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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.

A QSE that is more than 51% ‘Black’-owned qualifies for Enhanced Recognition, which means that an Affidavit is the only B-BBEE Credential they have to present. Paragraph 5.3 of Statement 000 published in Gazette #42496 makes the following allowance for Enhanced Recognition: 5.3 Enhanced B-BBEE recognition level for QSE: 5.3.1 Despite paragraph 5.2 above, a QSE which is 100% Black-owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level One Contributor” having a B-BBEE recognition level of 135%. 5.3.2 Despite paragraph 5.2 above, a QSE which is at least 51% Black-owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level Two Contributor” having a B-BBEE recognition level of 125%. 5.3.3 A Black-owned QSE in terms of paragraph 5.3. above, is only required to obtain a sworn affidavit on an annual basis, confirming the following: 5.3.3.1 Annual Total Revenue of between R10 million and R50 million; and 5.3.3.2 Level of Black ownership. Thus, as they have met the Ownership criteria, they are not required to meet the Management Control, Skills Development, Enterprise & Supplier Development or Socio-economic Development targets. Furthermore, paragraphs 5.4 and 5.5 make the following references: 5.4 Despite paragraph 5.3 a Black-owned QSE may be measured in terms of the QSE scorecard should it so choose. 5.5 Any misrepresentation in terms of paragraph 5.3 above constitutes a criminal offence as set out in the B-BBEE Act as amended. Certificate Collection Services are available to address any queries in relation to the validity of supplier B-BBEE Certificates

Hani Raad | 17 May 2023 The pace of innovation and the deployment of new enterprise technologies mean that the hiring needs of businesses are constantly changing. If they want to capitalise on new, cutting-edge tech solutions, they need the knowledge and technical capabilities to deploy, optimise, and maintain them. And in the face of a shortage of critical skills in South Africa and across the world, businesses need to get smart about how they search for and secure skills. Effective recruitment begins by understanding the critical skills landscape. Enterprises need to take a proactive approach and rethink how they recruit new talent in networking, security, and 4IR technologies, and how they can contribute to creating new education and employment opportunities. IT jobs are en vogue According to Gartner, worldwide IT spending is projected to total $4.6tn in 2023, an increase of 5.1% from 2022. Digital business initiatives are fuelling this growth as leaders turn their attention to the digital economy and how they can participate in it. But participation is a non-starter if businesses are not technologically strong, something that requires the right skills. Therefore, talent acquisition needs to be a priority. Specialisation is also an important factor to consider. A company cannot digitally transform, or even function properly, with just one IT person handling everything. For example, cloud computing is one of this year’s biggest business and IT trends, and the mark of an innovation-driven enterprise. Because of that, many businesses are building teams of software engineers and cloud architects to create custom software and products. Confronting the skills shortage head-on South Africa faces a shortage of critical skills, with the pressure felt most in sectors like IT and finance. Expensive tertiary education and low salaries mean that recruiters and HR departments struggle to find the talent and expertise they need. In the case of IT, we lack professionals in fields such as software development, technical and business architecture, and data analysis and warehousing. In response, employers are shifting gears, placing more value on technical certifications and experience with new technologies than on traditional, tertiary qualifications, though the latter is still valuable. Now is the time for the public and private sectors to invest in digital skills training. But inclusivity must also be prioritised when it comes to hiring processes. A multitude and diverse collection of minds, viewpoints, and backgrounds are the ingredients of a dynamic and innovative working environment. The real potential for this lies with the current generation of young professionals, which is why digital acceleration and upskilling programmes are so important to close the skills gap and empower everyone to participate in a globally connected, digital economy. Enterprises also need to consider how their working environments and conditions can affect talent recruitment and retention. Today’s professionals are inclined to workplaces and employers that take their overall wellbeing into account, by offering incentives such as flexible work schedules, and promoting cultures of respect and collaboration. Many professionals seek roles that give them the space to grow and take on more responsibilities, which is where multinational and digitally transformed companies have the edge. But regardless of whether you’re an SME just starting or a leader in your industry, you stand to benefit from a targeted approach to hiring and clear skill acquisition goals. Optimising your recruitment strategy To attract professionals with expertise in a specific IT field, organisations need to refine their recruitment processes. Some steps to consider include streamlining the process, improving job advertisements, identifying passive candidates, and even considering and then onboarding internal ones. Who knows, the talent call may be coming from inside the house. Organisations can take their recruitment strategies a step further by using virtual technology to connect with graduates and professionals. Platforms such as the Cisco Talent Bridge Matching Engine are designed to match the needs of employers with the talent that’s available and eager to start working. This makes it easy for recruiters to identify candidates, and gives candidates access to job openings that mirror their skill set and expertise. This is applicable across the IT sector, regardless of whether you’re looking for someone proficient in cloud technologies, networking, or security. And remember, businesses that accommodate remote workers and embrace hybrid work models are better positioned to source talent from around the world. Hybrid work models help with talent retention, as surveys have shown employees are less likely to look for new roles. With all this in mind, enterprises can meet their IT and networking needs with a recruitment strategy that works for them. Thanks to an evolving digital skills landscape brimming with potential, businesses can make great strides in both creating opportunities for young professionals and jumpstarting their own digital transformation journeys. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/500/238477.html

