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  • SA’S ECONOMY IS FAILING ITS YOUNG PEOPLE

    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

  • NWU AND VUSELELA TVET COLLEGE EXPLORE STRATEGIC COLLABORATION TO ADDRESS NATIONAL SKILLS GAPS

    Belinda Bantham | 24 March 2026 Technical and Vocational Education and Training (TVET) colleges and universities are central to solving South Africa’s skills crisis, bridging the gap between practical training and academic knowledge to drive economic growth. It is within this context that the North-West University (NWU) and Vuselela TVET College held high-level talks on 23 March 2026, setting the stage for a strategic partnership aimed at reshaping skills development, strengthening research collaboration and expanding socio-economic impact. Leading the engagement were NWU principal and vice-chancellor, Prof. Bismark Tyobeka, and Vuselela TVET College principal Priscilla Lehoko. The discussions focused on how the two institutions can combine their strengths to respond more effectively to the country’s urgent skills shortages. Prof. Tyobeka made it clear that collaboration is no longer optional, but essential. “We are intentional about building collaborative frameworks that respond to national priorities,” he said. “We are also able to direct resources from our budgets to support infrastructure upgrades where possible, ensuring that partnerships such as this one lead to real outcomes.” He stressed that stronger alignment between universities and TVET colleges could unlock new postgraduate pathways while directly addressing the shortage of skilled artisans. “There is a clear gap in skills, especially in artisan development,” Prof. Tyobeka said. “By formalising relationships and identifying priority areas, we can work together to close these gaps.” He also pointed to the NWU’s planned School of Mines and Mining Engineering as a key opportunity, highlighting the critical role TVET colleges play in producing the technical skills required by the mining sector. Speaking from a TVET perspective, Priscilla said the partnership could be a turning point in strengthening research and innovation capacity. “Research and innovation are areas where universities can provide important support,” she said. “Our focus remains on technical skills development, and working with the NWU would strengthen our efforts.” She highlighted the urgent need to expand student exposure to occupational programmes and improve employability through stronger partnerships. Infrastructure challenges, along with declining participation in mathematics and science, remain pressing concerns. Ntsikie Kote-Nkomo, executive director for strategy and strategic projects, brought a broader economic lens to the discussion, calling for collaboration that directly responds to industry and value-chain demands. “We must continue asking what our economy needs and how we respond together,” she said. “Entrepreneurship is still underdeveloped, and we need to position it not only as an alternative to employment, but as a driver of economic participation.” She pointed to the NWU’s growing entrepreneurship ecosystem as a platform that could support high-performing TVET students and artisans, while also calling for greater recognition of TVET institutions' role in the economy. The conversation also opened the door to broader partnerships, including collaborations with local municipalities to strengthen service delivery by improving technical skills pipelines. Nkosinathi Tom, director for strategic partnerships, highlighted existing connections between student leadership structures at the two institutions and proposed formalising these engagements, including opportunities for Vuselela student leaders to participate in the NWU’s Student Leadership Academy. Both institutions agreed that formalising the partnership would unlock structured collaboration across key areas, including skills development, infrastructure support, entrepreneurship, and student development. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://news.nwu.ac.za/nwu-and-vuselela-tvet-college-explore-strategic-collaboration-address-national-skills-gaps

