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  • UNLOCKING TRUE ENTERPRISE DEVELOPMENT: FROM THE STREETS TO THE BOARDROOM

    Creamer Media | 7 July 2023 Take a walk past the Ceramic Industries factories in Vereeniging, Krugersdorp and Hammanskraal on any given day and you may come across informal traders, tilers, transporters and other artisans milling nearby the company’s headquarters hoping for an opportunity for a ‘piece job’ or a chance to earn a day’s honest living. In response to this pressing need in the community, Ceramic Industries, along with business incubator, Vantage Advisory launched an Enterprise Development project that offers interested tilers and transporters in Hammanskraal the opportunity to formalize their enterprises by aiding and guiding them through a structured incubation program. The initial step was to register all 42 beneficiaries with the Companies and Intellectual Property Commission (CIPC). Following registration, the SMEs were accepted into a business development support program designed to assist entrepreneurs in shifting from informal to formal enterprises so that they, too, could contribute to their community's socioeconomic development. On the 8th of July 2023, Ceramic Industries will host an Awards event at Zenzele Park in Boksburg for its Enterprise & Supplier Development Graduation in recognition of SMEs that have achieved the greatest revenue growth and employment creation. Ceramic Industries is Africa's leading maker of high-quality, stylish, trendy tiles and bathroom ware, with a focus on responsible corporate responsibility and the social and economic development of formerly disadvantaged individuals with eight factories, seven in South Africa's Gauteng province and one in Australia. Steered by effective leadership towards responsible corporate responsibility, Ceramic Industries is conscious of the collective challenges our nation faces and intentional in its approach to creating meaningful and sustainable interventions which promote the social and economic development of previously disadvantaged individuals. The twelve-month Business Development Support (BDS) programmes gave the SMEs an overview foundation of various skills, processes, and compliance requirements that are essential skills for any start-up business. Says Vantage Advisory Director, Luncedo Mtwentwe: “Entrepreneurship cannot be taught in the classroom. Now that we have introduced basic business concepts to our beneficiaries, we want them to apply the knowledge they have gained in more practical ways in their businesses. Ceramic Industries’ Tabisa Ngubo adds that the organization offers myriad business opportunities to its Enterprise Development alumni but also encourages them to spread their wings beyond the exposure that they gain from Ceramic Industries. “It is incredible to witness the growth amongst our intake of artisans especially when they literally present their offerings in a boardroom setting with the verve and confidence of skilled business practitioners. True empowerment is about seeing individuals leapfrog to new heights and become fully independent to the point of even hiring their own staff and turning their businesses into going concerns. Some of our ED suppliers now own entire fleets and are strategic partners in our business value chain. Our ED awards are about encouraging more small businesses to grow with us,” says Tabisa Ngubo, Ceramics Industries CSI Coordinator. Ceramic Industries is devoted to broad-based economic transformation through the expansion of entrepreneurs and suppliers, as well as the creation of competitive marketplaces for them to create more jobs and build sustainable communities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/unlocking-true-enterprise-development-from-the-streets-to-the-boardroom-2023-07-07

