THE ICT CHARTER

• Financial Management Education - It is submitted that
Financial management education and training be provided for
SMMEs and potential entrepreneurs. It is further submitted that
people in rural communities, in particular, are intimidated by
their lack of knowledge and understanding of financial
structuring and the attendant operational complexity related to
such structures. A possible partnership or collaboration
between the relevant SETA’s in the ICT sector and the Bank
SETA may help address this need through mechanisms such as
learnerships amongst others.
• SMMEs - The transformation of established white owned
companies into empowered companies is seen as posing a
threat to the development of SMME’s. Once traditionally white
owned companies have taken on a BEE partner such companies
are preferred to black owned SMME’s. The charter must ensure
the achievement of transformation in relation to this indicator
does not negatively impact the development and growth of
SMME’s.
• Limitations on BEE Shareholding - The working group must
address the issue where a BEE shareholder sells shares on the
open market or to a non-BEE third party. What effect will such a
transaction have on the balanced scorecard of that company
and the points accrued as a result of the original deal.
Recommendations
Funding
• State organizations like Ntsika, Khula, the Eastern Cape
Development Corporation and others should fund/finance the
development of BEE enterprises as opposed to just giving
guarantees. The procedures/processes of acquiring these
finances should be made favorable for black entrepreneurs. In
addition the visibility of these organizations needs to be
improved by mass advertising campaigns and a presence in
mainly black areas.
• While funding is a problem, so too is the criteria for funding (i.e.
traditional banking criteria such as balance sheet strength) and
public servants who control the funding who may not be
qualified to analyse business plans etc. Respondents in the Free
Third Working Draft Page 20 of 57