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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

Media Update | 15 May 2023 Pharmaceutical leader, Pfizer has pledged R11-million to boost the expansion of Unjani Clinics. Unjani Clinics is a non-profit network of nurse-owned and operated primary healthcare clinics that serve rural and underserved communities across the country. The initiative has already set up around 150 clinics nationally, and the goal is to establish 600-plus clinics by December 2030. Each clinic is operated by a professional nurse as a sole proprietor or company. On Nurses' Day (Friday, 12 May) Pfizer reiterated its commitment to bolstering its support for Unjani Clinics with a further R11-million investment. This investment will mark the continuation of Pfizer's seventh consecutive year of collaboration. Pfizer says that it has supported the Unjani Clinic Network since 2016. Since then, the company has helped fund 10 sonar machines and established the right clinics in various rural and urban communities including: Potchefstroom Gqeberha Sasolburg, and George. In 2023, the funding from Pfizer will help establish nine more clinics in underserved communities in eight provinces: Gauteng KwaZulu Natal the Western Cape the Northern Cape the Eastern Cape Mpumalanga Limpopo, and the North West province. "As a result of opening more Unjani Clinics, many black women professional nurses will be empowered to own a Primary Health Clinic as nurse-preneurs and provide much-needed alternative health delivery services to their communities," says Kevin Francis, Pfizer's cluster lead: SSA and country manager: South Africa. Unjani Clinics CEO, Lynda Toussaint, adds, "Initiatives like the Unjani Clinic Network are critical for helping us get closer to achieving universal health coverage. Pfizer’s contributions over the last seven years have been significant and have helped expand the network — bringing quality healthcare to more communities that desperately need it." The success of the Unjani Clinics and the empowerment of black female nurses in the country also led to the initiative winning two Gender Mainstreaming Awards in 2022. According to the clinic, one recognises organisations that allow for the future empowerment of women-owned or managed businesses, and another recognises sustainable initiatives around poverty alleviation for women and poor communities. "The public healthcare system in South Africa is often overburdened and underfunded. Nurses play an integral role in attending to the healthcare needs of patients in rural areas. They have a profound knowledge of health issues, social challenges and resource limitations within communities; and as such, they are well-placed to build trust with patients," Francis adds. Nurses often represent the first line of healthcare for many individuals and can work within social limitations to provide essential care, promoting health and well-being for those who might otherwise have no access to proper medical treatment. However, they cannot assist all those who need it, according to Pfizer. It was this passion to take healthcare to the people that gave rise to the formation of the Unjani Clinics Network. "Further benefits of the clinics include providing permanent jobs, achieving systemic transformation within the healthcare system, and reducing the burden on the public health system. Pfizer is passionate and committed to continuing its support of this initiative and empowering women healthcare providers," concludes Francis. While many improvements to the healthcare system need to be made to alleviate the dire need for quality medical care by all South Africans, Unjani Clinics have made a vital contribution to reducing the severity of the problem, according to the pharmaceutical brand. Pfizer’s continued support to the initiative has contributed to making it sustainable for healthcare to reach those communities who need it most. For more information, visit www.pfizer.co.za. You can also follow Pfizer on Facebook or on Twitter. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.mediaupdate.co.za/publicity/153896/pfizer-pledges-r11-million-for-the-expansion-of-community-clinics

Katlego Legodi | 14 May 2023 The economy is taking a toll on wage negotiations. As the wage negotiation season gets underway, labour unions are calling on companies to refrain from using the current ailing economy as an excuse to give workers below-inflation wage increases. They are also calling on the government to fast-track the Companies Amendment Bill aimed at ensuring that employers comply with their wage agreements and disclose their finances. The average wage settlement for workers this year is around 6 to 6,5% but workers in various sectors are bargaining for inflation-linked wage hikes, while others are pushing for double-digit salary increases. Over the years wage negotiations have proven to be difficult and often protracted. This is mainly because of the current ailing economy and rising inflation. The tough economic conditions and the rising cost of living have led to retrenchments and some businesses closing shop. Congress of South African Trade Unions (Cosatu) Parliamentary Coordinator, Matthew Parks says, “Often workers are on the receiving end as employers would put workers at the very least in their to-do list but for employers. We would see them get an increase and even dividends for shareholders or invest the money elsewhere. “We have to have employers negotiate in good faith, which is why we support the amendment in the Companies Amendment Bill which will require employers to be transparent with finances and disclose to the trade unions so we can really have a better understanding of what the employer can afford and can’t afford because often at the negotiating table, companies will say we don’t have money, we can’t afford it tough luck there is no money available… Whether it’s a state, SOE or private sector company, this will hopefully help us find each other without collapsing or retrenching,” Parks explains. Wages below inflation Cosatu says it sees anything below inflation as a wage cut. It’s also accusing employers of pushing for lower