortonManagementandSkillsDevelopment.TheCoalsub-sectorscoressubstantiallyhigherthantheaverageforEnterpriseDevelopment.

    The sector reflects thenational statistical trendofhighBBEEE recognition levels contrastingwith lowblackandblackwomenownershipscores.BBEEErecognitionlevelsexceed70%withblackownershiplargelybelow40%andblackwomenownershipbelow20%.

    ThenumberofcompaniesscoringLevel5andabovedecreasedfrom34.07%to30.00%year-on-year.

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    2.4.2.1. Mining of Coal & Lignite Major Division 21

    2.4.2.2. Mining of Metals Ores, Except Gold & Uranium Major Division 24

    2.4.2.3. Other Mining & Quarrying Major Division 25

  • National State of Transformation and Trend Analysis Report -15

    2.4.2.4. Service Activities Incidental to Mining of Minerals Major Division 29

    2.4.3. Industry 3 - Manufacturing

    Thissectorcoversabroadrangeofsectorsincludingthemanufactureoffoodproducts,whitegoodsandmotorvehicles,aswellastheprintingandpublishingsub-sectors.

    Ingeneral,themanufacturingindustryscoreswellbelowthenationalaverageonallcomponentsofthescorecard.ThereareafewexceptionssuchasOwnershipfortheElectricalandPublishingsub-sectors,withthelatteralsoexceedingthenationalaverageforManagement.Contrarytothetrendinothersectors,themanufacturingsectorscoresbelowaverageforBBEEErecognitionlevels,blackownershipandblackwomenownershiplevels.

    ThenumberofcompaniesscoringLevel5andabovedecreasedfrom57.72%to54.47%year-on-year.

  • 16 - National State of Transformation and Trend Analysis Report

    2.4.3.1. Manufacture : Food Products & Beverages Major Division 30

    31 Manufacture : Textiles, Clothing & Leather

    2.4.3.2. Manufacture : Wood & Wood Products, Paper, Printing And Publishing Major Division 32

  • National State of Transformation and Trend Analysis Report -17

    2.4.3.3. Manufacture : Other Non-Metallic Mineral Products Major Division 34

    2.4.3.4. Manufacture : Basic Metals, Fabricated Metal Major Division 35

    2.4.3.5. Manufacture : Electrical Machinery & Apparatus Major Division 36

  • 18 - National State of Transformation and Trend Analysis Report

    2.4.3.6. Manufacture : Radio, Television & Communication Equipment; Medical, Precision & Optical Instruments; Watches & Clocks Major Division 37

    2.4.3.7. Manufacture : Transportation Equipment Major Division 3

    2.4.3.8. Manufacture : Furniture & Manufacturing NEC Major Division 39

  • National State of Transformation and Trend Analysis Report -19

    2.4.4. Industry 4 - Electricity, Gas and Water Supply

    2.4.4.1. Electricity, Gas, Steam & Hot Water Supply Major Division 41

    2.4.4.2. Collection, Purification & Distribution of Water Major Division 42

  • 20 - National State of Transformation and Trend Analysis Report

    2.4.5. Industry 5 - Construction

    Thissectorisdependentonstatespendingonthemaintenanceanddevelopmentofinfrastructure.ThesectorreflectsthenationalstatisticaltrendofhighBBEEErecognitionlevelscontrastingwithlowblackandblackwomenownershipscores.BBEEErecognitionlevelsexceed70%withblackownershiplargelybelow40%andblackwom-enownershipbelow10%.

    TheconstructionsectorsubstantiallyexceedsthenationalaverageforSkillsDevelopmentandthereisaveryhighlevelofconcentrationofcompaniesscoringatLevel2.ThenumberofcompaniesscoringLevel5andaboveincreasedmateriallyfrom64.42%to73.35%year-on-year.

    2.4.5.1. Construction Major Division 50

  • National State of Transformation and Trend Analysis Report -21

    2.4.6. Industry 6 - Wholesale and Retail Trade, Repair of Motor Vehicles, Motor Cycles and Personal and Household Goods, Hotels and Restaurants

    Thissectorislargelyconsumer-orientatedandthereforenotdependentonstatespend.Thereiscurrentlynosector-spe-cificcharter.

