Philippa Larkin | 28 January 2026 SME empowerment organisation Unconventional CA (UCA) has raised concerns that the Transformation Fund offering big black economic empowerment points incentive reflects no meaningful shift from earlier drafts and is unlikely to serve the real needs and requirements of South Africa’s entrepreneurs and small, medium and micro enterprises (SMMEs). This is in response to the news that the government is getting ready to move ahead with the revamped fund as soon as next week.  Government in partnership with the private sector seeks to establish a R100 billion aggregated Fund to support the ever-growing funding requirements for businesses owned and managed by black entrepreneurs to propel inclusive growth across various sectors of South Africa’s economy. The Transformation Fund is anticipated to be capitalised at R20 billion per annum over a five-year period. Under the proposal, companies that contribute 3% of their net income to a so-called Transformation Fund will earn double the points currently available for a scorecard that measures businesses' support for greater economic inclusion. Hiten Keshave, the CEO of UCA and an Enterprise & Supplier Development (ESD) specialist, said in a statement the latest version of the fund does little to address the fundamental questions around impact, accountability, and practical SME development. “There are no material changes to what was first drafted,” said Keshave. “At its core, this remains a proposal to centralise capital, without any clear direction on how those funds will actually translate into sustainable SME growth or meaningful support for entrepreneurs on the ground.” Keshave warns that the proposed governance structure, which places decision-making power in the hands of a minister-appointed board, raises serious concerns for SMMEs, particularly in an environment where public trust in state institutions is already fragile. “Given the lack of confidence many South Africans already have in how state-owned entities and the broader economy are managed, concentrating this level of funding under a self-appointed board is a major red flag,” he says. “For entrepreneurs and small businesses, this raises real concerns about transparency, accountability and whether funding decisions will reflect their realities.” He also questions whether the Transformation Fund is being positioned as a genuine solution to SME development,  or as a mechanism to plug existing funding shortfalls within government itself. “The Minister of Small Business Development, Stella Ndabeni-Abrahams, has acknowledged that African startups receive less than 3% of global venture capital and that her department faces budget constraints when it comes to supporting SMMEs,” says Keshave. “Entrepreneurs are entitled to ask whether this fund is truly designed to empower them — or to subsidise gaps in government’s own funding capacity.” According to Keshave, the proposal further fails to recognise the diversity of the SME sector, treating small businesses as a single category despite vast differences in scale, sector, and maturity. “You cannot generically bucket all businesses into one class,” he says. “SMMEs require targeted capital, mentorship, operational support and access to markets, not a once-off pooled solution designed primarily to simplify compliance.” Keshave adds that meaningful economic transformation and SME-led growth will require far more than what he describes as a policy “quick fix.” “If we are serious about supporting entrepreneurs and building a resilient SME economy, this will take more than a single fund,” he says. “It requires all political parties to put ego and politics aside and collectively rethink what effective, practical transformation should look like.” Unconventional CA believes the proposal should prompt a broader national conversation focused on accountable, decentralised, and development-driven approaches that genuinely serve South Africa’s SMMEs. Business Leadership South Africa (BLSA) has previously said questions remain around the fund.  "The obstacles that need to be managed in enterprise development are complex. An estimated 70% of all new businesses fail in South Africa. The reasons for this failure rate include a lack of skills, limited access to markets, and insufficient access to funding. Initiatives that have attempted to address these challenges, including the supplier and enterprise development component of B-BBEE, have had mixed success. While there are good examples where companies have fostered successful black-owned businesses and integrated them into their supply chains, many other companies have failed to gain traction despite significant funding. Access to funds alone is demonstrably not the answer," Busiswe Mavuso, the CEO of BLSA said. "One of the questions that arises from the concept document is how the Fund proposes to improve on aspects related to ESD, over and above funding. The primary constraint on successful small business funding, for example, is the mentorship required to simultaneously develop capacity. Effective mentorship depends on a scarce and stretched skill set. The performance of the NEF and similar funding initiatives has been constrained precisely because of the lack of mentorship capacity in the country. Enterprise development is not easy, and several committed players have devoted significant time and resources to getting it right over many decades,:" she said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businessreport.co.za/entrepreneurs/2026-01-28-empowerment-organisation-red-flags-r100bn-transformation-fund/

The author or deponent of a Sworn Affidavit must be a duly represented registered Director / Owner / Shareholder / Member etc. of an organisation as per company documentation. Where an organisation has foreign shareholders, the same principle applies. A Sworn Affidavit is invalid if anyone other than duly represented individuals function as a deponent.   Certificate Collection Services   are available to assist with identifying valid and invalid Sworn Affidavits.