wage increases while racking in millions of rand in profits at the expense of the workers. Parks says, “Workers spend a quarter of their salary on transport, petrol prices hitting smaller income households hard the 18% electricity increase, income household higher. “As unions, we try to look at inflation but the results vary. Most unions have been able to negotiate, at least, an inflation-linked increase. We’ve seen settlement in the clothing and textile industry inflation slightly above. We saw about a week ago. Recently in the security industry, they managed to get a 7.5% increase. A similar increase is happening in the mine.” Affordability factor Labour expert Tom Healy says the affordability factor is a critical aspect with both public and private sector employees struggling to get the best out of the bargaining process. “There are a number of factors impacting the employer at the moment when it comes to affordability in relation to wage increment. For example, we are at the high end of an interest rate cycle, an unreliable electricity supply. Load shedding also the weakening of the rand against the pound, euro and dollar. These are the kind of issues that restrain and affect employers’ cash flow when they approach the wage negotiations but there are also factors affecting workers like the cost of living that make it harder for workers to make ends meet.” Healy has described 2023 as a tense year of wage negotiations but says there are so far notable small victories for workers in some industries. “Inflation has affected both the employer and employee. Workers have experienced household inflation that is higher than the average CPI and that puts pressure on union members but the employer is dealing with load shedding and an inflation rate in their day-to-day life and that puts pressure on unions member to claim wage increases that are twice the CPI. If we are looking for examples of settlement is what was reached yesterday. NUMSA workers at AccelorMittal managing to get 6.5% and CPI related. We’ve also seen a trend of once-off payments to employees which in this case is R10 000.” Balanced approach Economists on the other hand have called for a balanced approach in wage negotiations. Professor Jannie Rossouw, an economist at Wits, says, “We understand that workers want to be compensated for price increases as reflected by the height of inflation, but we must make sure that the wage negotiations play out in such a way that existing jobs are not put in jeopardy. If companies cannot afford an inflation-related salary adjustment and trade unions insists on such adjustment, often company lay off and retrench and that is something we should avoid.” Rossouw says as unions push for the Companies Amendment Bill, they too must be open about their finances. “I have no problem with transparency, it is a reasonable request to ask for transparency in terms of the financial status of the company but then companies must be afforded the same transparency on the financial status of the trade unions. By the look of things, salary demands are all over the place. I mean in some instances, we’ve seen a salary demand of 15% at Eskom which is clearly outrageous, clearly unacceptable if one was to put such demand on the table in an environment where people are having difficulties in finding jobs.” Experts say the more the economy takes the strain, the more difficult it will be to ensure smooth wage negotiations that will avert industrial action; and this often leaves workers compromised and the economy weakens further. A silver lining, they say, will only come through an uninterrupted supply of electricity that they believe will immediately raise economic growth and lead to the creation of much-needed jobs. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sabcnews.com/sabcnews/unions-call-on-companies-to-be-fair-transaprent-during-wage-negotiations/

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Ntando Thukwana | 10 May 2023 Bank strongly denies being issued any notice of non-compliance by the labour department. Big six bank Absa, cited for not complying with some of South Africa’s employment equity laws, has insisted it was never issued a verdict of non-compliance and says it is fully compliant. Responding to Moneyweb, the bank strongly denied to having been issued findings in any form, of non-compliance by the Department of Labour. “Absa states categorically that it is fully compliant with South Africa’s employment equity laws,” the bank said in its response. “No verdict, court order, or other finding of non-compliance has been issued against Absa, and no action, application or other proceedings have been instituted against Absa in any court or other forum, in this regard,” it added. Absa’s response is despite the Labour Department’s contrasting views. On Wednesday, Department of Labour chief director of statutory and advocacy services Fikisawa Mncanca-Bede, reiterated to Moneyweb that Absa had been issued a verdict of non-compliance with employment equity laws. The bank, together with peers, Standard Bank and FNB were found wanting in relation to hiring people from ‘designated groups’. According to South African laws, designated groups including black people, women, and people with disabilities. “Absa was put under monitoring for the implementation of its Employment Equity Plan and was found non-compliant in terms of achieving its targets,” Mncanca-Bede said. “The confirmatory notice was issued in March last year informing them of their transgressions and that the matter will be referred to the Labour court,” she said. Affirmative action Mncanca-Bede previously said the biggest issue was in the affirmative action area, an employment policy that seeks to give previously disadvantaged groups equal opportunities. According to the department, the three banks have not been fully complying with the latest employment equity rules, introduced in 2018. As a result, they are not compliant with Section 20 (subsection 2) of SA’s Employment Equity Act. Absa said it has made reasonable and significant progress in transforming its organisation over the past few years, in its efforts achieve employment equity. “We will continue to drive these efforts in line with our ambition to be the undisputed leader in transformation in the financial services industry,” it declared. “We are pursuing this journey with speed, as demonstrated by the 2022 changes in our top leadership structures, which resulted in the improved representation of black and women employees,” Absa said. The bank pointed out that 60% of its workforce is made up of women, adding that it focuses on sustaining a culture of inclusion where its employees have a sense of belonging. It said African, Indian and Coloured employees represents 79% of its total workforce in South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/absa-states-categorically-its-full-compliance-with-employment-equity-laws/