    ScoresaregenerallybelowthenationalaveragewiththeexceptionoftheMotorVehicleandHotelsegments,whicharesignificantlyaboveaverageonallcomponentsofthescorecardwiththeexceptionofManagement.

    ThesectorreflectsthenationalstatisticaltrendofhighBBEEErecognitionlevelscontrastingwithlowblackandblackwomenownershipscores.ThenumberofcompaniesscoringLevel5andabovedecreasedfrom60.60%to55.41%year-on-year.

    2.4.6.1. Wholesale & Commission Trade, Except Of Motor Vehicle And Motor Cycles Major Division 61

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    2.4.6.2. Retail Trade, Except Of Motor Vehicles And Motor Cycles; Repair Of Personal Household Goods Major Division 62

    2.4.6.3. Sale, Maintenance & Repair Of Motor Vehicles And Motor Cycles; Retail Trade In Automotive Fuel Major Division 63

    2.4.6.4. Hotels & Restaurants Major Division 64

  • National State of Transformation and Trend Analysis Report -23

    2.4.7. Industry 7 - Transport, Storage and Communication

    ThissectorincludestheAviation,BusandCoach,Logistics,TaxisandRailsub-sectors. Anownershiptargetof35%hasbeensetfortheBusandCoachsub-sectorand15%fornewblackentrantsintotheRailsegment.AlthoughtheAviationsectorcurrentlycomesbelowthenationalaverageinallcomponentsofthescorecard,roleplayershaveagreedtotargetsof10%forblackpilotsand30%forblacktechnicians.TravelAgenciesexceedthena-tionalaverageinallcomponentsexceptOwnership.

    ThenumberofcompaniesscoringLevel5andaboveisveryhighandincreasedfrom71.76%to80.70%year-on-year.

    2.4.7.1. Land Transport; Transport via Pipelines Major Division 71

  • 24 - National State of Transformation and Trend Analysis Report

    2.4.7.2. Water Transport Major Division 72

    2.4.7.3. Air Transport Major Division 73

  • National State of Transformation and Trend Analysis Report -25

    2.4.7.4. Supporting & Auxiliary Transport Activities; Activities of Travel Agencies Major Division 74

    2.4.7.5. Post & Telecommunication Major Division 75

  • 26 - National State of Transformation and Trend Analysis Report

    2.4.8. Industry 8 - Financial Intermediation, Insurance, Real Estate and Business Services

    Thesectorcodeacceptstheonceempowered-alwaysempoweredprinciplealthoughownershipinthefinancesectorhasbeenhistoricallyproblematicduetostatutorycapitalrequirements.Auniquefeatureofthefinancecodeisthecom-mitmenttoinvestR122bninblackindustrialists,empowermenttransactionsandSMMEsandtobankmarginalisedareas.

    TheInsuranceandPensionFundingsectorsexceedthenationalaverageforallcomponentsofthescorecard,whileRealEstateexceedsonOwnershipbutisbelowaverageforManagement.TheICTchartersetsownershipat30%andawardsadditionalpointsforSkillsDevelopmentandProcurement.ThenumberoffinancialcompaniesscoringLevel5andaboveishighandincreased74.23%to79.25%year-on-year.Overall,40%ofthecompaniesinthissectorareatLevel2.