  • SANRAL’S NEW PREFERENTIAL PROCUREMENT SCORING SYSTEM CHALLENGED

    Roy Cokayne | 7 July 2023 Applicant says the new system has relegated its B-BBEE Level 1 rating to 10% of its tender scorecard and ‘elevated 100% black ownership to 50% of the scoring’. Contractors say it is unconstitutional, irrational, and will lead to ‘obvious and avoidable’ disadvantages for potential tenderers. The South African National Roads Agency (Sanral) is facing a high court challenge after allegedly unilaterally introducing a new preferential procurement scoring system for its tenders. The new scoring system allegedly significantly downgrades the importance of the Broad-Based Black Economic Empowerment (B-BBEE) Act ratings of most bidders. Cape Town-registered H&I Construction (Pty) Ltd has launched an urgent application in the High Court in Gqeberha to interdict Sanral from implementing its new scoring system when adjudicating two specific tenders, pending an application to review and set aside this new scoring system. H&I Construction will be applying for the latter in Part B of its application on the grounds that the new scoring system: Does not comply with the requirements set out by Section 2 of the Preferential Procurement Policy Framework Act 5 of 2000; and Was introduced with H&I Construction being consulted. Francis Chemaly, commercial manager of H&I Construction, said the new scoring system that Sanral now seeks to employ “is unconstitutional and irrational and therefore reviewable both on grounds of legality and under the Promotion of Administrative Justice Act. ‘Unfair, uncompetitive, cost-averse’ “Sanral introduced these changes to its tendering system without consulting those directly affected by it, including the applicant [H&I Construction],” said Chemaly. “The proposed new scoring system is so unfair, so irrational, uncompetitive and cost averse, that potential bidders such as the applicant [H&I Construction] will simply not be able to present a bid on a viable, cost effective basis, and have any hope of scoring sufficient points in a fair process to have the bid awarded to it, should Sanral be permitted to proceed with its new scoring system for these tenders.” Moneyweb emailed Sanral a list of questions about the new scoring system. Sanral GM for communications and marketing Vusi Mona said the matter is currently being processed legally. “There is a litigation process that is currently underway and we are finalising our legal papers. You will appreciate our reluctance to litigate through the media. However, once all papers have been served and are before court, we may be in a better position to consider responding to the media queries under discussion,” he said. Chemaly said Sanral’s new scoring system has relegated H&I Construction’s B-BBEE Level 1 rating “to a mere 10% of its tender scoring scorecard and elevated 100% black ownership to 50% of the scoring”. He said it will make it practically impossible for H&I Construction and other tenderers in a similar position to participate fairly and competitively in a transparent, cost effective bidding process. Not board-approved? Chemaly said it is unclear if the new scoring system has been approved by Sanral’s board and the absence of any such evidence on the Sanral website – where other public procurement and supply chain management procedures that were sanctioned by the board are to be found – “suggests that Sanral’s decision to introduce the new scoring system is invalid on that narrow ground already”. Chemaly said Sanral was given the opportunity to urgently revisit and remove the inclusion of the new criteria for the two tenders but refused to do so. JSE-listed construction and engineering group Wilson Bayly Holmes-Ovcon (WBHO) has applied to join Part B of the application. A further 11 construction companies, including JSE-listed Raubex and Stefanutti Stocks, were cited as respondents and have provided signed affidavits in support of H&I Construction’s application. Chemaly said these companies were cited as respondents by virtue of their interest in this application as major contractors in the construction industry. He said these companies are potential tenderers for the tenders that have already been advertised that form the subject of this application and other Sanral tenders that have been advertised with the same new scoring system. “They also have an interest … in the lawfulness and validity of Sanral’s new scoring system generally, given that Sanral has indicated it intends using the scoring system for its public procurement on various tenders nationally,” he said. Chemaly said all the construction companies listed “stand to suffer the same prejudice, albeit to varying degrees” as H&I Construction, under the new Sanral scoring system. Scorecard changes He said Sanral in the past used a bidder’s B-BBEE rating to allocate the preferential procurement part of the score, awarding 10 or 20 points based on the tenderer’s rating. “However, as a result of the amendments to the tenders, Sanral has relegated a bidder’s B-BBEE Level rating to a mere one point (in the case of a 90/10 tender) or two points (in the case of an 80/20 tender) and has elevated black ownership and sub-contracting to targeted enterprises to respectively five points (10 points in the case of 80/20) and four points (eight points in the case of 80/20) of the scoring of tenders that use the 90/10 scoring regime, i.e. tenders with a value of more than R50 million,” he said. Chemaly stressed H&I Construction’s application does not intend to disrupt the evaluation of any tenders under Sanral’s previous preferential procurement scoring system. Where the new system falls short He listed some of the reasons the new scoring system falls far short of the legal requirements set by the constitution for public procurement. One of these is the fact that Sanral, according to the tender, will engage with bidders independently further in regard to the scoring criteria, which creates the real danger of the process not being transparent and the black ownership requirement being manipulated even further on entirely subjective and variable grounds. Riaan de Necker, group MD for WBHO’s road & earthworks division, said WBHO is intending to participate in 11 tenders issued by Sanral, which now fall to be evaluated in terms of the new scoring system. De Necker said WBHO shares H&I’s concerns about the constitutional invalidity and unlawfulness of Sanral’s new scoring system and intends to participate in Part B of H&I’s application as a co-applicant. He said WBHO wrote to Sanral about each of the current tenders for which group companies intends to submit a bid. It sought an undertaking that each of these tenders be postponed until the issues concerning the scoring system are determined by the court. De Necker said Sanral refused to provide such an undertaking, which is unreasonable. He said the disadvantages of potential tenderers being required to submit bids and these bids being evaluated and contracts awarded on the basis of the new scoring system, which is under review, are obvious and avoidable. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/south-africa/sanrals-new-preferential-procurement-scoring-system-challenged/

