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Waseem Carrim | 27 June 2023 We call on the youth to explore the many opportunities that are available for us to create sustainable economic growth for all South Africans, says the writer. Throughout history, every generation has encountered a watershed moment that would define their legacy. In South Africa the youth has often been at the forefront of such moments and the triumphs of past generations of young people continue to echo through time. The youth of 1976 faced their watershed when they confronted the murderous apartheid regime and tragically, many young people paid the ultimate price in the fight for democracy and freedom. This year marks the 47th anniversary of the June 16, 1976 student uprising in Soweto and the actions of young people on that cold winter’s day have helped to shape our democracy and our freedom. Following the advent of democracy in 1994, the new democratic government declared June 16 as National Youth Day and June as the Youth Month. As we approach the end of Youth Month many people might well ponder whether democracy has benefited the youth of South Africa. It is indeed a fair and valid question, which cannot be answered in a simple way, yet there are a number of absolutes. The majority of the youth of 1976 lived in fear and were routinely harassed and brutalised. The youth of today live in a democracy which upholds the rights of all and opens doors to a better tomorrow. The youth of today live in a country which abounds with opportunities, which can be unlocked through dedication, hard work and collaboration of all sectors of society. Since 1994, successive administrations have worked to ensure that young people have the tools and opportunities to change their lived realities, through policy and active inclusion of youth in the mainstream economy. The 2023 Youth Month has focused on opportunities for young people in the private sector, public sector, academia and civil society across the spectrum, including: entrepreneurship, skills development and youth service opportunities. As government, we are working to accelerate youth development programmes, and we have created opportunities for young people to gain the necessary work experience by granting access to internship programmes. The Presidential Youth Employment Intervention creates new pathways into employment for our young people by ensuring that the youth gain the right skills to enable them to not only locate their desired opportunities, but for them to also be self-starters and create their desired opportunities. As the National Youth Development Agency (NYDA) tasked with ensuring the inclusion of young people in all forms for employment, have also opened employment opportunities through the Expanded Public Works Programmes, Community Works Programme and the Harambee Youth Employment Accelerator. The Tshepo One Million Programme targets a million young people with skills training, job placement and entrepreneurship development, while our Youth Employment Service aims to create more than one million paid internships for mainly young black South Africans. The opportunities presented to young people are also anchored on activism which enable young people to be activists which through the National Youth Service contribute to the upliftment of their communities. The SAYouth.mobi network also offers access to learning and work opportunities for young unemployed South Africans. It helps youth to connect to work through a range of services and work readiness training opportunities. Government has also put measures in place to create a favourable and supportive environment for youth to become successful entrepreneurs. The NYDA Grant Programme provides young entrepreneurs with an opportunity to access both financial and non-financial business development support to enable them to establish or grow their businesses. We call on the youth to explore the many opportunities that are available for us to create sustainable economic growth for all South Africans. Together, let us awaken the spirit of 1976 where young people were actively involved in defining their future and the country they wanted. It is through the collective efforts of all socio-economic stakeholders, that we will indeed reach the ideal state of economic emancipation for all. Let us awaken the spirit of patriotism and volunteerism in our youth. Together we can ensure that the democratic gains we have made since 1994 are sustained and further developed, especially as we look ahead to 30 Years of Freedom. * Waseem Carrim is the Chief Executive Officer of the National Youth Development Agency ** The views expressed in this article are not those of Independent Media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/opinion/an-enabling-environment-for-youth-economic-emancipation-requires-the-involvement-of-all-d300eb7f-d237-4a48-a3bf-a6d47d89227c

Darren Parker | 27 June 2023 The demands of digitalisation, electrification, autonomous vehicles, sustainability and changing consumer preferences have given rise to a host of new occupations within the automotive sector, Isuzu Motors South Africa president and automotive executive oversight committee skills development workstream chairperson Billy Tom has said. “The automotive industry must take deliberate steps to cultivate a culture that values and encourages the pursuit of technical expertise. By doing so, we can secure a pool of skilled individuals who will drive our industry forward even in the face of challenges,” he said on June 26. He was one of many industry leaders who spoke at a thought leadership roundtable discussion event hosted by naamsa | The Automotive Business Council, in partnership with financial institution Old Mutual, in Johannesburg. The event was the second instalment in a four-part series of thought leadership roundtable discussions focussed on the industry’s four key strategic areas for the 2023 calendar year. Discussions