For most SETAs, the deadline for submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) is 30th April 2026. Where organisations must submit these reports to their relevant SETA, they should obtain points under the Skills Development element.   As Skills Development is an identified Priority Element, not submitting an ATR and WSP could trigger the Discounting Principle, which will impact an organisation’s overall score.   The information contained in the WSP and ATR must coincide with the data submitted to an organisation's B-BBEE Rating Agency at the time of their B-BBEE Verification.   Both the WSP and ATR are strategically designed documents that systematically identify any skills gaps, which align with the government's overall Skills Development Strategy. Both intend to track development, plot succession plans, and monitor the overall progress of organisations against set targets.   Technical Services are on hand to assist with the understanding of the above and how it is recognised.

Tiisetso Motsoeneng | 27 January 2026 The government is preparing to launch a revamped Transformation Fund as early as next week, rewriting incentives that have shaped corporate behaviour for more than two decades. A trade, industry & competition ministerial briefing pack, seen by Business Day, shows that companies will be able to earn 30 broad-based BEE (BBBEE) points by contributing 3% of net profit after tax to the fund — double the points currently available for the same outlay under traditional enterprise supplier development (ESD) routes. The 30-point reward is large enough for many companies to move several levels on the broad-based BEE scorecard. For companies in the midrange, a single contribution could lift them into level 3 or higher, improving access to government and corporate procurement without changes to ownership or management. Early unsigned or conditional commitments listed in the briefing pack totalled R13.1bn, led by R10.8bn from Afreximbank and smaller entries of R500m each from the Unemployment Insurance Fund, Industrial Development Corporation and Development Bank of Southern Africa, while Vodacom-Masiv will pump in about R400m. These sums are not far from the fund’s annual mobilisation target of R20bn. “The fund will be capitalised through the aggregation of resources anchored in BBBEE policy provisions, complemented by contributions from mechanisms such as Competition Commission public-interest commitments and other strategic funding partners,” the document reads. Priority sectors The fund will be in a special purpose vehicle incubated by the National Empowerment Fund, targeting a small set of priority sectors — renewable energy, manufacturing, agro-processing, logistics and digital infrastructure — chosen for their ability to deliver jobs and industrial impact. The fund will offer grants, loans, equity and business development support. The document also shows the fund will be governed by a minister-appointed board, supported by a public-private investment committee. The move could simplify compliance and channel more money to black‑owned businesses, offering a fast shortcut to procurement competitiveness without forcing companies to restructure ownership or overhaul management. However, it also concentrates decision‑making in a minister‑appointed board, potentially raising concern that the commercial rigour needed to turn pooled capital into jobs and business will be undermined by directors beholden to ministerial preferences. Simplified compliance route The briefing broadly mirrors the same policy objective as reported by Business Day last year, centralising corporate transformation capital and offering a simple compliance route. But it is likely to disappoint cheerleaders of the initial proposal to launch the department of trade, industry & competition into action last year. Under that proposal, unlisted companies would have been offered an opportunity to pay 3% of gross revenue into a South African Revenue Service-collected pool managed by a private fund of funds in exchange for an automatic level 3 recognition. Corporates prefer the option that offers the clearest, cheapest path to procurement advantage and the least compliance friction, one small business owner briefed on the department’s plans said. Even market leaders with deep pockets find the administrative and operational demands of BBBEE compliance onerous. Major companies and blue-chip firms maintain in-house transformation units — board-level social, ethics and sustainability committees — adjust strategies to scorecard rules and pour millions into advisory and reporting to protect their ratings. For black entrepreneurs, the fund promises scalable, patient capital aimed at townships and regional value chains that conventional enterprise development programmes have failed to reach. Affordable