ENCA | 17 March 2023 Johannesburg - The Youth Economic Council says government has failed to develop job opportunities outside major cities. It was reacting to the latest unemployment statistics. The official jobless rate increased to 32.9 percent in the first three months of the year. This translates to just under 8-million people officially out of work. Those without jobs between 15 and 24 years of age sits at a staggering 62-percent. Sectors that shed jobs in the period include mining, manufacturing and construction. The council says the government must prioritise developing smaller economies outside cities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.enca.com/news/youth-economic-council-reacts-youth-unemployment-statistics

Gabriel Crouse | 16 May 2023 Like P W Botha in the 1980s, Labour Minister Thulas Nxesi has reached his Rubicon moment in publishing proposed “sectoral targets” for so-called “employment equity” that will in effect impose racial moratoria on hiring and promoting staff in the private sector. Nxesi’s race “targets” have been published for comment under the new Employment Equity Act (EEA), a central feature of the ANC government’s campaign to socially engineer society, which the IRR has warned against for years. Roughly 85% of the formal private workforce falls directly under these “targets”, which Nxesi recommended to MPs when he said in parliament that “we now need a more aggressive strategy” on race law. As Nxesi is Minister of Employment and Labour, it is worth noting that under his watch South Africa has come to achieve the worst unemployment rate recorded anywhere. In addition, it is patently clear that most South Africans are opposed to Nxesi’s race-first policy. In the latest poll commissioned by the IRR, 80% of all respondents and 80% of black respondents preferred merit-based appointments, most with extra training for the genuinely disadvantaged, to the kind of racial moratoria that are now gripping South Africa’s labour market. Setting up race targets that produce racial moratoria on hiring – as took place at Dis-Chem – is the opposite of non-racialism. Most people want better. Said IRR Fellow Gabriel Crouse: “My hope is that this is the pivot after which race law is exposed as being so obviously defunct that resistance to it among decent South Africans starts gaining ground. In 1985 PW Botha thought that doubling down on racial oppression would keep him in power, but the racist arrogance of his ‘Rubicon’ moment produced a different result. To my eye Nxesi bears an uncanny resemblance to Botha and South African decency may yet teach him the same hard lesson.” What the sectoral targets mean Minister Nxesi has made the sub-regional “5-year sectoral targets” equal to “0.0%” for some racial minorities in the newly gazetted EEA “Sectoral Targets” regulations, which are open for comment for the next 30 days. Should they remain unchanged, they will be enforceable by fines that climb to 10% of revenue for repeat “offences”. The “0.0%” target is most frequently imposed against coloured people. Noted IRR Fellow Gabriel Crouse: “We have seen targets of ‘0%’ before in the public service for some minority races, but we have never seen ‘0.0%’ in the public or private sector. Many people will be surprised to learn that there is legal significance to the extra zero. This can only be understood, however, once one realises that existing South African race law already turns on treating people, especially racial minorities, as fractions below 1 but above 0.” The case of Jennila Naidoo, heard in 2012 in the Labour Court, is instructive. Naidoo was denied a SAPS promotion in Krugersdorp explicitly on the basis of race. A black man with lower scores was hired instead. Naidoo first seemed to win her case in court, but the Labour Court of Appeal set the winning judgment aside and replaced it with what remains the standing judicial opinion on what a “zero” percent “target” means in the context of race law. The formula by which Naidoo was racially excluded from a job she deserved was summarised by the court as follows. “For Indian females the calculation is 19 × 2.5% = 0.5 positions to be filled by Indians, then 0.5 × 30% = 0.1 Indian females and that is rounded off to zero. Of the five available positions 0.125 could go to Indians × 30% gender allocation means 0.037 could be allocated to Indian females and that is rounded to zero.” The Labour Court of Appeal unanimously held that this rounding “to zero” in the “equity plan did not proscribe the appointment of Indian females”. The court said that Indian females like Naidoo still stood a chance, despite the rounding to zero, because “had there been more posts on level 14 in Gauteng the formula might have yielded a different result that would have made provision for Indians or Indian females”. In other words “0.037 could be allocated to Indian females and that is rounded to zero” according to the actual plan, but if there had been many more positions to begin with then that might have been rounded to “1”, and then some Indian women might have had a chance. The court’s opinion then directly added that it “was common cause that two Indian females were appointed on level 14 in KwaZulu-Natal because the requirements of the respective business units provided for such appointments. This also showed that the employment equity plan was not an absolute barrier against the employment of Indian females.” In other words, Indian females like Naidoo from Gauteng could, in theory, move to KZN where