Ina Opperman | 10 May 2023 Rolling blackouts have a particularly harsh effect on small business. Many had to close down or retrench staff due to low productivity. The cost of rolling blackouts is estimated to exceed R1.2 trillion and small businesses are not exempt from the financial impact. Many have closed their doors as they are unable to afford the cost of alternative power and the price increases passed on by suppliers who add the cost of running generators to what they charge. However, the real cost of rolling blackouts goes beyond just rands and cents as the energy crisis continues to have a profoundly negative impact on the overall morale and productivity levels of the country’s employees, says Jeremy Lang, chief investment officer at small- to medium-sized enterprise (SME) financier, Business Partners Limited. He believes that loss of revenue is merely the tip of the iceberg for small businesses who rely heavily on a consistent and reliable energy supply. “To fully comprehend the extent of the impact that loadshedding has on the SME sector, we need to consider what it has meant for employees’ pockets as well as their daily working regimes.” A coffee shop owner from Randburg, who did not want to be named says she has to rely on generators to keep her coffee shop open and continue offering all menu items. “If you cut items from your menu due to rolling blackouts, you will leave customers, leaving us with little choice but buy more fuel to keep the generators running.” She says while she is on the receiving end of all the other suppliers in the supply chain hiking their prices to pay for their increased costs for alternative power, she cannot simply increase menu prices every month. In addition, her power bill does not decrease although power is out for almost half the day, because once the power goes back on, appliances such as fridges have to work twice as hard to get cold again. Appliances and equipment also frequently break down due to power going on and off. The only solution that is left in the end for small business is to cut staff, she says. Decline in productivity hurts small business According to a recent online survey conducted by market research firm, BrandMapp, 45% of employers reported a noticeable decrease in productivity due to rolling blackouts. This was also reflected in the results of the Q4 2022 SME Confidence Index conducted by Business Partners Limited, where 39% of small business owners reported that their business’ productivity levels had declined as a direct result of the rolling blackouts. Lang says these findings come as no surprise, given that power cuts lead to the abrupt disruption of workflow. Businesses are also drained of the added time needed to restart operations, retrieve lost data and constantly adjust working timetables to accommodate the loadshedding schedule. “The cost of lower productivity results in small businesses generating reduced output which in turn affects not only profitability but also their ability to create new jobs.” It is not surprising then that employee morale also takes a knock due to rolling blackouts. BrandMapp’s study found that worker confidence and mood has taken a dive as a result of increased levels of stress, financial pressure and job insecurity. “The possibility of downsizing and salary reductions is a looming reality for many of the country’s small businesses that simply cannot afford to absorb the risks and costs of rolling blackouts. This consequence has been felt most acutely by township and rural-based businesses.” According to the Insights Report conducted by Nedbank in partnership with the Township Entrepreneurs Alliance, about 65% of small township businesses are forced to cease operations during power cuts, while another 66% of these businesses have also been forced to cut jobs due to significant revenue losses. Disproportionate effect of rolling blackouts “The disproportionate effect of rolling blackouts on micro-enterprises and those in the informal sector is evidence of the pressing issue of economic inequality. Many of the corner shops, tailors, shisanyamas and local fruit and vegetable sellers who have become such an important part of the South African SMME landscape are not in a position to afford expensive generators, inverters and alternative energy sources.” Lang says this has placed many local business owners under immense stress and ‘job shedding’ has become a very real fear. The need for access to funding for alternative energy systems is one of the key factors that prompted Lang and his team to set up the Energy Fund for SMEs to provide loans for small businesses to finance off-the-grid power supplies, such as generators and inverters. He warns that small businesses will have to adopt an agile mindset and approach to change. “These are unprecedented times for the South African socioeconomic climate, with emerging challenges that present a whole new set of threats to business continuity and by extension, employee wellbeing.” Lang says small businesses can no longer afford not to invest in contingency plans that can help them stay afloat in the energy crisis. “We are aware that loadshedding will persist into the indefinite future and therefore, small businesses must find creative ways to maintain their employee value proposition by offering flexibility and structured arrangements to recover lost working hours.” Now is also the ideal time to invest in health and wellbeing by providing support for employees and building positive team culture, he says. “The energy crisis is undoubtedly one of the biggest contributing factors to the course of the local working landscape’s evolution. In the very near future, the way these businesses respond to the mounting pressures will determine the long-term sustainability of the sector and its people.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/business/rolling-blackouts-exceed-r1-trillion-small-business-suffers/