capital shortfall The Gordon Institute of Business Science and the BBBEE Commission’s 2024 study shows that while ESD spend has grown rapidly, actual outcomes, specifically for sustainable and scalable black businesses, have fallen short of expectations. They identified a chronic shortfall of affordable capital as the primary culprit. The department first announced the Transformation Fund as a policy initiative at the beginning of 2025, setting a target to mobilise R100bn over the term of the current administration. It framed the fund as a way to aggregate existing enterprise and supplier development and related commitments to create scale and improve access to finance for black-owned businesses. However, the proposal was met with immediate governance concerns, with Business Unity South Africa signalling its willingness to participate but pushing for clarity on design, governance and implications. The DA derided it as a “looting scheme” and “madness”, saying it repackages old programmes that have failed to make a dent in poverty and unemployment. ‘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.businessday.co.za/economy/2026-01-27-government-readies-revamped-transformation-fund-offering-big-bee-points-incentive/?utm_medium=Social&utm_source=Facebook&fbclid=IwY2xjawPlMClleHRuA2FlbQIxMQBzcnRjBmFwcF9pZBAyMjIwMzkxNzg4MjAwODkyAAEeBYye6yVIOBQme-DCHVBCQgqGiO8YiQBgEXyU3cyqJGI5JHCzmS8wm6g4PTY_aem_Nm3M3l5rJTz7bXle2jiOBw

Jens Langenhorst | 26 January 2026 Starlink dominates South African headlines, but pricing and market realities raise questions about who it's really for. South African media has been saturated with Starlink coverage for months. Every ministerial statement, every regulatory development, every parliamentary objection becomes headline news. Yet amid this relentless coverage, a curious question emerges: why Starlink specifically? The regulatory challenges facing Elon Musk’s satellite service aren’t unique. Major global technology companies have long navigated South Africa’s broad-based black economic empowerment frameworks when entering the market. According to Paul Colmer, executive nember at the Wireless Access Providers’ Association, what makes Starlink different is its need for a radio licence, which under the Electronic Communications Act requires 30% equity ownership by historically disadvantaged South Africans. SpaceX’s global policy prohibits local equity dilution, creating an impasse that played out in Government Gazettes , ministerial directives and parliamentary committee objections throughout 2025. In December 2025, communications minister Solly Malatsi issued a policy directive asking Icasa to align its regulations with the ICT BEE sector code, which recognises equity equivalent investment programmes (EEIPs) as an alternative to direct ownership. SpaceX has committed R2.5-billion in local investment, including R500-million to connect 5 000 schools with free internet and equipment. The ball now sits firmly in Icasa’s court – and regulatory processes aren’t resolved by ministerial finger-snapping, regardless of political pressure. But here’s what’s puzzling: OneWeb’s LEO services are already operational in South Africa through partnerships with Paratus, Q-KON Africa and others. Amazon Leo (previously Project Kuiper) is preparing to launch here, too. Yet these services generate minimal public interest. The hype surrounding Starlink has overshadowed a more fundamental question: what is the actual addressable market, and who really needs this service? The affordability question Starlink promises affordable broadband connectivity anywhere at fibre-like speeds. But the word “affordable” requires context. Published pricing in neighbouring Eswatini and Lesotho shows a monthly subscription costs between R900-R950, plus a R3 800 once-off equipment cost (for the Starlink Mini kit). These figures likely indicate what South Africans can expect. Compare this to fibre-to-the-home (FTTH) services, which typically cost around R950/month for uncapped 100Mbit/s connectivity. At its entry level, Starlink is therefore coming in at the higher end of the FTTH market, and pricing only goes up from there, making it comparatively less affordable. According to Icasa’s “State of the ICT Sector” report, South Africa has 2.7 million fixed broadband subscriptions, with 2.47 million being FTTH connections. A household committing to R950 monthly sits firmly in LSM7-10 brackets – those with at least R20 000 monthly income. In the 2023 tax year, 1.3 million people earning over R500 000 annually contributed 75% of all personal income tax. This suggests that between 1.3 million and 2.5 million households can afford premium internet subscriptions – and most already have them, either through FTTH or fixed-wireless services from local wireless internet service providers. The data