Search Results

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.

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

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

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/

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

Mcebisi Jonas | 30 June 2023 We have to ensure that elected leaders are ethical and accountable — not just to their parties, but to society. SA is at a crossroads. We have many challenges and opportunities, but we also have many conundrums that we need to resolve if we are to move forward as a nation. These are not easy issues, but they are essential for building consensus and changing course towards a better future. I will highlight seven of these conundrums and suggest some ways to address them. The growth conundrum This is not something that only affects SA. The global economy is registering tepid growth amid a high inflation cycle — triggered by war in Ukraine — with low growth, especially in traditional trading partners (the EU, the West). There is an emerging phenomenon of “friend-shoring” where trade and investment follow political allegiance and the weaponisation of trade agreements (Agoa). SA is in a difficult space — dependent on the West to maintain current trade and investment relationships while pushing non-alignment (really multi-alignment). I am sure there is a diversity of views in this room on this issue. But national interest must drive what we do. This is perhaps where we are weak — in determining and acting in the national interest. SA’s growth is highly tied to global commodities demand — which has caused a low growth trajectory since 2012. Consistent low growth has diminished state revenue and resulted in a growing fiscal deficit (debt servicing is the fastest-growing budget item). Low growth has seen repercussions, among those being lower levels of entrepreneurship than our peers, and higher start-up failure rate. More than just the need for growth, there is not shared understanding of how growth is achieved — that private-sector investment is a requirement for growth and that there are minimum conditionalities for attracting and retaining investment (well-maintained infrastructure and utilities provision, well-priced and efficient logistics, skills and capabilities, low crime levels, policy certainty etc.) Capital is mobile and even SA capital will be attracted to economies where these conditions are met. We clearly need all role players to agree on a minimum growth agenda, and then get on with it. The environmental conundrum This is a conundrum in the true sense of the word, given our fossil fuel resource base, and the opportunities to pivot on a new growth path built around green industrialisation. The energy transition is a reality, but whether it further disadvantages the developing world is a legitimate concern. Meanwhile load-shedding continues to undermine our prospects of recovery. How we got here is not rocket science. We’ve added 35-million people to the grid since 1994 and the economy has more or less doubled, but we’ve added very little new generating capacity outside Medupi and Kusile, which have brought their own problems. We’ve forced our coal-fired stations to run on empty, with little to no maintenance, and with declining technical capacity in Eskom to manage them. We need to add 20,000MW of generating capacity over the next 10 years, which is both a nightmare (given our project management record) and a tremendous opportunity to pivot towards green industrialisation. We need a clear, long-term strategy and how it is to be financed. And we should not forget about the losers of the energy transition — the coal-mining workers and communities. The inequality conundrum The third conundrum we need to address is our inequality dilemma. Besides being morally unacceptable, high inequality constrains growth and causes political instability. SA was reported by the World Bank to be the most unequal of 164 countries that were benchmarked. This is the 20th year of the BEE Act. We have to face the reality that the black share of income in SA has increased with a growing black middle class. But the black share of wealth has not changed significantly. This has to do with SA’s high levels of market concentration and barriers to entry, which constrain economic participation. Our “cappuccino economy” — white on top and black underneath — is unsustainable and creates political and social cleavages that can be exploited by populist forces. Our attempts to address this through positive discrimination policies — affirmative action, B-BBEE, preferential procurement, set-asides etc — have been corrupted, with rents being directed to the politically connected. We placed the state as the centre of black wealth creation, which made it susceptible to clientelism and ultimately destroyed state capacity. We need to rethink our models for inequality reduction. Obviously social protection and increased investment in human capability expanding programmes need to be at the centre, but we also need to do far more with regard to economic inclusion. We need to grow a new stratum of entrepreneurs who grow wealth through innovation and productivity, rather than political patronage. Financial inclusion, access to markets and more enabling support for start-ups are key, especially for youth start-ups given that the labour market simply cannot absorb the tens of thousands of school-leavers each year. There needs to be a co-ordinated effort to build and sustain an enabling ecosystem for innovation-led growth. The state capacity conundrum Given our extreme service backlogs in 1994, and the high levels of market concentration, we needed the state to step up to correct market failures and level the playing fields. In spite of our best intentions to build this developmental state, many of the state building gains have been reversed. The low growth cycle has been exacerbated by structural weaknesses and state capture — hollowed out state capacity, evident in poor levels of service delivery, inadequate energy supply, poor logistics, rising crime and extortion, and municipal dysfunction. We must also acknowledge that we have been too slow in reversing the damage of state capture to basic state functionality, especially at local government level. Looking at new partnership models for service delivery — to make up for state deficits — and new ways to ensure accountability should be at the top of our agenda. The political conundrum We need to be mindful of what is happening globally, with geopolitical shifts and the rising politics of self-expression, of identity and of polarisation. This is fast replacing the old politics of compromise and consensus. At home it is clear we have a damaged national psyche, which is the perfect feedstock for populist mobilisation, quite possibly along race, class and other social cleavages. Demographic anxiety is now a very real political phenomenon across the world and influencing — and undermining — democratic systems. We cannot ignore the fact that disillusionment and voter apathy is manifest in SA and that voter turnout has been hugely affected. In the 2019 national elections, only 17-million out of 26-million registered people voted. In the 2021 local elections, only 12-million people voted — which means 15-million registered voters stayed away. When you consider that more than 13-million people who can vote have not even registered, this paints an extremely worrying picture of the political environment. Electoral reform might go some way to engaging more people in the democratic project, but we all know that the political problem is much deeper. We must not assume that new political entrants, while important, will solve this problem. The civil society conundrum Civil society today is a shadow of its former self in the 1980s, both in organisational and financial terms. Much of its leadership was absorbed into the state, and nongovernmental organisations (NGOs) turned into service delivery agencies as donor monies dried up. The state capture period saw a real and concerted resuscitation of civil society, but I feel that the foot was since taken off the pedal. Civil society needs to step up to resume a robust role and business needs to provide support to organisations preserving democracy and ensuring accountability. We need to rethink the idea of a national vision and new forms of accountability. We have to ensure that elected leaders are ethical and accountable — not just to their parties — but to society. The leadership conundrum As I round up, let me pose a question. Who represents and speaks for South Africans? This is on a variety of fronts, including business. Are the organisations at the forefront reflective of the broad business spectrum and business interests? It is no secret that our country has a serious leadership problem across all sectors — political, economic and social. Another dilemma is the participation of the greater population in the big national conversations. We find increasingly that a small group of us are talking to ourselves — a situation accentuated by the media and social media creating echo chambers and political ghettos with the same people exchanging opinions among themselves. This links to the issue raised earlier about declining electoral participation. We must ask whether the people and organisations leading the national conversation are still connected to their constituent base. We should bear in mind that it is difficult to sustain democracy without trust. I do not have to emphasise that there is a serious trust and credibility deficit in our society, aggravated by a litany of corruption scandals that have severely eroded faith in the political system and leadership. This potentially undermines the legitimacy of the state. There is no quick fix, no magic bullet for all these questions. Protecting democracy, staying the course on reform, halting a capital and brain drain, tackling inequality and addressing the livelihoods crisis will take exceptional leadership. Now is not the time to lament that we don’t have the right leadership. We urgently need a national conversation to develop and get behind a common agenda. • Jonas is a former deputy finance minister and current chair of MTN Group. This is the edited version of his speech at a conference hosted by the Black Business Council. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-06-30-mcebisi-jonas-these-are-the-seven-conundrums-sa-must-solve/

