Search Results

Bizcommunity | 18 June 2025 South Africa’s youth unemployment rate remains a critical challenge at 62.4%, but the logistics industry is emerging as a key driver of job creation. Fueled by the growth of e-commerce, digital transformation, and expanding global trade links, logistics is evolving into a dynamic sector that offers diverse opportunities beyond traditional roles, particularly in tech and compliance. Digital growth drives youth jobs in logistics "From supply chain analytics and IT systems integration to customer experience and compliance, logistics is evolving into a dynamic, tech-enabled industry that offers diverse professional avenues for South Africa’s youth," says Gregory Saffy, managing director for sub-Saharan African operations at FedEx. While roles such as drivers, packers and sorters remain essential, new technology-driven processes are reshaping the industry and opening doors to careers in data analytics, systems thinking and automation. "Logistics isn’t what it used to be,” Saffy explains. "The real competitive advantage now lies in digital capability, especially in areas like data analytics and systems thinking. We’re seeing more engineers and analysts in the business than ever before, guiding operations and enabling automation at scale." Compliance and customs drive growth Compliance and customs clearance are also becoming major areas of employment growth. Saffy highlighted the progress towards formalising customs qualifications as a critical industry milestone. "We’re seeing progress in the creation of a national customs clearance certification that will give individuals a recognised qualification, including those with practical experience but no matric pass," he says. "This will create a clear career path and raise the overall standard of compliance across the industry." Additionally, FedEx has begun enrolling customs clerks into courses covering freight forwarding and customs compliance. These programmes not only build technical knowledge but also focus on skills for the future such as digital literacy, data analysis and critical thinking. Learnerships bridge skills gap For youth without formal education, FedEx offers the Yes Learnerships, a 12-month programme combining training, mentoring and hands-on work experience. "Since 2019, we’ve onboarded more than 150 unemployed youth through YES, with more than 60 going on to become permanent employees," says Saffy. "It’s a powerful model for bridging the gap between education and employment." The company also offers a learnership for youth with disabilities, awarding an NQF Level 4 certificate in Business Administration. This includes blended learning, coaching and real-world operational exposure, supporting inclusivity and building work-ready skills. Private sector backing youth jobs FedEx’s initiatives, for example, underscore the vital role of private sector skills development in unlocking opportunities for South Africa’s youth. “Logistics is a gateway to global trade,” Saffy says. “It’s no longer just about moving parcels; it’s about managing complexity in a fast-paced, tech-driven environment. With the right support and training, South Africa’s youth can thrive in this space." ‘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.bizcommunity.com/article/logistics-sector-opens-new-tech-driven-career-paths-for-south-africas-youth-037955a

Dr Anthea Jeffery | 18 June 2025 Explore the Controversial 2025 Mining Bill, threatening investment The Mineral Resources Development Bill of 2025 has been roundly rejected by most commentators on the struggling mining industry. Mining analyst Peter Major says the bill lacks even “one redeeming feature to attract any investment, local or foreign”. Mining lawyer Lili Nupen of NSDV LAW Inc warns that the bill, if enacted in its current form, will effectively put an end to the industry because large mining companies will divest and junior miners will find it harder still to raise capital.  The bill was gazetted on 20 May 2025 for public comment by 13 August 2025. Though bad drafting often makes it hard to understand, its wording is nevertheless clear enough to make the mining industry even more “uninvestable”. A host of valid and telling criticisms of the draft law have thus already been raised. However, these comments fail to acknowledge just how destructive the bill’s provisions on black economic empowerment (BEE) could be – especially when combined with a largely overlooked definition of “expropriation” in the new Expropriation Act of 2024. Stricter BEE obligations for mining rights Though the bill seeks numerous amendments, this analysis focuses on four key changes to BEE requirements for mining rights. First, empowerment obligations are to be more closely aligned with those contained in the Broad-Based Black Economic Empowerment Act of 2003 (the BEE Act). Second, the mining minister will be required to “impose” relevant BEE requirements in granting applications for new mining rights. Third, the minister will be empowered to “repeal or amend” the empowerment obligations resting on companies with existing mining rights. Fourth, the minister will have the power to make new empowerment rules by regulation. A shift to “black persons” and the BEE Act The existing law – the Mineral and Petroleum Resources Development Act (MPRDA) – aims its empowerment benefits at “historically disadvantaged South Africans” or HDSAs, whereas the Bill requires a shift to “black persons”, as defined in the BEE Act. It also defines broad-based economic empowerment as “having the meaning assigned to it” in the BEE Act. In keeping with this change, the draft law goes on to delete the Act’s current definition of HDSAs. Confusingly, however, it nevertheless retains a reference to HDSAs in an unchanged sub-section 100(2) of the MPRDA. This provision requires the minister, within “six months” of the Act’s taking effect, to “develop a broad-based socio-economic empowerment Charter” providing for the “active participation of historically disadvantaged South