revolved around the theme of ‘transformation beyond compliance’ and how all key stakeholders within the automotive sector of South Africa needed to push the transformation agenda, which had become a licence to trade for the automotive industry in the country. In the realm of digitalisation, Tom revealed that there was increased demand for software engineers, data analysts and cybersecurity professionals, who were responsible for developing and maintaining the complex systems that enabled autonomous driving. Occupations such as autonomous vehicle engineers, simulation specialists and safety analysts have also emerged as key in the rapidly evolving field. “These individuals play a crucial role in developing and maintaining advanced digital technologies that power connected vehicles, smart factories and data-driven decision-making processes,” he explained. Additionally, expertise in virtual and augmented reality, machine learning and artificial intelligence were becoming increasingly valuable for automotive companies, he said. The shift towards electrification has also given rise to specialised occupations, in electric powertrain systems, betting technology and charging infrastructure. Workers with these skills are essential for the design, development and maintenance of electric vehicles (EVs) in the associated components. Moreover, occupations such as EV technicians and battery engineers have emerged to meet the growing demand for expertise in this field. Tom noted that sustainability had also become a more pressing concern for the automotive industry, leading to increased demand for workers with expertise in sustainable manufacturing practices, environmental engineering and renewable energy. “These individuals contribute to the development and implementation of eco-friendly processes and technologies that reduce the industry's carbon footprint. Additionally, skills in green logistics and supply chain management are increasingly valued as companies strive for sustainability throughout the entire value chain,” he said. In terms of changing consumer preferences, Tom said skills in user experience design, digital marketing and data analytics were increasingly essential for providing a personalised and connected experience for consumers. “As the demand for connected vehicles, technologies and smart mobility solutions grows, professionals in these areas play a pivotal role in shaping the future of the automotive industry,” he said. He added that the successful implementation of skills development initiatives in the automotive industry would require a comprehensive and strategic approach. “Through assessment analysis, we can identify industry demands, emerging technologies and global trends that shape the future of the work. By collaborating with relevant stakeholders, including government bodies, industry associations and educational institutions, we can ensure that our efforts align with market needs and drive industrial growth and development,” Tom said. He noted that the defining of priority skills was crucial to properly focus the industry’s resources and efforts collectively. “By identifying priority technical skills through consultation with industry experts, employers, trade unions, we can validate their relevance and ensure that our workforce is equipped with the right competency to meet industry demands,” Tom said. The general consensus among participants in the roundtable discussions was that enhancing curriculum and training programmes were crucial for equipping learners with the necessary knowledge and skills in the automotive industry. Additionally, regular reviews and updates will allow the industry to align technical education and training curricula with priority skills. By incorporating emerging technologies, industry best practices and real-world applications, it will become possible to prepare learners for the changing employment landscape within the automotive sector. “This may include the establishment of training programmes, partnerships with educational institutions, apprenticeship schemes and continuous learning opportunities,” naamsa transformation executive Tshetlhe Litheko agreed. Tom said integrated work and learning apprenticeship programmes with on-the-job training opportunities would further enhance industry readiness and the development of critical skills. The importance of strengthening the capacity of educators to deliver high-quality technical education and training was also emphasised. Tom noted that, by providing professional development programmes and resources, as well as fostering partnerships between educational institutions and industry professionals, continuous learning and knowledge sharing within the industry could be facilitated. Moreover, improving access and equity in technical education and training would play a vital role in creating a diverse and inclusive workforce. “By ensuring that opportunities are accessible to all individuals, regardless of background or circumstances, we can foster inclusivity and promote a workforce that represents a wide range of perspectives and experiences,” he said. The event programme also focused on the value of financial inclusion and financial education for previously disadvantaged individuals within the automotive industry. Discussions were also held around challenges faced by the poor in accessing mobility and transportation services, including limited public transportation options, inadequate infrastructure in under-served areas and the high cost of owning and maintaining vehicles. Additionally, the support of localised manufacturing capability among small- to medium-sized enterprises (SMEs) was also noted as an area that had to be addressed to ensure meaningful transformation within the industry. Old Mutual SME director Nobesuthu Ndlovu said “… one of the key enablers of localisation and promoting black manufacturers in the automotive industry is access to finance. As part of collaborative initiatives, large businesses play a critical role in enabling access to finance, including financial education.” TransUnion Africa CEO Lee Naik highlighted the need for more programmes that provided accessible financing options, community-driven transportation services and innovative partnerships between the public and private sectors. “It is important to understand the challenges faced by South Africans in accessing mobility and transportation services. Let us dig deeper into financial inclusiveness, innovative financing models such as the two-pot retirement savings annuities system and the significance of public-private partnerships to create viable solutions,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/host-of-new-occupations-in-automotive-sector-demands-skills-2023-06-27

