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Special Reports | 2 May 2023 Takalani Netshitenzhe, Vodacom South Africa External Affairs Director Quality education is a critical factor in South Africa’s national development. Despite our country’s many achievements in enabling children to complete their school careers, there are still schools that lack the most basic of infrastructure. With 61% of our youth unemployed, we are experiencing a deepening socio-economic divide. There is a pressing need to address these challenges while equipping young people with the skills to find their place in a digital future. Transforming our education system is a huge and complex undertaking, which requires meaningful partnerships. If we are to forge innovative solutions and accelerate beneficial programmes in the education sector, we need to collectively work together as government, organisations and communities. This will ensure a long-lasting impact and move South Africa forward. Developing a new model for education Vodacom has long been committed to supporting quality education and using our capabilities as a technology company to enable this process. In 2019, we unveiled a multi-faceted education ecosystem in collaboration with the Department of Basic Education (DBE) and other organisations. This ecosystem, which works hand-in-hand with the government’s 2030 vision for national development, is well-placed to provide best practices for other markets. As standalone elements, upgrading infrastructure and improving conditions at schools are important; but to ensure sustainable, transformative solutions, the ecosystem involves a holistic approach across all levels of education. This incorporates early childhood development (ECD), teacher training, supporting local communities, decommissioning of pit latrines, providing psycho-social support, the placement of ICT coordinators, ongoing partnerships and the availability of learning materials. Finding success at secondary school level Since 2019, Vodacom Foundation has been supporting 13 Schools of Excellence (SoE) with infrastructure upgrades, such as decommissioning pit latrines and replacing them with better ablution facilities. Importantly, these schools have been provided with a fully equipped, connected ICT lab and two trained ICT coordinators, who are volunteer graduates of our Youth Academy, to assist with using digital technology. This increases access to online resources to further education outcomes and equips learners with skills in demand in the digital era. To further advance this objective, we are rolling out our Virtual Classroom solution to SoEs. Virtual Classroom allows educators to teach remotely and learners to access content out of the classroom. The solution includes a coding and robotic component to encourage inclusive participation in science, technology, engineering and mathematics (STEM). We have also helped to place 22 skilled psycho-social support professionals in seven of the SoEs to offer critical psycho-social interventions. These include the prevention of gender-based violence and bullying, as well as support for social challenges, such as poverty, teenage pregnancy and child-headed households. Effective psycho-social support in schools contributes to learner well-being, confidence and academic performance while also addressing some of the deep-rooted problems in surrounding communities. It has been remarkable to see how changes at the SoEs have positively affected thousands of learners over the past four years. Pass marks have improved across some schools, even during the disruption of the Covid-19 pandemic. For example, Strydenburg Secondary School was rated the most improved school in the Northern Cape, increasing its pass rate from 61% to 90% in 2021. Integrating education objectives Early childhood development (ECD) learning lays the foundation for education later in life. As part of our commitment to improving access to quality education, 15 ECD centres, located near SoEs, have been upgraded and renovated with ICT equipment and mobile libraries, a sustainable water supply as well as improved sanitation facilities. As a result, more than 700 young children are being given stepping stones to close the education gap. Educators are a powerful driving force in implementing the aims of our education ecosystem. They, too, need adequate support and access to relevant learning materials if they are to help ensure the success of this model. Vodacom has collaborated with the DBE, and other organisations in training teachers to integrate ICT in classrooms, with 92 teacher training centres refurbished and maintained with unlimited connectivity throughout the country. Reflecting the interconnectedness of the education ecosystem, these teacher training centres have a dual purpose as technology hubs for communities. By increasing access to the internet and online learning, more people are able to reap the benefits of digital technology, which can provide opportunities for economic growth and social well-being in under-resourced areas of our country. We are extremely proud of the achievements of the education ecosystem to date, and how it can inform best practices ⁠— not just in South Africa but across the continent. While it serves as a transformative solution, there is still more to be done if we are to bridge existing inequalities and carve a brighter future. This responsibility falls on all of us across society to work together for greater impact. Article written by Takalani Netshitenzhe, Vodacom South Africa External Affairs Director ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/partner-content/2023-05-02-a-strategy-for-strengthening-south-africas-education-system/

