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THE

BEECHAMBER

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NEWS

BURSARIES | AN IMPORTANT COMPONENT OF SKILLS DEVELOPMENT

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Skills Development

The commitment to transformation and empowerment has led to the establishment of various policies and initiatives, with the Broad-Based Black Economic Empowerment (B-BBEE) Act being a prominent one. Central to this legislation is the imperative of Skills Development, a Priority Element on the B-BBEE Scorecard and a key driver of socio-economic transformation in the country. Within the realm of Skills Development, Bursaries can play an important role, not just for the beneficiaries, but for the sponsors as well.

 

Bursaries and the B-BBEE Scorecard

Under the B-BBEE framework, businesses are assessed based on their performance across various elements, including Skills Development. The Skills Development element focuses on nurturing skills, competencies and qualifications among Black People in South Africa. Achieving compliance in this element is crucial for businesses aiming to improve their B-BBEE rating.

 

One of the ways businesses can earn Skills Development pints is by providing Bursaries to designated beneficiaries. These beneficiaries typically include Black South Africans who may not have had access to higher education and skills development opportunities due to historical disadvantages. When business offer Bursaries to these beneficiaries, they contribute directly to addressing this imbalance and encouraging a more equitable society.

 

The Impact of Bursaries on Skills Development

  1. Access to education: Bursaries provide individuals with the financial support they need to access quality education and training. Many aspiring students from disadvantaged backgrounds are unable to pursue higher education due to financial constraints. Bursaries break down this barrier, opening doors to education and skills development.

  2. Skill acquisition: Bursaries enable individuals to acquire skills, competencies and qualifications that are in line with industry demands. This aligns with the Skills Development Act’s objective of addressing skills shortages and enhancing the employability of South Africans.

  3. Employment Equity: Businesses that provide Bursaries often require beneficiaries to work for the company upon completion of their studies. This can contribute to Employment Equity goals, as it can increase the representation of Black people in skilled positions within the organisation.

  4. Community development: Bursaries extend beyond the individual beneficiaries. They have a ripple effect, positively impacting families and communities. Educated individuals are better equipped to uplift their families and contribute to the development of their communities.

  5. Scorecard points: For businesses, offering Bursaries translates into points on the Skills Development Scorecard. This not only helps in achieving compliance, but it also enhances the overall B-BBEE rating of the company.

 

Challenges and Considerations

While Bursaries are a powerful tool for Skills Development, they can come with challenges. Businesses need to carefully plan and manage their Bursary programmes to ensure alignment with B-BBEE requirements and the company’s strategic goals. This includes selecting suitable beneficiaries, monitoring their progress and managing the contractual agreements associated with Bursaries.

 

Bursaries are an important component of Skills Development, serving as a bridge to education, skills and empowerment for Black People. Beyond compliance, they hold the potential to transform lives, communities and businesses. As South Africa continues its journey towards a more equitable society, the role of Bursaries in Skills Development remains vital, driving sustainable change and progress.

 

Skills Development Services are available to guide members on how to claim such Training initiatives. 

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