Africans” in the mining industry and allowing them to “benefit” from it. The bill does not say whether HDSAs are in future to be equated with “black persons”. Nor does it clarify what its changes might mean for existing HSDA ownership deals that might include white women. This creates uncertainty. However, this problem is far outweighed by the other BEE provisions in the draft legislation. “Imposing” BEE obligations on applicants for mining rights The bill seeks to insert a new sub-section 100(3), under which the mining minister “must”, in granting applications for mining rights, “impose” the “broad-based socio-economic empowerment prescribed elements of [BEE] ownership, inclusive procurement, supplier and enterprise development, human resources development, employment equity and mining community development”. These BEE elements generally echo those contained in the mining charter gazetted in September 2018. Will the law thereby empower the mining minister to demand compliance with all the key clauses of the 2018 charter from companies seeking new mining rights? This is doubtful, for three reasons. First, some clauses in the 2018 charter were struck down by the Pretoria high court in September 2021, after the Minerals Council South Africa had challenged their validity. One such clause required 30% HDSA ownership on the transfer or renewal of existing mining rights. Another demanded compliance with extraordinarily onerous preferential procurement rules. A third required 100% compliance with HDSA ownership obligations, failing which companies could have their mining rights suspended or cancelled under the MPRDA. These three clauses are invalid and cannot be restored by the bill’s becoming law. Second, the 2021 high court judgment made it clear that the mining minister has no law-making power under the MPRDA. The 2018 Charter is thus a mere “instrument of policy” and has no binding legal force. This will remain the case after the bill is enacted. Third, a different Pretoria high court judgment – one handed down in April 2018 – casts doubt on the validity of both the 2010 and 2018 mining charters. The wording of sub-section100(2) of the MPRDA is crucial here, for it empowers the minister to develop  a  socio-economic empowerment charter  within six months  of the Act’s coming into operation. Since the MPRDA took effect on 1 May 2004, the single charter it envisaged had to be developed before 31 October 2004. Any charter developed thereafter is clearly  ultra vires  (beyond the powers) given to the minister. This second judgment also prevents the minister from overriding a key clause in the 2004 charter. This clause requires that the “continuing consequences of all previous deals” be taken into account, even after HDSA investors have exited. This bars the minister from demanding “top-up” ownership deals by mining companies which have previously met the 26% ownership requirement. One of the main purposes of the bill is to circumvent these two judgments and give the minister the law-making powers he currently lacks. This is also what mining officials have long wanted to achieve. In November 2021, two months after the September 2021 ruling, some of these officials told the relevant parliamentary portfolio committee that no appeal would be lodged against the judgment so as to avoid any risk of becoming “bogged down in the courts”. Instead, the MPRDA would be amended to “incorporate the transformation objectives the judgment had overturned” and make “compliance obligatory”. Empowering the minister to “repeal or amend” an empowerment charter In keeping with this aim, the draft law introduces a new sub-section 100(4) which gives the minister the power, “as and when the need arises”, to “amend or repeal…the broad-based socio-economic empowerment prescribed elements of [BEE] ownership, inclusive procurement, supplier and enterprise development” and the like, as earlier listed. Once the bill is enacted, the minister could use these powers to “amend” the 2004 charter (the only one that is undoubtedly valid) by repealing its present clauses and inserting instead, say, all the clauses in the 2018 mining charter. This would restore the clauses struck down in 2021. It would also end the “continuing consequences” principle and require all mining companies to do top-up deals when black investors sell out. The minister could also go beyond the 2018 rules and include higher targets for BEE ownership (and other elements) in his amendments, as outlined below. Adding new empowerment targets by regulation The bill also gives the minister additional regulatory powers on empowerment. Under a new subsection 107(1)(jD), the minister will be able, by notice in the  Gazette , to make regulations “regarding…the promotion of transformative elements of BEE ownership, inclusive procurement, supplier and enterprise development” and the like (again, as earlier listed). Such regulations could again either mirror the rules in the 2018 charter or introduce higher BEE ownership (and other) targets. What higher BEE ownership targets might the minister introduce? The 2018 charter sets a 30% ownership requirement for new mining rights, but generally retains a 26% target for companies with existing mining rights. However, the ANC has long wanted a 51% ownership target for the mining industry – and may well see this legislation as the vehicle to achieve this. The 51% ownership goal for all mines was evident back in 2002, when an early version of the mining charter was leaked to the media. The news caused a stock market panic, in which the value of mining shares fell by some R55bn and the ANC was compelled to draw back. By contrast, little attention has been paid to a May 2025 draft BEE sector code for the transport sector, which proposes a 51% BEE ownership target for companies needing permits from the government or wanting to enter into procurement contracts with the state. Under this draft code, a 51% BEE ownership requirement could be imposed for procurement contracts with Transnet aimed at restoring