  • PASTOR ORDERED TO PAY BACK R1.9 MILLION IN FRAUDULENT FUNDING

    Sandi Kwon Hoo | 7 July 2023 A pastor was ordered to repay the Agricultural Sector Education and Training Authority an amount of R1.9 million after entering into a plea agreement with the State. A BLOEMFONTEIN pastor, Lerato Raphael Mokoteli, was ordered to repay the Agricultural Sector Education and Training Authority (AgriSeta) an amount of R1.9 million after entering into a plea agreement with the State. Mokoteli was charged for fraudulent claims made between 2016 and 2019, where he submitted invoices for offering training and mentorship to a food garden operation in Kimberley. In a joint statement by the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA), it was indicated that Mokoteli paid R1.9 million to AgriSeta on June 15. “In March 2015, Mokoteli and Anthony Dywili fraudulently applied to AgriSeta for R1.9 million funding to provide training and mentoring for a food garden operation in Kimberley. Mokoteli and Dywili claimed that the application was a joint venture between Business Against Crime and Dipalemo Training Strategic Services, an AgriSeta accredited service provider. However, such a joint venture did not exist. Dipalemo was not aware of the application and did not receive a cent.” SIU spokesperson Kaizer Kganyago stated that they investigated allegations of corruption and maladministration in 2018, where it was discovered that the Northern Cape Empowerment Academy in which the accused had entered into a memorandum of understanding along with Business Against Crime, led by Dipalemo, knowing very well that the academy only existed on paper. “Between June and November 2016, Mokoteli submitted invoices totalling R1.3 million to Business Against Crime on behalf of Dipalemo. Mokoteli did not have any relationship with Dipalemo. “Mokoteli submitted a close-up report to AgriSeta on behalf of Dipalemo that had never rendered any training.” He added that 50 beneficiaries were paid a stipend totalling R219,000 and were awarded certificates of competency in food operation. ”They claimed that R381,564.86 was used for the administration of training. Dywili did not disclose to AgriSeta that R600,000 of the funding was unspent, in violation of the terms of the agreement.” Kganyago indicated that R317,000 of the funding was paid to a non-profit organisation called Christian for Peace in Africa, which is chaired by Dywili, in July 2016. “The bank account of the organisation was opened in June 2016.” NPA regional spokesperson Mojalefa Senokoatsane added that the accused – Moketeli, Dywili along with the AgriSeta chief executive officer Jeremia Sello Madiba, between 2008 and 2017, were charged with various counts of fraud and money laundering. “Madiba allegedly awarded the tender without the required decision by the board of directors of AgriSeta, in contravention of the Public Finance Management Act (PFMA). He will be appearing in court on a PFMA charge on August 28.” Senokoatsane said Mokoteli entered into a guilty plea agreement with the State on May 26. “In terms of the agreement, Mokoteli pleaded guilty to two counts of fraud and two counts of money laundering and agreed to pay back R1.9 million to AgriSeta. “Mokoteli was sentenced to 10 years imprisonment on two counts of fraud and five years for two counts of money laundering on June 14. The sentence was suspended for a period of five years on condition that he is not convicted of similar offences during the period.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dfa.co.za/news/pastor-ordered-to-pay-back-r1-9-million-in-fraudulent-funding-ac0f9615-4220-4f5a-9f2b-796be9d86a23/