  • AMID BUDGET TALKS, YOUTH UNEMPLOYMENT REMAINS A PRESSING CONCERN FOR SOUTH AFRICA

    Nkosinathi Mahlangu | 25 March 2026 Public discourse following this year’s National Budget has focused heavily on tax relief and easing pressure on household finances. That’s understandable. When the cost of living rises, any talk of relief tends to dominate the headlines. But amid the discussion about consumer relief and fiscal stability, one of the country’s most urgent structural challenges struggled to cut through the noise: youth unemployment. South Africa is a predominantly young nation, yet millions of school leavers, graduates and job seekers are still standing outside the economy looking for a way in. The growing number of young people who are not in employment, education or training should concern us far more than it currently does. While the Budget acknowledged economic reforms and skills development interventions, it offered little indication of how these will translate into real opportunities. At a time when the country is grappling with multiple crises – from crime to infrastructure failures – youth unemployment risks slipping down the national priority list. That would be a mistake. If anything, the issue sits at the centre of many of the challenges we face today. Growth alone will not solve youth unemployment   The Budget focuses heavily on infrastructure investment and economic reform, which has the potential to stimulate growth and unlock investment. But growth alone does not automatically open doors for first-time job seekers. Without clear planning, infrastructure projects can bypass the very communities where unemployment is highest. If South Africa is serious about tackling this crisis, major public investments must include youth-linked procurement targets, structured apprenticeship programmes and entry-level roles that prioritise young people in the communities where projects are implemented. Skills development must also translate into employment. Government has acknowledged that the current system has not delivered the outcomes originally intended, and the proposed shift toward a dual training model – combining classroom learning with practical workplace experience – is a welcome step. However, the real challenge lies in implementation. Too often, young people complete learnerships or short-term training programmes only to find themselves back where they started: qualified on paper but without workplace experience. A more co-ordinated approach is needed to close the persistent gap between the skills young people acquire and the needs of the economy. South Africa currently lacks a centralised database that connects training pathways with sectors where opportunities are emerging. Young people often complete degrees or certificates without a clear sense of where those skills are needed, while employers struggle to find candidates with relevant technical and workplace experience. Technical and Vocational Education and Training (TVET) colleges – which focus on practical and occupational skills – could play a far stronger role if their programmes were directly linked to infrastructure, construction and energy projects already planned across the country. In this way, national development projects can serve as training grounds where young people gain real experience. Infrastructure investment should not only build roads, rail and power systems. It should build careers. Youth employment must stay at the centre of the national agenda Youth unemployment cannot slip down the national priority list. Millions of people are entering adulthood desperate for a foothold in the economy, and the longer they remain locked out, the harder it becomes to change that reality. This is not a distant policy problem. It shapes what communities look like, how families survive and whether the country’s growth plans have any real meaning. South Africa does not lack programmes or good intentions aimed at youth development. The problem is that too many economic reforms, infrastructure projects and training initiatives still operate in isolation from each other. Youth unemployment is therefore more than a labour market statistic. It is a measure of whether economic reform is reaching the people who need it most. If young South Africans cannot find a way into the economy, the country’s broader reform agenda will struggle to deliver the progress it promises. ‘Disclaimer - The views and opinions expressed in this article ar e those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/ios/opinion/2026-03-25-amid-budget-talks-youth-unemployment-remains-a-pressing-concern-for-south-africa/

  • ELECTRONICS REPAIR PROGRAMME EMPOWERS YOUTH AND WOMEN

    TUT | 24 March 2026 The Technology Station in Electronics (TSE) at TUT has empowered 89 youth and women from Mabopane, Pretoria, through a smartphone repair and entrepreneurship programme, boosting employability. The programme, offered by TSE at the Tshwane University of Technology, focuses on youth and women and combines smartphone repair skills with entrepreneurship development, aiming to improve employability and enable participants to start sustainable micro-enterprises in their communities. The initiative comes at a time when South Africa’s labour market remains under pressure. Statistics South Africa reported an official unemployment rate of 31.4% in the fourth quarter of 2025, while youth unemployment (15–34) stood at 43.8%. Funded by the Technology Innovation Agency, the training focused on practical, hands-on capability in smartphone repairs. Technical training conducted during February was followed by entrepreneurship training in the first week of March. Participants received intensive instruction in diagnosing common phone faults, safely dismantling devices, replacing components, reassembling units and performing final functional tests - skills aligned to immediate service opportunities in local communities. To strengthen the pathway from technical competence to income generation, the programme also included an entrepreneurship component delivered by TUT’s Centre for Entrepreneurship Development (CED). This covered key small-business fundamentals, including business setup, goal setting, market analysis, value chains and other essentials for establishing and managing a community-based service business. Sello Baloyi, Manager of the Mabopane Skills Centre of the City of Tshwane, welcomed the outcomes and the balanced approach followed by the training team. “I commend the TSE team for delivering a training programme that successfully balances theory and practical application. The inclusion of entrepreneurship development is particularly impressive, as it equips participants with the skills to start and sustain their own businesses,” he said. The TSE supports TUT’s institutional strategic plan to build an entrepreneurial university and strengthen community impact by developing individuals who can become employment creators while expanding access to practical services within townships. ‘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.tut.ac.za/newsroom/all-news/2026/electronics-repair-programme-empowers-youth-and-women.php

  • CONFIRMING JOB CREATION

    Clause 2.4.2 of Statement 400 of the Amended General B-BBEE Codes of Good Practice  allocates Bonus Points for creating one or more jobs as a direct result of a Supplier Development or Enterprise Development  intervention.   The necessary evidence varies between B-BBEE Rating Agencies. Generally, however, a letter confirming job creation from the Beneficiary will serve as such evidence or a Signed Employee contract. The letter of confirmation must affirm that the intervention created at least one new job. Some confirmations may include being administered by a Commissioner of Oaths.  This must be undertaken by the Beneficiary and must include (not limited to):   An organisation’s full name, physical address, postal address, and registration number; A Beneficiary’s full company name, physical address, postal address, and registration number; The Enterprise Development or Supplier Development commenced; The date of the contribution; The number of new positions due to the intervention; and The names of the new employees;   Enterprise & Supplier Development Services   are available to assist Members meeting requirements for Job Creation.