parts of the crumbling rail network. This could significantly erode private-sector willingness to partner with the parastatal in this way – even though private sector expertise and financial resources are urgently needed to return rail tonnages to earlier norms, boost exports, and increase economic growth. The proposed 51% BEE ownership target in the draft sector code has nevertheless passed largely unremarked. The relative silence here could encourage the ANC to use the Bill to enforce a 51% BEE ownership target in the mining sector too. The potential impact of the Expropriation Act Until now, many mining companies have largely shouldered the costs of the 26% BEE ownership requirement. However, if the Bill in time ushers in a 51% BEE ownership requirement for all mining rights, the costs would be enormous. They would be yet more unaffordable if the “continuing consequences” principle was repealed and top-up deals were demanded whenever black investors exited (as the draft transport sector code in fact envisages there). In this situation, mining companies might want to claim compensation for compulsory ownership deals that amount to regulatory or indirect expropriations – and would merit compensation under virtually all bilateral investment treaties (BITs) and other investment agreements. A regulatory expropriation takes place when the state’s rules deprive owners of many of the usual powers and benefits of ownership without fully stripping them of title. Most BITs see such interventions as having effects “equivalent” to direct expropriations, in which ownership passes to the state itself. Most BITs thus require the payment of compensation for both direct and indirect expropriations. In South Africa, however, the new Expropriation Act of 2024 – already signed into law but not yet operative – is intended to preclude compensation for indirect expropriations. This is to be done under a new definition of expropriation which confines the meaning of the term to expropriations of the direct kind. According to the Act, expropriation means the “compulsory acquisition” of property by the state. A compulsory 51% BEE ownership deal will not satisfy this definition because the relevant shareholding will be transferred – probably at a steeply discounted price and with the help of vendor financing that may not be repaid – to politically connected ANC cadres, rather than the state or its mining company. There will therefore be no acquisition of ownership by the state and hence no expropriation within the meaning of the Expropriation Act. Also important here are constitutional provisions requiring compensation for “expropriation” but not for other “deprivations”. The combined effect is that mining companies are likely to be denied any compensation for compulsory 51% ownership deals, regardless of the magnitude of their resulting financial losses. An adverse precedent has also already been set. In 2004, when the MPRDA came into effect, it vested all mineral resources in the “custodianship” of the state. Though two thirds of these resources had previously been privately owned, no compensation was paid for the loss of these valuable assets. This was primarily because of a flawed judgment of the Constitutional Court, in the  Agri SA  case in 2013, in which Chief Justice Mogoeng Mogoeng ruled that expropriation requires the acquisition of ownership by the state. Since the “assumption of custodianship” was different from this, no expropriation had taken place and no compensation was due. The ANC has long wanted to turn this flawed judgment – based on the particular facts of a particular case – into a general principle of law. The Expropriation Act is intended to achieve this. Once the Act with its narrow definition of expropriation has been brought into force, the ANC may be inclined to push ahead with new rules requiring 51% BEE ownership deals in mining, transport, and elsewhere. In the mining sector, the bill will provide the mechanism to achieve this aim. What, then, is to be done? Faced with the prospect of what amounts to expropriation without compensation, many mining companies may look for legal weaknesses in the ANC’s likely arguments. Such weaknesses can be found in the doctrine of the separation of powers, for example, which gives law-making powers to Parliament and not to the executive. They can also be found in the many errors in the  Agri SA  judgment, as well as the doubtful constitutional validity of both the expropriation definition and the entire Expropriation Act. To help win any legal battle, the mining industry needs also to speak out strongly against the harm that the MPRDA has already done and the bill will greatly worsen. True transformation requires vastly increased investment, very much faster economic growth and an upsurge in jobs for the 12 million South Africans now unemployed. That in turn demands cast iron protection for property rights as the minimum foundation for economic expansion and rising prosperity. BEE in mining has greatly enriched a small elite, but badly hurt the great majority of South Africans. The BEE elements in the Bill should at minimum be scrapped. So too should the entire BEE policy, which needs to be replaced by a non-racial alternative along the lines of the IRR’s Economic Empowerment for the Disadvantaged (EED) idea. In the mining sector, companies would then earn voluntary EED points for all investments made, all jobs provided, all taxes paid, and all additions made to export earnings, skills and innovation. These are the most important contributions that business can make to growing the economy and creating jobs, so that millions more South Africans can climb the ladder to cherished middle-class status. An EED system would also reach right down to the grassroots by providing the poor (identified by income, not race) with tax-funded vouchers for the competitive schooling, housing and healthcare of their choice. Little could be more effective in truly empowering the great majority – or in breaking the ANC’s stranglehold on a struggling mining industry and beleaguered economy. ‘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.biznews.com/thought-leaders/mining-bill-concerns-expanded-bee-mandates