Gloria Motsoere | 25 June 2023 The utility said before 2022, it had a Level 8 rating, but the now improved status puts Eskom in good standing with the empowerment’s commission and sets the tone for prospective Eskom suppliers. JOHANNESBURG - Eskom has retained its Level 4 Broad-Based Black Economic Empowerment (B-BBEE) status for the second consecutive year. The status is given to businesses complying with Black Economic Empowerment. The utility said before 2022, it had a Level 8 rating, which is the base level of compliance. It said the improved status puts Eskom in good standing with the empowerment’s commission and sets the tone for prospective Eskom suppliers. “Eskom will ensure that the necessary standards are upheld to retain the B-BBEE Level 4 accreditation. "In this regard, the organisation will also drive the implementation of the transformation strategy and the enhancement of the supplier development, localisation, and industrialisation," said interim spokesperson Daphne Mokwena. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://ewn.co.za/0001/01/01/eskom-retains-level-4-b-bbee-status-second-year-in-a-row

Comfort Makhanya | 26 June 2023 Through the programme, women are equipped with practical business skills that provide them with the necessary know-how to advance their informal businesses to SMME status. PricewaterhouseCoopers (PwC) joined forces with the Business Skills for South Africa (BSSA) foundation to bring PwC’s Faranani Rural Women Training initiative to life in 2006. To date, 4104 women across all nine provinces excluding the Northern Cape have graduated from the programme. On June 14, another 195 women graduated from the Initiative at PwC’s Waterfall offices in Midrand. Through the programme, women are equipped with practical business skills that provide them with the necessary know-how to advance their informal businesses to SMME status. One of the graduates, Nthatisi Makotoko, believes part of creating a successful business is ensuring it can evolve. Makotoko started a marketing company in 2009, but it was not long after that she was faced with struggles due to routine load-shedding. After finding a solution for her business, she decided to expand her company’s service offering to supply backup power solutions for homes and small businesses— an idea that took off well in 2017. The need for backup power solutions has only intensified in recent years, which recently led Matlhoko to look for ways to grow her business more sustainably. “A good friend recommended PwC’s Faranani Rural Women Training Initiative,” said Matlhoko. “It was a tremendous experience for me as I now look at the future of my business differently and am more focused on planning for the future.” PwC annually contributes R2.4m to BSSA, of which R1.2m is spent on Faranani. The name ‘Faranani’, means working together or teamwork and through the programme, women are able to do this in a way that fosters meaningful connections. “Completing the course was one of the most beneficial things I could have done for my business this year. I learned how to implement proper structures within it, and perform certain operations properly,” added Matlhoko. “The business has a good foundation, but now I am better equipped to run things properly, do future projections, and know when to reinvest in the operation.” PwC SA CEO, and Faranani Initiative national director, Shirley Machaba said they continue to see more women benefiting from the initiative. “What is encouraging about this year’s cohort of graduating businesswomen is that they are venturing into more diverse industries. This is a positive move as the demands of our industry are constantly evolving,” said Machaba. “We are proud to share that more than 70% of women who have completed this programme have increased profitability in their businesses.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://midrandreporter.co.za/322090/195-businesswomen-graduate-from-pwcs-faranani-rural-women-training-initiative/

Sa Government | 23 June 2023 Transformation in the country continues to disappoint – Commission for Employment Equity. The Commission for Employment Equity (CEE) Report continues to show a bleak and slow picture of transformation in the country the media was told in Johannesburg on Thursday. Tabea Kabinde, Chairperson of the CEE, was launching the 23rd CEE Report and handing it to the Minister of Employment and Labour at an event also attended by entities of the Department of Employment and Labour. “The report shows that top management is still occupied by whites at 62.9 per cent followed by Africans at 16.9 per cent. This is despite the fact that Africans constitute 80 per cent of the national economically active population (NEAP), followed by Coloureds at 9.3 per cent, Whites at 8 per cent and lastly, Indians at 2.7 per cent,” said Kabinde. Another factor that shows incongruence is the issue of numbers in terms of professionally qualified by population group where Africans are at 48.4per cent, followed by whites at 30 per cent, Coloureds at 9.9 per cent, Indians at 9.3 per cent and foreign nationals at 2.4 per cent. “We are disappointed and angry because of the