  • BLACK FEMALE-OWNED FIRM BUYS STAKE IN NCAPE WIND PROJECTS

    Admire Moyo | 7 July 2023 DLO Energy Resources Group, a 100% black female-owned renewable energy company, has acquired a 30% equity stake in the BBBEE special purpose vehicle of the Longyuan Mulilo wind projects in the Northern Cape, for an undisclosed amount. The company believes the deal is a milestone in increasing female ownership and promoting gender equality within the energy sector. According to the firm, this strategic move positions DLO as the largest black female-owned shareholder in one of South Africa’s largest operational wind farms, solidifying its commitment to renewable energy and empowering women in leadership roles. The Johannesburg-headquartered company operates as an independent power producer, driving the transition to clean and sustainable energy solutions in SA and other parts of the African continent. In 2021, DLO acquired power infrastructure company Conco Energy Solutions, also with the aim of increasing women’s participation in the male-dominated power sector. DLO is a renewable energy developer and strategic investor, which has 51% majority shareholding held by Linda Mabhena-Olagunju. Mabhena-Olagunju was last year ranked seventh out of 100 in the prestigious Choiseul 100 Africa listing, making her the only South African on the list and one of four women included in this ranking. The Longyuan Mulilo wind projects, a collaboration between DLO, China Longyuan Power Group, a consortium of South African entities, and a local community trust, has a combined capacity of 244MW. DLO notes these wind farms, consisting of 163 turbines, have been actively feeding clean electricity into the national grid since 2017, significantly contributing to SA’s energy needs and mitigating the impact of load-shedding. It adds the wind farms have reduced carbon emissions by an estimated 619 900 tonnes of carbon dioxide per annum, furthering SA’s commitment to combat climate change. DLO CEO Mabhena-Olagunju is spearheading the DLO African Women in Leadership Summit, taking place on 15 August in Sandton, coinciding with Women’s Month. The firm points out that the summit aims to empower women and facilitate their entry into the energy sector by exploring opportunities within the energy value chain. The event will provide a platform to expose women-owned entities to the vast potential that exists in the energy sector. “The renewable energy sector still has a long way to go in respect to transformation and female representation, especially when it comes to ownership and operational involvement,” says Mabhena-Olagunju. “One of the initiatives we have taken as a company is to share the knowledge and experience we have gathered over the years and use our platform to open the door for other female entrepreneurs to access the renewable energy market through assisting them with identifying the opportunities. “The summit will offer a workshop on understanding the renewable energy value chain,” she concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/nWJadMbNnoDMbjO1

  • Skills Development Learnership Webinar - July 06

    Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

  • WHY DO B-BBEE SECTOR CODE OF GOOD PRACTICE TARGETS MATTER TO ALL?

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

  • CLAIMING SKILLS DEVELOPMENT EXPENDITURE

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

  • FSTC NOTICE 01 OF 2023

    On 30 June 2023, the Financial Sector Transformation Council (FSTC) has released Notice 01 of 2023 in relation to Group Reporting. The FSTC have, due to legal challenges, reconsidered the previous decision to withdraw the group reporting exemptions provision and the Group Reporting Guidance Note GN000(a), and at a special sitting of the Council held on 13 June 2023, resolved to reinstate the group reporting exemptions provision as provided for in the Financial Sector Code (FS Code) and the Group Reporting Guidance Note GN000(a). In this regard, measured entities are hereby invited to submit applications for group reporting for consideration by the FSTC as provided for in the FS Code, FS000 paragraph 8.4. B-BBEE Verification Services are available to assist Financial Service Sector Members with their Reporting requirements.

  • BEE Chamber Monthly Webinar - July 04

    Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

  • SITA UNVEILS NEW INNOVATION CENTRE FOR SMMES

    Natasha Odendaal | 30 June 2023 A new innovation centre aimed at enhancing innovation within the small, medium-sized and microenterprise (SMME) space has been launched at State Information Technology Agency’s (Sita’s) Centurion offices. The Motheo Innovation Centre, an initiative of Sita in partnership with Software AG, provides the facilities needed by South African innovators and SMMEs in the information and communications technology industry to collaborate and create avenues for development that work to create sustainable and entrepreneurial SMMEs. “We are excited to open our third innovation centre. These innovation centres are critical to us transforming this country. They are part of this fabric that we are creating that will cover all of the country to ensure that youth, SMMEs and women-owned businesses can come together and cocreate with us,” Sita MD Dr Bongani Andy Mabaso said during the launch on Friday. The Motheo Innovation Centre, unveiled on Friday by Communications and Digital Technologies Minister Mondli Gungubele, aims to stimulate, encourage and empower SMMEs and foster the development and commercialisation of groundbreaking inventions, technology-based products, services and solutions. “We want to create an ecosystem where innovation can thrive and create a Silicon Valley in Africa. We are still going to open more innovation centres. This is just the start,” he continued, noting the need to leverage innovation and technology to alleviate some of the challenges faced by South Africa. Software AG country leader Itayi Mandonga added that, in addition to building skills in South Africa, what is important for the company is the product of the centre: the individual that is going to change their lives, change their communities and change South Africa by making use of the innovation centre. “We should not build what is already there. Research and development is building what does not yet exist, it is about new intellectual property,” concluded Mabaso. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/sita-unveils-new-innovation-centre-for-smmes-2023-06-30

  • SMALL BUSINESSES CAN ALLEVIATE SA’S JOBS CRISIS – BUT HOW?