SA News | 29 June 2023 Broad-Based Black Economic Empowerment (B-BBEE) Commissioner, Tshediso Matona, says since 2017, the B-BBEE Commission has -- through its annual National Status and Trends on B-BBEE Report -- noticed that audited entities implement between 50% and 60% of ESD funds. Enterprise and Supplier Development (ESD) funds are aimed at bolstering small business to make them competitive and sustainable. Matona said SMEs continue to raise concerns over limited access to funding. Taking part in a Youth Month Webinar organised by the Government Communication and Information System (GCIS) - in collaboration with the B-BBEE Commission - Matona said their main aim is to measure how ESD funds can be used effectively to promote the development and growth of black-owned enterprises. “The aim is to build the capacity of local SMMEs to be ready to compete and strengthen the local economy, and the company's commitment to sustainable development and support of SMMEs,” Matona said. Matona said the ESD, also known as Statement 400, is one of the elements of B-BBEE aimed at strengthening local procurement, enhancing local supplier development programmes and increasing financial support towards black-owned entities. “The mandate of the commission is to investigate either on its own initiative or in response to complaints received, or any matter concerning B-BBEE,” he said. Matona said as part of their mandate, they will promote advocacy, access to opportunities and educational programmes and initiatives of B-BBEE. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/bee-commission-laments-underuse-development-fund

