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  • Secure the best possible B-BBEE Level Webinar - May 23

    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

  • THE RANDS AND SENSE OF LEARNERSHIPS

    North Coast Rising Sun | 22 May 2023 To gain value from learnerships and B-BBEE, businesses must prioritise embracing transformation and social change. Broad-Based Economic Empowerment (B-BBEE) is only effective in meeting its goals if the transformative ethos of the legislation is embraced. “If B-BBEE is approached with a begrudging compliance mindset, merely ticking boxes, it will fail. However, the one way a company can future-proof its economic growth and competitiveness and meet its B-BBEE compliance targets is by prioritising skills development through learnerships,” he states. The cost of learnerships can either be viewed as a reluctant expenditure or as an investment in building a talent pipeline. For companies that prioritise growth and competitiveness, investing in skills development is a no-brainer. Prioritising growth and sustainability Naidoo contends that a company’s perspective on skills development and compliance is closely tied to its culture and values. He explained, “To gain value from learnerships and B-BBEE, businesses must prioritise embracing transformation and social change. Retention of key personnel is a crucial aspect of any company’s stability and growth, which requires a significant investment in developing human resources. Investing in skills development may, therefore, require some introspection on the part of the executive, but it is a reciprocal relationship that creates a company culture that values all employees and aligns their development with the growth of the business.” He adds that in socially responsible companies, training extends beyond the immediate workforce to contribute to the growth of the economy as a whole. Naidoo stated, “Skills development is a key driver of this growth, and companies that invest in it benefit from a positive brand reputation and returns on their investment. Conversely, a grudgingly acquiescent mindset that spends the bare minimum on learnerships and skills development will not result in any significant benefits.” Government grants Naidoo shared, “The government offers substantial tax incentives to develop skills within businesses. Section 12H and discretionary/ mandatory grants are much-used legislative mechanisms that offer tax breaks of up to R80, 000 per able-bodied learner and R120, 000 for learners with a disability and by submitting an annual Workplace Skills Plan and Annual Training Report (WSP/ATR), companies can also secure government subsidies that are available as grants.” He points out that these grants lower the financial commitment of a company and a grudging compliance-only outlook, therefore, does not make sense. “Despite there currently being no penalties for organisations that do not invest in skills development, many corporates whilst taking advantage of the legislative incentives, do not limit their financial exposure to this amount. Rather, they determine the value of the skills to the business as the return on investment,” he noted. Employment Equity amendments He said, “With the recent amendments to the B-BBEE Act 2023, organisations operating in specific sectors could experience increased pressure to meet Employment Equity (EE) demographic requirements. This means that some companies may need to focus on building an EE talent pipeline to achieve compliance within a specific time frame which emphasises its importance as part of the compliance strategy. It would be logical, therefore, for them to invest in skills development and learnerships to cultivate this pipeline. Only time will tell, though, if this approach is effectively adopted.” Budgets for learnerships should not only be a narrow financial consideration. He concluded, “Companies must develop broader metrics to understand the link between investing in skills and the growth in innovation and company performance. When this purpose is attached to a learnership, it makes rands and sense for future-proofing a business.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://northcoastrisingsun.co.za/133977/the-rands-and-sense-of-learnerships/