  • FRAUDULENT B-BBEE CREDENTIALS

    The most significant risk to an organisation meeting its Preferential Procurement targets is fraudulent B-BBEE Statuses. They not only go against the spirit of B-BBEE, but they put an organisation at risk, as fraudulent B-BBEE Credentials generally only reveal themselves at the time of an organisation’s B-BBEE Verification.   The B-BBEE Commission's website contains a List of known Fraudulent / Invalid B-BBEE Credentials currently in circulation.   If any Members have suspicions about B-BBEE Credentials currently, Certificate Collection Services  is on hand to assist with validation of their authenticity.

  • THE REAL TRUTH OF B-BBEE

    William Saunderson-Meyer | 23 March 2026 More than R1 trillion has been transferred to fewer than 100 politically-connected individuals. The scale of the damage that the ANC has inflicted defies easy comprehension. Take economics, where black economic empowerment (BEE) – I’ll flag my bias by ignoring the government’s preferred “broad-based” acronym, B-BBEE – has become perhaps the most fiercely contested terrain in South African politics. Here, the numbers are so sprawling, the structures so opaque, and the beneficiaries so often concealed that the public cannot see the wood for the trees. BEE payouts benefit a few politically connected individuals Fortunately, one of our most respected intellectuals, Prof William Gumede, has rendered the chaos comprehensible by reducing it to two savagely memorable propositions: more than R1 trillion has been transferred to fewer than 100 politically connected individuals, and the same people are “empowered” over and over again; and in mining alone, 46 politically connected people secured 60% of BEE deals, becoming multimillionaires overnight. Gumede is no fringe polemicist. He is attached to the school of governance at Wits University. That is why the backlash has been so furious. He has incurred the displeasure of President Cyril Ramaphosa, been attacked for “sabotaging” SA’s credibility in international investment markets and been challenged to “prove” his numbers. He is also the target of a campaign of character assassination. This is not a question that can be settled with a neat spreadsheet, though Gumede, this week, marshalled a formidable body of evidence in a private presentation to the Black Management Forum, an organisation representing many beneficiaries of the system. It was received, he tells me, in “total silence.” BEE operates across three deeply interlinked arenas. There are private-sector ownership deals. There is public procurement. And there were the privatisation transactions of the early democratic years, where BEE participation was built into the disposal of state assets. Some of Gumede’s source material is political dynamite. For example, the claim that 46 ANC fellow-travellers snagged 60% of BEE mining deals rests, he says, on research done in 2015 by a top-tier audit firm and a major bank for the Chamber of Mines. The study, which was leaked to Gumede, remains confidential, and to this day, none of those involved will agree to be named. So, while the evidentiary problem is real, that is not the same thing as saying the underlying claim is fanciful. Evidence points to systemic abuse, public sees little impact Starting with the part that is actually visible, Intellidex calculated in 2015 that BEE deals by the 100 largest JSE-listed companies had generated R317 billion in net value by the end of 2014. Then there is the much larger and murkier reservoir of procurement. Gumede notes the state now spends “almost R1 trillion” a year this way, and cites Treasury official Willie Mathebula’s evidence to the Zondo commission, that of the 2017 procurement Bill of R800 billion, more than half was lost to “intentional abuse of the system”, including the manipulation of BEE rules for personal benefit. Few, if any, of the ANC-linked billionaires amassed their fortunes through the slow, mundane business of building companies from scratch. The official B-BBEE Commission has itself recorded major empowerment transactions worth tens and even hundreds of billions. At the end of the day, the proof of Gumede’s thesis lies all around us. The heavily compromised ANC intelligentsia may refuse to see it but, on the ground, the evidence is mounting. Social surveys and voting patterns increasingly suggest that ordinary South Africans understand that the benefits of BEE are not what was promised – and are certainly not flowing to them. ‘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/the-real-truth-of-b-bbee/