Tessa Dooms | 9 May 2023 SA is an urbanising country. This assertion is made in the National Development Plan 2023 of SA as it makes a case for a focus on urban development as a fast-track for efficient and effective delivery of basic services. But are we urbanising by choice or by force? More than 32% of people in SA live in rural towns and villages. This translates to a figure of upward of 19-million people who live, work or raise families in rural contexts, while millions more call rural villages home long after having migrated to urban cities for what is considered better life opportunities. While 53% of South Africans lived in rural areas in 1960, after decades of an incremental decline in rural populations the last 10 years has seen a dramatic drop of 10%, as the quality of life for particularly Black South Africans has significantly deteriorated in the face of a collapse of government service delivery. Mass urban migration in SA is not a function of development of cities, but of a gross underdevelopment of rural villages and towns. Black young people are not running toward development, but away from chronic neglect by a failing state. In urban parts of SA, load shedding has become the ultimate symbol of the collapse of basic services. For rural communities, load shedding barely features on a list of grievances about the impacts of a failing state on the lives and life chances of families and communities. I spent time in Moletjie and Marias Hill communities last week. These Limpopo communities are village communities, respectively 50km and 90km outside of Polokwane, the nearest big city. Both have typical characteristics of rural villages. The are surrounded by long stretches of gravel roads and limited access to any transportation services. There is a sparse spattering of streetlights, most often Apollo lights provided privately by mining companies or other local industry players, rather than the state. Unreliable access to water or electricity, often with no access for weeks or months. Told that their communities are too small, it is difficult to spot schools and clinics in rural communities. A community with a primary school will be told without irony that there are not enough children in the area to warrant building a high school. In the absence of viable and safe high school options many youth drop out of school, set up for failure unless they leave for more urban settings far away from families, support and structure. In Moletjie, primary school pupils could be seen at 10am walking back home from school, because squandered resources means no provision can be made for meals at school. SA is in desperate need of a rural development plan. When rural communities are forced to normalise living without basic human rights like water, sanitation, safe roads, food, healthcare and education there is almost no point in talking about developing an economic life for individuals, families or communities. Even when people can see vast tracks of land and are motivated to farm, their efforts are limited to backyard gardens as local authorities gate-keep access to communal land and commercial farmers exploit local workers. SA is silently and systematically stripping away the life-chances of rural communities. Beyond youth unemployment, adults trapped in cycles of hopelessness have become perpetual volunteers and interns. Being born into a rural community should not be a life sentence of indignity, marginalisation and paternalism. It should not be reduced to real life “hunger games” as people compete for basic services and success is based on who gets out first. Rural life in SA deserves to be a better life. People should be able to choose to live in a rural area without compromising their dignity or eliminating their options. The 19-million people in rural SA are not second-class citizens simply waiting for their turn to try to make it to the leafy city suburbs of Johannesburg, Cape Town and Durban. They should not have to fight demarcation wars to prove themselves worthy of basic services. Ultimately, it is not population sizes keeping rural areas under-serviced but poor planning and a lack of political will. Spatial inequality was a hallmark of apartheid. May we strive to build a future SA that preserves our dignity and promotes our development regardless of which corner of this beautiful land we call home. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/columnists/2023-05-09-tessa-dooms-sa-is-in-desperate-need-of-a-rural-development-plan/

Marco Maree | 10 May 2023 This article has not been written or solicited by Creamer Media and has been supplied by the author. Quality adult education and training (AET) remains even more relevant today than before. It is a means by which the country’s more than 4,4 million functionally illiterate adults, many of whom are of working age, can be equipped with the skills that they need to meaningfully participate in society and a modern economy. So says Marco Maree, Expert Training & Development Advisor, of Triple E Training, a leading provider of adult literacy and numeracy training. “According to the World Literacy Foundation (WLF), the cost of illiteracy in an emerging economy, such as South Africa, is 1,2% of its gross-domestic product (GDP). This is a significant burden that we bear as a country. Yet, there is no coordinated approach to address the problem which is being exacerbated by the deteriorating quality of literacy education that learners are receiving at school. According to a recent study by the University of Pretoria, it is estimated that it will take more than 80 years from now until all Grade 4 children in South Africa can read for