  • ASTRON ENERGY TO LEVERAGE DEVELOPMENT FUND TO ASSIST SMMES IN KEY SECTORS SUPPLY CHAIN

    Creamer Media | 19 May 2023 As economic recovery continues to ramp up post the Covid-19 pandemic, there is a huge push to drive the South African economy back to pre-pandemic productivity levels. Astron Energy forms a significant part of the economy and the recovery journey. The fuel giant operates the second largest network of retail service sites in South Africa and the Astron Energy Refinery in Milnerton, Cape Town, which is positioned to play a key supply role in all key sectors of the SA economy. The Company’s robust manufacturing and fuel storage infrastructure: boasting a lubricants manufacturing plant in Durban, 15 fuel storage terminals, and 180 commercial and industrial sites. Astron Energy continually assesses how it can support key sectors through innovation in products and processes that boost sustainable and ascendable economic growth. The organisation supports the broader move to decarbonisation and also greater adherence to environmental, social and governance (ESG) goals to the benefit of people, communities, our environment, and ultimately a sustainable future. According to Thabiet Booley, CEO of Astron Energy, a key element for the Company will be the impact of its recently launched Astron Energy Development Fund (AEDF). The R220 million development fund is intended to empower small businesses in the Astron Energy value chain and its linked communities. The Astron Energy value chain includes, but is not limited to, mining, transport, construction and maintenance services; electricity and alternative energy sources; engineering and other professional services; environmental services; finance, legal, HR and IT; retail network support; health and safety, including protective gear; and warehouse logistics, At the launch of the Fund in Cape Town in December, Booley hailed it as a “milestone in the organisation’s transformation journey”. “The launch of the AEDF is the next major step for us as a company committed to making a meaningful difference in the communities in which we operate,” he said. The AEDF was set up in line with commitments made to the Department of Trade Industry and Competition and seeks to create sustainable and meaningful change and prosperity for small businesses along the Astron Energy value chain, including the critical mining sector. “We understand that the micro, small and medium-sized enterprise (SMME) sector is crucial to economic growth, job creation and shared prosperity in South Africa,” he added. “Where Astron Energy products, supplies, and services support and intersect with the mining sector value chain, we will look to see how we can leverage the AEDF to support the establishment or growth of existing or potential sustainable local SMMEs, particularly in under-resourced communities around our facilities.” The Astron Energy Development Fund has three flagship programmes: Growing Emerging Businesses Astron Energy will support new or existing small businesses in the fuel and lubricants value chain through the provision of preferential rate development loans and/or business development support.* Priority will be given to beneficiaries from disadvantaged groups, e.g., as a result of race, gender, disability, youth and rural location, but no race group will be excluded. Black owned businesses in the refinery By-Products (LPG & Bitumen) and Retail sectors of the liquid fuel value chain are a focus area. Small Business Support Distress or bridging finance together with business development support* for key small business suppliers and retailers from disadvantaged groups. *Business development support extends to training and mentoring in the areas of leadership, strategy, marketing, safety standards, as well as the provision of finance, tax, legal and other services to help establish a firm foundation for each business. Growing our communities This programme is focused on the communities in and around the Astron Energy facilities and those of key customers. The AEDF has partnered with two NGO organisations, ORT SA and gold Youth Development Agency, to develop life, digital and entrepreneurial skills in targeted high school students and unemployed youth to empower them towards a sustainable future through greater employability and the skills to become business owners. A further aspect of this programme is to support micro business incubation through grants, the development of business skills for micro/small business owners and the formalisation of micro/small businesses so that they can compete for funding/investment. According to Booley, the launch of the AEDF is over and above the R100 million in interest-free loans granted to small black-owned enterprises through the company’s Enterprise & Supplier Development Fund which has been going since 2015 and remains a priority programme for the company. Earlier in 2022, Astron Energy also launched its innovative SMME Portal that assists small businesses to access procurement and funding opportunities at Astron Energy. “The Astron Energy Development Fund is a key part of our efforts to help create a better, more prosperous and inclusive future for all our people and the communities in which the organisation is invested,” Booley concluded. The launch of the Astron Energy Development Fund coincided with a hugely exciting period for the Company as it embarked on the rebranding of its network of over 800 Caltex service stations in South Africa and Botswana as well as all other key Company assets, adopting a single name and corporate identity. “All of these key initiatives are part of our efforts to ensure we address the changing needs of our customers, showing that we understand and are able to get behind and support their growth ambitions. These initiatives and investments are a testimony to our long-term commitment to be part of South Africa’s recovery journey. To read more about the AEDF and eligibility requirements, or to apply for AEDF support, please visit the SMME Portal: Astron| SMME Portal ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/astron-energy-to-leverage-development-fund-to-assist-smmes-in-key-sectors-supply-chain-2023-05-18

