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Changes to B-BBEE Legislation in 2013 closed a loophole that allowed early payment terms for Black Owned businesses in exchange for Enterprise Development points. The amendments meant that an organisation may only claim early payment terms from Supplier Development Beneficiaries. Therefore, the following applies to an invoice on which a claim for early payment is going to be made:   1.    The invoice payable for goods or services must appear in an organisation’s TMPS; 2.    Only the amount for early payment terms must reflect.   Enterprise & Supplier Development Services  are available to assist with claiming early payments.

On 25 March 2026, the Legal Sector Charter Council issued a Notice to all Legal Sector Entities regarding the Submission of Annual Reports.   The notice stated the following:     1. NOTICE TO LEGAL SECTOR MEASURED ENTITIES   1.1  This notice serves to remind all LSMEs and advocates that the annual reports required in terms of paragraph 13.8, read with paragraph 13.10 of LSC are due. 1   1.2  Attention is drawn to the relevant provisions of the LSC and Clarification Notice CN01 of 2025, wherein the provisions with respect to the measurement periods and the due date for submission of the requisite annual reports are highlighted.   1.3  In terms of the aforementioned, LSMEs and advocates must file their annual reports on the first anniversary of the commencement of the Measurement Period, being the commencement of a LSME or advocate’s current financial year where possible.   1.4  However, in light of the provisions of paragraph 13.8 of the LSC, which provide that the annual report must include a scorecard audited by an accredited verification agency, it is anticipated that annual reports will be submitted only after such verification or no later than 6 months after a LSME’s financial year end. LSMEs are requested to ensure that such annual reports are filed not later than 6 months after the end of their financial year end.   Technical Services   are available to assist Members with understanding these requirements.

Nokukhanya Mntambo | 10 April 2026 The US government continues to put pressure on South Africa to scrap its redress policies – including the controversial broad-based black economic empowerment (B-BBEE) legislative framework, which has been at the centre of a rift between the two trade partners . US Ambassador to SA Brent Bozell doubled down on Washington’s calls on Wednesday, after President Cyril Ramaphosa received letters of credence from 20 ambassadors at an official credentials ceremony. “There are serious issues between our two governments that need to be resolved,” the diplomat told journalists outside the Sefako Makgatho presidential guest house in Tshwane, after the cordial meeting. “The United States is ready to pour money into investments in South Africa, and it’s not just the private sector that’s doing it, but the government that is doing it,” he said. “There are billions upon billions of dollars that we want to invest in this country, but there are issues that we have.” The ownership issue SA’s B-BBEE laws broadly require international companies operating in the country to have 30% ownership by previously disadvantaged local groups. This has invoked the ire of US President Donald Trump and SA-born billionaire Elon Musk, who pushed a false narrative about white genocide in the country in an attempt to strong-arm Ramaphosa into abandoning the redress policies. Musk’s internet satellite company Starlink has struggled to secure an operating licence in SA, with an Equity Equivalent option touted as an alternative to open the door for the service provider. “It’s very difficult for a major corporation to come here and be told it has to surrender 30% of its ownership or some such thing,” Bozell said. While he says the criticism about South Africa’s domestic laws is in no way meant to interfere with the country’s sovereignty, he notes that the US will continue to have a difference of opinion on the matter. SA won’t fold Speaking at a separate event on Wednesday, Minister of Trade, Industry and Competition Parks Tau again defended B-BBEE as a critical policy tool in taking the country forward. “Instead of dismissing the need for B-BBEE, shouldn’t we be strengthening our policy and implementation instruments to ensure we measure output and outcome?” said Tau. “Shouldn’t we be asking questions like how we reach more people at the level of participation, how do we ensure access to capital?” Last year, Tau announced a two-part process to review the B-BBEE policy in what he said would refine legislation and allow it to function more efficiently. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/economy/scrap-bee-laws-to-unlock-billions-of-dollars-us-ambassador/