meaning. Decades have been lost in educational outcomes due to the COVID-19 pandemic on the back of an already dismal performance by our schools in terms of literacy education. Therefore, more individuals will drop out because they have fallen behind and cannot cope or, in other instances, complete their schooling with the absolute bare minimum in terms of literacy skills. Our assessments of the communication and numeracy skills of many employees who have completed matric show that they are significantly below standard. Many of these individuals are barely able to read for meaning or do basic maths. Worryingly, less than 30% of all matric students take maths as a subject and only half of them pass their exams. Meanwhile, Grade 12 English second language learners of former model C schools have English literacy skills profiles that are equivalent to that of Grade 10. The English literacy skills of workers who attended township schools are even lower. They have an English literacy profile equal to that of Grade 8,” Maree says. One of the ways that illiteracy negatively impacts the economy is through lost company productivity and profitability. For example, unnecessary costs are incurred repairing orders; customers are lost due to poor communication; and time wasted resolving internal problems due to miscommunication and misunderstandings. According to the WLF’s The Economic & Social Cost of Illiteracy report, 70% of respondents to its survey reported noticeable improvements in business performance due to language and literacy training. Maree corroborates these findings. The company’s enterprising clients mainly invest in AET because it equips their employees with the workplace literacy skills that they need to perform at their peak. This is over-and-above the substantial contribution that adult literacy and numeracy training also makes towards companies’ Broad-Based Black Economic Empowerment scorecards. While this is an important consideration, it is certainly not the only reason that companies should continue to invest in AET as this is simply box ticking – “training for just the sake of it”. Rather, AET should be viewed as a critical part of skills development and training programmes and its effects on business performance measured. This is through a reduction in misunderstandings in the workplace that lead to waste, lost time, tension and accidents; improved morale and engagement levels; and better teamwork and cohesion. There are also other benefits of AET, such as high staff morale, engagement and retention. Importantly, employees who have foundational literacy skills are also able to continue learning to hone and refine existing or acquire new proficiencies. This includes digital literacy, which companies need to compete effectively in the global economy. The WLF report warns that countries with high illiteracy levels will have lower technology skills capacity in future. It notes that citizens who possess high functional literacy skills are valuable human capital to their economies. Maree says, “In a modern economy, literacy transcends merely being able to read, write and calculate. Today, it also involves the ability to create, edit and read documents on an electronic device, such as a computer, at the very basic level. People who cannot read, write and perform simple calculations will struggle to acquire digital literacy skills. Many of our clients enrol their employees in our AET programmes because they want their unskilled employees to be able to start working with computers and other digital technologies.” In South Africa, high illiteracy is also fuelling unemployment and poverty, another serious drain on the economy. If they are able to secure jobs with their limited basic skills, illiterate people perform unskilled work and can, therefore, earn between 32% and 42% less than their literate counterparts. Because they do not have foundational skills, their ability to continue learning so that they can improve their earning potential is also restricted. According to the WLF report, adults who have not completed primary school are less likely to secure employment that will enable them to avoid poverty. This is very apparent in South Africa where an oversupply of unskilled labour and shortage of high-level skills has resulted in large differences in wages. This, together with high unemployment, is a major contributor to rising inequality. Triple E Training continues to provide AET in poor communities where there are high levels of unemployment and illiteracy. This training is undertaken on behalf of companies as part of their corporate-social investment initiatives with the intention of equipping participants in these programmes with employability skills. However, as Maree notes, these, combined with state driven AET programmes and those of non-government organisations and universities, are barely making a real impact on the illiteracy crisis with which the country continues to grapple. It is also in these areas where the cost of illiteracy in social terms are especially noticeable and bring to the fore the urgency of the situation. Among others, this includes poor household and personal health, hygiene and nutrition, as well as an increase in crime, which are also a drain on the economy. Many of these community members are also very dependent upon welfare for survival because they are unemployed or can only perform general and mundane work with wages that barely cover the cost of living. “It is clear that South Africa needs to broaden the reach of its AET programmes. This effort needs to be coordinated between government, the private sector and other actors, with clear targets and actions to make a real difference,” Maree concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/aet-even-more-relevant-today-than-before-2023-05-03