  • HOW TO SOLVE YOUTH UNEMPLOYMENT IN SOUTH AFRICA

    Partner | 19 May 2023 CTU Training Solutions recently held a webinar to discuss the growing concern around youth unemployment and career readiness in South Africa. The webinar brought business leaders, communication specialists, and education experts together in a panel discussion led by Johan Wildenboer – PR and Events Manager at CTU Training Solutions. The panel discussed how different role players in South Africa should approach the issue of youth unemployment, help students make the right choices, and quantify career readiness. Approaching the problem The panel discussion begins by detailing the factors that have led to South Africa’s youth unemployment crisis – highlighting that as of 2022, youth unemployment stood at over 60%. Nicola Tager, the Global Head of Careers at Investec, explained that a major reason for youth unemployment in South Africa is a disconnect between students and the job market. Tager argued that students need to be given direction when approaching their studies – and neither the private nor public sectors have done enough to provide this. The panel agreed that more must be done to help young South Africans access targeted skills training that actually prepares them for the working world – and both the private and public sectors must play a role in this. Making the right choices Authentic Leadership CEO Janine Hills noted that schools also have a major responsibility to cultivate and inspire a passion among young South Africans to make choices that lead them into successful careers. Confidence Dikgole, CEO of the IEB, added that basic education is essential for equipping students with the information they need for future success. This responsibility also extends to parents and other role models who can offer direction and inspiration to these youths. The panel stated that online tools such as LinkedIn can be an effective resource to help young South Africans find inspiration for the future, too, but there remains no substitute for real-world engagements. Career readiness While theoretical experience can be taught in a classroom, the panel’s experts went on to discuss how students must take proactive steps to prepare themselves for the modern workplace. There are many ways to do this – including job shadowing, extra courses, volunteering, and general proactiveness. Dr Jerry Gule, CEO of the Institute of People Management, emphasised that a key part of all these methods of preparation is to have the right attitude – students must link their desire to eventually get a job with their current drive to prepare. Dr Erna Gerryts, an educational psychologist from the University of Stellenbosch, added that students must be open to new experiences and take every opportunity to expand their portfolio. This will help them build a CV that stands out to employers and proves they have the skills and experience to provide real value to their organisations. About CTU Training Solutions CTU Training Solutions is a South African private tertiary education provider that has been developing skilled professionals since 1987. The organisation offers full-time and part-time training across multiple faculties, including IT, Design, Business/Management, Engineering, Humanities, and Green Technologies. Its priority through its courses is ensuring its graduates have the right skills to thrive in entry-level professional positions. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/industry-news/689323/how-to-solve-youth-unemployment-in-south-africa/

  • BIG STEP FOR NEW OFFICIAL LANGUAGE IN SOUTH AFRICA

    Staff Writer | 19 May 2023 The National Council of Provinces (NCOP) has approved the amendment of section 6 of the Consitution to make South African Sign Language (SASL) an official language – taking it one step closer to being a reality. The Constitutional Eighteenth Amendment Bill is the legislative framework that will make room within the guiding regulations of the country to account for SASL. The final verdict on the 12th official language being introduced is reserved for President Cyril Ramaphosa, who can sign it into law. Once this occurs, both the Constitution and the National Official Languages Act will be amended. According to Parliament, the amendment is to include SASL as an official language to promote the rights of persons who are deaf and hard of hearing. Until now, the South African Constitution provided for 11 official languages: Sepedi, Sesotho, Setswana, siSwati, Tshivenda, Xitsonga, Afrikaans, English, isiNdebele, isiXhosa and isiZulu. “Primarily, the amendment seeks to advance the cultural acceptance of SASL, the deaf culture; ensure the realisation of the rights of persons who are deaf and hard of hearing to equal protection and benefit of the law and human dignity,” said Parliament. On top of that, it aims to promote inclusive and substantive equality and prevent or eliminate unfair discrimination on the ground of disability, as guaranteed by section 9 of the Constitution. On 3 May, the passed through the National Assembly (NA), however, it has taken a while to make its way through the legislative process. Speaking following the passing of the bill through the NA, Moloto Mothapo, a spokesperson for Parliament, said that there has been widespread public support of the bill since its first adoption by Parliament in 2020. In South Africa, the majority of deaf people (95%) are born to hearing parents and therefore do not acquire SASL as a mother tongue but learn it in school. Despite regional differences, just like spoken languages, SASL is interesting in that it has the same grammatical structure countrywide. There is also not an on-to-one relationship between English and SASL, with a sign being open to being translated by more than one word. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/689137/big-step-for-new-official-language-in-south-africa/