Thembelihle Radebe | Joburg Newsroom | 7 April 2026 The City of Johannesburg Council has taken a significant step toward strengthening youth development and economic inclusion by approving an increase in the monthly stipend for undergraduate interns. This decision was made during its 48th Extraordinary Council meeting   on 31 March 2026. Effective from 1 July 2026, the monthly stipend for student interns will increase from R3,500.00 to R4,951.88. The adjustment aligns with the current national minimum wage and reflects the City's commitment to ensuring fair compensation for young people entering the workforce through structured development programmes. This initiative forms part of the City's broader contribution to South Africa's National Skills Development Agenda. By investing in youth through learnerships, internships, and bursaries, the City demonstrates its commitment to empowering unemployed individuals within the Johannesburg community. These programmes are designed not only to provide financial support but also to equip participants with practical skills and workplace experience that enhance their employability. The City's internship programme, as defined in its Group Training and Development Policy Framework, is a strategic intervention aimed at bridging the gap between academic learning and real-world work experience. Interns are placed in structured environments where they gain hands-on exposure under the guidance of experienced workplace mentors. This mentorship plays a crucial role in supporting their professional growth and preparing them for future employment opportunities.Importantly, the stipend increase will apply to both current and future interns, ensuring that all participants benefit from the improved conditions. The City has also indicated that stipend levels will be reviewed periodically, taking into account financial sustainability and subject to approval by the Mayoral Committee. City departments are also required to allocate budgets for youth development as part of their Workplace Skills Plans. This ensures that internship programmes remain a priority across all departments and continue to contribute meaningfully to skills development objectives. The initiative aligns with national legislation, including the Skills Development Act (1998)​ and the Skills Development Levies Act (1999) , both of which aim to transform workplaces into active learning environments and promote continuous skills development across the country. The increase represents more than just a financial adjustment but a reaffirmation of the City of Joburg's commitment to nurturing young talent, reducing unemployment and building a more skilled and inclusive workforce for the future. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://joburg.org.za/media_/Newsroom/Pages/2026-News-Articles/City-of-Johannesburg-increases-intern-stipend-to-support-youth-development.aspx

Duncan McLeod | 8 April 2026 A decade after it was first published, the ICT sector's black economic empowerment code is heading for a full review. The B-BBEE ICT Sector Council has launched a formal review of the 2016 ICT sector code and published an updated framework governing equity equivalent investment programmes (EEIPs) – the very mechanism at the heart of the political storm over Elon Musk’s Starlink and its attempts to enter the South African market. In a statement on Wednesday, the council, established under section 9 of the Broad-Based Black Economic Empowerment Act as the statutory body responsible for overseeing the implementation of B-BBEE in the ICT sector, invited the public to submit written comments on the existing code by 20 May 2026. The review notice, signed by deputy chair Katharina Pillay, formally opened the first round of public consultation on 1 April. A second phase of hybrid stakeholder engagement will follow, with dates still to be confirmed. The more immediately consequential development, however, is the council’s updated EEIP framework, which sets out clearer guidance on application requirements, defined processes and timelines, provisions for confidential information, and new provisions for ongoing compliance monitoring. EEIPs allow multinationals that refuse to dilute local ownership to meet empowerment obligations through investment in skills, enterprise development or infrastructure instead. They have been a feature of other sectors of the economy for years, but their application in ICT has been contested, most notably through communications regulator Icasa’s licensing rules. The framework spells out the two measurement options available to multinationals seeking ownership recognition under statement 103 of the ICT sector code: contributions equivalent to 30% of the value of the applicant’s South African operations (using a standard valuation method), or 4% of annual turnover over the agreed measurement period. The framework notes that ICT targets are “traditionally more stringent than the generic codes to reflect the sector’s strategic importance” – a point that may prove contentious as the code review gets under way. EEIP framework Applicants will also be required to produce an affidavit from the global head of the entity – and, in some instances, independent auditor verification – confirming the multinational’s worldwide policy of not diluting local equity. In Starlink’s case, that would mean a sworn declaration from parent SpaceX, whose CEO is Musk. A striking feature of the new framework, however, is the weight it places on administrative law compliance. It devotes substantial sections to the Promotion of Administrative Justice Act (Paja), setting out detailed procedural fairness requirements, conflict-of-interest and recusal rules, the applicant’s right to written reasons for any adverse decision, and the grounds on which an EEIP decision could be taken on judicial review. The document states explicitly that “the legal defensibility of the EEIP framework depends on the council’s ability to demonstrate that every application was subjected to an evaluative process that was thorough, impartial and based on the facts presented”. That emphasis is unlikely to be accidental. Malatsi’s policy directive has already drawn threats of court action from the MK Party, and the council appears to be building its procedural armour in advance – ensuring that any future recommendation it makes on a Starlink (or other multinational) EEIP application can withstand legal challenge. The framework also sets clear limits on the council’s own discretion. It describes the council’s role as “advisory and facilitative in nature, unless otherwise expressly authorised by law”, and states that the council “must not impose mandatory conditions that are not supported by the act, the code, or a lawful delegation or directive”. In other words, the council is signalling that it will not freelance on transformation terms beyond what the law permits – a likely comfort to multinational applicants wary of moving goalposts. The framework’s emphasis on monitoring and transparency addresses a longstanding industry complaint. Speaking to TechCentral in December, Association of Comms & Technology CEO Nomvuyiso Batyi warned that EEIPs in other sectors have lacked transparency, with multinationals touting big investment numbers without clarity on how the funds are spent or whether the programmes actually deliver. Batyi said she had “never seen” an annual report from the ICT Sector Council setting out who was doing what under EEIPs, despite the council’s mandate to produce one. The updated framework, which promises to build a “robust evidence base to support meaningful and sustainable transformation”, appears to be a direct response to those criticisms. It also lands at a politically charged moment. In December, communications minister Solly Malatsi issued a final policy directive asking Icasa to align its ownership regulations with the ICT sector code and to recognise EEIPs as an alternative to the regulator’s strict 30% black equity requirement. The move was seen as clearing a potential path for Starlink, which has repeatedly said it will not sell equity in any of its local subsidiaries, though Malatsi has repeatedly said the decision is not aimed specifically at Starlink but at encouraging greater foreign investment. The directive triggered fierce political backlash from the ANC, MK Party and EFF, with the latter two accusing Malatsi of using policy to hand Starlink a “soft landing” and threatening to take the fight to the courts. Draft President Cyril Ramaphosa has backed the minister, a senior member of the DA, with his spokesman, Vincent Magwenya, noting that “four or five” satellite operators beyond Starlink have expressed interest in the South African market. Following the 20 May deadline and the hybrid stakeholder engagement, the ICT Sector Council will develop a draft amended code, which will then be published for a further round of public comment before being finalised. The council’s tightened EEIP framework – and its review of the underlying sector code – could prove consequential in shaping how, and whether, transformation obligations are met by foreign entrants into the market. – (c) 2026 NewsCentral Media ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://techcentral.co.za/ict-sector-bee-code-under-the-microscope-as-starlink-circles/279886/

Daily, during the procurement process, organisations are purchasing across sectors, whether they are paying for hotel accommodation, professional fees or other goods and services that support the delivery of their business offering. Similarly, an organisation measured on a specific B-BBEE Sector Code of Good Practice may make purchases from suppliers measured on other B-BBEE Sector Codes of Good Practice.   In choosing a Supplier  that is measured outside the B-BBEE Sector Code of Good Practice on which an organisation is measured, one must be aware of each B-BBEE Sector Code of Good Practice’s targets and expectations. An example is that qualification criteria for EMEs & QSEs differ under Sectors such as Construction and Media, Advertising & Communication.   Without being aware of each criterion of each B-BBEE Code of Good Practice, this could, at the time of a B-BBEE Verification , impact an organisation’s Preferential Procurement Scorecard.   Certificate Collection Services  are available to assist Members with validating B-BBEE Statuses.

Based on Statement 300 of the General Amended B-BBEE Codes of Good Practice , an organisation can only claim Skills Development Expenditure for Learnerships if an organisation incurred such an expense within their financial year.   Evidence for a Learnership for a B-BBEE Verification under the Skills Development element include, however, are not limited to:   A signed Learnership Agreement; Proof of the expenditure incurred by providing invoices and proof of payment; A certified copy of a Beneficiary’s ID; A completed EEA1; Proof of Payslips; Doctor’s confirmation of Disability (if applicable); and An interview between the Learner and the B-BBEE Rating Agency conducting the B-BBEE Verification.   Skills Development Services  are available to assist Members with B-BBEE Verification requirements under the element of Skills Development.