injustices that prevail as shown by the painfully slow pace of transformation in the workplace. I am embarrassed that after so many years of bringing about social justice, we are still far from achieving our employment equity targets. In accepting the 23rd CEE Report, Minister Thulas Nxesi, said he was disappointed that the pace of transformation nothing to boast about. “Self-regulation of employment equity targets has not moved the needle to expedite change in the workplace. I am perturbed by the way some politicians have maliciously racialized the whole concept of employment equity to divide the population. I also want to dispel false claims that South Africa stands to lose thousands of jobs from Coloureds and Indians as they get dismissed to make way for employers to achieve targets. The law will not allow that to happen. These scare tactics and bizarre claims by politicians should be seen for what they are,” Minister said. For more information, contact: Teboho Thejane Departmental Spokesperson Cell: 082 697 0694 E-mail: Teboho.thejane@labour.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/transformation-country-continues-disappoint-%E2%80%93-commission-employment-equity-23-jun-2023-0000

Ntando Thukwana | 23 June 2023 Investment holding company Sithega says the deal supports its vision of providing end-to-end financial solutions to the broader South African market. Staff interest will increase to 25% and BEE partner’s to 36%. Financial management and investment company Prescient has entered into a BEE deal that will boost the company’s black ownership to 69%. It announced on Thursday that it is increasing the interests of both its staff and its strategic BEE partner Sithega. The deal, the value of which has not been disclosed, will see Stellar Capital Partners sell its stake in Prescient. Stellar bought a stake in the company following Prescient’s delisting from the JSE in 2017, and the following year diluted its investment from 49% to 19.4% while facilitating a staff and BEE deal. It held the balance of its interest in Prescient via a preference share in the Prescient Empowerment Trust. As part of the latest transaction, Prescient’s staff economic interest will increase to 25% and Sithega’s to 36%, the company said. ‘Meaningful participation’ With its staff now owning a quarter of the business, the company has achieved part of its vision to see meaningful employee participation, said Willem Venter, CEO of Prescient Holdings, which boasts R1 trillion in assets under administration. The company said the Prescient Staff Share Scheme will now take up 7.8% of Stellar’s remaining 19.4% interest, while Sithega takes up 11.6%. Sithega is a black-owned and black-run investment holding company whose core operations are focused on asset management, life insurance and short-term insurance. It was established in 2018 and is led by managing director Thabo Dloti. Dloti also sits on the boards of Prescient Holdings and Prescient Investment Management. Commenting on the deal, Dloti said the opportunity to increase Sithega’s holding in Prescient is the foundational building block of the company’s vision to provide end-to-end financial solutions to the broader South African market. “Sithega and Prescient have a shared belief in the crucial role employees play in delivering on this vision, and thus it’s only fitting that they have ownership in a business they are helping to build,” he said. Peter van Zyl, CEO of Stellar Capital Partners (also a previously listed company) said the company is proud to be a partner in the transaction. “We remain committed to building on our relationship with Prescient and the journey we started in 2017,” he said. Stellar is primarily focused on investing in unlisted assets. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/prescient-in-deal-to-boost-black-ownership/

Kamogelo Moichela | 22 June 2023 Johannesburg - Minibus taxi drivers who transport millions of South Africans daily are now demanding formal recognition as employees after writing a letter for the attentions of Labour Minister Thulas Nxesi. Trade union federation Saftu and the minibus taxi drivers representative group, Qina Mshayeli National Public Transport Workers Association, said they wanted drivers to be recognised as employees of the various employers individually and/or through their associations. In the letter, Saftu stated the department should recognise taxi drivers, administrators, queue marshals as well as staff members in the taxi industry as workers. “It is indisputable that taxi drivers, administrative staff, marshalls, and other staff members in the taxi industry are employees, contracted by taxi owners and taxi associations, who assume the role of the employers,” Saftu said. Saftu and Qina Mshayeli demanded that Nxesi and the Director General of the Department of Labour and Employment take immediate action to ensure that: – All taxi owners and taxi associations are registered as employers. – Taxi associations and/or taxi owners should, without any further delay, provide the Department of Employment and Labour with their lists of employers and addresses as is required by Chapter VI s95 (3), s96, 97, 98, 99 and 100 of the Labour Relations Act (as amended) and CCMA Related Material. – The Department of Employment and Labour must apply all the above sections of legislation without delay to ensure that taxi drivers are not only registered but get all applicable statutory deductions such as unemployment insurance and skills levies. – The Department of Labour should liaise with the Department of Transport to ensure that the state subsidises all taxi operators as it does with bus operators. kamogelo.moichela@inl.co.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/taxi-drivers-demand-recognition-as-employees-subsidies-for-owners-2f98385d-beda-4673-a743-c0590c12ce03

