For broad-based black economic-empowerment (BBBEE) partnerships to work, both parties must derive benefits, or the partnership will fail, Moore Stephens BBBEE verification and consulting director Stanley Grau argues.

In an address at Interbuild Africa 2014, Grau said businesses sought empowerment partners that could offer the benefits of increased finance and operational capacity, as well as access to political influence, new markets, new product lines and expertise.

“From a BEE perspective, the most effective partnership is an operational one. “This is achieved when a black partner is integrated into the mainstream economy in a sustainable and accelerated manner. “Any form of partnership has value for BEE, as long as it drives the transformation of all broad-based elements to ensure sustainability,” he stated.

Further, Grau said it was important for entities to understand their own requirements before they decided on a suitable business partner. Similarly, potential black partners looking for ownership deals also needed to understand their own strengths and weaknesses before engaging with business.

He also discussed the types of BEE partners. Influential partners channelled their energy towards a more influential role and have political points of views, while operational partners normally have a business back- ground as they operated their businesses independently. Broad-based partners also comprised broad-based structures such as development trusts, union funds and business associate funds.

In terms of skills development, companies should identify employees who were able to and wanted to upskill. Employees should be placed on accredited training courses, which could be confirmed with the training facilities and sector education and training authorities.

Mentoring programmes for employees should also be structured, he stated, and pointed out that the amended BBBEE codes were directed at training black people.

Regarding preferential procurement, Grau suggested that suppliers be identified according to their accredited certificates.