SA Government | 9 May 2023 Employment and Labour Minister, T.W Nxesi delivers “a budget to alleviate and preserve jobs” In the face of a cost-of-living crisis Employment and Labour Minister, T.W Nxesi delivered the Department’s Budget Vote which he said will be anchored by a focus on job creation and preservation; strengthening social dialogue for inclusive growth; health and safety; and promoting equity in the workplaces. “Two massive milestones – in the form of the Compensation for Occupational Injuries and Diseases (COID) Act and Employment Equity (EE) amendments - received presidential assent in April this year, fittingly just ahead of May – Workers’ Month,” he said. Nxesi said the Department, in order to contribute to the alleviation of unemployment, the Unemployment Insurance Fund’s (UIF’s) Labour Activation Programme (LAP) will continue to fund projects to maintain and create employment. The Minister said the UIF was currently reviewing its funding model to further increase support for job creation. “The UIF will continue to pursue the objectives of the R5-billion partnership with the Industrial Development Corporation in creating and retaining jobs. The fund supports start- ups and existing businesses,” Nxesi said. He said the Temporary Employer Employee Relief Scheme (TERS), administered through the Council for Conciliation, Mediation and Arbitration (CCMA), will continue to provide support to distressed companies that seek to retain their employees. According to Nxesi a target of 240,000 people will be recruited in the Employability Enhancement Programme which is designed to integrate unemployed people back into the labour market and this will be done by the end of the Medium Term Strategic Framework. He further announced that the Business Turnaround and Recovery programme, implemented through Productivity South Africa (Productivity SA), enhances the productive capacity and operational efficiency of enterprises in order to preserve jobs and minimise retrenchments. In pursuing its projects Productivity SA aims to support 37 250 Enterprises, place 1 250 students/youth, and contribute a total of 113 000 jobs over the fiver-year period. Nxesi said in the 2023-2024 financial year the Department’s plan to introduce a number of new youth employment projects nationally will begin in June. “We are now beginning to see the positive results of the Productivity SA Turnaround Strategies and UIF Labour Activation Programmes. A total of 186 companies facing economic distress were supported and these interventions resulted in nearly 16 000 jobs being retained,” he said. In oiling the wheels of the labour market, the Department will launch the upgraded Employment Services System of South Africa (ESSA), an online job matching platform - to make it easier for work seekers to access employment opportunities. The Minister said the Department’s entity, the Supported Employment Enterprises (SEE) as part of its legislative mandate will increase employment of people with disabilities at its factories from the current 940 to 1250 during the current year. The Department will also provide subsidies to nine organisations that will provide work opportunities to 1 041 workers with disabilities, he said. He also revealed that the Department in partnership with the Presidency and the Government Technical Advisory Centre (GTAC), will continue to support the development of the Pathway Management Network - bringing together multiple online networks of training and employment opportunities - also providing support to unemployed youth through the establishment of an Innovation Fund and support to a National Youth Service. On the policy front he said the draft National Labour Migration Policy (NLMP) and the amended Employment Services unveiled in February 2022 have been revised and were process of engagement at NEDLAC. He said the draft National Employment Policy (NEP) was guided by key policy interventions which are being shared during the consultations with various Departments before it was presented at the Economic Cluster and Cabinet. Commenting on the National Minimum Wage (NMW) he said the policy instrument has already benefited about six million workers. He further told the House that the Occupational Health and Safety (OHS) Amendment Bill was due for completion by September 2023 for engagement with Nedlac. “We trust that proposed steep fines will curb high levels of non-compliance by some employers. Remember the object here is to reduce workplace accidents and diseases – which in turn also increases productivity, necessary for economic growth,” Nxesi observed. On the social dialogue front Nxesi said NEDLAC planned activities for 2023/24 will focus on: progress with labour law reforms which focus on improving the effectiveness of labour laws as well as extending them to atypical workers and emerging issues such as the future of work, remote work and the just transition. Nxesi said in the past year the Inspection and Enforcement Service branch had conducted over 100 000 Health and Safety inspections. He also said through the inspections the focus was currently on JSE-listed companies to ensure compliance, “for 2022/23 we referred 238 companies to court for failure to comply”. According to Nxesi the National roving teams are conducting a blitz programme focused on high risk and problematic sectors to ensure compliance with the NMW and Basic Conditions of Employment Act. He said during the last year, the Department carried out over 300 000 inspections – seeking to promote compliance, fair labour practices, decent work and a safe workplace. He said in ensuring that access and service delivery was enhanced the historical and systemic challenges within the two funds (Compensation Fund and UIF) are being addressed. Nxesi said the UIF’s ‘Follow the Money’ programme to recover money defrauded had made significant progress in recovering Covid19 Ters funds wrongly or fraudulently paid. The programme he said had recovered R61 million as at 31 March 2023, 60 arrests with 12 individuals sentenced. In pursuing proper governance of its interests, Nxesi said the UIF will strengthen monitoring of its investments with the Public Investment Corporation (PIC) to ensure due diligence and fair returns. In the financial year 2023/24 the budget allocation to the Department is just over R4- billion. For media inquiries, please contact: Sabelo Mali Ministerial Liaison Officer Cell: 082 729 5804 Email: Sabelo.mali@labour.gov.za(link sends e-mail) Petunia Lessing Director: Media Liaison Cell: 066 301 4645 Email: Petunia.Lessing@labour.gov.za(link sends e-mail) ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/employment-and-labour-minister-tw-nxesi%C2%A0delivers-%E2%80%9C-budget-alleviate-and-preserve-jobs%E2%80%9D-9