Dean Macpherson | 22 June 2023 The DA is proud to announce the unveiling of our ground-breaking Social Impact Bill, officially known as the Preferential Procurement Policy Framework Amendment Act. This transformative legislation aims to comprehensively reform public procurement in South Africa and address the root causes of inequality of opportunity, benefiting the majority of poor and vulnerable citizens. The Social Impact Bill is currently undergoing consultations with the National Economic Development and Labour Council (NEDLAC) and will soon be introduced into Parliament for consideration. With public procurement accounting for a significant portion of government expenditure—nearly a trillion rand, approximately 22% of South Africa’s GDP—it presents a crucial opportunity for the government to tackle socio-economic challenges by incentivising companies to engage in behaviours that contribute positively to the nation’s goals. In line with this vision, the DA’s Social Impact Bill seeks to repeal the Broad-Based Black Economic Empowerment Act (BBBEE) and references to it in other legislation. Instead, the Bill proposes the adoption of Sustainable Development Goals (SDGs) within ancillary Acts. The BBBEE policy, rooted in the concept of “trickle-down redress,” has proven ineffective in promoting economic inclusion. Currently, it tends to benefit politically connected, already wealthy, or highly educated individuals, excluding the majority of South Africans who were meant to benefit from it. The Social Impact Bill will eliminate BBBEE considerations and amend the Preferential Procurement Policy Framework Act (PPPFA) to incorporate a company’s contributions towards a range of SDGs, under certain circumstances, thereby giving practical effect to the DA’s Economic Justice Policy. This shift will enhance social and economic development, particularly for vulnerable communities across the country. It’s important to note that the primary factors of price and efficiency will remain pivotal in government procurement decisions. Prioritising the lowest cost and most effective delivery of government services will ultimately benefit those who rely on these services and uplift society as a whole. The SDG model proposed in the bill offers several advantages over the current BBBEE model, namely: Leveraging significant government procurement expenditure to incentivize private companies in contributing towards SDGs; Maintaining price and functionality as key factors, benefiting those reliant on government services and promoting overall societal upliftment; Addressing the root causes of inequality without relying on ineffective trickle-down redress; Directly targeting the vulnerable and disadvantaged, especially those historically classified as black under Apartheid, while minimising benefits to those who don’t require them. This will also help curb corruption and patronage; Incorporating 17 different SDGs, allowing companies to focus on the goals with the most sectoral impact; Aligning with increasing international best practices, in contrast to localised and less internationally accepted existing legislation; and Encouraging investment in companies with strong SDG awareness and commitments. The DA’s Social Impact Bill represents a significant step forward in transforming public procurement for the betterment of South African society. By embracing the SDG model and prioritising price, efficiency, and the needs of the most vulnerable, we can create a more inclusive and prosperous future for all. Be part of the mission to rescue South Africa, register correctly to vote now at check.da.org.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.da.org.za/2023/06/introducing-the-democratic-alliances-social-impact-bill

Terrence Corrigan | 20 June 2023 President Cyril Ramaphosa’s push for Expropriation without Compensation (EWC) has caused economic concerns, leading his government to deny the potential damage. However, new regulations under the National Water Act impose racial requirements for water use licences, demanding shares to be allocated to black people. The scale of ownership varies based on water extraction, effectively creating a barrier for larger-scale white farmers. This bureaucratic pursuit of racial transformation disregards practicality and consequences, jeopardising the livelihoods of farmers and further hindering economic development, agricultural production, and food security. The regulations hint at a prioritisation of state control and echo concerns regarding EWC’s potential impact on land ownership. President Cyril Ramaphosa invested enormous political capital over the first three years of his presidency in pushing Expropriation without Compensation (EWC). Inevitably, he ran into difficulty trying to explain away the economic damage this would cause. His response (and that of his government and party) was simply to deny it. Not only would EWC be implemented with the care and aplomb characteristic of the South African state and its politics. The policy would be a positive good: it would ‘promote redress, advance economic development, increase agricultural production and food security,’ he declared in late July 2018. This was never convincing. It’s difficult to think of anything more detrimental to a business environment than undermining property rights. One possible exception to this – something worse – is the deprivation of property along with access to its use. The proposed regulations under the National Water Act seem designed to meet the latter description. Published in the Government Gazette on 19 May, these seek to impose racial requirements for water use licences. ‘Specifically,’ it demands, ‘the enterprise in respect of the application must allocate shares to black people in the proportions specified.’ These are quite extraordinary. Those drawing up to 250 000m3 per annum, or up to 100 ha (for what the act defines as streamflow reduction activities, largely forestry) are exempt from empowerment requirements. Those drawing between 250 000m3 and 500 000m3, or 100 ha to 500 ha, are required to have a minimum of 25% in the hands of black people (in the prosaic words used by the Regulations ‘% shares allocated to blacks’). Users drawing between 500 000m3 and 1 000 000m3, or 500 ha to 1 000 ha, are required to be at least 50% black owned. Those drawing more than 1 000 000m3, or above 1 000 ha, will need to meet a minimum 75% black ownership. The regulations go on to state that applications from ‘mining and related industries (regulated by means of MPRDA), state- and state-owned entities, 100% black owned’ are exempt. Exactly how much water a given farm will need to extract is of course dependent on the crops its produces, the area of the country it is located, the quality of the soil and so on. But it is clear that the import of this will be to institute an absolute barrier to particular farmers – white farmers – operating at larger scales. The rejoinder would be that it does not exclude anyone, merely that it requires partnerships with black people. The regulations also target new licences, so would not have an immediate impact. In a sense this may be true, in that an established farmer could continue operating until the expiry of the licence – a feature built into all water licences. After that, presumably he or she would be required to relinquished control or ownership of a farming enterprise. It also ignores the fact that faming tends to be a field in which operations are undertaken by families, rather than in partnership with others. Taking on a partner – irrespective of race – is difficult. None of this seemingly means much to a bureaucracy that typically evinces scant understanding of the realities of operating a business. Rather this seems to reflect an officious mindset in which the imperatives of racial ‘transformation’ are to be pursued as ends in themselves, irrespective of their practicability or consequences. It has parallels elsewhere, and equally under President Ramaphosa’s incumbency. If the minister of employment and labour pledged to be ‘very harsh’ on employers failing to ensure that the state’s racial vision is reflected in workplaces, one can only conclude that his counterpart for water and sanitation has the same approach to the country’s farmers. Indeed, just as the recently amended Employment Equity Act is looking at fines sufficient to cripple ‘non-compliant’ firms, so will the regulatory architecture be erected to destroy demographically unacceptable farming enterprises. It’s a chilling indication of the state’s priorities and provides a revealing insight into its mindset. Actual farmers and their enterprises represent mere percentages on a spreadsheet for the convenience of officials, and ideas in the imagination of politicians. Certainly not repositories of expertise whom a successful country might wish to retain. The consequences will be dire indeed if this is enacted. It will, to adapt the President’s comments, retard economic development, undermine agricultural production and food security, and by placing additional stress on an already struggling economy, set back meaningful redress. It’s also important to understand that this is not an entirely separate issue from EWC. State control of water resources – custodianship on behalf of the people of South Africa – was introduced with the National Water Act in 1998. Similarly, the Institute warned repeatedly that the endgame for the EWC drive was less likely to be seen in the state confiscating one piece of land after another, still less taking from one owner and passing it on to another, than delivering all land unto itself, on precisely the model of water and later minerals. There was certainly much sympathy within the ruling party for this (admittedly some rejection too), though it was hardly a popular option among South Africa’s people. It was, notably, achieved without the need to amend the Constitution. Not only has the state over time failed to act as a good steward (or custodian) of the country’s water resources, but it is now able to use its arrogated position as a political bludgeon. The risk of ‘revisiting’ a custodial taking of land remains very much alive. In the meantime, South Africa’s farmers must contend with yet another existential threat hanging over them. *Terence Corrigan is the Project Manager at the Institute, where he specialises in work on property rights, as well as land and mining policy. A native of KwaZulu-Natal, he is a graduate of the University of KwaZulu-Natal (Pietermaritzburg). He has held various positions at the IRR, South African Institute of International Affairs, SBP (formerly the Small Business Project) and the Gauteng Legislature – as well as having taught English in Taiwan. He is a regular commentator in the South African media and his interests include African governance, land and agrarian issues, political culture and political thought, corporate governance, enterprise and business policy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.biznews.com/news/2023/06/20/racial-requirements-water-use

Schalk Burger | 21 June 2023 Small businesses are struggling to keep operating during loadshedding. Up to 64% of small businesses in South Africa's townships stop operating when there is loadshedding, about 60% have had to reduce employee numbers to survive and about 7% have permanently shut their businesses as the costs to trade had become unrecoverable. These were some of the findings of a recent study presented during a webinar, titled 'The Energy Crisis: What is being done to support small businesses?' hosted by small enterprise institution the Small Business Institute on June 20. Research organisation the Township Economy Alliance (TEA) founder Bulelani Balabala said the TEA had conducted research into the impact of loadshedding on township enterprises and polled about 1 500 small businesses over the past three months. The results indicate a significant negative impact on informal and formal township businesses owing to loadshedding. For