Nkateko Joseph Mabasa | 18 June 2025 President Cyril Ramaphosa has defended his administration’s efforts to address the country’s deepening youth unemployment crisis, saying it requires a broad approach, including investing in education and skills development and encouraging entrepreneurship among young people. In his weekly newsletter, which coincided with South Africa observing Youth Day, Ramaphosa singled out the Presidential Employment Stimulus and the Presidential Youth Employment Intervention as two flagship programmes that have helped to cushion the blow of a stagnant labour market. The country’s youth unemployment rate remains among the highest in the world, with more than 60% of people aged 15 to 24 unable to find work, according to Statistics South Africa. Official youth unemployment, for those aged between 15 and 34, increased by 9.2% from the last quarter of 2024 to 46.1% in the first quarter of 2025. “To overcome this challenge we need an approach that includes investing in education and skills development, fostering youth entrepreneurship and implementing targeted employment programmes focusing on young people,” the president wrote. He said the Presidential Employment Stimulus and Presidential Youth Employment Intervention were “providing opportunities to hundreds of thousands of young people at a time when not enough jobs are being created to absorb new entrants into the labour market”. Launched in 2020, the Presidential Employment Stimulus has supported more than two million work and livelihood opportunities. According to the presidency, 72% of the participants were young people and 66% were women. The president also praised the SAYouth.mobi platform, a zero-rated data-free site that connects unemployed young people to training and job opportunities. Ramaphosa said 4.7 million young people have registered on SAYouth.mobi and on the department of employment and labour’s employment services database, collectively accessing more than 1.6 million earning opportunities. Beyond simply creating jobs, Ramaphosa said his government is working to remove systemic barriers that prevent young people from reaching the labour market. In 2019, the requirement for work experience in entry-level public service jobs was abolished, a move he said has opened the door for first-time jobseekers. “Young people have often expressed frustration around the onerous experience requirements from employers that effectively serve as a barrier to entry for them,” Ramaphosa said. Public-private partnerships, such as the Youth Employment Service, have placed thousands of young people in workplaces across a range of economic sectors, offering much-needed experience, said Ramaphosa. But he conceded that formal employment opportunities alone were not enough, stressing the need to bolster skills development and nurture entrepreneurship among the youth.  “The extent and scale of the youth unemployment crisis means that we should not focus solely on placing more young people in formal, existing jobs,” he wrote. Capitec Bank chief executive Gerrie Fourie recently said South Africa’s unemployment rate was closer to 10% instead of the official 32.9% if Stats SA were to include those self-employed in the informal economy. Fourier argued that many people in townships and rural areas have informal steady jobs as hawkers and make a daily turnover of about R1 000.  Stats SA refuted claims that it overlooks informal sector workers, stating it follows International Labour Organisation standards to track unregistered, small-scale employment. It regularly publishes detailed reports, such as the Quarterly Labour Force Survey, to monitor this sector.  Statistician general Risenga Maluleke emphasised that official data should inform policy, not be misrepresented, and urged critics to base their arguments on evidence. According to Stats SA,  the rate of young people not in employment, education or training has increased from 38.3% to 43.2% over the past 10 years. This raises questions about the ability of the informal economy to create alternative employment.   South Africa’s youth are increasingly being left behind by the economy, with rising unemployment, hunger and crime dimming prospects for a generation that makes up a third of the population, according to Stats SA’s latest Social Profile of Youth report, which tracks the well-being of young people from 2014 to 2024. Defined as those aged 15 to 34, the youth cohort accounts for about 21 million people, representing 33.1% of the population.  Although youth unemployment remains high, the profile of those most affected has shifted, suggesting that access to basic education is becoming less of a barrier to employment. The share of jobless youth without a matric qualification declined by 10.3 percentage points, while unemployment among matriculants fell by 7.2 percentage points.  But the report also shows that a matric certificate does little to shield young people from joblessness. From 2014 to 2024, the proportion of youth who were employed dropped from 30.5% to 27.7%, while youth unemployment rose sharply from 36.8% to 45.5% over the same period. This upward trend in joblessness was observed in most provinces except the Western Cape. At the same time, more youth are living in households without any employed adults. This figure rose from 21.8% to 23.8% for males and from 24.5% to 25.5% for females. At the household level, the situation remains precarious as income from salaries and wages declined in 2023. In rural areas, reliance on social grants remained high, despite a marginal decline in their overall share of household income. Food insecurity also worsened, with the share of young people living in hungry households rising from 13.5% in 2014 to 15.8% in 2023. “Households with no employed adults are becoming more common, which makes the intergenerational