the “target” is above “zero”. Inhumane as that situation was, and remains in the public service, it may now be even worse in the private sector, as the move from “0” to “0.0%” “targets” entails that no matter how many new jobs are added at a given subsector there will never be a rounding up to “1”. It is also worth noting that in the Barnard case in 2014 the Constitutional Court ruled that it is permissible for a person to be refused a promotion explicitly on the basis of race in a case where the job – a post in SAPS – did not go to someone else. The post was simply left vacant. The Constitutional Court has subsequently held that the “Barnard principle” can be used against any race. For these reasons Nxesi may be emboldened to think that his race plan will work. It will not. The EEA “targets” are counter-productive and unconstitutional. Non-racialism is a Chapter 1 foundational value in South Africa’s Constitution. The IRR submitted to Nxesi, the Presidency, and Parliament, demonstrations of at least six grounds on which the new EEA is unconstitutional, including that it is certain to make poor, unemployed black people worse off by making South Africa even more uninvestable. Issued by Gabriel Crouse, IRR Fellow, 16 May 2023 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/nxesi-faces-his-rubicon-moment-with-racelaw-target

Staff Writer | 16 May 2023 The Department of Employment and Labour has gazetted the draft sectoral employment equity targets for designated businesses in South Africa for public comment. The employment and labour minister has set targets in terms of the country’s new Employment Equity Amendment Act, which was recently assented to by President Cyril Ramaphosa. Under the new laws, the employment minister is empowered to set sector-specific numerical targets for the racial and gender makeup of designated businesses, which must be achieved over five years. The targets are expressed as a percentage of the population, either nationally or provincially, and it is up to businesses to choose one or the other in executing their transformation plans, the department said. Designated businesses are all businesses in South Africa that employ more than 50 people. Failure to comply with the laws can result in penalties, such as fines. Companies seeking to do business with the government will also need a Certificate of Compliance from the department. Furthermore, the EE Act requires employers to submit employment equity plans and annual reports on their progress in meeting the targets. The laws apply to all designated businesses – even those that have no intention of doing business with the state. Targets Broadly, the proposed targets appear to push companies to be more demographically representative, especially in top and senior management positions. The department did not publish an explanatory note with the gazette explaining how the targets are to be read. The tables instead show a barrage of percentages split across: 18 industries/sectors 4 skill levels per industry (Top management; Senior management; Professional; Skilled) 4 racial groups per skill level (plus a total for “Black” which includes Indian, Coloured and African) 2 genders (Male; Female) 10 regional breakdowns for all of the above (9 provinces and national). Each sector breakdown features a workforce profile for 2022, which is ostensibly what the targets are set against, although this is not explicitly stated. The targets look at 18 sectors overall. The full breakdown of the targets can be seen in the file below. The proposed targets are open for public comment for 30 days. Challenges ahead Notably, the 2022 profiles show a wide over-representation of white South Africans in the workforce, particularly in top and senior management. However, the purported targets do not account for the shifts away from these figures. Simply put – the numbers don’t add up, which has already raised flags among commentators. Business interest group Sakeliga has, through its attorneys, written to the employment minister demanding that the gazette be withdrawn. Sakeliga said that the targets are incoherent and incomprehensible, adding that if the regulations are promulgated, they will be susceptible to judicial review. “The draft regulations… seek to determine race and gender quotas per industry per province. However, the regulations have been so incoherently and incomprehensibly constructed that it is impossible to formulate meaningful comments on the proposed targets. “Furthermore, no explanation was provided to assist in making sense of the numbers,” the group said. Sakeliga said is totally opposed to state interference in private enterprises. “The draft regulations and the enabling legislation for them provide for intrusive race and gender quotas which the minister can ostensibly impose on any business with more than 50 employees. “Sakeliga is already busy preparing court papers to have the amended Act reviewed and the most objectionable parts of it set aside. The fact that the draft regulations in terms of the Act are unintelligible and incoherent is an aggravating circumstance,” it said. Sakeliga said that, as it currently stands, the group cannot comment on the draft regulations, “and the rest of the public probably won’t be able to either”. Trade union Solidarity is also in the midst of a court process challenging the new BEE laws, saying they place excessive focus on racial categorisation and ultimately give an afterlife to ‘apartheid-style’ classifications. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/688535/these-are-all-the-new-bee-targets-for-businesses-in-south-africa/