    Bloemfontein Courant | 3 July 2023 Small businesses can alleviate South Africa’s jobs crisis, but they need some help. South Africa’s most recent unemployment figures paint a gloomy picture with the unemployment rate now a staggering 32.9%, one of the highest in the world. The country’s chronic joblessness leads to most other socio-economic issues, including crime, poverty and inequality. In other words, we cannot fix our other challenges until we fix unemployment. “One way to solve the problem is to create more small businesses, which themselves employ more people. This brings us to our next problem: approximately 70%-80% of small businesses fail within five years, especially in the disadvantaged communities that need the jobs and economic activity the most,” says Stephen de Blanche, chief revenue officer for TransUnion Africa. Research by the University of the Western Cape shows that only about 1% of micro-enterprises that start with fewer than five employees grow to employ 10 people or more. De Blanche says the downside of this is clear. These businesses are not helping to solve the unemployment issue, let alone contribute to the broader economy. Why are small businesses struggling? He says there are many reasons for this, such as Covid-19, spiralling inflation, increasing interest rates and soaring fuel prices that create a perfect storm of chaos, a storm that makes it really hard for existing small businesses to survive and new ones to start up. “The other challenge is that many small business owners lack the core skills you need to run a successful business, including basic financial acumen, such as how to manage cash flow and debt, along with business and project management skills that are critical in helping small businesses operate efficiently.“ There is no doubt that more entrepreneurial skills are needed in South Africa, but De Blanche says it goes further than that and that is where South Africa’s corporates have a major role to play. “Big corporate players must act as the enablers of small businesses and their success at several levels by creating opportunities, developing the skills needed to run businesses and providing access to funding.” Access to financing is key, he says. “Even the best-run businesses can only grow to the limit of their cash flow. A lack of cash flow and funding limits their ability to hold stock. As an example, the solar industry offers massive opportunities for small businesses right now, but it is impossible for most SMMEs to hold the stock of inverters, solar panels and batteries they would need.” Access to finance is a problem De Blanche says access to finance is even more challenging when a business operates informally, because they simply do not have the basic requirements that lenders look at to assess risk, such as income statements and balance sheets. “They are what we in the financial services industry call ‘thin file’ clients. They are practically invisible to the economic mainstream because they have no credit history to evaluate.” TransUnion works closely with the World Bank and the broader industry to find a way to assess the risk of previously un-scoreable businesses. On the one hand, it is vital that lenders lend responsibly but are we inadvertently creating a situation where small start-ups cannot access the credit they need to survive and grow? “The answer may lie in using alternative data to qualify more small businesses. In this space, business owners are inextricably linked to their businesses. If you lend money to the business, you effectively lend money to the person. Therefore, by evaluating their personal risks, you may be able to get a picture of their ability to repay loans.” Beyond that, corporates have a major role to play in getting more SMMEs to become accredited vendors. De Blanche says apart from giving them the skills and support they need to do the onboarding needed to become a supplier, they can ensure those SMMEs are paid as quickly as possible. “In some cases, they can even put favourable payment structures in place to support the small business’ cash flow. Our economy and our society need jobs desperately. Our small business sector can provide them. They will just need a bit of help first. Our futures depend on it.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bloemfonteincourant.co.za/small-businesses-can-alleviate-sas-jobs-crisis-but-how/

