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

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

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

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

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

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Property Wheel | 21 June 2023 Growthpoint Properties has asked its shareholders to approve a R250 million broad-based black economic empowerment (B-BBEE) ownership scheme for a major empowerment transaction that will continue to fund the flagship corporate social investment (CSI) initiatives that the REIT supports. The proposed transaction would see Growthpoint allocate shares to a special-purpose CSI Trust, which would use dividends from its Growthpoint shares to fund future CSI initiatives focused on education, entrepreneurship, and enterprise development, actioned through Property Point which delivers programmes that support growing small black businesses in the property sector and educational projects such as Growsmart, which assists primary school learners in the Western and Eastern Cape. “The proposed Growthpoint CSI Trust would become a valuable source of perpetual funding for our social impact projects. It would also enhance our B-BBEE credentials by helping to achieve our equity ownership targets in line with the Property Sector Code,” says Shawn Theunissen, Growthpoint Properties Head of Transformation and Corporate Social Responsibility. The finalisation of the B-BBEE deal would see an increase in broad-based elements of the Property Sector Charter scorecard for black ownership of Growthpoint. Growthpoint is a Level 1 BEE contributor. An extraordinary general meeting will be held on Wednesday, the 19th July 2023 for Growthpoint shareholders to consider the proposed scheme, which includes entering into a loan agreement with the Growthpoint CSI Trust to enable it to acquire the R250 million of Growthpoint ordinary shares, valued at a share price of R12.50 (less than 0.6% of the total Growthpoint ordinary shares in issue) together with their full voting rights and dividend entitlements on the same basis as all other Growthpoint ordinary shares. The Growthpoint CSI Trust has been structured to comply with both the B-BBEE Act and the requirements for a public benefit organisation. Besides shareholder approval, as a major B-BBEE transaction, the scheme also needs the green light from South Africa’s B-BBEE Commission. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://propertywheel.co.za/2023/06/growthpoint-proposes-a-r250m-b-bbee-ownership-scheme-in-support-of-its-csi-initiatives/

SA Gov | 20 June 2023 2023 SMME Booster Fund launched after creating 650 jobs The Department of Economic Development and Tourism is excited to announce that it has launched the 2023 iteration of its successful Small, Medium and Micro Enterprise (SMME) Booster Fund. Western Cape MEC of Finance and Economic Opportunities, Mireille Wenger said: “SMMEs are the backbone of our economy, contributing significantly to both economic growth and job creation in the Western Cape. Which is why I am very proud of the fact that since the first iteration of the fund in 2019, the SMME Booster Fund has assisted 860 SMMEs, thereby sustaining 4 977 jobs. The Booster Fund has helped these SMMEs to grow, creating an additional 651 jobs.” The SMME Booster Fund provides support to interventions, which include projects and programmes, implemented by organisations and/or municipalities that are geared at supporting SMMEs based in the Western Cape. The Fund will focus specifically on support projects / programmes aimed at growing and developing SMMEs, in the following categories: Exporter development Women-owned businesses Youth-owned businesses Township-based businesses The Fund utilises a co-funding implementation model which encourages collaboration and partnerships and will focus only on the technical support aspect of the project and/or programme. The rollout of other aspects such as training, mentoring, coaching, access to market interventions will be funded by the organisation applying for funding. MEC Wenger continued: “The Western Cape Government takes our role in creating an enabling environment for SMMEs to thrive, seriously. We also understand just how difficult the current climate is for small businesses, especially due to ongoing loadshedding, compromising the ability of all businesses, big and small, to trade.” Applications close on 11 July 2023 at midnight and all information on how to apply as well as the relevant documents can be found on https://www.westerncape.gov.za/general-publication/smme-booster-fund-2023 “I strongly encourage qualifying organisations to apply to the SMME Booster Fund so we can help sustain and grow businesses in the Western Cape which will help create many mores jobs in the Western Cape.” concluded MEC Wenger Media Queries: Georgina Maree Spokesperson for the Provincial MEC of Finance and Economic Opportunities (Responsible for the Provincial Treasury and the Department of Economic Development and Tourism) Cell: 076 423 7541 Email: georgina.maree@westerncape.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/mec-mireille-wenger-success-2023-smme-booster-fund-20-jun-2023-0000