    2.4.8.1. Financial Intermediation, Except Insurance & Pension Funding Major Division 81

  • National State of Transformation and Trend Analysis Report -27

    2.4.8.2. Insurance And Pension Funding, Except Compulsory Social Security Major Division 82

    2.4.8.3. Activities Auxiliary To Financial Intermediation Major Division 83

  • 28 - National State of Transformation and Trend Analysis Report

    2.4.8.4. Real Estate Activities Major Division 84

    2.4.8.5. Renting Of Machinery & Equipment, Without Operator, & Of Personal & Household Goods Major Division 85

  • National State of Transformation and Trend Analysis Report -29

    2.4.8.6. Computer & Related Activities Major Division 86

    2.4.8.7. Research and Development Major Division 87

  • 30 - National State of Transformation and Trend Analysis Report

    2.4.8.8. Business Activities Major Division 88

    2.4.9. Industry 9 - Community, Social and Personal Services

  • National State of Transformation and Trend Analysis Report -31

    2.4.9.1. Public Administration & Defence Activities Major Division 91

    2.4.9.2. Education Major Division 92

  • 32 - National State of Transformation and Trend Analysis Report

    2.4.9.3. Health & Social Work Major Division 93

    2.4.9.4. Other Community & Personal Service Activities Major Division 94

  • National State of Transformation and Trend Analysis Report -33

    2.4.9.5. Activities of Membership Organisations NEC Major Division 95

    2.4.9.6. Recreational & Sporting Activities Major Division 96

    2.4.9.7. Other Service Activities Major Division 99

  • 34 - National State of Transformation and Trend Analysis Report

    2.5. Top 3 Rating Agencies per Industry

    1 . Agriculture, Hunting, Forestry and FishingEmpowerdex(Pty)Ltd 35.85%PremierVerification(Pty)Ltd 20.75%EmpowerLogic(Pty)Ltd 5.66%

    2. Mining and QuarryingBEEVerificationAgencyCC 22.03%Empowerdex(Pty)Ltd 22.03%SizweNtsalubaGobodo(PreviouslySizweNtsalubaVSP) 11.86%

    3. Manufacturing Empowerdex(Pty)Ltd 21.33%EmpowerLogic(Pty)Ltd 6.17%AQRate(Pty)Ltd 5.92%

    4. Electricity, Gas and Water Supply Empowerdex(Pty)Ltd 22.22%NationalEmpowermentRatingAgencyt/aNERA 14.81%EmpowerLogic(Pty)Ltd 14.81%

    5. Construction EmpowerLogic(Pty)Ltd 21.88%BEEVerificationAgencyCC 16.41%BEE-Matrix(Pty)Ltd 7.81%

    6. Wholesale and Retail Trade, Repair of Motor Vehicles, Motor Cycles and Personal and Household Goods, Hotels and RestaurantsEmpowerdex(Pty)Ltd 32.51%AQRate(Pty)Ltd 11.34%BEEDirectConsultingCCt/aBEERatings-SA 5.10%

    7. Transport, Storage and CommunicationEmpowerdex(Pty)Ltd 26.24%AQRate(Pty)Ltd 17.49%EmpowerLogic(Pty)Ltd 6.41%

    8. Financial Intermediation, Insurance, Real Estate and Business ServicesEmpowerdex(Pty)Ltd 29.83%AQRate(Pty)Ltd 12.49%EmpowerLogic(Pty)Ltd 8.37%

    9. Community, Social and Personal ServicesEmpowerdex(Pty)Ltd 39.26%EmpowerLogic(Pty)Ltd 13.50%LesegoVanGodimo 7.06%

  • National State of Transformation and Trend Analysis Report -35

    3. DIRECTOR ANALYSIS BY MAJOR DIVISION

    3.1. Methodology of Director Research (Sectoral)

    WOWmaintainsadatabaseof63,234SouthAfrican,otherAfrican,andoffshorecompaniesdirectorshipsi.e.directorscur-rentappointments.Inadditiontotheirfullboarddesignationsandcommitteememberships,biographicalanddemographicalinformationhasbeencollectedonthesedirectors.Thisincludes,butisnotlimitedto,theirfullnames,dates-of-birth,genders,races,qualifications,andcitizenships.ThisinformationwascollectedfromvariousindependentsourcesincludingCIPCrecords,creditbureaus,disclosedcompanyreports,companywebsites,andbusiness/employment-orientedsocialnetworkingservices.

    Forthepurposeofthisstudy,thedatabasewasrestrictedtothecompaniescurrentlyactively-listedontheJSEasat11October2016.Fromthis,therewere3,255activeappointmentsasatthisdate.