  • MAJOR BLOW TO BUSINESSES EMPLOYING MORE THAN 50 PEOPLE IN SOUTH AFRICA

    Staff Writer | 23 March 2026 The Supreme Court of Appeal has dismissed attempts to put a stay on South Africa’s new Employment Equity targets imposed on businesses in the country. The Employment Equity Amendment Act and its accompanying two sets of Employment Equity Regulations, including the 5-year sector numerical EE targets for the eighteen economic sectors, came into effect on 1 January 2025 and 15 April 2025, respectively. Under the laws, designated employers in South Africa—businesses employing over 50 people—are required to draw up plans to ensure their workforces reflect the country’s demographics at all levels. To this end, the government is now empowered to set numerical demographic targets for businesses across 18 sectors, pushing for black, Indian/Asian, coloured as well as female and disabled representation. On top of the targets, designated employers are also now saddled with increased admin and burdensome compliance costs—while facing steep fines and penalties for falling foul of the laws. After the commencement of the Act and the regulations, a number of legal challenges were instituted against the Minister of Employment and Labour, the Director-General of the Department of Employment and Labour (DEL), and the Commission for Employment Equity (CEE). These cases primarily challenged the constitutional validity, lawfulness, consultation process, and the implementation of the amended EE legislative framework and the 5-year sectoral numerical EE targets. Two key litigants, the National Employers Association of South Africa (NEASA) and business lobby Sakeliga, filed an urgent application with the Gauteng High Court in Pretoria, challenging the laws. The case was heard on 15 August 2025. In the legal challenges, the groups sought interim relief to interdict or suspend the implementation of the 5-year sectoral numerical EE targets, as well as certain provisions of the EE General Administrative Regulations—Part A of the challenge. In Part B of their case, they sought substantive relief to declare section 15A of the EE Amendment Act, 2022, and related provisions unconstitutional, including the review and setting aside of the 5-year sectoral numerical EE targets and the EE Regulations. On 28 August 2025, the High Court dismissed Part A of the application. According to the DEL, the court accepted the urgency of the case, but held that an interdict was not appropriate where the Minister had already exercised statutory powers. “The High Court declined to suspend what it regarded as a lawful exercise of statutory authority, emphasising the separation of powers,” it said. “The court further held that the consultation process preceding the publication of the sectoral numerical EE targets was lawful.” However, Part B—the constitutional validity challenge—remains pending, which played a key role in the latest dismissal. Appeals process falls flat NEASA and Sakeliga sought leave to appeal the dismissal of Part A of their application. The matter was heard on 16 October 2025. However, the Court found that there were no compelling reasons why another court would reach a different conclusion. It further held that it would be premature to grant leave to appeal before Part B is finalised. Leave to appeal was accordingly refused, with no order as to costs. The applicants then approached the Supreme Court of Appeal. On 13 March 2026, the Supreme Court of Appeal ordered that the application for leave to appeal be dismissed with costs on the grounds that there is no reasonable prospect of success in an appeal and there is no other compelling reason why an appeal should be heard. According to the DEL, this Supreme Court of Appeal Order is a big win for the department. “It vindicates our position that there is nothing sinister about the EE amendments and the 5-year sector numerical EE targets,” it said. The department said that, in the absence of any court interdict on the implementation of the EE Regulations and the 5-year sector numerical EE targets, all the designated employers are legally obligated to fully comply with the EE amendments. Designated employers must align their annual EE targets in the EE Plans with the 5-year sector numerical EE targets. The department noted that employers retain the flexibility to justify deviations from or non-compliance with the laws. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/854634/major-blow-to-businesses-employing-more-than-50-people-in-south-africa/