Admire Moyo | 20 June 2023 Mobile operator MTN is accusing tower company IHS of wilfully breaching the shareholders’ agreement and articles over voting powers. In a media statement today, MTN says it notes recent media reports regarding the IHS annual general meeting (AGM), held on 7 June. Earlier this month, Bloomberg reported that the IHS annual meeting devolved into a tense standoff over investor power, after the tower operator dismissed demands from two of its largest stakeholders. It added that Wendel and MTN, which together own about 45% of the company, argued that all shareholders with at least a 10% stake should have the power to nominate board members. However, it reported that the IHS board dismissed the proposals. MTN, through its subsidiary Mobile Telephone Networks (Netherlands), holds approximately 85.2 million (26%) of IHS shares. The UK-headquartered IHS Towers is one of the largest telecommunications infrastructure providers in Africa, Latin America and the Middle East by tower count, and the fourth largest independent multinational tower company globally. In June last year, IHS Towers completed the acquisition of over 5 000 MTN towers in SA, in a deal that saw the New York Stock Exchange-listed tower company fork out R6.4 billion. IHS Towers now owns 70% of MTN SA’s towers business, with the remaining 30% owned by a B-BBEE consortium. Under the deal, IHS Towers also provides power management services to MTN SA on approximately 13 000 sites, including the acquisition portfolio. MTN has held the IHS shares since prior to the IHS initial public offer (IPO) on the New York Stock Exchange in October 2021, with the group’s voting rights being capped at 20%. According to MTN, it has been engaged in discussions with IHS regarding corporate governance matters since prior to its IPO. It notes these discussions included the provisions of the shareholders’ agreement that was in place between IHS and its shareholders prior to the IPO; where an amended shareholders’ agreement was implemented post-IPO, with shareholders who are subject to post-IPO lock-in restrictions (shareholders’ agreement). The shareholders’ agreement, among other things, addressed the matter of MTN’s desire to be treated equally to other shareholders when it relates to aligning economic and voting rights, through a priority sale of the group’s proportion of shares that are non-voting, the telco adds. “In view of IHS’s consistent share price underperformance since listing, MTN has not been able to dispose of the non-voting proportion of its shares and remains unable to vote all of its shares,” says the telco. “Accordingly – in order to effect the aforementioned alignment of economic and voting rights – MTN submitted a governance proposal, prior to IHS’s 2023 AGM, that was to be considered by all shareholders at the AGM.” It points out the proposal was intended to protect important shareholder rights and to better align IHS’s corporate governance with other publicly-traded companies. MTN adds that under the shareholders’ agreement and its articles, IHS was required to include the proposal on the agenda for the AGM, notify all other shareholders of the proposal and allow shareholders to vote on the proposal at the AGM. “However, MTN strongly believes IHS has wilfully breached the shareholders’ agreement and articles by failing to notify its shareholders of the proposal and denying its shareholders the opportunity to vote on it at the AGM. “MTN has requested the IHS board to call an extraordinary general meeting of the IHS shareholders in order to consider the abovementioned proposal, and any other shareholder proposals relating to governance, to which the group awaits a response. Beyond this, MTN is currently evaluating all its options with the intention of fully enforcing the shareholders’ agreement and articles,” it concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/6GxRKqYQ41Wqb3Wj

Generally, expenses on bursaries for employees do not constitute Skills Development Expenditure if an organisation can recover any of the employee's expenses or if the grant is conditional in any way. However, the following two conditions are acceptable as part of an employee obligation whereby expenses will be recognised. Successful completion of studies within an identified period; or The continuation of employment for a stated period following the successful completion of their studies which does not extend the period of their studies. A bursary that is recognised as Skills Development expenditure allows for the following: Legitimate training costs such as accommodation, catering, travel and the cost to an organisation of employing a Skills Development facilitator or a training manager (non-exhaustive) may not exceed more than 15% of the total value of Skills Development Expenditure. This does not apply to Skills Development Expenditure recognised in paragraph 2.1.1.2”. Point Indicator 2.1.1.2 under Statement 300 of the Amended General B-BBEE Codes of Good Practice refers “Skills Development Expenditure on Bursaries for ‘Black’ Students at Higher Education Institutions”. Skills Development Services are available to assist Members to prepare for Skills Development initiatives.

If an organisation falls within the ambit of a Sector Code of Good Practice (Sector Code), they must be measured against that criteria. Should a Sector Code fall silent on any issue, organisations must revert to the Generic Codes of Good Practice (The Codes). Both The Codes and Sector Codes were designed to expedite economic transformation. However, Sector Codes were developed to align with the Codes with more sector-specific requirements. Organisations must be aware of the wording within The Code or Sector Code they are measured on to ensure they meet the expectations laid out within. Although both element's intent aligns, the wording in the different sets of Codes may differ. A prime example is Statement 500 of The Codes and Statement AICT500 of the ICT Sector Code, both of which address Socio-economic Development (SED). The Codes Statement 500 | paragraph 3.2.1 Key Measurement Principles states: SED Contributions consist of monetary or non-monetary contributions initiated and implemented favour of beneficiaries by a Measured Entity with the specific objective of facilitating income-generating activities for targeted Beneficiaries. ICT Sector Code Statement AICT500 | paragraph 3.2.1 Key Measurement Principles states: SED Contributions consist of monetary or non-monetary contributions initiated and implemented in favour of beneficiaries by a Measured Entity to create sustainable access to the economy of those Beneficiaries. Socio-Economic Development Services are available to assist Members with Socio-Economic Development strategies.

Intra-group procurement spend is a normal part of spending, especially for groups of vertically connected companies, which in many cases is a sizeable amount. Internal procurement between holding companies and their subsidiaries must be included in an organisation’s Total Measured Procurement Spend as per Statement 400. Paragraph 5.1.2 states: Intra-group procurement: all goods and services procured from subsidiaries or holding companies of a measured entity (BEE Credentials of the entity supplying goods and/or services must be confirmed in the way of a BEE Certificate). It is clear that B-BBEE Credentials must support Intra-group procurement whether a subsidiary or holding company produces an independent B-BBEE Certificate or Affidavit or a group consolidated one. It is important to note that the subsidiary or holding company must be listed as an entity that has been included in the group consolidated B-BBEE Certificate’s verification procedures as per the SANAS R47-03 requirements as well as requirements under the 2008 B-BBEE Verification Manual must be considered. Enterprise & Supplier Development Services are available to steer Members on what constitutes a TMPS claim.