transfer of poverty more likely,” said the report. Youth safety also deteriorated, particularly for young men. Fewer youths reported feeling safe walking alone during the day, while feelings of night-time safety remained unchanged at 34.9%. Young men aged 16 to 34 were more likely to be victims of assault, street robbery and theft than their female peers, according to the report. School attendance increased slightly, from 74.7% in 2014 to 75.2% in 2023, while enrolment in higher education climbed by 1.3 percentage points to 13.2%. Youth with tertiary qualifications were also the least likely to be unemployed. Statistics South Africa said this reinforces the importance of continued education in an exclusionary labour market. Enrolment in technical and vocational education and training colleges dropped slightly, while participation in adult education and training went down from 1% to just 0.04%. Stats SA noted a small uptick in home-schooling and other alternative education options, which signals growing demand for non-traditional learning opportunities. “South Africa’s youth are better educated, but not necessarily better off,” the report concludes. The youth data raises questions about the intersection between skills alignment, the quality of work and the cost of living. Ramaphosa said the government has ramped up funding for technical and vocational education and training colleges, including the establishment of new campuses. The presidential youth programme has also partnered with the National Youth Development Agency and the department of small business development to develop young entrepreneurs. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/news/2025-06-18-ramaphosa-touts-youth-jobs-drive-as-statssa-data-paints-grim-unemployment-picture/

The Socio-Economic Development   element requires an Independent Competent Person to present an Independent Competent Person’s Report to confirm that the requirements of an organisation’s Socio-Economic Development contributions have been met and that a claim is indeed legitimate. As per Schedule 1  of the Amended General B-BBEE Codes of Good Practice, a “Competent Person” means a person who has acquired through training, qualification and experience the knowledge and skills necessary for undertaking any task assigned to them under the codes.” An Independent Competent Person must have no conflict of interest when nominated to sign off on an organisation’s Socio-Economic Development initiative. Such a person must have sufficient training and experience or knowledge, as well as other qualities that allow them to assist an organisation in the capacity of an Independent Competent Person. The competence level depends on the initiative's complexity and the requirements of a particular assessment. An Independent Competent Person must have a duty of care to an organisation’s investors. Socio-Economic Development Services are available to assist organisations that wish to confirm the competence of an Independent Competent Person.

The Ownership element of the B-BBEE Scorecard assesses the proportion of Ownership  held by Black People within an organisation and is one of the Priority elements under B-BBEE Legislation.   As per the Amended General B-BBEE Codes of Good Practice, and using the Verification Manual as a guide, Ownership must be measured on the date of a B-BBEE Verification and not on the date of an Ownership transaction.   Ownership Services are available to Members to assist with understanding requirements for Ownership.

From time to time, the South African National Accreditation System (SANAS) publishes a list  of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials .     This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

Journalist | 18 June 2025 Gwede Mantashe’s removal of B-BBEE rules for prospecting rights has ignited criticism from labour and activists, raising fears of a shift in policy. Is the ANC-led government of national unity (GNU) about to sell out on the principle of broad-based black economic empowerment (B-BBEE), the policy which has formed the bedrock of ANC policy and which has been in the crosshairs of its critics recently? That’s the question which arises from the decision of Minerals and Petroleum Resources Minister Gwede Mantashe to remove the requirement for B-BBEE participation in prospecting rights. According to some NGOs involved in the mining sector, Mantashe caved in to pressure from the mining lobby, not only on the prospecting licence rules, but also on the requirement that the minister must approve any change in control of listed companies that own mining rights. The latter means that the government would be unable to track owners and assign responsibility to them for cleaning up mining sites once an ore body has reached the end of its profitable life. That, say Mantashe’s accusers, means potential environmental damage on a huge scale. But it is the amendment to empowerment rules which has angered groups like organised labour, because there seems to be no logical reason for the deviation. The latest development comes after Communications and Digital Technologies Minister Solly Malatsi was pilloried for allegedly trying to soften empowerment law to allow Elon Musk’s Starlink to operate in South Africa. That this was an incorrect reading of both the law and what Malatsi said made no difference to his enemies, who claimed the DA minister was “selling out” B-BBEE. There is also some concern about whether the ANC is feeling the pressure of people like the right-wing lobby and its powerful friend, US President Donald Trump, who view empowerment laws as apartheid in reverse. It seems unlikely the ANC would roll back these laws because it would be punished at the ballot box. Which leaves another question: What is Mantashe up to? ‘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.citizen.co.za/news/opinion/is-the-anc-quietly-rewriting-empowerment/