  • A BILLION-RAND BLUNDER — INSIDE NSFAS’S SUSPICIOUS STUDENT HOUSING OUTSOURCING SAGA

    Siyabonga Goni | 19 March 2026 NSFAS’s controversial outsourcing practices have cost South African taxpayers up to R1bn, exposing failures in managing student accommodation and verifying service provider integrity. The National Student Financial Aid Scheme (NSFAS) is facing fresh scrutiny following a two-year investigation by the Organisation Undoing Tax Abuse (Outa) that exposed a “funding pipeline” riddled with systemic weaknesses, stemming from the introduction of a student-centred accommodation model overseen by former CEO Andile Nongogo and ex-chairperson Ernest Khosa. Nongogo was axed on 23 October 2023 after an Outa investigation found that he improperly appoi nted service providers to distribute allowances for food, hygiene products and transport to funded students. Khosa resigned in April 2024 after he was allegedly linked to irregular tenders that NSFAS issued to four service providers to manage payments to NSFAS beneficiaries. Multimillion-rand contracts In 2023, NSFAS entered into a five-year agreement with four online portal providers following a competitive bidding process. The winners, Xiquel Group, New Dawn Technologies, Training Young Minds, and Profecia IT, were tasked with managing the accommodation platform. Outa’s investigation raised red flags regarding the procurement process. The organisation revealed that Training Young Minds had been disqualified during the initial evaluation, only to be reinstated and awarded a contract. Furthermore, by January 2023, NSFAS had already outsourced work to 39 additional service providers responsible for property inspection and accreditation. Breakdown of finances Outa estimated that over the course of these contracts, between R600-million and R1-billion was diverted to the four private entities, a financial burden that taxpayers must bear for services that Outa contends should be managed internally by NSFAS. The scheme operated on a “system licence fee” model, whereby NSFAS automatically deducted 5% from payments to accommodation providers. This revenue was split 80/20 between NSFAS and the service providers, with the lion’s share going to the service providers. In just eight months in 2025, approximately R230-million was withheld from landlords to cover these fees. Rudie Heyneke, Outa’s senior project manager, said the R230-million represented only the 2025 data, and the long-term projections were staggering. “If you say that R180-million (80%) goes to the service providers, it means R45-million (20%) comes back to NSFAS. I’m sure that you can make a case that for one year, the solution partners will get in the region of R200-million. If you look at the five years, we are looking at R1-billion,” said Heyneke. The fee deduction process was criticised by members of the Portfolio Committee on Higher Education. NSFAS CEO Waseem Carrim said the scheme had a professional working relationship with Outa and supplied much of the information for the report through submissions. Regarding Nongogo and Khosa’s student accommodation model, Carrim said: “The student accommodation project was implemented in 2023. We have acknowledged the challenges associated with student accommodation projects and set to work on addressing these challenges. “NSFAS has offered its full cooperation and support to the Special Investigating Unit in this investigative process and in terms of its proclamation, and we will allow the law to take its course.” Paying for accreditation The accreditation process also proved lucrative for agents and detrimental to the system. Under the service level agreement, landlords pay a registration fee for every bed that is accredited. This fee is split between the accreditation agent (80%), NSFAS (15%), and the portal providers (5%). The prices varied. For one to 20 beds, a fee of R200 was charged per bed; for 21 to 50 beds, R150 per bed; for 51 to 100 beds, R125 per bed; and for more than 100 beds, R100 per bed. “Our investigation found that accommodation providers paid approximately R33-million to register their beds on the student accommodation portal,” said Heyneke. However, for some landlords, the system has been a “disaster”. An accommodation provider for Majuba TVET College, who requested to remain anonymous but runs an accommodation called Amigos, claims she is still owed significant sums. “Xiquel was the worst disaster because of their system; they don’t have a backup for their system. There were students who were staying in my property who registered, and I signed with them. But then they later revoked their application after staying on my property for two months. A lady was working there and just told me straight that I’m insane. I’m not going to get my money because they do not have the records of what I’m saying,” said the accommodation provider. She also highlighted discrepancies in the payments she did receive, noting she was paid as little as R1,175 per student instead of the agreed R3,339.45. When questioned about claims, Carrim responded: “We have searched in our records and cannot find any record of this landlord.” Failure to inspect accommodation Another discovery involves the failure of the 39 accreditation agents to verify the properties they were paid to inspect. Outa found that many agents certified inflated bed numbers, allowing landlords to claim for “ghost students”. “If agents are certifying properties without proper inspections or approving bed numbers that clearly do not reflect reality, then the reliability of the entire accommodation system must be questioned,” said Heyneke. Of the 250,000 beds in the system, Outa has flagged 10,000 as “suspicious”. Heyneke cited the example of a property in Arboretum, Richards Bay, which was certified as a Grade A facility with 200 beds by the agent, Elandivect, with Xiquel as the solution partner managing the listing. However, satellite imagery revealed the property was a standard three-to-four-bedroom house with minimal outbuildings – clearly insufficient space for 200 residents. Following NSFAS’ decision to ditch the four solution partners after a legal review, Carrim said there were no “irregularities in the way the accreditation agents were appointed”. NSFAS has welcomed Outa’s investigation, and plans to review the report and consider its findings and recommendations in line with its ongoing initiatives to improve the management of student accommodation. Outa has demanded an independent probe into the entire student accommodation infrastructure. The organisation is also pushing for criminal complaints and investigations against NSFAS officials, service providers and landlords found guilty of misconduct and corruption. Daily Maverick asked Nongogo and Khosa for comment on Outa’s report. Nongogo did not respond. Khosa said: “NSFAS has a new leadership. They know better what is happening in the organisation. I don’t want to be drawn into what’s happening at NSFAS. Your persistence is very suspicious.” DM Update: The name of the service provider of accommodation at Majuba TVET College has been removed after raising concerns about her ongoing dealings with the online portal providers following the publication of the article. The removal has no bearing on the facts contained in the article. (Updated: 20 March 2025) ‘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/2026-03-19-a-billion-rand-blunder-inside-nsfass-suspicious-student-housing-outsourcing-saga/?dm_source=blocks-list-item&dm_medium=card-link&dm_campaign=inform&utm_campaign=Post-1384&utm_medium=email&utm_source=first-thing