Darren Parker | 16 May 2023 Statistics South Africa (Stats SA) has revealed that the official unemployment rate has increased by 0.2 percentage points, from 32.7% in the fourth quarter of 2022 to 32.9% in the first quarter of this year. “We are not creating sufficient employment,” statistician-general Risenga Maluleke said on May 16 at the release of the Quarterly Labour Force Survey (QLFS) for the first quarter, noting a total growth in employment of 8.6%, down from the 10.4% and 9.6% in the third and fourth quarters of last year respectively. The QLFS showed that the overall number of employed persons in South Africa had increased by 258 000 quarter-on-quarter from 15.9-million to 16.2-million. However, the number of unemployed individuals also increased from 7.8-million to 7.9-million. The overall unemployment rate was adversely impacted by more individuals attempting to enter the workforce, leading to a decrease in non-economically active discouraged work seekers, from 3.4-million to 3.3-million, while other non-economically active individuals also decreased by 209 000 from 13.4-million to 13.2-million. Both the formal and informal sectors recorded increases in employment of 209 000 and 107 000, respectively. Despite the rise in the unemployment rate, financial institution Nedbank commented that the continued increase in employment was comforting. In its analysis of the QLFS, the bank said that other high-frequency data out so far suggests a modest improvement in the first quarter compared with the final quarter of last year, implying that the economy will probably avoid a technical recession. Despite the rise in the unemployment rate, the continued increase in employment is comforting. Other high-frequency data out so far suggests a modest improvement in the first quarter compared with the final quarter of last year, implying that the economy will probably avoid a technical recession. However, Nedbank believed that the outlook for the rest of the year remained bleak as the economy faced significant headwinds, which would hamper the job market. “Slower demand in most major economies, hurt by the high cost of living, will exert downward pressure on commodity prices and weigh on export-orientated industries such as mining and manufacturing. Unfortunately, those two industries are also power intensive and will therefore suffer the most pain from the electricity crisis,” Nedbank said. Other industries are also facing hardship ahead, thanks to ongoing intensive load-shedding. Nedbank believed that higher interest rates and fragile consumer confidence would contain consumer spending and hurt corporate profits. “While the government is accelerating efforts to deal with issues at Eskom, it will take years to resolve this challenge completely. Therefore, the cost of doing business will remain high,” the bank said. The finance sector is one of the sectors hurting the least, having recorded the largest employment gains, adding 184 000 jobs over the last quarter. However, as at the fourth quarter of last year, the finance sector only makes up 15.6% of the country’s total employment, despite it representing 23.9% of nominal gross domestic product (GDP). The community and social services sector added 175 000 jobs during the first quarter, while the agriculture sector added 27 000. Meanwhile, employment losses were recorded in the private households, trade, mining, construction and manufacturing sectors. Private household employment went down by 85 000 jobs, trade by 28 000, mining by 24 000, construction by 11 000 and manufacturing by 2 000. As at the fourth quarter of last year, a 20.7% share of the country’s employment figures were represented by the trade sector, against its 14.3% share of GDP. The construction sector also employed more than its fair share, representing 7.6% of the employed workforce against only 2.4% of GDP. A similarly unsustainable circumstance was seen in the agriculture sector, which employed 5.4% of the total employed individuals in the country for only 1.5% contribution to GDP. Private households employed the most when contrasted against GDP, representing 7.5% of employed individuals against virtually no contribution to GDP. Nedbank believed that the pace of implementation of measures to resolve the various key impediments to economic growth has been slow. These include measures to curb corruption, reduce skills shortages, overcome policy challenges, and refurbish deteriorating logistical networks. “Under these circumstances, business confidence will remain depressed, and the private sector will most likely limit investment spending and employment growth,” the bank said. It added that employment by the government would also be limited by the fiscal consolidation path, which, among other key objectives, prioritises the reduction of the wage bill. In Gauteng, employment figures went up by 80 000 – the largest increase among the provinces. Limpopo's employment figures went up by 71 000, with the Western Cape up by 62 000, KwaZulu-Natal up by 54 000 and the Eastern Cape up by 41 000 quarter-on-quarter. In Mpumalanga, however, employment losses of 45 000 were recorded, with the North West and Free State recording 4 000 job losses each. The youth, between the ages of 15 and 34 years old, remain the most vulnerable demographic in the labour market, with the QLFS showing that the total number of unemployed youth increased by 241 000 to 4.9-million. Only 28 000 new jobs were filled by this section of the economy, taking the total number of employed youths to 5.6-million. The consequence of these figures is an increase in the youth unemployment rate of 1.1 percentage points to 46.5% for the first quarter. "The number of unemployed and discouraged work seekers who can enter the job market remains high, so even if employment were to increase, the unemployment rate is likely to remain structurally high over the medium term," Nedbank said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/unemployment-rate-rises-to-329-as-more-people-enter-the-job-market-2023-05-16