points to a sobering reality: the addressable market for Starlink broadband services in South Africa will be a fraction of middle-to-high income households. Some may switch providers, others may use it as backup or for mobile connectivity during travel. But these represent incremental additions, not a transformative market opportunity. South Africa has more than 19 million households. In lower LSM bands, innovative companies are already building fiber networks in townships and low-income areas. Fibertime has connected over 250 000 homes with uncapped 100Mbit/s at R5/day, targeting two million homes by 2028. TooMuchWifi serves over 70 communities in the Western Cape, providing uncapped internet to over a million users, also at R5/day. R5 daily equals R150 monthly – nowhere near Starlink territory at current pricing. The real opportunity Where Starlink’s value proposition becomes compelling is in areas where traditional infrastructure remains economically unviable: game farms, forestry stations, remote rural communities, villages and schools. This is where local wireless ISPs have a significant opportunity. Within its proposed equity equivalent obligations, Starlink has committed to providing free connectivity for 5 000 schools. But here’s the crucial detail: Starlink isn’t an infrastructure provider or a wireless ISP. It’s a satellite service delivering connectivity to a location – not a complete solution. This creates an ecosystem opportunity for local wireless ISPs to build infrastructure around these remote Starlink deployments. It’s not a box-drop solution; it’s about creating local- and wide-area networks on farms and at remote schools, establishing proper network management and providing ongoing technical services. The satellite terminal gets connectivity to the site – but someone needs to distribute that connectivity throughout the premises, maintain the equipment, troubleshoot issues and integrate it with existing systems. This is precisely why mobile provider solutions like fixed wireless and fibre haven’t succeeded in these regions. They treat remote deployments as drop-box solutions, delivering connectivity to a point without concerning themselves with last-mile distribution to every classroom, every house on a farm or every building in a village. Starlink will encounter the same limitations unless local connectivity providers are engaged to bridge the gap from the terminal to the actual devices people use. For wireless ISPs, this represents a genuine business opportunity: not competing against Starlink, but complementing it by providing the infrastructure, management and support services that transform satellite connectivity into usable internet access for end users. Market context and competition Starlink reportedly has over seven million subscribers globally, making South Africa an attractive market even if only a fraction of households adopt the service. The demand was proven when over 12 000 “illegal” terminals were sold and activated in South Africa between 2023 and early 2024, demonstrating real appetite despite regulatory uncertainty. Will Starlink serve a purpose? Absolutely. Significant gaps exist in internet coverage across South Africa, particularly outside fibred urban and suburban areas. Is the South African market critical to Starlink? Perhaps less than the hype suggests. By the time political and regulatory processes conclude, other LEO providers – Amazon Leo and China’s Thousand Sails constellation – will be ready to compete. For Starlink, entering before these competitors gain traction matters strategically, but the market itself will be divided among multiple providers. Once LEO broadband satellite services become fully operational in South Africa, they’ll serve a significant portion of the population, though universal access remains unlikely. Given current pricing structures, extending these benefits across all economic segments will require targeted strategies tailored to different income levels – and crucially, local infrastructure partners who can turn satellite connectivity into meaningful internet access for communities that need it most. ‘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/starlink-hype-vs-reality-in-south-africa/276730/