Xolile Mtembu | 5 April 2026 Former president Thabo Mbeki received significant backlash after his comments on South Africa's unemployment crisis this week. During an interview with eNCA, Mbeki attributed the country's joblessness to shortcomings within the workforce, drawing sharp criticism from various quarters. He ignited outrage when he told the broadcaster: "Why are millions of our people unemployed? The reason they are unemployable is because they don't have the skills that the modern economy and society need." His remarks have been criticised as disconnected from reality, with detractors saying they ignore deeper structural challenges within the economy. Lulaway, a project management leader specialising in youth employment, emphasised that the issue is far more complex. "The root causes are complex, ranging from economic stagnation and poor governance to corruption, a lack of opportunities, and an ongoing skills mismatch between education and industry needs. "This article explores the nature of youth unemployment in South Africa, its underlying causes, and strategies to move forward," said the organisation. Talent development firm, Shaper further reinforced its analysis, highlighting the enduring structural inequalities shaping the labour market. "The persistently high unemployment rate in South Africa is a multifaceted problem stemming from a complex interplay of historical, structural, and socio-economic factors. "The legacy of apartheid continues to cast a long shadow over the South African labour market. The systemic inequalities created by decades of discriminatory policies have left a lasting impact, disproportionately affecting black South Africans," it said. Political analyst Siya Ntombela previously told IOL that while Mbeki's remarks carry some truth, they may be misdirected. "There is a mismatch between what our education offers and what employers need," he said. He went on to shift focus towards historical policy decisions, including those implemented during Mbeki’s tenure in office. "We need to trace the problem back to the education policies and legislation passed by previous governments, including Thabo Mbeki's administration," he said. Ntombela pointed to contentious reforms, such as the closure of vocational, teaching and nursing colleges, arguing that these decisions have had lasting consequences for the country's skills pipeline. He was referring to the post-apartheid overhaul of vocational and technical education, initiated through White Paper 4 on Education and Training (1998). The reforms sought to dismantle a fragmented system of technical colleges and replace it with a consolidated Further Education and Training (FET) framework aimed at aligning education more closely with labour market demands. Enshrined in the Further Education and Training Act of 1998, these changes were implemented in the early 2000s, marking a significant shift in vocational education during Mbeki's presidency. Ntombela also highlighted persistent systemic obstacles, including ongoing electricity disruptions, which continue to hinder practical training reliant on power, thereby deepening the divide between education and employability. He further criticised the broader education system. "It taught teachers and learners to focus on the end assessment rather than holistic learning," he said. Ntombela argued that opposition to raising academic standards has contributed to a cycle of inadequately prepared graduates. "Meaning they wanted and continue to produce certificated unemployable but uneducated citizens who will not be critical of their wrongdoings. "What will Thabo Mbeki do to ensure that young educated South Africans are employable?" he asked. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/news/south-africa/2026-04-04-mbeki-blamed-skills-shortage-critics-point-to-deeper-causes/

Boitumelo Kgobotlo | 6th April 2026 Cell C and non-profit organisation GirlCode have partnered in effort to tackle high youth unemployment rates in South Africa. The partnership aims to train and certify 500 unemployed young people in artificial intelligence (AI) and cloud computing as these are considered skills in demand across various industries worldwide. Zandile Mkwanazi, GirlCode CEO, emphasised that unemployment amongst the young women remains above 60%, saying that taking them through this course might secure them employment into technology-enabled careers. Investing in talent “As a country, we face a stark mismatch between the jobs the economy needs and the skills available. This initiative is a deliberate investment in the talent that will define South Africa’s digital economy, equipping young people with practical, globally relevant skills that unlock opportunity,” said Mkwanazi. Participants will learn AI concepts and cloud fundamentals aligned to industry expectations, before sitting for certification exams that enhance employability both locally and internationally. Mentorship and employer engagement sessions will also support the transition into the technology ecosystem. Women scarce in STEM fields Mkwanazi said women remain underrepresented in Science, Technology, Engineering, and Maths (STEM) fields in South Africa, accounting for just 13% of graduates compared with a global average of 35%. “Accelerating participation in AI and cloud careers is critical to inclusive growth. GirlCode is focused on expanding digital literacy and opening sustainable pathways to employment through targeted skills development and certification linked programmes,” said Mkwanazi. Digital inclusion beyond connectivity Lethiwe Hlatshwayo, Cell C corporate affairs managing executive, said the initiative reflects a wider ambition to drive digital inclusion beyond connectivity.“ Digital inclusion is one of the most powerful enablers of economic participation. Our partnership with GirlCode is about building real pathways to opportunity by equipping young South Africans with future ready AI and cloud skills. “By supporting the training and certification of 500 young people, we are removing barriers to entry and helping to build a more inclusive, skilled workforce that can participate meaningfully in a rapidly evolving digital economy. This collaboration reflects Cell C’s commitment to partnerships for impact and ensuring that nothing stops talent from reaching its potential,” said Hlatshwayo. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/business/cell-c-girlcode-partner-to-tackle-youth-unemployment/#goog_rewarded