Reitumetse Makwea | 29 June 2023 'We cannot accelerate youth economic emancipation for a sustainable future without capital, or even support.' With Youth Month coming to an end, youth entrepreneurship is a solution to unemployment and to create economic activity in their communities. However, young people in SA say without capital and financial support, small black-owned business do not survive. Youth unemployment Rising youth unemployment rates are a critical issue that South Africa is now dealing with, youth entrepreneurial activity in the country is also low, according to South African Youth Economic Council’s Sthandiwe Msomi. Addressing the Broad-Based Black Economic Empowerment (B-BBEE) Commission webinar, Msomi said this was reflected in the latest Global Entrepreneurship Monitor report, which shows that youth constitute only 0.9% of South Africa’s total early-stage entrepreneurial activity rate of 8.9%. “About 60.5% of youth aged 15 to 24 years old live in low-income households,” she said. “For youth aged 25 to 34, the percentage of those living in low-income households was 44%. This has an impact on the propensity to start a scalable business. “Lack of access to markets and finance continue to stifle participation of young entrepreneurs.” Pretoria business owner Prince Sebape said government failed to support businesses and ideas initiated by the youth. “We are always told that given the state of the economy, it is important that young people look for other options outside of getting formal employment,” he said. “But when we do, we do not get the support we need. We cannot accelerate youth economic emancipation for a sustainable future without capital, or even support.” Sebape said apart from the financial assistance, the other challenge for young people trying to set up their own businesses was creating a network of potential customers and credibility. Skills shortage He also said despite many initiatives to give people skills and “try to empower” young people, “they do not give people skills that they can use for the businesses”. Msomi said enhancing enterprise and supplier development (ESD) for young entrepreneurs was important in ensuring entrepreneurial activity increased. Meanwhile, B-BBEE commissioner Peter Koape said since 2017, the commission, through the annual national status and trends on B-BBEE, noticed measured entities implement between 50% to 60% of the ESD funds. He also said at the same time small- and medium-sized businesses continued to raise concerns over the limited access to funding. “The aim of the research was to measure how ESD funds can be implemented in promoting the development and growth of black owned enterprises,” he added. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/news/govt-failing-support-ideas-initiated-by-youth/

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

Lungile Mashele | 28 June 2023 There is no denying the symbiotic, perhaps parasitic nature of organisations and the communities in which they operate. What has been recognised is the importance of greater awareness of an institution’s surroundings, stakeholder engagement, and social and labour plans. Most organisations have created awareness alongside municipalities by providing solutions to the vast needs contained in integrated development plans. At the start of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) 30% of the scoring was allocated to economic development (ED) elements and 70% for price. These elements include job creation, local content, ownership, management control, preferential procurement, enterprise development and socioeconomic development​. Supplier development was recently added. The REIPPPP was structured so that ​a minimum of almost ​​1​% of revenue was allocated to ED initiatives within a 50km radius of the project site. Over the years​ most organisations easily surpassed this target, spending ​even 3​% ​or more ​of revenue. It was agreed that implementation of these ED elements was not only necessary, but successful. On May 16, government​’s​​ inability to resolve the challenges arising from the Preferential Procurement Policy Framework Act (PPPFA), and it being nullified by the courts, led to the effective​ scrap​ping​ of ED requirements for the procurement of 513MW of battery energy storage at substations. By reducing the ED element of the bid to 10%, which is neither obligatory nor a qualifying criterion, government has done away with the requirement for local content, ownership and job creation. This means ​a foreign​ entity can come into ​the ​SA market​ with its own equipment, labour and materials and ​own, ​supply​, install and operate​ ​the country’s ​battery energy storage infrastructure​. Until the regulations are changed this will also affect future REIPPPP bid windows, which promise at least 15,000MW of new capacity in a super bid window. Th​e current ED scoring structure as contained in the battery energy storage system programme does not bode well for the communities where future projects will be taking place. These new geographic locations include Mpumalanga and KwaZulu-Natal, which are already fraught with socioeconomic tension and increased project sponsor dependency. With the stalling of the REIPPPP largely due to a lack of grid capacity, ​the ​private ​offtake market​ ​is ​eclipsing ​the ​REIPPPP with an estimated pipeline of 5,000MW-​9,000MW of mostly renewable energy projects, to be located all over the country in urban and peri-urban areas. There will be increased focus on these projects not only by the sponsors but by local government and ​communit​ies​. The question ​then ​becomes​: ​with the increased need for energy, a nonexistent social compact, increased inequality and energy projects sprawling into urban areas​, ​how will this new private and public capacity address unemployment, increase local content, local value chains and ownership, ensure black management control and preferential procurement, enterprise development and meaningful socioeconomic development? Add to that the scramble for grid access — a national asset that should, by definition, serve the public good — and the question of the ED contribution of all renewable energy projects (public or private) becomes even more pertinent. How does government get the private sector, which is not bound by PPPFA, to plough back into the communities they operate in so that project development is mutually beneficial and not disruptive and extractive​? How does SA leverage the almost 24,000MW of planned new capacity for industrial growth, local manufacturing, new enterprises and local ownership, and therefore recirculation within the SA fiscus? This is the critical moment where the​ just ​portion of the energy transition needs to be at the forefront​,​ otherwise we risk a social catastrophe. There have already been reports of REIPPPP projects being targeted by the “construction mafia”, yet government is encouraging enormous build programmes without offering any social cushioning to developers or communities. Unchanged, the path the renewable energy sector is on in SA is doomed to make costly mistakes and continue to aggravate communities and local value chains that are desperately looking to survive in their home grounds. Now is the time for the difficult and intentional work towards achieving a just transition. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-06-28-lungile-mashele-just-energy-transition-hobbled-by-government-inaction/