Rebecca Campbell | 26 January 2026 The Chemical Industries Education and Training Authority (CHIETA) has stressed that providing equitable access to high-quality maths and science education, especially for learners in under-resourced and rural areas, is a priority. Such education is essential to unlock career opportunities for young people in science-based industries and for the country’s long-term development. Yet gaps in maths and science education persisted. Addressing them requires targeted and collaborative support, that goes beyond the classroom. “The Matric Class of 2025 [results] reminds us that talent is evenly distributed, but opportunity is not,” highlighted CHIETA CEO Yershen Pillay. “Programmes such as CHIETA’s STEM Learner Support Programme exist to close that gap by giving learners access to the academic reinforcement they need to succeed in critical gateway subjects. If South Africa is s“The Matric Class of 2025 [results] reminds us that talent is evenly distributed, but opportunity is not,” highlighted CHIETA CEO Yershen Pillay. “Programmes such as CHIETA’s STEM Learner Support Programme exist to close that gap by giving learners access to the academic reinforcement they need to succeed in critical gateway subjects. If South Africa is serious about building a future-ready workforce, we must continue investing in mathematics and science support that creates real pathways from school into scarce and critical skills sectors.” The abovementioned leaner support programme provides additional and structured tuition in maths and the physical sciences. It strengthens the performance of the learners and creates a pipeline of future professionals, equipped to pursue essential but scarce skills in the manufacturing and chemical sectors.erious about building a future-ready workforce, we must continue investing in mathematics and science support that creates real pathways from school into scarce and critical skills sectors.” The abovementioned leaner support programme provides additional and structured tuition in maths and the physical sciences. It strengthens the performance of the learners and creates a pipeline of future professionals, equipped to pursue essential but scarce skills in the manufacturing and chemical sectors. “Matric results are an important national milestone, but they also reflect the strength of the systems that support learners along their educational journey,” affirmed CHIETA. “The [record] achievements of the Class of 2025 reaffirm the importance of targeted STEM interventions to ensure that every learner, regardless of their background, can realise their full academic and career potential.” An example of just such an intervention is a Maths and Science Learner Support Programme in Qwa Qwa in the Free State province, which aided 200 Grade 12 (matric) learners. This programme is a partnership between CHIETA, the Free State Department of Education, and banking and investment group Investec, and provides the learners with additional teaching, over weekends and in school holidays. This greatly improved their confidence and their knowledge of the subjects, and so made them ready to take the exams.   One of these learners, Bokang Mokubung, at the Bluegumbosch Secondary School, achieved a mark of 97% in both maths and physical sciences in the matric exams at the end of last year. He was ranked first among learners in Quintile Three schools for maths. (Quintile Three schools serve lower-middle-income areas.) “I am very grateful and appreciative of the support and funding from the Department, CHIETA, and Investec,” he said. “The additional tuition helped me improve my grades from level six to level seven.” “CHIETA reaffirms its commitment to partnering with government and industry stakeholders to expand access to quality STEM education,” assured the agency. “By investing in young talent today, the country is building a skilled workforce that will shape its 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://www.engineeringnews.co.za/article/chieta-highlights-its-support-for-maths-and-science-education-in-under-resourced-areas-2026-01-26

FA News | 20 January 2026 The Technology Innovation Agency (TIA), an entity of the Department of Science, Technology, and Innovation (DSTI), has signed a Memorandum of Understanding (MOU) with the Insurance Sector Education and Training Authority (INSETA) to advance skills development, innovation, and capacity-building within the insurance sector and related industries. The MoU was signed on Thursday 18 December in Johannesburg. Through this five-year agreement the two entities seek to maximise impact and support national strategic objectives through various programmes and initiatives. These will be geared at developing a skilled, future-ready workforce aligned to current and evolving industry needs while facilitating access to innovation and commercialisation support for SMMEs, startups, and entrepreneurs. The precursor to the MoU was a collaboration agreement between TIA and INSETA for an innovation challenge in the insurance and related sectors. Through this initiative, 20 innovative solutions were developed addressing challenges faced by the insurance industry arising from the fourth Industrial Revolution and the COVID-19 Pandemic. The current MoU seeks to scale up from the previous agreement for much greater impact. The entities will promote a culture of innovation for the insurance sector