  • VALIDITY OF B-BBEE STATUSES

    At the time of a B-BBEE Verification, many organisations fail to produce updated B-BBEE Statuses  from their suppliers especially those who are EMEs and QSEs with Enhanced Recognition. During a B-BBEE Verification, a B-BBEE Rating Agency will generally consider:   Any B-BBEE status that is valid within the Measurement Period or thereafter; Most recent valid B-BBEE Status; and A B-BBEE status that is valid for at least one day in the Measurement Period due to differing Financial Year Ends as well a customer and supplier not being measured at the same time.   B-BBEE Statuses that have expired before the start of an organisation’s Financial Year End will not be accepted.   Certificate Collection Services  are available to clarify the validity of any B-BBEE Status.

  • A SAMPLE OF EVIDENCE

    A B-BBEE Verification  is based on a sampling of evidence and an element of risk. In other words, the process of analysing less than 100% of the evidence supplied. The procedure provides a Verification Analyst with a reasonable basis on which to conclude that all evidence provided is true and accurate.   However, posing a challenge is a Learnership   claim where the Learner is no longer employed. If that particular Learner is chosen as part of the sample, the B-BBEE Rating Agency will need to interview them for an organisation to claim its points.   As per Clause 18.3.1.3 (e), the SANAS R47-03 document states the following:   " (e) As part of the Verification process, the Verification personnel shall interview a sufficient number of black persons at all levels of the Measured Entity to provide assurance that the information gathered is sound. For the avoidance of doubt, interviews shall be conducted for the Skills Development element. This does not exclude the sampling of white persons or others who do not meet the definition of 'Black'."   Therefore, an organisation must ensure that it has up-to-date contact details of Learners no longer employed or other pieces of corroborating evidence.   B-BBEE Verification Support Services  are available to assist Members to prepare for B-BBEE a Verification.

  • NRF MAINTAINS B-BBEE LEVEL 1 STATUS

    NRF | 9 March 2026 The National Research Foundation (NRF) is delighted to announce that it has maintained a Broad-Based Black Economic Empowerment (B-BBEE) Level 1 rating. This achievement symbolises the NRF’s commitment to the transformation of the equity profiles of the South African research workforce; the knowledge enterprise; and the relationship between science and society while building a diverse and fully inclusive learning organisation. This achievement also highlights our commitment to the acceleration of transformation through preferential procurement and skills development. “Through its procurement and supplier development initiatives, the NRF has created meaningful opportunities for designated groups to participate in the organisation’s supply chain, including opportunities to do business with our National Facilities,” says Chief Financial Officer, Mr Bishen Singh. “The NRF remains committed to supporting Small, Medium and Micro Enterprises (SMMEs) through targeted preferential procurement, enterprise development support, and collaborative partnerships. These interventions provide critical guidance, opportunities, and support to help emerging enterprises overcome barriers to entry and grow sustainably.” The NRF has continued to provide work opportunities for unemployed youth through the Youth Empowerment Services (YES) programme. This year, the NRF is hosting its fourth (4 th ) cohort through the programme, and over one-hundred and twenty (120) youths have received work exposure opportunities since inception. Key directed interventions in achieving this outcome include: Collaboration with Disability South Africa; Contributing to the YES programme; Collaborations with public and private sector (SMME funders); Enterprise and supplier development awareness;  Targeted preferential procurement expenditure towards SMMEs; SCM Transformation awareness session with SMMEs; Recruitment of designated groups (more importantly, female employees) in Junior to Senior Management positions in line with the Employment Equity Act; and Participation of designated groups in learnerships, apprenticeships and internships in line with the Skills Development Act. ‘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.nrf.ac.za/nrf-maintains-b-bbee-level-1-status/

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