Ayn Brown | 28 June 2023 As was evident during a recent panel discussion I was part of regarding scarce skills in the banking and finance industry at the EmpowaYouth Summit, getting a job, even an entry-level job, in a bank, is not easy, says the writer. The only thing more alarming than South Africa’s 32.9% unemployment rate (the highest in the world) is that our youth unemployment rate is much higher, at 46.5%. This is despite the efforts made by the government, NGOs and the private sector to address the youth unemployment crisis through a multitude of upskilling, training and job creation initiatives. On the other hand, many employers struggle to fill positions due to a shortage of critical skills. The issue is not straightforward, and neither is the solution. The problem starts at school. Are our children being taught what they need to survive, let alone thrive, in the real world? What about many of the diplomas and degrees offered at a tertiary level? How many new graduates can walk into a job and apply what they have learnt? Very few. This is a systemic issue – curricula need to be transformed so that more learners acquire relevant skills that prepare them for employment in today’s world. For example, as a young, fast-growing digital bank we have very specific needs when we’re hiring new talent, but the same can be said for banks generally – digital transformation is a continuous process of evolution across sectors. Increasingly there is a need for data scientists, engineers, data analysts, cybersecurity specialists, among others. These are all roles that are rooted in maths and science, but as we know, the levels of maths and science literacy in South Africa are extremely low. Technology is changing all the time and digital banking is all about being agile, adaptable and innovative. Besides strong technical skills, we need people who are adept at managing change and who can learn skills on the go. We look for problem-solvers who can think on their feet. The so-called ‘soft skills’ are also important. Being a call centre agent, for example, requires patience and empathy. Through no fault of their own, there are not too many candidates who fit the bill. As was evident during a recent panel discussion I was part of regarding scarce skills in the banking and finance industry at the EmpowaYouth Summit, getting a job, even an entry-level job, in a bank, is not easy. Regardless, there are several things that young people can do to impress potential employers and they don’t cost money. If you have never worked before, job shadowing is a good way to gain exposure to the workplace. Working for free may sound crazy, but volunteering to work in an area that interests you is a good way of gaining experience that can eventually open doors. Even if you are not earning money, you are demonstrating a willingness to learn, to start at the bottom. Importantly, it is a good way of catching the attention of a potential employer. Some employers may even pay a stipend or assist with travel costs. Self-improvement is critical. There are plenty of free online short courses that can make you more well-rounded, regardless of your level of education. In fact, upskilling after tertiary education is a must in these rapidly changing times and it is something we pay attention to when looking at CVs. Find out more about the industry you want to work in, take the free courses and acquire as much practical knowledge as you can. Think about what you need to do to make yourself more attractive to employers who see dozens of people just like you. Getting the basics right, like ensuring you arrive for your interview on time, is key, as is taking the time to understand the organisation where you want to apply for a job – it is incredible how many people we interview who know very little about TymeBank. There is no doubt that our youth need all the help they can get to acquire the skills that are sought after in today’s environment. The government and the private sector obviously have a responsibility to continue creating job opportunities for our young people. And our educational institutions need to equip them with the technical and vocational skills to enhance their employment prospects. But the key is never to wait for someone else to find these opportunities for you – you need to hustle every day to get your foot in the door. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/careers/49-million-young-people-are-unemployed-addressing-the-skills-mismatch-could-help-b1d26aed-2ebe-422e-ad4e-96ce7836c9a7