BBQ Online | 31 March 2026 Our country’s future hinges on the aggressive implementation of BEE with the sole purposes of wiping out poverty and unemployment and integrating blacks into the economy, writes Dr Thami Mazwai. One shudders in disbelief at efforts to scrap black economic empowerment (BEE). If truth be told, BEE never started the full journey but they now say it must be scrapped. This begs the question: “Are blacks the children of a lesser God”. In May 1998, the Black Business Council (BBC) urgently appointed then former ANC secretary general and now president, Cyril Ramaphosa, to chair a BEE Commission as acceptance and implementation of BEE were erratic. From this BBC intervention, and further toing and froing, the Department of Trade and Industry, now Department of Trade, Industry and Competition (dtic) ultimately came with Broad-Based Black Economic Empowerment legislation in 2003. There is no doubt that there has been some action and major achievements but the ultimate barometer is poverty, unemployment, and inequality (PUI). To add to this is the sustainability of black firms, more so small one. Here are the facts. According to Stats SA, 23.2 million live below R1 415 per person per month. Talk in the townships, villages, and informal settlements is that in some families adults take turns eating so that the children have something. Ai, and to add to this, in some instances take their school feeding packs home so the family eats. Inequality continues to be a huge problem and ours is the highest in the world with the gini-coefficient at .63 to .67 and with 10% of population owning 80% of total wealth. Worse still, inequality within the black community, estimated at close to .6, is on the gallop. The latest unemployment figures, released last Monday, show that unemployment is at a staggering 31.4%. Over 12 million South Africans are jobless. Finally, in terms of black small business survival; more than 80% collapse in their first five years. To add to this 1.3 million of black small businesses have turnovers, not profits, of R18 000 per annum. The Black Industrialists Programme, ostensibly the BEE flagship, is running aground as officials in government and the development finance institutions have difficulty funding businesses with no track record. This results in companies owned by the non-indigenous, virtual fronts, getting support. Fancy, this from people who themselves had no profiles when appointed to these positions. The PUI miseries and small business unsustainability above show that not only is economic growth urgent, but it must be mainly driven by the enterprise and supplier development (ESD) leg of BEE. Integrity also has to be a crucial and compulsory element. It is hoped an expected announcement by Trade, Industry, and Competition (dtic) Minister Parks Tau on BEE will address the above. For the record, the reconstruction of the economy and its activities to serve the common good is not new. Hence, a study by academics Guerrero, Liñán, and Cáceres-Carrasco in developed and developing economies and released in 2021 gives examples of how countries have come with specific interventions to stimulate economic activity in specific localities or population groups. Thus, BEE is not something unusual and in our case it deals with a specific problem that must be corrected for the benefit and betterment of the whole country, not blacks only. What is also problematic is focus on two issues; corruption and so-called “enrichment of the few”. Let us first deal with one, corruption. The focus on corruption is justifiable and it must thus be outrightly condemned. It has reached preposterous levels and the perpetrators simply close their eyes to the suffering and, instead, revel in their latest vehicles, big houses and whiskies. What happened to Ubuntu? But, let us not restrict it to blacks only as it is a cancer involving black and white and is eating the soul of our country. Unfortunately, the government is not dealing with it with the warranted determination, ruthlessness and urgency. On the broader scene and also to bring in the aspect of enrichment; with the wisdom of hindsight it is clear that our approach to BEE was not premised on long term economic growth with the betterment of the black community and society in general at the centre. It was a quick fix approach and did not factor in realities such as the embeddedness of capital and human frailties and desires. Ours was a university student mass meeting attitude, which unfortunately still persists. On the “enrichment of the few” narrative, companies are going to empower in way that will further their interests and those of shareholders. It is natural; the Catholic Church does not appoint a protestant to edit its newspaper. For effective implementation of BEE the ball is in government’s court, that is Tau and his colleagues. Numerous