  • LEARNERSHIPS – ALL ROUND BENEFITS – IF IT’S DONE RIGHT

    18 May 2023 | Daniel Orelowitz DESPITE being Africa’s most industrialised nation, South Africa has one of the highest unemployment rates in the world and is struggling with low GDP growth. Economic recovery and growth are desperately needed, but this requires job creation and skills development to meet our country’s current and future needs. One of the most effective ways to achieve skills development and job creation is through learnerships – aimed at promoting growth in employment and facilitating capacity building across sectors to address scarce and critical skills shortages. Learnerships are attractive for businesses but managing these programmes can be a massive undertaking so it is advisable for companies to outsource with an accredited training provider to gain all the B-BBEE and tax benefits with none of the associated administrative and compliance burdens. Further education benefits Currently managed by the Sector Education and Training Authorities (SETAs), learnerships are directly related to particular occupations and roles. They provide a pathway that leads individuals through to accredited National Qualifications Framework (NQF) qualifications. Learnerships ensure that more people are trained for a specific working environment, and businesses benefit from having a more skilled and experienced workforce. Through such skills development programmes, learners are now able to further their education while employees contribute to the establishment of a pool of skilled labour that can either be absorbed permanently into their organisations or redirected to be of benefit elsewhere in the industry. As attractive as the business benefits of learnerships may be, companies generally have to source eligible candidates and have them vetted and on-boarded, all of which direct time and resources from other core functions of the organisation. Developing essential skills An experienced training provider can step in here, and take on the recruitment, enrolment, and management of the right candidates. As training and employee development specialists, it is their core business to help their clients align with the requirements of learnership programmes, such as the Youth Employment Service (YES) programme. An enterprise can participate in facilitating 12-month work experience programmes for unemployed youth by either: Sponsoring and hosting youth within their business Sponsoring placements elsewhere within an existing SME/supply chain Providing hosting to the benefit of a new SME. How do learnerships benefit employers? From B-BBEE scores to tax incentives, there are several noticeable benefits when implementing learnerships in the business: Contributing to skills development, job creation and economic growth, while boosting the company’s productivity and adding to its value through the employment of skilled, knowledgeable, competent employees. Establishing a pool of properly-trained, experienced employees with critical skills to draw from gives the business a clear competitive edge in the industry. Being committed to skills development positively impacts the company’s B-BBEE status, improving employment equity targets by enabling previously disadvantaged employees or unemployed individuals to upskill themselves and earn qualifications. There are Learnership Tax Incentives that allow employers to claim up to R120 000 per individual that completes their qualification, along with monthly Employment Tax Incentives (ETI) for every employee hired between the ages of 18 and 29. An all-round win-win Partnering with a training provider that specialises in youth development ensures everyone benefits – the company gains the full tax and employment equity advantages of learnerships, while candidates achieve their full potential through the successful completion of such programmes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cbn.co.za/industry-news/skills-training-development/learnerships-all-round-benefits-if-its-done-right/

  • EMPLOYMENT AND LABOUR HOSTS TRANSITIONING FROM EDUCATION TO WORK FOR PERSONS WITH DISABILITIES WORKS

    SA Government | 17 May 2023 Supported Employment Enterprises (SEE) in another dialogue on transitioning of Persons with Disabilities The Supported Employment Enterprises (SEE) is changing gear to partner various economic stakeholders to help transition Persons with Disabilities (PwD) as they transit from school into the labour market. Phakathi said not everyone is academically gifted, some learners are good at vocational training. He said SEE wants to dispel the notion that if one does not have matric there was no future. Phakathi was speaking during a workshop titled: Transitioning from Education to Work for Persons with Disabilities. The workshop was held at ANEW Hotels & Resorts: Hunters Rest in Rustenburg, North West. The workshop is part of the Education for Employability (E4E) programme supported by the European Union (EU). SEE has been holding the workshops as part of a dialogue to devise strategy for intervention to assist transition PwD into the labour market. To date three workshops have been held. The latest workshop was attended by stakeholders which include the Department of Basic Education, Department of Higher Education and Training, Department of Employment and Labour, Compensation Fund, representatives from special schools and non-governmental organisations. “We want to take a community-centred approach towards policy, hence the consultations with people involved at the coal face of learning. We want a solution-based approach to ensure the employability of persons with disabilities. According to Phakathi: “We are no longer interested in compliance – we want commitment. We are now changing gears and want to approach business to work together,” he said, “not everyone will end up in employment. We need to provide entrepreneurial skills – make the young people commanders of their own lives.” He said the focus in assisting PwD should be on ability abilities, rather than disabilities. Phakathi said for the North West province the economic output of this province was not reflected in the employment numbers. He said the province has one of the highest unemployment rates. Phakathi said there was an economic value in the employment of people with disability. He said the SEE proposal to various stakeholders was to partner with SEE, help drive local content and promote the employability of the PwD. The E4E programme was started in 2019 and slowed down due to COVID-19 outbreak. The E4E is a programme that was designed to find ways to ensure that youth have the skills to find or create meaningful and decent employment when they transition to the labour market. E4E is a three-model stream initiative. It is implemented by three Departments – the Department of Basic Education, the Department of Higher Education and Training, and the Department of Employment and Labour. The programme seeks to ensure the Departments collaborate to ensure youth receive the education and skills needed for today’s labour market. Department of Employment and Labour Chief Director: Public Employment Services, Esther Tloane said the low absorption rate of PwD in the labour market was worrying. Tloane said PwD need to be given the opportunity, especially those willing and capable. SEE is an entity of the Department of Employment and Labour, established to provide job opportunities for persons with disabilities. The Supported Employment Enterprises was established in 1943 and was formerly known as Sheltered Employment Factories (SEF). The entity has 13 factories across South Africa operating in eight of the nine provinces, with only Mpumalanga without a facility. The SEE factories are located in Bloemfontein, Cape Town, Durban, East London, Johannesburg, Kimberly, Pietermaritzburg, Port Elizabeth, Potchefstroom, Pretoria and Seshego. The factories employ 1100 persons with disability who are supported by administration, management and technical staff. The entity manufactures office furniture, school furniture, hospital clothes, office safes and gates. For more information, contact: Teboho Thejane Departmental Spokesperson Cell: 082 697 0694 E-mail: Teboho.Thejane@labour.gov.za(link sends e-mail) Issued by: Department of Employment and Labour ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/employment-and-labour-hosts-transitioning-education-work-persons-disabilities-workshop-17