Staff Writer | 28 June 2023 The Department of Employment and Labour and Trade Union Solidarity have signed a major “settlement agreement” over the country’s employment equity laws that will provide some boundaries and certainty for anxious businesses in South Africa. The agreement stems from a mediation process that started after Solidarity had filed a complaint with the International Labour Organisation (ILO) against the government for the rigid application of affirmative action in South Africa. Solidarity has been critical of the government’s moves around employment equity and has challenged the department and national government several times in court over the laws, particularly the ever-narrowing conditions under which businesses must operate. The latest changes to the Employment Equity Act (EEA) were signed into law by President Cyril Ramaphosa in April, which empowered the employment minister to set specific racial targets for 18 sectors in the country across four different skill levels – including top management. Under the new laws, designated employers – all businesses that employ more than 50 people – have five years to ensure their workforces represent racial and gender demographics on a provincial or national level. Solidarity referred a dispute to the International Labour Organisation (ILO) regarding the Act, and the ILO recommended that the Commission for Conciliation, Mediation and Arbitration (CCMA) should facilitate the dispute. Through arbitration and dialogue, the two parties reached and signed an agreement on the laws. The Agreement: According to Solidarity, the agreement solidifies and underlines two major points in relation to employment equity: No one’s employment may be terminated in any way as a result of companies’ racial programmes; and Race may not be used as the sole criterion for employment and promotions. “This agreement means the end of using race as the sole criterion for employment and promotion. It also removes the sword of retrenchment that has been hanging over the head of minorities, and it means that companies would no longer be forced to make appointments that do not meet their specific skills needs. “The agreement will now be gazetted as part of the 2023 Employment Equity regulations, and the parties have agreed that it may be made a court order. Companies will therefore be obliged to implement it,” Solidarity said. According to the labour department, the agreement is in line with the Constitution and the new Employment Equity Amendment Act and standing BEE laws. This, it said, should go toward “demystify(ing) and discredit(ing) the negative perceptions” around the laws – including the sector EE target regulations published for public comment. In addition to the broad points outlined by Solidarity, the agreement also lists the specific conditions that employers can use as reasons for not complying with the laws. The criteria that must be taken into account when applying employment equity include: Inherent requirements of the job The pool of suitably qualified persons The qualifications, skills, experience and the capacity to acquire, within a reasonable timeframe, the ability to do the job The rate of turnover and natural attrition in the workplace Recruitment and promotional trends within a workplace Justifiable and reasonable grounds for not complying with the targets include: Insufficient recruitment opportunities Insufficient promotion opportunities Insufficient target individuals from designated groups with the relevant skills, qualifications and experience CCMA awards or court orders Transfer of business Mergers / Acquisitions Impact on business economic circumstances The settlement also affirms a guarantee from the government that no penalties will be applied to employers and businesses that have a valid reason not to comply – while also stating clearly that no business will be forced in any way to dismiss workers based on race in trying to achieve the targets. “The EEA and other labour laws do not require employers to dismiss or terminate employment of any employees irrespective of their race, to make space for the implementation of EE Amendments and sector EE targets, including Affirmative Action in their workplace,” the department said. “What matters most is that it (the EEA) should lead to real change; more responsible behaviour from companies; and more thoughtful EE planning and implementation. EE and Affirmative Action seeks to ensure the maximum participation of every citizen in the economy of the country, which is inclusive of the African, Coloured, Indian and White population groups.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/699807/government-signs-major-bee-settlement-this-is-what-it-says/