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John Steenhuisen MP | 15 May 2023 “The social perversion created by these targets constitute a clear and urgent threat to the social fabric of South Africa. The implication is that companies operating in certain parts of the country are banned from employing even a single coloured or Indian person in a particular position. If companies defy these regulations, they will be severely punished by being disqualified from government contracts or doing business with the state.” – John Steenhuisen MP The DA is appalled by the draft Employment Equity Amendment Act (EEA) regulations published for comment over the weekend. The regulations set out racial employment quotas across 18 economic sectors and across all 9 provinces, which will affect every part of the South African economy. The regulations apply to all companies with more than 50 employees. They signal a new low for the ANC government, constituting a naked attempt to expand State control over the economy, deepen social divisions and ban certain communities from employment in particular sectors and parts of the country. The quotas seem especially targeted at the groups defined by the regulations as “coloured males,” “coloured females,” “Indian males” and “Indian females.” People from these communities suffered discrimination under the previous regime, and now they are being re-victimised by a democratic government that has learnt all the wrong lessons from the past. In sectors like agriculture, forestry and fisheries, mining and quarrying, manufacturing, finance, arts, and science, the “targets” set for coloured employees in provinces like Limpopo, Mpumalanga and North West is 0.0%, effectively banning these groups from employment. Even in Gauteng, the country’s economic heartland, employment by people classified by the State as coloured is sometimes limited to below 1%. In the case of employees classified by the State as Indian, the targets are often as low as 0.1% across economic sectors. Consider the absurdity. A company with 50 employees that has even a single Indian person on the payroll will be in breach of the 0.1% limit, as 1 out of 50 is equal to 2% of that company’s total employees. Conversely, if that company fires its single Indian employee on the basis of race, it will also be in breach because it will then have 0% Indian employees. The social perversion created by these targets constitute a clear and urgent threat to the social fabric of South Africa. The implication is that companies operating in certain parts of the country are banned from employing even a single coloured or Indian person in a particular position. If companies defy these regulations, they will be severely punished by being disqualified from government contracts or doing business with the state. For the ANC, Limpopo, Mpumalanga, North West and even certain sectors in Gauteng are now “no-go zones” for coloured and Indian South Africans seeking employment. Just as perverse is the implication of these quotas for black employees. In the Northern Cape, for example, employment of “black females” at private firms is limited to below 15.8%. Consequently, a company in Kimberley that happens to employ more skilled black women than the quota allows will also be punished and excluded from government contracts. The DA maintains that the EEA is the most dangerous piece of racial engineering our country has seen since the dawn of democracy. Its effect will be to stunt social mobility and increase division as workers from certain communities are discouraged from moving to “no-go zones” where they are not welcome. Far from promoting equality, the EEA will deepen division and further fragment our country into groups of insiders and outsiders. As we have already witnesses with the rise of Procurement Mafias, once the ANC starts publishing lists of companies that are “non-compliant” with the racial quotas, we are likely to see the emergence of employment mafias pushing for the hiring of the “right” connected ANC cadres into vacant positions. The economic costs of this discrimination will be severe at a time our country can hardly afford it. The State should not be getting in the way of business given the already unacceptable official unemployment rate of 32.7%, and the expanded rate of 42.6%. Unemployment will increase under these new regulations because companies that have vacancies will be precluded from hiring employees if they cannot find a candidate from the “right” background, with knock-on effects throughout the economy. These EEA regulations serve as a clear warning to South Africans that it is time to vote out the ANC and its proxies, like the Patriotic Alliance, which has returned the ANC to government across the country. In contrast, the DA is already preparing to challenge these racial quotas all the way to the highest court in this country. It is only by creating a non-racial society where every person enjoys equal opportunities to be judged on the basis of skill and merit, that we will be able to build a better future. We urge every person, business owner and employee to submit their objection to the proposed regulations to innocent.makwarela@labour.gov.za; christina.lehlokoa@labour.gov.za; and julian.mohale@labour.gov.za. Additionally, please cc in legislation@da.org.za into your objection so that we can ensure that your voice is heard. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.da.org.za/2023/05/anc-sinks-to-new-low-as-race-quotas-ban-coloured-population-group-from-employment-in-certain-provinces

Opinion | 14 May 2023 Most budding entrepreneurs have an eagle eye on the prize, to secure the requisite funding to see their vision come to life and their business become a tangible reality. What many don’t anticipate is that the journey remains challenging once that funding is secured. Unfortunately, many don’t make it through that initial funding phase for that exact reason. Knowing what you want, and planning for it, is crucial. Some small and medium-sized enterprises (SMEs) are happy to remain sustainable as a small business for the foreseeable future. However, if there is a need and desire to scale up, then it is vitally important to plan and prepare. That was the situation with our solar solutions scale-up business, Wetility. We have secured funding on several occasions over the past years and Wetility is currently on a significant growth trajectory. This is, in part, thanks to the support and guidance we’ve received from global funders who are embracing our vision of providing uninterrupted, affordable clean energy in a million homes within the next five to 10 years. Securing funding is a major milestone and should not be seen as a small feat, by any means. Many small businesses don’t get there. However, it is important to remember that the real work begins after the funding is secured. The next step is to scale up your SME, which means expanding the business’s operations, increasing your customer