  • ACTIONSA SUPPORTS ECONOMIC TRANSFORMATION, BUT BELIEVES EE TARGETS MAY EXCLUDE THE MARGINALISED

    Herman Mashaba | 18 May 2023 ActionSA supports the transformation of the country’s economy, and the need to build an inclusive economy where all South Africans can be genuine roleplayers, but South Africa’s experience over the past few decades has shown that this cannot be achieved through strict numerical targets set by the draft Employment Equity (EE) regulations. ActionSA is concerned that the strict Employment Equity (EE) Act targets, published by Minister Thulas Nxesi, will have the unintended consequence of excluding people who were previously disadvantaged from becoming employed. We believe that the targets may furthermore introduce an additional bureaucratic hurdle and increase the cost of doing business, which may adversely impact job creation in South Africa, leaving the poor and unemployed in an even poorer situation. With the current state of our economy, we cannot be implementing measures that will continue to harm job creation and economic growth. ActionSA, a political party which values social justice, believes that employment equity regulations should achieve equality of opportunity and not equality of the outcome. This means that where there are obstacles that certain groups might experience, both due to historical events as well as current realities, the state should provide support mechanisms to ensure that individuals have the opportunity to overcome those barriers to prosperity. The recently published Progress in International Reading Literacy Study (PIRLS) shows that one of the biggest hurdles to overcome in terms of access to employment is South Africa’s poor education system where 81% of learners in Grade 4 in South Africa are unable to read for meaning. This will perpetuate existing patterns of poverty and inequality as those without the means to afford better quality schooling will be condemned to a reliance on inadequate public schooling. As part of our inaugural Policy Conference in September 2023, ActionSA will be tabling our policies aimed at addressing the issue of economic justice, and building a more inclusive economy for all South Africans. Over the coming months we will be engaging South Africans about what Economic Justice means to them, and how they believe it should be addressed. This will include engaging economic experts, academics and everyday South Africans to help us conceptualise a plan which will achieve equality of opportunity in the country. ActionSA believes the best way to empower our people is by giving them the dignity of a job. Through our current policy process, we are committed to providing new and innovative solutions to the country’s unemployment crises to provide a clear alternative to the ANC’s failed approach. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.actionsa.org.za/actionsa-supports-economic-transformation-but-believes-ee-targets-may-exclude-the-marginalised/