reports on BEE show that implementation is, at best, a by the way and at times apologetic. Since 1995 the development of implementation of BEE was a small section in the then dti and not the foundational pillar of the department as the driver of South Africa’s economy. After all, it was the black majority that was elbowed out of the economy. The Land Acts (1913 and 1936) and Apartheid legislation elbowing blacks out of economic participation are not a figment of the imagination. As an example of lacklustre implementation, nobody can justify why the departments of agriculture nationally and provincially rightly create the emerging farmers programme but do not link it to the school feeding scheme in which the providers of food to schools must source from these emerging farmers, and it is a condition of the contract. Furthermore, the ESD leg which should be compulsory across the economy is the least or worst implemented. Yet, as the Sanlam Gauge reports, it is the most important. China wiped out 95% of its poverty through mass entrepreneurship as a World Bank report shows. The report lauds the Chinese Government’s singleness of purpose to wipe out poverty. Our country’s future hinges on the aggressive implementation of BEE with the sole purposes of wiping out poverty and unemployment and integrating blacks into the economy. Greater focus must be at the lower levels but without abandoning the commanding heights. It is painful to see thousands of our youth clean cars at parking lots for a livelihood. Are these black youths indeed children of a lesser God. This article originally appeared on IOL and is published with permission. https://bbqonline.co.za/scrap-bee-not-while-poverty-joblessness-and-inequality-still-devastate-black-south-africans/

Refiloe Benjamin | 30 March 2026 The Centre for Development and Enterprise (CDE) calls on the Department of Trade, Industry and Competition (DTIC) to consider the weight of opposition to its proposed amendments to the B-BBEE Codes of Good Practice. CDE is one of many organisations that have submitted a formal response to the Department calling for the immediate withdrawal of the proposed amendments on the grounds that that they are reckless and will undermine the stated goals of broad-based black economic empowerment (B-BBEE). “CDE believes the proposed changes are reckless. They amount to a massive bet on the idea of a Transformation Fund, a proposal whose details have not even been made public. They will destabilise the structure of existing empowerment policies, impose significant new costs on businesses that have already adapted to current rules, and reduce investment by increasing policy uncertainty,” said Ann Bernstein, executive director of CDE. “The proposed changes will narrow the beneficiaries of B-BBEE in ways that may undermine important gains in economic integration,” added Bernstein. CDE regards the achievement of the goals of B-BBEE as vital to the country’s future. We understand these goals to be an economy in which everyone can succeed irrespective of their race or gender, and in which legacies of historical discrimination are actively undone. However, we believe that these proposed amendments undermine these legitimate goals. What the Department of Trade, Industry and Competition is proposing The DTIC is proposing two significant amendments to the B-BBEE Codes, both affecting the Enterprise and Supplier Development (ESD) element, which is the primary mechanism through which empowerment policy is transmitted through the economy. These changes would: • Substantially reduce the points available to companies that procure from suppliers who are not 100% black-owned. For example, the value of doing business with a 51% black-owned firm would fall from 11 points (out of 27) to 3 points (out of 29); and • Introduce a Transformation Fund as an alternative mechanism for securing ESD points, allowing companies to secure ESD points by contributing 3% of net profit after tax. A policy that will narrow, not broaden, transformation CDE’s analysis indicates that the proposed procurement changes will shift incentives away from firms with majority black ownership towards those that are wholly black-owned. This would significantly alter the structure of existing supply chains. An influential analysis by Tusker, a major B-BBEE ratings firm, showed that of the nearly 54,000 businesses that have applied for B-BBEE certificates on their database, only about 10,000 are 100% black-owned, and around 90% of these are small firms. This raises serious questions about whether there are sufficient firms of this kind, across a wide enough range of sectors, for companies to meet preferential procurement targets under the revised system. The likely result is that many firms will be unable to achieve high B-BBEE contributor status through procurement alone. “The fact that thousands of firms have moved towards a more racially balanced shareholder mix has undeniably improved racial integration across the business sector, with enormous benefits for society and for political stability,” said Bernstein. “They did this because the existing Codes reward procurement from firms that are largely or majority black-owned. But this important social benefit will be impaired by the new proposal which rewards only 100% black-owned firms. This is likely to increase racial polarisation amongst business stakeholders, rather than integration and partnership,” she added. The proposed change to the preferential procurement rules will make it more difficult to accrue ESD points through companies’ supply chains. It seems as if this is intended to “encourage” companies to contribute to the