Transformation and empowerment

Transformation and empowerment  

bp Southern Africa believes in meaningful and sustainable transformation. Its transformation journey has focused on four key areas: 

•  Transforming the dealer network;
•  Transforming ownership of bp Southern Africa;
  
•  Transforming the bp Southern Africa workforce; 
•  Enterprise and supplier development; and  
•  The transition of selected infrastructure and operations in a sustainable manner.

In 2001, bp Southern Africa was one of the first companies in the petroleum industry to conclude a Broad-Based Black Economic Empowerment (B-BBEE) transaction with Mineworkers Investment Company (MIC) and Women’s Development Bank (WDB). bp Southern Africa is in the second wave of transformation, having concluded a second major B-BBEE transaction in 2014 with Kapela and bp Southern Africa Education Foundation Trust. This transaction allowed the previous B-BBEE partners (MIC & WDB) to monetise their investment in bp Southern Africa.

bp Southern Africa is 25% +1 Black Owned where bp (plc) owns 75%-1 and Kapela 20%+1 share and bp Southern Africa Education Foundation Trust 5%. Kapela is a consortium that includes the Disability Empowerment Concerns Trust. The DAC is a broad-based trust with over 2 million people with disabilities as beneficiaries of which 85% are Black and 50% Women as well as a majority-owned and managed equity firm.

bp Southern Africa has achieved B-BBEE Level 2 for 3 consecutive years since the promulgation of the B-BBEE Codes of Good Practice, in May 2015.

bp Southern Africa has partnered with the National Empowerment Fund (NEF) where we provide grants and loans to B-BBEE entities. We have funded, through a combination of interest-free loans & grants, and created access to the market for B-BBEE logistics companies and they are part of the bp Southern Africa Road Logistics supply chain. To ensure they are sustainable, they were also awarded 3-year contracts to supply and deliver fuel from our depots to different sites. 

The objective is to ensure that bp Southern Africa is contributing to the economic growth and transformation of the South African economy through its power as a major purchaser of goods and services in the country and to set out the framework within which the acquisition of all goods and services are to be procured in.  

Supplier development

Through our Supplier development programme, which is aligned to bp Southern Africa’s Transformation Charter, we aim to proactively develop our QSE/EMEs by working on a one-to-one basis to improve their performance and compliance thus progressively transforming our supply chain to reflect the demographics of the community we operate in. 

•  bp Southern Africa’s Government compliance through the B-BBEE scorecard
•  Improved supplier performance and HSSE compliance,
•  A Competitive and Inclusive Supply Chain,
•  Improved business alignment between the suppliers and bp Southern Africa thus creating a potential for stronger and more sustainable business partnerships,
•  Developing and/or opening supply market access to the previously disadvantaged suppliers,  
•  Increased local skills and sustainable jobs on a local level and boosting the economy.

Transformation of the dealer network

As bp Southern Africa, we believe that the transformation of our dealer network is a business imperative for sustainable operations. As part of our Retail transformation agenda, we have partnered with the NEF and established an Enterprise Development (ED) Fund, which provides funding to B-BBEE dealers with, a specific focus on Black Women. One of the advantages of the partnership is that the beneficiaries are provided with post-investment support, mentoring and coaching on business development, which then improves their chances of success. To date, we have assisted a number of dealers with finance.

Terminal operations

To promote and support bp’s transformation agenda in South Africa, we have disposed of key terminals to Black empowerment parties.  These include pipeline terminals that are linked to the New Multi-Product Pipeline (NMPP.)We continue to invest in ensuring safe and reliable operations at all our terminals and look for opportunities to ensure transformation in the industry on an ongoing basis.

bp Marine barges operated by BBBEE companies

bp Marine’s South Africa operations use two barges (small in-port tankers taking fuels from shore tank and delivering to a customer ship) operating companies in Durban, both level 2 BBBEE companies with women and youth among shareholders. These deliver about 35KT/month of bp fuels between them. In Richards Bay bp uses two barges; which are both operated by a single level 2 BBBEE company and these deliver about 20KT/month of bp fuel.  We also deliver diesel by trucks in the ports of Durban and Cape Town. bp marine uses level 2 BBBEE entities for such road freighting, delivering 3KT/ month of bp fuels. 

Masana Petroleum Solutions

In 2005, bp Southern Africa sold its commercial and industrial fuels marketing business to a new black empowerment joint venture company, Masana Petroleum Solutions., which was the first black-owned and managed energy company of its kind in South Africa. 

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