Nkateko Joseph Mabasa | 17 June 2025 Business Leadership South Africa (BLSA) has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals. It said effective efforts should be anchored in measurable objectives that justified the financial commitment required.  According to a draft released in March, the R100 billion fund aims to promote black economic empowerment and inclusive economic growth by facilitating the increased participation of black people in the mainstream economy.  In a submission to the department of trade, industry and competition, BLSA, an association  representing big businesses, said while it recognised the importance of transformation initiatives, “we have concerns regarding the feasibility, governance and financial sustainability of the proposed fund in its current form”. “The fund should use an outcome-based approach by specifying the expected transformation impact in tangible terms, such as the number of businesses it aims to grow, employment targets, or improvements in SME (small and medium enterprises) survival rates,” it said. “For example, a goal of supporting 5 000 black-owned businesses with a 30% annual growth rate over five years would provide a more practical framework for assessing effectiveness.” Trade and Industry Minister Parks Tau published the fund’s concept document — which envisages raising R20 billion annually for black enterprise development — in March, with a 28 May deadline for comments. Scrutiny of the draft comes amid tension over the government’s black economic empowerment policies. For example, the Democratic Alliance (DA), despite being part of the government of national unity, is challenging the Employment Equity Act in court, arguing that it introduces unfair race quotas that contradict the Constitution. Communications and Digital Technologies Minister Solly Malatsi, a DA cabinet member, recently had to defend his controversial proposed information and communication technology policy adjustments as intended to broadly attract investment in the sector, rather than to simply pave the way for Elon Musk’s Starlink to operate in South Africa, as critics suggested. President Cyril Ramaphosa has defended black economic empowerment as vital for inclusive growth, crediting it for the emergence of black industrialists and support for women-owned businesses. BLSA acknowledged the importance of redressing the structural economic imbalances created by apartheid, and commended the government for establishing the Transformation Fund, but bemoaned the lack of analysis about why previous state-led initiatives such as the National Empowerment Fund and the Small Business Fund had underperformed. “The paper does not provide a comprehensive overview of these existing funding mechanisms, nor does it justify why a new R100 billion structure is necessary instead of enhancing existing models,” it said in its submission. It also expressed concern about institutional inflation, where new entities are created for the same purpose instead of supporting ongoing programmes, adding that access to funding alone would not resolve the systemic challenges and insufficient mentorship capacity had hampered black empowerment initiatives. “Without targeted investment in mentorship infrastructure even significant financial allocations may fail to yield desired development outcomes,” it said. Labour union Solidarity and the Free Market Foundation estimate that black empowerment laws have incurred R145 billion to R290 billion in compliance costs since their inception, equivalent to between 2% and 4% of GDP. A report by the two organisations on the cost of broad-based black economic empowerment says the programme has imposed a substantial economic burden on high-intensity sectors such as mining and finance, attributing low employment numbers to racially motivated policies. “While B-BBEE may have contributed to an increase in black ownership and supported some skills and SME development, those gains are overshadowed by elite capture, limited grassroots impact and persistent inequality,” the report said. BLSA said transformation efforts would improve with more private sector participation in the fund’s financial disbursement and oversight. It argued that transformation is already happening in companies’ enterprise and supplier development programmes, which have proved to be commercially viable in integrating small businesses. A joint fund management team between government and the private sector would allow businesses to share and “codify lessons and best practices for the fund’s design”, the organisation added. “We recommend that the Transformation Fund be designed with sufficient flexibility to align with existing industry master plans and accommodate the requirements of the fast-growing priority sectors,” it submitted. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/business/2025-06-17-transformation-fund-draft-document-lacks-clear-outcome-driven-goals-blsa-says/

Midrand Reporter | 16 June 2025 The graduation served as a poignant reminder that when entrepreneurs are equipped with the right tools, support, and confidence, they build with purpose and build to last. The Innovator Trust, established by Vodacom over a decade ago, aims to support the development of small, black-owned, information and communications technology (ICT) enterprises in South Africa. It has successfully assisted black-owned small, medium, and micro enterprises (SMMEs) in the ICT sector, positively impacting thousands of lives through its comprehensive programmes.This proud legacy reflects a commitment to strategic entrepreneurship, job creation, and the empowerment of innovative ideas. As a result, on June 3, the Innovator Trust hosted the 2025 enterprise development graduation ceremony at Vodacom World in Midrand. The event celebrated entrepreneurs from the hatch incubator, IT accelerator programme (ITAP), and youth entrepreneurship programme (YEP). From side hustles, to scalable businesses, the Innovator Trust has supported over 200 entrepreneurs at every growth stage, providing practical tools, experienced mentorship, and strategic guidance that yields tangible results. Tashline Jooste, CEO