Transformation Fund. A Transformation Fund with no clear framework CDE previously submitted comments on the DTIC’s Transformation Fund concept document in May 2025. Our concerns — which remain unaddressed — include: • The absence of clear objectives, governance structures, and success metrics; • Uncertainty about how the Fund would be operationalised; • Implausible funding targets, including the aim of raising R100 billion over five years; and • The risk — now materialised in the new proposals — that redirecting existing ESD spending will harm black-owned firms already integrated into supply chains. There is no formal, publicly available statement of what the Transformation Fund will do, what its targets will be, how it will operationalise its mandate, how it will be governed, how it will define success, etc. “It is literally impossible to assess the merits of these proposals,” Bernstein said. “The public is being asked to comment on amendments to the Codes that depend critically on their assessment of the pros and cons of a Fund whose parameters, mandate, governance and institutional architecture have not been disclosed. This is frankly outrageous,” added Bernstein. Serious legal and constitutional concerns CDE is also concerned by reports that the DTIC  has entered into a MoU with African Export-Import Bank (Afreximbank) to access up to US$3 billion in external financing linked to the proposed Transformation Fund, even though the Fund does not yet exist as a legally constituted entity. In CDE’s view, no binding commitments can be lawfully entered into before the Fund is properly established and any borrowing it might do is authorised within the fiscal framework. Any commitments that may have already been made could raise serious concerns in relation to the Public Finance Management Act and constitutional requirements governing public expenditure and borrowing. Officials who enter into unauthorised commitments may expose themselves to adverse audit findings, disciplinary action, and potential personal liability. CDE’s call: Withdraw and establish an independent public review of B-BBEE policies When CDE made its submission in response to the first Transformation Fund concept document in May 2025, we issued a call for a comprehensive, independent review of South Africa’s transformation policies to assess their effectiveness and costs. This review should be led by an independent panel, including economists, legal experts, business leaders, civil society representatives and especially black-owned enterprises affected by current mechanisms. It should evaluate which aspects of B-BBEE have succeeded and which have failed, and at what cost, using 20 years of available data. The goal should be to build a new consensus promoting inclusive growth, accountability, and tangible benefits for black and in particular disadvantaged South Africans. This call has not been heeded, and we strongly believe the GNU should commit to a public, expert-led review of the impact and costs of B-BBEE policies that have been pursued for the past 20 years. Instead, the DTIC has proposed this set of amendments to the B-BBEE codes that would narrow the beneficiaries of preferential procurement spending to an exceptionally small group of companies in which 100% of the shares are owned by black people, while strongly nudging ESD spending into a Transformation Fund whose parameters, mandate, governance and institutional architecture have not been publicly disclosed. “This is recklessness piled on recklessness,” said Bernstein. “The current proposals should be shelved until a proper review of B-BBEE has been conducted and its findings subjected to informed public debate. Approaching so serious a matter as economic transformation in this gung-ho style reflects badly on the DTIC and on government as a whole,” she added. Issued by Refiloe Benjamin on behalf of CDE, 30 March 2026 ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/documents/cde-calls-on-dtic-to-consider-opposition-to-its-re

Ann Bernstein and Stefan Schirmer | 30 March 2026 Almost 12.5-million South Africans are unemployed. Many of them are young people desperately trying to find their first job. However, President Cyril Ramaphosa recently said only that “too many South Africans remain unemployed”, and “too many young people struggle to find their first job”. In a country facing one of the world’s worst unemployment crises, those statements sound like a dramatic underestimation of the crisis. The scale of unemployment should continue to shock us. So too should its trajectory: things are getting worse, not better. Since Ramaphosa took office in 2018, the number of unemployed South Africans has risen from just fewer than 10-million to nearly 12.5-million. Apart from occasional, temporary improvements that are more likely to be statistical noise than anything else, the trend has been relentlessly upwards. Young people bear the brunt of this crisis. Almost 55% of South Africans aged 15–34 who want work cannot find it. About 7-million young people are unemployed, including many discouraged workers who would like to work but have given up actively searching. Most have not had a proper job. A central part of the government’s response has been to promise “work and livelihood opportunities through public and social employment programmes”. These programmes offer a degree of relief, albeit temporary. In truth, compared with the scale of the crisis they are little more than Band-Aids. They cannot change the structural realities of mass unemployment. South Africa will not solve unemployment without faster economic growth. Reaching 3% growth quickly — and then moving beyond it — must be a national priority. Only sustained expansion can create the millions of new jobs needed to reverse current trends. There is one piece of encouraging news. Over the past decade job creation has broadly kept pace with economic growth. In 2015–25 the economy grew at about 0.76% per year, while employment increased at about 0.77% annually — almost a one-to-one relationship. When growth accelerates, as it did during the 2004–08 expansion, many jobs can be created. So, let’s urgently go for much faster growth. It’s the only viable strategy to make a real dent in our unsustainable unemployment rate. However, there is one critical exception: young workers. Over the past decade youth employment fell by about 520,000 jobs. In other words, while the economy expanded modestly, employment among young people shrank by about 8%. Growth in South Africa thus creates jobs, but not for the young. This means even if economic growth improves, the economy will continue to struggle to absorb young job seekers. Why does growth benefit older workers but not the young? Young workers, by definition, lack experience. They are less proven, less predictable and often less productive than older workers. In more flexible labour markets this disadvantage is offset by experimentation: firms can hire young workers at wages that reflect their lower productivity and can let them go relatively easily if things do not work out. In South Africa that flexibility is severely constrained. When a firm advertises a vacancy it often faces hundreds, sometimes thousands, of applicants for only a handful of positions — far too many to evaluate properly. In a country where most job seekers have limited skills and long periods of unemployment behind them, filling a vacancy becomes a high-stakes screening exercise. Faced with so many applicants, employers minimise risk; they choose experience. That preference becomes structural exclusion when labour regulations turn every new hire into a potentially costly legal commitment. If an employer cannot adjust wages and faces expensive, time-consuming dismissal procedures when a hire does not work out, the safest choice is not to take the risk on an inexperienced worker. This is the wall of risk that keeps young people locked out. A healthy labour market is a ladder: a first job leads to experience, which leads to better jobs and upward mobility. In South Africa we have built something else — a fortress. Inside are workers with experience and protection. Outside are millions of young people who cannot get a foot in the door. If we want young South Africans to work, we must lower the risks and costs of hiring inexperienced workers. South Africa will not solve unemployment without faster economic growth. Reaching 3% growth quickly — and then moving beyond it — must be a national priority. Only sustained expansion can create the millions of new jobs needed to reverse current trends. The following reforms could help: The law should allow probation periods of up to 12 months for all new hires, regardless of job complexity. During this period employers should be able to terminate employment more easily if a worker proves unsuitable, while prohibiting dismissals that are automatically unfair, such as those based on discrimination. Probation should function as a genuine trial period rather than an irrevocable long-term commitment. The government should remove the automatic extension of bargaining council agreements to non-signatories. For many small firms, rural businesses and new entrants these agreements impose wage levels and conditions that make hiring high-risk, low-productivity workers unaffordable. Restrictions on labour brokers should be lifted. Labour brokers once provided important pathways into work, particularly for young people without networks or experience. South Africa needs more pathways into employment, not fewer. We must confront the failures of our education and skills systems. The basic education system continues to leave many young people poorly prepared for work. The skills system also frequently fails to equip them with usable training. The sector education & training authorities (Setas) are widely recognised as ineffective. Rather than attempting minor, piecemeal reform — such as Ramaphosa’s recently announced plan to “reform and reduce” them — they should be closed and replaced with employer-driven apprenticeships and high-quality private training programmes. Technical and vocational colleges must also be strengthened through partnerships with industry and a far larger expansion of work-based learning. South Africa’s youth unemployment crisis is already severe, and it continues to deepen. Young people are the majority of the unemployed and consistently find themselves at the back of the hiring queue. An economy that absorbs more labour requires real reform, not more public employment programmes. The goal must be to make it easier and less risky for firms to hire young workers in the ordinary course of doing business. That requires targeted changes in the laws regulating the terms of employment, real reform of the education system and a far more effective skills system. Without reform, economic growth will continue to benefit those already inside the labour market while young people remain locked out. As Nobel laureate Paul Romer once warned, if South Africa cannot solve the problem of getting young people into work, it may not matter what other problems we do solve. Bernstein is head of the Centre for Development and Enterprise (CDE). Schirmer is CDE director of research. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/opinion/sas-economy-is-failing-its-young-people