base, and boosting revenue. This can be a daunting task and one that should not be underestimated. Scaling up an SME requires careful planning, execution and monitoring. There are some key strategies that can be explored to help scale up your SME after securing funding. Develop a growth strategy The first step is to develop a growth strategy. This involves identifying your business objectives, setting targets, and defining key performance indicators (KPIs). Our growth strategy at Wetility is based on a thorough analysis of the market, our competition and our customers. At the moment, we are seeing the solar market booming because load shedding continues to bite. In this environment, we are differentiating ourselves from the other solar energy providers by being innovative and putting the needs of our customers first. This means that we are focused on driving innovation to provide value to customers while at the same time lowering costs to make solar energy accessible and affordable for as many people as possible. A well-defined growth strategy helps to make informed decisions and prioritise your actions as you scale up. We have been lucky to have received coaching and support from a range of stakeholders to build, form, and revise ours. As such, we have been able to ensure we have the resources we need available, including funding, human capital, and technology infrastructure. Focus on customer acquisition One of the key drivers of SME growth is customer acquisition. As you scale up, you need to focus on expanding your customer base. When we started to work with the MultiChoice Africa Accelerator Programme, we already had a product and paying customers but were looking to scale up our operation, specifically to penetrate the domestic market. We have been working with the programme’s business experts to achieve our goals in this space. We learned that it is important to look at your marketing and sales activities to help reach new customers and retain existing ones. Marketing and sales efforts should be aligned with the business growth strategy and target audience. Building a strong team Scaling up requires a strong and dedicated team – this means having the right people with the right skills to do the job. As our business operations expand, we’ve had to hire new employees who can help to achieve our growth objectives. It’s important to build a culture of accountability, teamwork and innovation to attract and retain top talent. We are at a point now where we have full-time employees and complement our workforce by outsourcing some activities to access a larger talent pool to give us a competitive edge. Monitor performance metrics Finally, it's important to monitor performance metrics as we scale up. This will help track progress, identify areas for improvement and make informed decisions. Performance metrics should be aligned with growth strategy and KPIs. Some common performance metrics to monitor include revenue growth, customer acquisition costs, customer retention rates and employee productivity. The next step Scaling up an SME after securing funding can be challenging, but it’s also an exciting opportunity to take the business to the next level. Our plan is to successfully scale up Wetility to achieve our business objectives which are driven by the aim of providing energy independence for everyone. We reached the MultiChoice Africa Accelerator Programme’s final stage of pitching at the Dubai expo in 2021 with big ambitions. The kind of investors to which we were exposed might not otherwise have looked at the company. We knew what we wanted, had the plans in place and knew we needed to make the most of the opportunity we had been afforded. This helped us self-introspect and really question how we position our company and where we want to take it to as we progressed along our entrepreneurship journey. Vincent Maposa is the CEO of Wetility. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/fund-raising-is-only-the-beginning-of-sme-journey-says-ceo-of-wetility-7a50fdbf-6351-4795-bb19-5c8e082fd301

Thami Mazwai | 15 May 2023 Organised business is not aware how close we are to the edge of the cliff I have been visiting Soweto, and I am frightened by what I saw and heard. Like it or not, we must urgently address the poverty, unemployment and inequality stalking communities. Regretfully, the latest reports of the broad-based BEE Commission indicate that many companies balk at implementing BEE except for the shareholding, management and skills development legs. When it comes to socioeconomic development, especially procurement and enterprise & supplier development (ESD), there is dololo. Yet ESD makes all the difference in combating poverty and unemployment. There was a lot of excitement when the broad-based BEE codes were initially discussed and released. There was co-operation between business formations such as Business Leadership SA, Business Unity SA, the Black Business Council, the SA Chamber of Commerce and Industry, the Small Business Initiative and the National Federated African Chambers of Commerce. Yes, there were also differences, and serious ones at that, but all were at least pulling in the same direction and disagreements were addressed. However, on reading the commission’s report for 2021 and a research report on ESD, it is apparent that organised business is not aware how close we are to the edge of the cliff. I was in Soweto initially to do research on entrepreneurship, and was thus talking to local business people, who are suffering because of load-shedding, among other reasons. The most critical of these is a surge of new entrants as a result of unemployment and immigrant entrepreneurs, leading to a decline in daily takings. These now average R250 to R750 a day for most. If you think this is an exaggeration and the figure couldn't possibly be so low, check with Finscope. What struck me as I drove around was that at 11am midweek there were so many young adults milling around with nothing to do. Some standing outside or near shebeens, others near spaza shops and other business outlets, and many more on the sides of main roads hoping to pick up an odd job. The desperate look in their eyes was devastating. People are