Bizcommunity | 10 May 2023 Fedhasa, one of the leading representative of the hospitality industry in South Africa, is launching a non-profit business incubator programme. The programme, inspired by successful initiatives in the tourism sector, is designed to support the value chain of the hospitality sector and promote sustainable economic growth and job creation in the face of the country's high unemployment rate. Further aimed at fostering innovation, supporting entrepreneurs and bolstering the hospitality sector's B-BBEE transformation agenda, the business incubator is timely as the industry emerges from the challenges posed by the Covid pandemic. By offering Enterprise and Supplier Development services to Fedhasa members, the programme will also strengthen the sector's collective transformation efforts in a streamlined, ISO 9001:2015-accredited manner and be fully tax-deductible for members. Fostering innovation and entrepreneurship "We believe that the hospitality industry has immense potential to contribute to South Africa's economic growth and job creation, particularly in light of the current unemployment crisis," says Rosemary Anderson, national chair of Fedhasa. "Our incubator programme will help empower entrepreneurs and support businesses throughout the value chain, thereby fostering the growth and resilience of the South African hospitality sector." The innovative incubator model, driven by enterprise development and impact specialists Sigma International and Natalia Rosa, CEO of Big Ambitions, in partnership with Fedhasa, will allow members to redirect a preferred percentage of their Enterprise Development (ED) or Supplier Development (SD) investment spend, enabling a higher impact on the industry and broadening transformation buy-in and reach. Fedhasa members would sponsor a set number of beneficiaries per financial year and provide tailored, needs-based programmes for each beneficiary and their businesses. This initiative will support the development of small, medium and micro enterprises (SMMEs) that are at least 51% black-owned, thus advancing transformation in the hospitality sector. Anderson confirms that the incubator will be industry-led, allowing member staff to participate in the beneficiary selection process and transformation journey guided by their employers (should they choose). Fedhasa will also be able to nominate beneficiaries on a business' behalf, considering the intentions of their transformation spend. Fedhasa is partnering with Sigma International, an award-winning, level 1 B-BBEE company with a proven track record in establishing successful business incubators across various sectors, including tourism, mining, forestry and paper. All of the Sigma International incubators are ISO 9001:2015 accredited. Expanding hospitality sector reach "Our collaboration with Fedhasa will build on the success of our existing business incubators, which have already impacted in excess of 300 beneficiaries across the entire tourism value chain nationwide," says Akash Singh, chief executive officer and co-founder of Sigma International. "We are excited to expand our reach within the hospitality sector and look forward to seeing these make a difference within the sector in the years to come. What makes the timing of Fedhasa incubator special and impactful, is that we able to extend linkages to beneficiaries and funders, across the 5 other tourism incubators we currently have in operations?" Hospitality providers and Fedhasa members who are interested in participating should contact Akash Singh on +27 83 638 0339 akash@sigmaintl.co.za or Lee-Anne Singer on +27 83 680 5759 lee-anne@singergroup.co.za for details. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/580/238254.html

Johan Botes and Verushca Pillay | 9 May 2023 Global businesses are increasingly investing in the resources needed take action on diversity, equity, inclusion, and belonging, both in the workplace and the ownership of business assets. Equal representation and a focus on real diversity and inclusion has become essential for the implementation of sustainable business practices. In South Africa, a significant legal step towards addressing equality has come in the form of the newly enacted Employment Equity Amendment Act 2020 (EEA Act), signed into law by President Cyril Ramaphosa on 12 April 2023. The EEA Act amends the Employment Equity Act 1998, with the effective date of operation yet to be proclaimed but anticipated to be around September 2023. The amendments include numerous changes to the legislation governing workplace transformation and will impose stricter compliance measures on designated employers – those businesses with more than 50 employees. Amendments to the EEA Act A significant change in the EEA Act is the introduction of sector and sub-sector targets for economic sectors and geographical regions, requiring employers in these sectors to meet specific transformation goals. This is a departure from the previous approach that allowed employers to set their own targets in their employment equity plans. The sectoral targets will be published in the Government Gazette by the Minister of Employment and Labour after consultation with the affected sectors. Employers must align the numerical targets in their employment equity plans with the applicable sectoral targets set by the Minister. The Act requires designated employers to comply with these sectoral targets and assess and report against them. The definition of designated employers has also been narrowed in the EEA Act, now excluding small businesses with less than fifty employees, regardless of their annual financial turnover. These employers are not subject to the affirmative action provisions in the EEA, including the duties to submit equity plans or reports. All other employers with more than 50 employees are still mandated to draft, implement, and monitor a five-year employment equity plan, indicating their