example, the use of generators by township businesses in the manufacturing space has increased their costs and their biggest challenge was to achieve a balance between recovering their increased costs and pricing their products to remain competitive in their markets. Additionally, despite some manufacturers having switched to working in shifts and having reduced wages, if they experienced four hours of loadshedding a day, they could only do four hours of work a day. Some also reported that clients cancelled orders because it took the enterprise longer to deliver a finished product, he added. However, about 17% of the businesses were able to improvise to continue operating and about 19% had deployed alternative energy sources to sustain their operations, he said. "While some businesses were able to offset the impact of loadshedding, such as by switching to gas stoves in the food industry and using batteries to power lighting, a theme we identified in the majority of businesses is that they had to pivot in one way or another to navigate the crisis," Balabala said. The research, conducted in partnership with financial services firm Nedbank, recommended that to assist township businesses to overcome the impact of loadshedding the length of loadshedding should be reduced to one hour. Further, introducing affordable solutions can help, and small businesses should be provided with tools to navigate the alternative energy sector, as they often lack sufficient information about what solutions would be suitable for their operations. Additionally, the TEA recommended that township businesses be provided with external funding support, as switching over to suitable solutions was expensive and sometimes prohibitively so, he noted. "The reality is that small businesses that cannot afford alternative power find themselves yet again excluded from the economy," said Balabala. The impact of loadshedding on small, medium-sized and microenterprises (SMMEs) is tangible and visible on a daily basis. Some businesses can cope better than others, but those without the necessary financial reserves to put alternative energy solutions in place suffered bitterly, said business loan provider Business Partners executive director and chief investment officer Jeremy Lang. "Some businesses are able to work around the impact of loadshedding, such as through introducing shifts, but other businesses cannot and lost turnover cannot be recovered. Further, loadshedding is leading to margin squeeze while businesses are experiencing overhead creep, such as through tariff increases and high interest rates. "It is critical to support SMMEs through such periods, as we are seeing increased levels of liquidation and job losses. No one institution or organisation can solve this problem, and it requires a concerted effort by the public and private sectors to address," he said. Further, the solutions must not be cumbersome for SMMEs and must be concessionary in nature and easily accessible, he added. Business Partners has launched a R400-million fund to support SMMEs to procure alternative energy supply for their businesses to provide more consistent and predictable energy, as well as hopefully reduce their costs over the medium term. Funding of between R250 000 and R2-million was available for SMMEs looking to install alternative energy solutions, with Business Partners keenly focused on ensuring that the alternative energy solutions were of high quality and that the suppliers and installers were credible and accredited, Lang noted. Meanwhile, the National Treasury would launch a loan guarantee scheme aimed at helping to address the energy constraints experienced by SMMEs, hopefully within the next week, Treasury financial sector policy chief director Vukile Davidson said. "However, our experiences with loan guarantee schemes during the Covid-19 impacted period has shown that outcomes tend to be better when we work in partnerships. We need to leverage the respective strengths of various institutional players, including banks and non-bank financial services providers who understand their clients well. We have also worked with these role-players in designing the distribution mechanisms," he said. Additionally, Treasury s taking ai modular approach in which it aims to understand what interventions work well and then scale those up, rather than taking a blanket approach under which some mechanisms are not fit for purpose. "The objectives of the loan guarantee scheme are to improve reliability of energy available to SMMEs and to improve the energy output. However, we are also focusing on reducing single points of failure, which means that solutions must be distributed," he added. The scheme will have three main interventions, including a capital investment mechanism for SMMEs that are in a position to take on more capital debt, such that they can borrow and install alternative energy solutions. The second intervention will see the scheme provide leasing, pay-as-you-go and loan-to-own finances to energy service companies to improve access for SMMEs. This was important as most SMMEs did not want to take on additional debt without a corresponding increase in output. The aim of this intervention was to keep the costs of energy for SMMEs the same while ensuring reliability without dramatic 20% or higher increases in energy tariffs, said Davidson. "We are also working to ensure that energy service companies have sufficient funding and working capital to meet increased demand," he added. Treasury also aims to alleviate other bottlenecks and constraints, such as ensuring there is sufficient working capital available in the solar energy sector to meet increased demand, and it is looking to support new entrants into the energy services space to make the environment as competitive as possible. "Through the scheme, we are aiming to support the addition of 1 000 MW every year and, thereby, we hope to alleviate some of the pressures felt by small