hungry. Charles Dickens wrote in A Tale of Two Cities that “hunger was prevalent. Hunger was pushed out of the houses, in the wretched clothing that hung upon poles and lines; ... hunger stared down from the smokeless chimneys, and stared up from the filthy street that had no offal, among its refuse, of anything to eat”. It is no different in many a township or village in modern day SA. What frightened me most was the expressions of desolation and anger. The latter was palpable. It cut through, front to back, and left me on edge. It is in people’s talk, looks and stares. I heard one person mutter loudly “yibo laba abadla bodwa” (he is one of those who eat alone). We are fiddling while Rome burns, is the message from the stares of anger, if not pure hatred. Frankly, when millions queue overnight for R350 a month even though the food poverty level in SA is R663 a month per person, it does indicate that we do not care. The R350 hardly fills a handbasket at a supermarket, yet some think nothing of spending R1,000 a month on their pets. On a human level, is it surprising that violent crime is on the rise? Part of the economic solution is in an aggressive, tightly measured and overseen implementation of ESD, combined with procurement from townships and villages. This would also contribute to national cohesion. The Sanlam gauge stresses in agreement: “The concept of procuring from small black-owned businesses, providing other support and developing new enterprises is solid in principle and, if effective, would generate a strong base of small businesses that would grow and hire more people, directly addressing SA’s triple challenge of poverty, inequality and unemployment.” The new acting head of the commission, Tshediso Matona, should call an urgent meeting with business organisations to get their members to implement ESD aggressively and procure more from black-owned small businesses. He must not mince words; he must make it clear that our country’s future depends on it. I gape in wonderment when commentators — black and white — argue over whether the national budget can afford relief for the poor, when 2-million South Africans go to bed hungry every night. It is telling that these commentators go to bed on full stomachs. While we should not be reckless with taxpayers’ money, it is foolhardy to think mothers and fathers will simply sit back and watch their children and themselves starve to death. These parents are putty in the hands of opportunists and anarchists. We know what has happened in the past. • Dr Mazwai is chair of Mtiya Dynamics, which specialises in ESD and small business development. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-05-15-thami-mazwai-soweto-visit-reveals-scale-of-desperation-and-poverty/

Phumlani Majozi | 14 May 2023 Phumlani Majozi on the opinions of which economist's he respects, and why. Last week on Twitter, chief economist of Rand Merchant Bank (RMB), Isaah Mhlanga, suggested that Eskom, South Africa's troubled state-owned electricity supply company, be privatised. With his tweet, Mhlanga motivated me to write this column. He validated another column I wrote eight years ago, where I argued that Eskom needs the hand of the private sector, and South Africa's energy market liberalised to allow for a more diversified supply of electricity from the private sector. Because the goal must be one, and that is the increased supply of electricity. To suggest that eight years ago was sensible, is still a sensible suggestion today. You will think that it is economist Isaah and I only who believe Eskom needs the involvement of the private sector. Not at all. There are other people out there, including the new minister of electricity Dr Kgosientsho Ramokgopa who has said that some privatisation is needed at Eskom. Even President Cyril Ramaphosa’s government can see that Eskom needs the private sector. The R254 billion debt relief announced by finance minister Enoch Godongwana in his budget last February mandates Eskom to partially privatise the coal-fired plants and electricity transmission network. Mhlanga has not only spoken sense on South Africa's electricity supply crisis, but he has also spoken sense on matters related to minimum wage laws, social grants. His view is that cash transfers, social grants, is not a policy that will make South Africa a rich society. Instead, savings and investment is what South Africa needs to be a globally competitive economy. With such views Mhlanga deserves to be listened to often by President Cyril Ramaphosa. Not only listen, but also initiate the implementation process of Mhlanga's ideas. After seeing Mhlanga’s tweet, I began to ask myself, who are other voices that Ramaphosa ought to listen to on public policy. Amongst the people who came to my mind is Moeletsi Mbeki, the younger brother of South Africa's Former President, Thabo Mbeki. I have followed Moeletsi Mbeki’s work for years, and have encountered him in person three times over the past eight years. The last time I encountered him was at a dinner with some of South Africa's influential people in Johannesburg two years ago. Moeletsi is a fearless critic of South Africa’s public policy. He’s not afraid to be controversial too. He has repeatedly said that stronger business growth and entrepreneurship are key to addressing South Africa's socio-economic problems. He has also been critical of black economic empowerment (BEE). His view is that affirmative action is for minorities, not majorities. He also views BEE as a driver of corruption. Mbeki is not wrong, the black elite has abused BEE for its benefit over the past two decades. The data from The Economist magazine shows that it's the black elite that has made the biggest income gains since BEE began in the 1990s. We need policies that will address the needs of the disadvantaged in South Africa, most of whom are black, and encourage growth of small businesses in rural areas and in townships. We can’t have the black elite continuing to abuse the BEE system. Yes yes yes, we do need empowerment policies, but it must not be the empowerment policies for the black elite. Zuma’s administration ignored Moeletsi Mbeki’s advice more than ten years ago. When Jacob Zuma became