    3.2. Key findings are as follows:

    Themajordivision(SICC)withthehighestpercentageofdirectorshipsheldbyblackindividuals: 13-Fishing,OperationofFishHatcheriesandFishFarms

    Themajordivisionwiththelowestpercentageofdirectorshipsheldbyblackindividuals: 39-Manufacture:Furniture&Manufacturing

    ThemajordivisionswiththehighestpercentageofdirectorshipsheldbyblackSouthAfricans: 13-Fishing,OperationofFishHatcheriesandFishFarms;followedby 96-Recreational&SportingActivities

    ThemajordivisionswiththehighestpercentageofdirectorshipsheldbyblackSouthAfricanwomen: 83-ActivitiesAuxiliaryToFinancialIntermediation

    ThemajordivisionswiththelowestpercentageofdirectorshipsheldbyblackSouthAfricanwomen: 39-Manufacture:Furniture&Manufacturing;alongwith 42-Collection,Purification&DistributionofWater;and 74-Supporting&AuxiliaryTransportActivities;ActivitiesofTravelAgencies

    Themajordivisionwiththehighestpercentageofexecutivedirectorshipsheldbyblackindividuals: 13-Fishing,OperationofFishHatcheriesandFishFarms

    ThemajordivisionswiththehighestpercentageofexecutivedirectorshipsheldbyblackSouthAfricans: 13-Fishing,OperationofFishHatcheriesandFishFarms;followedby 96-Recreational&SportingActivities;followedby 34-Manufacture:OtherNon-MetallicMineralProducts

    ThemajordivisionswiththehighestpercentageofexecutivedirectorshipsheldbyblackSouthAfricanwomen: 34-Manufacture:OtherNon-MetallicMineralProducts;followedby 72-WaterTransport;followedby 36-Manufacture:ElectricalMachinery&Apparatus

    ThehighestpercentageofdirectorshipsheldbyblackSouthAfricans(relativetoothers)arefoundwithinlistedcompanieswithlargemarketcapitalisation(definedhereasgreaterthanR10bn).Thisisfollowedbycompanieswithsmallmarketcapitalisation(lessthanR1bn),whichiscloselyfollowedbymidcapcompanies.

    ThehighestpercentageofexecutivedirectorshipsheldbyblackSouthAfricansarefoundwithin listedcompanieswithlargemarketcapitalisation.Thisis,again,followedbycompanieswithsmallmarketcapitalisation,whichisfollowedbymidcapcompanies.

  • 36 - National State of Transformation and Trend Analysis Report

    ThehighestpercentageofexecutivedirectorshipsheldbyblackSouthAfricansarefoundwithin listedcompanieswithlargemarketcapitalisation.Thisis,again,followedbycompanieswithsmallmarketcapitalisation,whichisfollowedbymidcapcompanies.

    ThehighestpercentageofdirectorshipsheldbyblackSouthAfricansarefoundwithinlistedcompanies(orgroups)witharelativelylargeofemployees(definedhereasgreaterthan200employees).

    Similarly,thehighestpercentageofexecutivedirectorshipsheldbyblackSouthAfricansarefoundwithinlistedcompanies(orgroups)witharelativelylargeofemployees.

    3.2.1. % of Directorships Held by Black Individuals

    3.2.2. % of Directorships Held by Black South Africans

  • National State of Transformation and Trend Analysis Report -37

    3.2.3. % of Directorships Held by Black South African Women

    3.2.4. % of Executive Directorships Held by Black Individuals

    3.2.5. % of Executive Directorships Held by Black South Africans

  • 38 - National State of Transformation and Trend Analysis Report

    3.2.6. % of Executive Directorships Held by Black South African Women

    3.2.7. % of all Directorships Held by Black South Africans Classified by Market Capitalisation

    SmallCap(R10bn)

  • National State of Transformation and Trend Analysis Report -39

    3.2.8. % of all Executive Directorships Held by Black South Africans by Market Capitalisation

    3.2.9. % of all Directorships Held by Black South Africans Classified by Number of Company Employees

    Large(>200) SMME(