  • GIVING WOMEN A SLICE OF THE PIE

    Sheila Quinn | 1 July 2023 Sheila Quinn, Independent Gender Specialist currently providing Technical Assistance to the South African Government’s Gender Equality and Women Empowerment (GEWE) Programme. Picture: Supplied Eleven trillion US dollars. That was the amount spent by governments across the world in 2018 to purchase public goods and services. Public money, raised through taxes and duties and distributed through contracts with private sector companies, $11 trillion of a global GDP of nearly $90 trillion. In South Africa, public procurement spending was ZAR 926 billion in 2018, according to the National Treasury; that represents 20% of the country’s GDP. In addition to securing value for money and procuring public goods and services that best meet the needs of the people, procurement spending is an instrument by which the government can provide opportunities to expand the marketplace and advance equality and social justice. And, given the amounts involved, a very powerful instrument. A recent Policy Dialogue, hosted jointly by the South African government and the European Union and organised by the Department of Women, Youth and Persons with Disabilities (DWYPD), brought together a range of experts and practitioners, both local and international, to explore what needs to be done to ensure that women-owned businesses get a fair share of the procurement pie. President Ramaphosa promised 40% for WOBs; how to make that promise a reality was the core of the dialogue. Dr Nkosazana Dlamini Zuma (Minister in the Presidency: DWYPD) noted that no country has ever successfully developed without considering women’s empowerment, spoke of the need to mainstream gender across all aspects of the budget and for stronger enforcement of the government’s gender equality commitments. Creating fiscal space for women’s empowerment is imperative. Not only that, but an approach that sees women’s empowerment as an investment rather than a cost will result in guaranteed returns to the Treasury as well as the economy. Public procurement is a complex business. Because of the size of the procurement purse, governments have become significant actors in the market. In the same way that private companies have a responsibility to their shareholders, the government has a responsibility to the public, whose money they are injecting into the market. South Africa pursues a transformative agenda towards inclusive economic growth and development. Given public procurement’s share of GDP, it is clearly one of the most strategic instruments for socio-economic transformation. The government’s objective is not merely to transfer ownership of assets or opportunities to contract with the state: it is to change the structure of the economy. Minister Dlamini Zuma spoke of the need to “re-order the economy” with its “patterns of ownership and control”. At the outset of the Policy Dialogue, the Minister warned participants that their deliberations throughout the day would be “unsettling”, such is the nature of the task. Unsettling is one way to characterise the reaction to the new 2022 Preferential Procurement Regulations (PPR), with the removal of the use of pre-qualification criteria in the tendering process. This was the mechanism that provided the application of pre-qualification criteria “to advance certain designated groups”, including black people, women, persons with disability and small enterprises. This provision is embedded in Preferential Procurement Policy Framework Act, 2000 (“PPPFA”). The new regulations seem to signal a departure from that goal in terms of the advancement of equality and social justice goals. The new regulations took effect in January 2023 and are intended as interim guidance while a new Public Procurement Bill passes through parliament. Will the regulations change again when the new legislation is in place? Certainly, the Minister of Finance will be empowered to craft new or revised regulations. The Preferential Procurement Framework is essential to the workings and ethos of the public procurement system. It is essential also that the regulations are comprehensive and robust enough to facilitate the realisation of the 40% mandate for WoBs. The mandate will not be fulfilled by wishful thinking, nor by encouraging public officials to take account of gender equality as a specific goal, nor by aspirational statements and policy positions. If advancing gender equality and women’s empowerment is part of the South African government’s agenda to redress historical discrimination, particularly economic deprivation, then there is work to be done. There is work to be done in reforming the processes of PP in terms of transparency, accountability and skills development at every stage of the supply chain. A sound system of PP is a prerequisite for equitable outcomes. And there is work to be done to bring gender knowledge into the procurement processes. It’s not only about getting a few more – or even a substantial number – of WoBs through the system. It is about understanding the systemic challenges that render women at a disadvantage in accessing the system in the first place. Research shows that the gender dimensions of entrepreneurial activity are poorly understood by policy makers. Consequently, policy action is mostly about relatively small projects, addressing one particular issue and one subset of entrepreneurs – micro and small business owners. It will require a strategy, bringing together the relevant players consulting with emerging and established women entrepreneurs, and investing in capacity building – both for entrepreneurs and procurement officials – engaging gender equality expertise, expanding the capacity for gender budgeting across the public sector, and embedding the promise of 40% for WoBs in sound and enforceable regulations. It will also require the application of the principles and methodologies of gender mainstreaming to government-contracted service providers, enjoining them to create and adhere to sound gender equality policies within their workforce, their suppliers and in all their business functions. It is unrealistic to consider that the work is anything less than an ambitious and challenging one. With the best will in the world, even the best political will, there are challenges that need to be reckoned with and reckoned with strategically. Sheila Quinn, Independent Gender Specialist currently providing Technical Assistance to the South African Government’s Gender Equality and Women Empowerment (GEWE) Programme. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/opinion/giving-women-a-slice-of-the-pie-1846d415-8c5e-417a-8f6a-f017ce8cced9

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