through joint bespoke platforms based on three pillars of the agreement, namely: Innovation and Technology Development Entrepreneurship, SMME Development and Market Access Establishment of Insure Digital Hubs This five-year collaboration seeks to achieve strategic goals aligned to the mandate of both entities by enhancing research, technology transfer, and applied innovation across universities, TVET colleges, and the private sector. "To us, the signing of this MoU marks more than just a formal agreement but is a mark of a maturing system where government entities can work together to deliver more impact. Aligning our mandates and strategic objectives will strengthen innovation-led skills development, drive sector growth, and promote inclusivity in the insurance sector. Over the years we have seen various interventions from entities in the areas of skills development, innovation and enterprise development, but these operate in silos and cannot scale up. “The partnership between TIA and INSETA demonstrates a move beyond traditional skills development models as it integrates innovation, commercialisation and economic growth. Innovation is a key driver of skills relevance and if the two are paired then we can have skills relevance and inclusive growth in the sector,” said Mr Loyiso Tyira, Chairperson of the TIA Board.  By leveraging the Quadruple Helix model of innovation, which promotes collaboration between academia, industry, government, and civil society, the initiative aims to create a shared vision for strengthening the role of SETAs in building a more dynamic ecosystem that empowers the workforce and drives socio-economic impact through innovation. Rooted in the shared mandate of both organisations to drive socio-economic impact through skills development and innovation, the agreement supports national priorities outlined in the National Development Plan (NDP), the Economic Reconstruction and Recovery Plan (ERRP) and the Decadal Plan. It formalises a joint commitment to building a future-ready workforce while addressing systemic challenges such as unemployment and digital exclusion. ‘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.fanews.co.za/article/talked-about-features/25/straight-talk/1146/tia-and-inseta-mou-to-strengthen-transformation-inclusivity-and-diversity-in-insurance-sector/43176

Whilst making a financial contribution to an Enterprise Development or Supplier Development Beneficiary is deemed a contribution, it does not always constitute a sustainable claim. A claim for each of these sub-elements needs evidence that demonstrates an organisation’s intervention has contributed to growth, sustainability, as well as operational and financial independence.   The monetary route is one contribution option. However, other avenues are contributing an asset or upgrading equipment. In such a case, the value of the asset or the upgrade will determine the claim. It is important to note that only the asset or upgrade is a claim. A B-BBEE Rating Agency will not recognise other line items on an invoice that do not relate to the initiative.   When submitting a claim for granting an asset, it is irrelevant whether it is new or pre-owned, imported or locally produced.   Enterprise & Supplier Development Services are available to help members ascertain that their investment is an authentic contribution.

The concept of “Black New Entrants” is found under the Ownership scorecard whereby the Amended General B-BBEE Codes of Good Practice allows for Two Points to be scored based on a 2% Compliance Target.   The definition contained under Schedule 1 of the Amended General B-BBEE Codes of Good Practice  defines “Black New Entrants” as “ Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in any Entity which has a total value of more than R50,000,000.00 measured using a standard valuation method.”   Technical Services are on hand to assist with the understanding of the above and how it is recognised.

South Africa’s greatest economic challenge is not a lack of talent or entrepreneurial spirit,  it is a lack of access. Enterprise & Supplier Development (ESD) directly addresses this gap. When implemented with accountability and long-term commitment, it changes the structure of the economy by broadening ownership, deepening industrial participation and creating pathways for sustainable Black Industrialists and Suppliers. This is how B-BBEE Transformation moves from rhetoric to reality.   Whilst we await further announcements and information around the ESD Transformation Fund on how it will impact the B-BBEE Scorecard, the Website has been launched containing information relating to certain aspects of the Fund.    The link can be found Here .   Enterprise & Supplier Development Services are available to help members understand further details on the ESD Transformation Fund.