  • Understanding the Y.E.S Initiative Webinar - May 18

    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

  • NGO OWNERS TO GET KNOWLEDGE ON HOW TO GET FUNDS

    Boitumelo Kekana | 17 May 2023 Aiming to improve the lives of youth around them, NGOs founders seek funds and accreditation. The Randz Training Solution hosted a workshop to assist non-profit organisations with education on how to get funding and about the processes they can take to ensure that their funds are paid straight into their accounts. The workshop was hosted in Modderfontein, Midrand on April 4. It was hosted by the managing director of Randz, Thapelo Mokgonyana. The workshop included the process of reaching out to SETA for grants, the right documentation that should be submitted with the application, and getting accreditation for existing businesses that are not registered. Knowing scarce skills, NGOs can help with reducing socio-economic issues as they would provide a platform for young people to increase their skills and educate them. One of the concerns that founders raised was that they lack knowledge about funds, which is why some of them get robbed. Caroline Moshahlaba Tiba, the founder of Rotanganedza Community Care who specialise in offering agricultural programmes said, “Funds were coming straight into my account.” “Eventually skills development facilitators ordered us to change banking details to theirs,” Tiba added. This case is proof that the founders of NGOs lack knowledge and that they should attend educational workshops to get it. “Hopefully from here, we will see a lot of accredited NGOs receiving funds.” The workshop attracted organisation founders from all around including Limpopo. Nick Xaba of Angel’s Youth Development Programme, from Limpopo, says he drove all the way from Mokopane to get knowledge about how to get funds as he has been struggling to get information on how to go about the funding process. “The rapid increase of teenage pregnancy in my neighbourhood is scary, and I would like to have a computer centre to keep young girls away from the streets.” “From here I know which steps to follow for me to get the equipment needed,” he added. According to Mokgonyana, accreditation means learners you educate through your NGO can use the certificate to seek employment after they complete their training. REQUIREMENTS FOR SETA FUNDS Be an up-to-day levy-payer that is registered in terms of the Skills Development Levies Act. Employ a skills development facilitator (SDF). The Workplace Skill Plan (WSP) and Annual Training Report are submitted by the required deadline. The WSP for the previous reporting period has been submitted and implemented. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://midrandreporter.co.za/321074/ngo-owners-to-get-knowledge-on-how-to-get-funds/

  • ENTERPRISE DEVELOPMENT THIRD-PARTY FACILITATION

    ABC Traders decides to use a third-party facilitator to distribute Enterprise Development funds to Beneficiaries. The money to the third-party facilitator was transferred two weeks before its financial year ended in February 2023. However, the third-party facilitator only transferred the funds to the end Beneficiaries at the end of March 2023. When using the services of a third-party facilitator, when does Enterprise Development spend be considered a claim? Is it when the third-party facilitator receives the funds or when the end Beneficiary receives the funds? An Enterprise Development contribution is only considered spend when it reaches the end Beneficiary. Therefore, in this instance, where the third-party facilitator distributed the funds outside the Measurement Period, ABC Traders may only claim the amount paid out in March 2023 in the next Measurement Period. Enterprise & Supplier Development Services are available to assist Members with insight into Enterprise Development Contributions.

  • OWNERSHIP OF AN ENTERPRISE DEVELOPMENT BENEFICIARY

    LMN Enterprises is an Enterprise Development Beneficiary of ABC Traders who holds 51% ownership in it. ABC Traders' Enterprise Development contributions towards LMN Enterprises are in line with the criteria in series 400 . The Amended General B-BBEE Codes of Good Practice do not expressly state whether a Beneficiary may or may not be ‘controlled’ by the measured entity. The only reference that might have any bearing on the above is Statement 000 , Par 2.2, which states: "In interpreting the provisions of the Codes of Good Practice, any reasonable interpretation consistent with the objectives of the B-BBEE Act as amended and the B-BBEE Strategy must take precedence.” The Amended General B-BBEE Codes of Good Practice, however, do refer to the Companies Act, Paragraph 3 (subsidiary relationships), which states the following: “A company is a subsidiary of another juristic person if that juristic person is directly or indirectly able to exercise or control the exercise of a majority of the general Voting Rights.” The Amended General B-BBEE Codes of Good Practice define ‘enterprise development contributions’ and ‘supplier development contributions’ in Schedule 1 . As a majority shareholder in LMN Enterprises, can ABC Traders claim its contribution to them as Enterprise Development spend? As ABC Traders has the majority ownership in LMN Enterprises, contributions made by ABC Traders do not constitute Enterprise Development spend as the objective of the Enterprise Development cannot be fully met since there is no operational independence. This is because the ABC Traders has significant economic connections to the beneficiary entity. Enterprise & Supplier Development Services are available to assist Members with insight into Enterprise Development Contributions.

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