Page 20 - FSC_AR Status Report

FOREST SECTOR CHARTER COUNCIL
QSEs achieved good scores in all 5 elements (Skills Development, Socio-Economic Development, Enterprise and Supplier Development, and Management Control) with the average score attained on Ownership. The trend on the Ownership performance suggests that Unenhanced QSEs are finding the Ownership element challenging to implement.
Exempted Micro Enterprise (EMEs)
EMEs are exempted from compliance with the scorecard. They can only achieve an automatic level 4 if unenhanced. Figure 8 below displays the level achieved amongst EMEs. Based on Figure 8, most EMEs are enhanced attaining either a level 1 or 2 respectively. The mode is level 1 and this trend differs from the Enhanced QSEs, suggesting that the level of Black Ownership amongst EMEs is higher than in QSEs.
Figure 8: Achieved level by EMEs
In conclusion, the sector achieved a level 3 B-BBEE showing an improvement from the previous year where a level 4 was achieved. QSEs and EMEs both maintained a level 2. The mode for MLE’s is a B-BBEE level 1, QSEs a level 2 and EMEs a level 1. Very few reporting entities from both the MLEs and the QSEs achieved a level lower than level 4 with some entities even improving in the overall B-BBEE level attained. Reliability in terms of submissions also improved across all the reporting categories. Most entities in the MLE category also achieved the bonus points allocated. SAFCOL’s performance was remarkable showing an improvement from a level 4 to a level 2 rating. These observations are encouraging and are suggesting that the reporting entities in the forest sector are in full comprehension and alignment to transforming the sector meaningfully.
Overall EME B-BBEE Level Achieved
Level 1 Level 2 Level 4
18 ANNUAL REPORT 2022/2023