The Citizen | 21 January 2026 Trades and technical skills are proving more practical than many traditional degrees. It is a useful and timely reminder from the Kagiso Trust that young people and new matriculants should consider 99 occupations which are in high demand and which they can qualify for through technical and vocational education. Kagiso Trust CEO Mankodi Moitse says the reality is that the economy is crying out for skilled workers across numerous sectors. Of the 350 occupations listed, 99 require certificates at National Qualifications Framework levels 1-5, which can often be obtained in just a year of focused, practical training. The jobs she has listed include everything from fitters and turners to bricklayers, accounts clerks, mechanics, boilermakers, commercial sale representatives, chefs, tour guides, flight attendants, community health care workers and interior designers. She says: “These aren’t just jobs, they are careers with genuine growth potential. An electrician can become an electrical contractor. A chef can open their own restaurant. A bookkeeper can become a financial manager. Technical and vocational education are launching pads, not dead ends.” For too long, many people have looked down at “the trades” as something beneath them, while they dream of esoteric degrees which, sadly, will not put food on the table. ‘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/you-dont-need-a-degree-to-work/

Alex Hogg | 20 January 2026 Black Economic Empowerment (BEE) remains one of the most polarising policies in post-apartheid South Africa. Supporters argue it is essential for correcting historical injustice, while critics contend it has become economically destructive and socially corrosive. In a candid interview with Alec Hogg, Gerhard Papenfus, Chief Executive of the National Employers’ Association of South Africa (NEASA), sets out why he believes BEE has failed to deliver meaningful empowerment and is instead harming the country’s economic foundations. Papenfus recently drew national attention after publishing a strongly worded open letter to Mineral Resources and Energy Minister Gwede Mantashe. The letter was prompted by comments made by Mantashe suggesting opposition to BEE stemmed from white South Africans seeking to protect historical privilege. Papenfus rejects this characterisation outright, arguing that resistance to BEE is far broader and rooted in lived economic reality rather than race. According to Papenfus, BEE has created an “unnatural economy” in which access to opportunity is determined by political compliance rather than merit, price or quality. He describes the system as coercive, claiming businesses are effectively forced to participate if they wish to trade with government or large corporates. For many small and medium-sized enterprises, this pressure has led to costly ownership deals, weakened governance structures and, in some cases, business failure. A central theme of Papenfus’s critique is that BEE has entrenched elitism rather than broad-based empowerment. He argues that while a small, politically connected group has accumulated extraordinary wealth, the vast majority of South Africans - including those previously disadvantaged under apartheid - remain excluded from meaningful economic participation. In his view, this concentration of benefits undermines social cohesion and deepens public frustration. Papenfus also questions the psychological and cultural effects of empowerment through entitlement rather than enterprise. He draws a sharp distinction between entrepreneurs who build businesses through risk, sacrifice and perseverance, and beneficiaries who receive ownership or directorships without contributing capital, expertise or effort. The latter, he argues, often lack the incentive or commitment required to sustain a business, resulting in dysfunctional boardrooms and declining performance. Throughout the interview, Papenfus returns to the concept of entrepreneurship as the cornerstone of genuine empowerment. He speaks from personal experience, describing the early struggles of building a business from nothing and the enduring value of learning through failure. This process, he contends, creates not only financial returns but also skills, resilience and intergenerational value - outcomes he believes BEE largely fails to achieve. Another key concern raised is the economic cost of inflated procurement and poor service delivery. Papenfus cites examples from infrastructure, energy and state-owned enterprises, arguing that contracts awarded on the basis of compliance rather than competence have dramatically increased costs while reducing quality. These inefficiencies, he says, ultimately burden taxpayers and weaken the broader economy. When challenged on whether his position seeks to preserve white economic dominance, Papenfus insists the opposite is true. He points to the vibrancy of the township economy and the success of informal and small-scale entrepreneurs as evidence of untapped potential. His argument is not against transformation, but against a model that prioritises ownership transfer over skills development, competition and value creation. Looking ahead, Papenfus believes that abandoning BEE in favour of merit-based economic participation would deliver rapid improvements. He claims that awarding contracts transparently on price and quality would stimulate growth, restore confidence and expand opportunities far more effectively than the current system. While he acknowledges the political unlikelihood of such reform in the short term, he argues that rising public opposition may eventually force a reckoning. For Papenfus, the debate is no longer ideological but practical. South Africa, he warns, cannot afford policies that enrich a few while impoverishing the many. True empowerment, he concludes, comes not from entitlement, but from the freedom to compete, create and succeed on equal terms. ‘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/interviews/directors-cut-gerhard-papenfus