of Innovator Trust, reflected on the trust’s, over a decade-long, journey. “We have been developing our capacity and enhancing our systems to better support SMMEs,” said Jooste. “Every business requires a supportive ecosystem, which begins with incubation. “What we are witnessing, a decade later, is the rise of industry leaders who are shaping the future of South Africa’s digital economy. While some may view this as just a graduation ceremony, for us, it is a testament to what can be achieved through targeted, relevant support for SMMEs.” Lungile Manzini, executive head of sustainable development at Vodacom South Africa, delivered the keynote address, highlighting the importance of purpose-driven SMMEs, while Siya Sangweni facilitated a dynamic panel discussion on the current state of the SMME landscape in South Africa. Entrepreneurs openly shared their experiences regarding challenges, such as cash flow issues and delays in corporate payments, emphasising the need for support beyond financial aid. The atmosphere shifted from strategy to celebration as beneficiary graduates took to the stage, greeted by thunderous applause. One of the evening’s highlights was the Pinnacle Award, recognising the entrepreneur who excelled across all measures of business success. Michael Cyster was the winner of this prestigious category. “I’ve never chased recognition, but to be acknowledged like this is indescribable,” said Cyster. “I’ve just put my head down and worked, and I’m so grateful to the Innovator Trust for seeing me and acknowledging the effort we put in.” Graduates and runners-up received well-deserved recognition, with several categories awarding up to R50 000 in cash prizes to support their continued business growth. ‘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.citizen.co.za/midrand-reporter/news-headlines/local-news/2025/06/16/innovator-trust-recognises-top-ict-achievers/

Solly Phetoe | 16 June 2025 Broad-Based Black Economic Empowerment (BBBEE) remains an important tool to address our deeply ingrained levels of inequality.   It would be strange for any democratic government of a nation emerging from three hundred and fifty years of the most brutal and institutionalised forms of discrimination that left over 90% of society consigned to the most poorly paid form of manual labour, not to embrace state supported economic empowerment programme.   It would have been tantamount to endorsing South Africa’s status as the world’s most unequal society, something clearly the fringe right wing extremists wish for. BBBEE is merely one tool, among many, to address the legacies of the past and the inequalities of today.  This is a key prescript of the Constitution and an obligation of the state to society. BBBEE in short seeks to give a fair opportunity to millions historically denied such due to their race, gender or disability.  People, in particular the race baiting fringe right wing, ignore its inclusivity.  BBBEE includes Africans, Coloureds, Indians, plus women, workers and persons with disabilities of all races.  In short it covers about 97% of society! BBBEE is not just the 30% shareholding option but also equity equivalents where investors can offer similar investments supporting local companies, creating jobs and investing in communities.  All equally important.  It includes Employee Shareholder or Worker Ownership Programmes (ESOPs).  This has been an initiative COSATU and many unions have championed.  In the recent past few years, it has seen over 550 000 workers become shareholders in their companies.  This has given them a stake in the companies’ well-being and growth, but also crucially put money in their pockets.  Some critics lament that BBBEE has failed and must be scrapped.  Yet they are silent on its role in creating a growing Black middle class.  They deride efforts to create Black industrialists yet miss the point of their role in opening factories and companies, and the jobs these create in local communities.   Is BBBEE perfect?  Of course not.  Does it need to be adjusted, lessons learned, mistakes corrected?  Without a doubt.  Cosatu does have many concerns with the implementation of BBBEE, notwithstanding appreciating its successes in many instances.  BBBEE does need to be adjusted to learn from challenges experienced, to avoid repeating them and to ensure its progressive objectives reach those most in need of empowerment, the millions of working class residents living in townships, informal areas, rural towns and villages across the nation. A discussion needs to be had about the once empowered, always empowered notion.  Do we want BBBEE to continue to benefit those already empowered? Or can it be adjusted to prioritise those still in need of empowerment?  How can this be practically done?  An elegant solution is needed lest BBBEE be dismissed as benefiting only the wealthy. How can SMMEs, especially emerging ones, and particularly those in townships and rural areas, be elevated?  We should not continue to normalise township and rural economies to be composed of taxis, petrol stations, hawkers and taverns alone.  An inclusive targeted approach to these communities where the overwhelming majority of South Africans live, is needed. Can more be done to eliminate fronting where White South Africans merely add the name of a Black employee or partner to their ownership papers or where a Black owned company simply imports goods from Asia?  BBBEE is not about names on a letter head.  It is meant to reach those in need of empowerment.  It cannot be about enriching importers when we need to elevate local procurement and give support to local businesses, Black and White, and not sacrifice them in pursuit of cheap imports. Public procurement with an annual budget of over R1 trillion, from departments to municipalities, entities and State-Owned Enterprises, has a key role to play in supporting BBBEE and more critically making sure it reaches those who need it, not the nouveau riche. The recently assented to Public Procurement Act elevating this important objective across the state will be an important boost in this regard.  