progress towards achieving targets by year five. These targets must be aligned with the sectoral targets that will be set by the Minister. Employers are also required to monitor their progress against sectoral targets every year as part of the compliance process. Additionally, companies seeking to do business with the state must obtain a certificate from the Department of Employment and Labour confirming compliance with the Act and its objectives, as well as adherence to the national minimum wage. The Department of Employment and Labour has also committed to an increase in the number of inspectors that will enforce compliance with the implementation of the EEA Act's objectives. The EEA Act and the B-BBEE Act Since the EEA Act will give the Minister the power to establish sectoral targets and will oblige designated employers to prepare employment equity plans that demonstrate their plan to achieve the sectoral targets over a five-year period, it will be essential for designated employers to align their plans to achieve the targets for employment of black people under the broad-based black economic empowerment (B-BBEE) codes of good practice with their employment equity plans. The B-BBEE Act targets a narrower group of employees than the EE Act, but both acts share similar objectives in that they seek to advance greater equity and diversity in the workplace. Therefore, it ought not to be challenging for employers to align their employment equity plans with their B-BBEE employment targets. While both Acts have been criticised for imposing onerous compliance measures on already struggling businesses in South Africa, fostering diversity, inclusion and equality in the workplace has been proven to be good business practice. According to Forbes, inclusive teams make better decisions up to 87% of the time, teams that follow an inclusive process make decisions two times faster with half of the meetings, and decisions made and executed by diverse teams deliver 60% better results. Statistics from Gartner are similar: workers in highly diverse and inclusive organisations result in a 26% increase in team collaboration and an 18% increase in team commitment. Further, Baker McKenzie's research has shown that 51% of diversity leaders globally identify recruiting diverse talent as a priority, but recruitment initiatives alone are not enough to balance the workforce population, and 45% of organisations are also prioritising the retention of underrepresented groups. Generally speaking, investors are well prepared for employment equity and B-BBEE requirements when investing in South Africa. In fact, equal representation in the workforce is seen as a positive by investors who prioritise sustainability. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/717/238218.html

Bizcommunity | 9 May 2023 Business owner Abdulqadir Shaik of Instyle Linen took the top spot at the KwaZulu-Natal Clothing and Textile Cluster Business Accelerator's fourth Dragons' Den event, and walked off with a R20,000 cash prize. Runners-up Mahlatsi Mashile from Reapso SA received the Most Promising or Innovative Business award, and Bawinile Nzimande from Bidywood Design took home the Industry Gamechanger award. The event was held recently at the Toyota Wessels Institute for Manufacturing Studies (TWIMS) in Kloof, KwaZulu-Natal. Facilitating market access The main objective of the Clothing and Textile Cluster Business Accelerator is to connect leading retailers in the sector with their future suppliers. Selected SMEs from KZN's clothing and textile sector were presented with an opportunity to pitch their business to retailers including Mr Price Sport, Miladys, Mr Price, Pepkor Speciality and Woolworths, which are looking for garment manufacturing specialists as well as unique sustainability offerings incorporating innovative packaging, logistics and raw materials into their value propositions to customers. Beyond recognition for the three winners, Kyle Ballard, head of KwaZulu-Natal Clothing and Textile Cluster, says that the accelerator will also provide growth opportunities for many of the other SMME finalists as well. He explains that the finalists that unlock mutually beneficial commercial opportunities with the retailers will be given access to development support that will help to take their businesses to the next level. “High-potential SMMEs will have the opportunity to receive hands-on mentorship from industry experts in addition to gaining access to valuable procurement opportunities with leading retailers such as Mr Price Sport, Mr Price Apparel, Pepkor Speciality, Woolworths and TFG.” According to the Business Accelerator, this event not only provides developmental opportunities for small businesses but also benefits large retailers by facilitating market access to new ideas. Supporting localisation Ravesha Govender, the programme manager of the economic development unit at eThekwini Municipality, says that the regional clothing and textile sector is bursting with talented entrepreneurs and small companies with great business concepts. She adds, however, that they often lack access to commercial opportunities, a key challenge that the Business Accelerator aims to solve. “Leading enterprises in the sector are eager to identify and partner with high-potential local suppliers. The annual Business Accelerator plays a critical role in bringing these two groups together and this year, I was particularly impressed by the pitches and have no doubt that the industry giants were too,” she says. Ballard adds, “The connections made by the Business Accelerator have been invaluable for the growth of the regional sector and are critical in driving localisation and enabling meaningful transformation. The Business Accelerator's success continues to attract the leading retailers in the clothing and textiles sector including Mr Price Sport, Mr Price, Pepkor Speciality, Woolworths and TFG. “These retailers are committed to increasing local procurement opportunities and are eager to find and develop their future suppliers through their active involvement in the Business Accelerator.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/399/238213.html