Key Issues - Transformation

Environment Transformation Human Resource Development Safety & Security

Liquid Fuels Charter

The Liquid Fuels Charter, signed by the industry in 2000, aims to ensure the sustainable presence, ownership and control by approximately 25% of historically disadvantaged South Africans across the industry value chain by 2010. As the first industry to sign such a charter, SAPIA members prioritised the critical need to correct the imbalances of the past, long before the Broad-Based Black Economic Empowerment Act of 2003 was enacted.

Liquid Fuels Charter (116 KB)

The agreed industry measurement framework is outlined in the table below.

Liquid Fuels Charter Scorecard
BEE Factors		Regulatory Framework
Direct empowerment Ownership		Effective ownership of enterprises by black people Encourages the sharing of equity and voting rights with black people and black women
Management Control		Effective control of enterprises by black people Encourages senior black decision making at executive board and senior top management levels
Human Resource Development Employment Equity		Equity in the workplace Encourages companies to identify and recruit black people at professional. middle and lower management positions
Skills Development		Development of competence of black employees Encourages companies to develop talent of black people through the development spend on learning programmes, learnerships and overseas placement
Indirect empowerment Preferential procurement		Procurement of goods and services from strong B-BBEE recognition level suppliers Encourages procurement from BEE compliant companies. Encourages spend on small and micro-enterprises, >50% black owned companies and >30% black women owned companies
Enterprise Development		Assist and accelerate the development and sustainability of other enterprises Encourages development or expansion of black small, medium enterprises particularly along the value chain
Socio-economic Development		Promote access to the economy for black people Encourages initiatives intended to directly provide black people with the means of generating income for themselves
Supportive Culture		Create an enabling environment for transformation Encourages companies to appoint managers who will understand the spirit and background of the charter to create a supportive and enabling environment for business success and drive a process of transformation and a change of culture

Consultation, monitoring, evaluation and reporting

The achievement of the objectives set out in the Liquid Fuels Charter entails an ongoing process. The DME conducts an annual survey of the industry to evaluate progress towards achieving the objectives of the White Paper. Companies submit such data as is required at the end of each year, including employment equity data, procurement targets, etc. The aggregated information is published and forms the basis of the annual forum.

Oil companies participate in the annual forums for the following purposes:

monitoring progress in the implementation of plans;
developing new strategies as needs are identified;
ongoing government/industry interaction in respect of these objectives;
developing strategies for intervention where hurdles are encountered;
exchanging experiences, problems and creative solutions;
arriving at joint decisions;
reviewing this Charter if required; and
giving notice of withdrawal.