President of South Africa in 2009, Moeletsi Mbeki wrote a letter to him, outlining proposals on what would have to be done to address South Africa’s socio-economic problems. That letter, sent to Zuma in June 2008, was ignored by Zuma’s administration, which is sad because the ideas Moeletsi proposed were good. Ramaphosa should not ignore Moeletsi. And then there is Dawie Roodt, the chief economist of Efficient Group, Dawie is one of the most passionate economists I know, and that I have spoken to before. I first met Dawie in 2014 in Bryanston, Johannesburg. On that evening at the Free Market Foundation South Africa, he was presenting on his then new book entitled “Tax, Lies and Red Tape.” I have had the privilege of participating in one webinar as a speaker along with Dawie. That webinar was exhilarating. Dawie’s work speaks for itself. He is not always negative on South Africa. Sometimes he can say positive things about a specific policy proposal by the government, or about a certain political leader or minister. That bolsters his credibility. We live in an era where people are critical of everything and see no good in South Africa. Dawie holds a view that structural reforms is what South Africa needs to fix its economy, which is the same thing that has been said by Lesetja Kganyago the governor of the South African Reserve Bank (SARB). At one point during one of his presentations that I attended in Johannesburg years ago, Dawie was asked which countries South Africa should look up to on policy reform. His answer was that we should not look far. Rwanda is one country we can look up to, he said. Mauritius and Botswana as well. I could not disagree with his answer. Ramaphosa should definitely talk to Dawie. I cannot leave out Prince Mashele, a fascinating, fearless political analyst who says correct things. In one of his columns, Mashele wrote That President Ramaphosa “might need to go to Britain, to learn a thing or two about bold leadership from the grave of a woman leader - Margaret Thatcher.” That was good advice from Mashele because given what the country is enduring, there are many lessons President Ramaphosa can draw from Thatcher. Our economic reform requires Thatcher’s style of leadership, characterized by boldness and courage. With strong leadership that is intolerant of crime, the needed reform can be done at a speedy rate. I listened to Mashele in a conversation with journalist Faith Mangope on Metro FM this week. Prince had a simple, straightforward message - and that is - this is a democracy, if South Africans want to change the country for the better, then they must vote differently. The responsibility to change South Africa lies with the voters. Correct! The message I have preached for years. Mashele’s views on land reform matters make sense on many levels. He is realistic in his analysis, and honest too. That is great because we South Africans must hear the truth. Wits University has a good economist that Ramaphosa should reach out to as well, Lumkile Mondi. Mondi is one of the finest economists in the country. An economist with enormous experience. Like the previous personalities I have discussed, Mondi understands very well that business must be the driver of economic productivity. He sees investment in intrapreneurship as a critical thing to do to jumpstart South Africa's economy. Busi Mavuso has been courageous in pointing out the wrongs by our government. She's a highly successful lady who strongly believes in the transformation of South Africa. She sat on the board of Eskom till her resignation in September last year. Currently, she's CEO of Business Leadership South Africa (BLSA). In one of her columns recently, published on Moneyweb, she wrote that her organisation BLSA “exists to support the creation of a conducive environment for business”. On matters of public education policy, Ramaphosa ought to reach out to Professor Jonathan Jansen. Jansen wants public education fixed. He believes in accountability and hard work. I have followed Professor Jansen for years and think highly of him. South Africa’s public education needs to be reformed to work in a manner that reinforces accountability. Jansen believes that it begins in the home when it comes to education. That there must be a culture of reading in homes, which will help kids succeed at school. My view on matters of public education is that while the government attempts to fix public education, it must also encourage growth of independent schools. Voucher programs in education must also be embraced in South Africa. Such reforms will strengthen public education. I will close with Magnus Heystek, a passionate and popular investor who pulls no punches on the failures of South Africa's government. Magnus currently heads Brenthurst Wealth. He has been brutally honest about investing in South Africa. He has said repeatedly, publicly, that if you want good returns as an investment portfolio manager, invest overseas, not in South Africa. Well, you cannot hate him for that because the data supports his view. Magnus is a typical capitalist investor and wants to grow his clients' wealth by making what he sees as best investment decisions. It is what an investor must do. Ramaphosa ought to be reaching out for counsel from Magnus on how to make South Africa more attractive to investment. Magnus would not hesitate to advise, he’s a very nice person. This country has many talented, bright people whose ideas would help revive South Africa, make it one of the robustly competitive markets in the world. The people I have discussed above are not all the people I have in my mind. There are others. Were the ideas of these people implemented with speed, South Africa would reboot and soon become globally competitive. On global competitiveness we have not been doing well, as the IMD Competitiveness Index has shown in recent years. These people can be listened to, and their ideas implemented. Ramaphosa’s government should reach out to them often. Phumlani M. Majozi is a senior fellow at African Liberty. His website is phumlanimajozi.com. Follow him on Twitter: @PhumlaniMMajozi. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/opinion/the-smart-people-ramaphosa-should-listen-to-on-pub