businesses." Further, the Department of Small Business Development (DSBD) had launched its Catalytic SMME fund as part of its green economy initiative, said DSBD chief director Vijay Valla. While Treasury aimed to support such initiatives, it cannot provide sufficient resources to transition the small business sector to green energy. Therefore, the initiative aimed to tap multilateral donors, development finance institutions and other organisations that wanted to encourage the move to a green economy in Africa, he said. The funding support for SMMEs to secure renewable energy solutions provided through this initiative contained concessionary grant funding, depending on the size of the business. Informal businesses could receive funding of which 90% to 100% took the form of a grant, while larger businesses could receive funding support of which between 30% and 70% could be in the form of a grant, he noted. Additionally, depending on the scope of the solution in terms of actively moving towards a green economy, the loan terms can range from two years to five years. "We want to be able to mitigate electricity challenges for small businesses in parallel with creating a green economy that is more resilient to climate change," Valla said. "Further, we have researched and identified opportunities for township and rural enterprises to participate in a more resilient green economy along the value chain, including in consulting, generation, installation, and maintenance and repairs. There is plenty of scope for SMMEs to participate in the green economy." While the loans were in the R50 000 to R100 000 range, the DSBD was also open to leveraging blended finance models in partnership with other government departments, nongovernmental organisations and private organisations to support the transition of small businesses to green energy, Valla said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/small-businesses-need-support-as-they-take-heavy-strain-from-loadshedding-crisis-2023-06-21

Staff Writer | 21 June 2023 Chairperson of the Commission for Employment Equity, Tabea Kabinde, says that 25 years of employment equity in South Africa has failed to produce the desired results – so the government has to take action to ensure that it does. Commenting on the pushback against the Employment Equity Amendment Act that was recently assented to by President Cyril Ramaphosa, Kabinde said the vitriol and opposition to the new laws was unsurprising. “Rather than seeing the introduction of sectoral targets as a much-needed catalyst to start fostering sectoral collaboration on the non-competitive aspects of employment equity and in so doing to identify innovative ways to speed up the pace of transformation and economic inclusion in our country, disappointed, there still seems to be a disproportionate focus on pushing back on the process and construct of an Act,” she said. The new laws empower the labour and employment minister to set sector-specific racial targets that all designated businesses – those that employ 50 or more people – need to meet within five years or face penalties. While the laws are not yet in effect, the minister has already published the targets, delivering a clutter of over 10,000 data points that make little sense to the layman, littered with errors and irrational reasoning, according to critics, including legal experts. The laws and the targets face legal challenges, with opposition groups pushing to test the constitutionality of the entire framework. According to Kabinde, however, the move from the government to take a stricter approach to employment equity should not have come as a surprise. “25 years on, the impact of the Employment Equity Act has fallen short of its intent. While the Act has put in place mechanisms for monitoring and reporting on employment equity progress, there has been limited progress toward addressing systemic inequalities and achieving truly transformed workplaces,” she said. “The pace of progress on transformation has been painfully slow, and there continues to be a lack of representation of individuals from previously disadvantaged groups, particularly in senior management positions and in certain industries. ”In short, corporate South Africa is more reflective of the economically privileged population, rather than the economically active population, with boardrooms and senior leadership teams still being predominantly populated with white people and men in particular.” She said that this left the government and regulators feeling like the only option to ‘rectify’ the situation is to “firm up the regulatory landscape and increase the ‘stick'”. This has led to the implementation of sectoral targets with punitive measures possible for non-compliance. Kabinde said the EEA is “merely a tool” to enable transformation and social justice. However, she said that businesses and organisations in South Africa have not made use of the tool and have instead looked for every excuse not to – further entrenching inequality. “Like any tool, it is only as effective as its user. If the user does not want to learn how to use the tool properly or refuses to use the tool at all, it cannot be effective. Unfortunately, within the context of an exceedingly difficult and constrained social, political, and economic environment, the ‘plausible’ narrative, and excuses for not learning to use and leverage this tool are not in short supply,” she said. “Ultimately, Employment Equity is not a legislative or compliance conversation about numbers, it is a human conversation about human beings. It is a conversation about people who have suffered and continue to suffer the pain of being systematically marginalised, dehumanised, and excluded – forever on the outside looking in.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business-opinion/697807/new-racial-targets-for-businesses-in-south-africa-a-bigger-stick-to-force-change/

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