Public representatives across the three spheres of government need to hold the executives accountable in this regard. The private sector too, in particular large mining, manufacturing, financial and other well-resourced sectors with large procurement budgets, need to provide more solidarity and support to local companies, in particular BBBEE compliant ones.  This is key not only to transformation and empowerment, but also to boosting localisation and stimulating badly needed economic growth and tackling unemployment. Whilst Cosatu supports the thrust of BBBEE, the heart of our support and in fact our passion, lays in ramping up ESOPS or Worker Ownership Programmes.  We want workers to live a better life, to boost their earnings, to have more money to pay their debts, to feed their families and to buy the goods local companies produce and thus spur economic growth and sustain and create more jobs. We want workers to become co-owners of their companies as this gives them a stake in their success and a direct motive to boost productivity and again spur economic growth and sustain and create jobs. We want to end the still painfully prevalent apartheid scars that are the feature of almost every township, village and community.  We want workers, African, Coloured, Indian, White, women and with disabilities, to be co-owners in this economy, including on the JSE. We want this better life now, not in some indeterminate future promised on a Jpeg by irrelevant populists.  Workers are the backbone of the economy. They have made South Africa the industrial hub of the economy.  Many have grown wealthy off of their sweat and blood, it is time that this wealth is shared with the working class.  ESOPs are a critical path to doing that. BBBEE is not perfect, but its objectives remain as valid today as they were in 1994.  Adjustments are needed, in particular to make sure the SMMEs in our townships, local manufacturers, and most importantly workers are elevated and prioritised at all times. ‘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/business-report/opinion/2025-06-16-cosatu-the-importance-of-bbbee-in-addressing-inequality-in-sa/

Kara le Roux | 12 June 2025 Small businesses often collapse under the weight of underfunding and a lack of resources. The likes of Mr Price and Woolworths are stepping in to help. South Africa’s small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don’t make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good  Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths’ corporate social justice director, Zinzi Mgolodela, said: “Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. “Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety , giving children the opportunity to thrive in safe, supportive environments.” The Land Bank’s CEO, Themba Rikhotso, said: “This initiative aligns directly with Land Bank’s mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country’s long-term food security.” Fishing for hustlers under 35   Meanwhile, Mr Price’s Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer’s efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. “The country has no shortage of young minds with bright ideas and business know-how,” said the foundation. “So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.” The closing date to apply to the Mr Price Foundation is 30 June. Credit desert  According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa’s SMME ecosystem. ‘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.dailymaverick.co.za/article/2025-06-12-retail-giants-step-in-with-millions-of-rands-to-help-entrepreneurs-on-their-way-up/

Cape Business News | 11 June 2025 BMG – part of Invicta Holdings Limited – celebrates five years since joining South Africa’s Youth Employment Service (YES) Programme, which is a joint initiative between the Government and private sector. The country’s YES programme aims to create one million work opportunities for unemployed black youth. “We believe that the business sector has a responsibility to help solve the escalating problem of youth unemployment.” “The social cost of unemployment and the threat it poses to the stability and dignity of South African society, are far too great for companies not to get involved in a meaningful way,” says Ruth Black, group human resources executive, Invicta Shared Services. “Through the inspiring YES Programme, Invicta and BMG currently employ over 132 young people who have participated in this programme. “The YES programme offers our youth a bridging opportunity between school and the world of work, aspiring to nurture leadership capabilities, that are invaluable for business success and individual achievement. “By providing the opportunity for young people to gain practical work experience and enjoy mentoring and training at BMG, we are able to equip them with the necessary skills and business ethos that contribute to a brighter future and economic sustainability. “This 12-month programme offers participating businesses the chance to gain up to two levels on their Broad-Based Black Economic Empowerment (B-BBEE) scorecard. As a special service, BMG offers its customers the opportunity to participate in this initiative by providing the necessary training to selected candidates at BMG World. These businesses are able to claim the scorecard points at the end of the programme. “The BMG team has always enjoyed a culture of learning and knowledge sharing, which is why this uplifting programme is a perfect fit with our need to develop commercial and technical skills and nurture personal development.” BMG currently has 82 candidates participating in the YES programme, who are involved in all areas of the business – including sales, warehouse functions, experience in various product divisions as well as important support functions. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://cbn.co.za/industry-news/skills-training-development-news/its-a-yes-from-bmg/