Ben Bierman | 30 April 2023 While small businesses may very well be the unsung heroes of the South African economy, their contribution to national development is unmistakable. Creating an enabling environment for entrepreneurship is, therefore, not only good for business, but it is also necessary to build a more equitable and prosperous economy. Let’s explore some of the most significant contributions that small businesses make to the state of the nation and why the country needs them: The cornerstones of SA’s economy The most talked-about benefit of small businesses is their contribution to the gross domestic product (GDP). A recent report published by the International Finance Corporation (IFC) estimates that small businesses contribute up to 34% of the total GDP. Often referred to as the engines of South Africa’s economy, small businesses provide much-needed economic stimulus. A factor that experts predict will become more prevalent over the next decade. Small businesses and job creation South African small businesses employ an estimated 50% to 60% of the workforce. In light of the country’s record-high unemployment rate, it is evident that small businesses play a crucial role in job creation. By providing millions of South Africans with the means to support their families, small businesses therefore also contribute to the alleviation of poverty. Community building and service delivery Consider the archetype of a “friendly butcher”, the spaza shop on the corner, the local hairdresser, or the tutoring business next door. These stories build and cultivate communities. Locally owned, small-scale businesses are milestones on the country’s socio-economic landscape, providing much-needed services and keeping consumer spend within local towns and cities. They are therefore also engines of social cohesion, bringing people together, building support networks and bridging the gap between businesses and consumers. Financial inclusion – a national imperative In a country where inequality is one of the worst in the world, there has been a growing call for financial inclusion in recent years. This has been driven by industry leaders, private sector players and civil society who have highlighted the ardent need to build an equitable society. Entrepreneurship has the ability to bring more South Africans into the fold of economically active citizens, broadening tax the base, promoting skills development and securing the financial futures of more people. Diversity in the business world Entrepreneurship can open up windows of opportunity for disadvantaged groups, minorities and historically under-served members of society. In South Africa, particularly in the township economy, more women are stepping up to the challenge of owning their own businesses. According to Professor Meyer from the University of Johannesburg: “Women are considered a reservoir of entrepreneurial talent.” This is just one example of how the small business sector can support the growth of a more diverse business environment. Employee wellness and job satisfaction A number of global reports suggest that employees in smaller teams are often happier than their counterparts in large corporates. Small businesses are in a better position to offer employees attractive benefits such as remote working, flexible schedules and performance incentives. Employees in small businesses typically also enjoy more individual attention from managers and other business leaders, which in turn fosters workplace cultures that are more tailored to individuals’ needs rather than the needs of the masses. Incubators of innovation Small businesses, due to their agility and creative approach to problem-solving, are drivers of innovation. In examples such as SweepSouth and Yebo Fresh, we see prime examples of how small businesses exist at the forefront of innovation in South Africa. Together, these kinds of start-ups play a vital role in helping South Africa maintain its competitive edge in the global innovation economy. South African – and proud to be The Proudly South African campaign, established in 2001, has made great strides in promoting local talent and showcasing the country’s abilities to produce world-class products and services. The ingenuity arising out of South Africa in sectors such as fashion, interior design, mobile technology and food production is testament to the remarkable abilities of local artisans and businesspeople. Campaigns such as these, which encourage South African to support the growth of the local small and medium enterprise sector are important symbols of national pride. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/why-south-africa-needs-more-small-businesses-251fd4fc-41ce-469b-ad27-b4f47ae6b0da

Staff Writer | 2 May 2023 Having a minimum wage in South Africa is a careful balancing act that could lead to an increase in the unemployment queue if not managed properly, says Michael Bagraim from Bagraim Attorneys. Speaking to CapeTalk, Bagraim said that there still are thousands of workers earning below the minimum wage, and even some trade unions are avoiding approaching employers to ask for the regulated increase out of fear of being retrenched. Bagraim said there is no exception to the minimum wage, and as a result, some businesses are not looking to employ more people. “It’s a double-edged sword. Do we have a minimum wage and have people get paid at least something that is decent, or nothing? A minimum wage has added to that unemployment queue,” said the labour lawyer. “Unlike the rest of the world, we have a duty to create as much employment as possible and not so much the duty to push up the wages in the sense that it is going to backfire and create more unemployment.” The Department of Employment and Labour recently published the new national minimum wage at an increase of roughly 9.6%, bringing it up to R25.42 per hour. The new wage came into effect on 1 March this year. Bagraim said that when legislating the minimum wage or considering adjustments, market forces should be considered, and a risk-orientated approach should be used. We need to relook at the situation of labour law and, as a Department of Employment and Labour, instead of having a blanket minimum wage, have an inspector to take into account individual businesses’ financial standings and provide exemptions for a period of time. Wage issues add to the already contentious employment environment where labour laws can often oppose businesses from encouraging employment due to the whole “rigmarole” of firing a person or having to approach the CCMA. Bagraim added that the real minimum wage in South Africa is R0 because the country is close to 50% unemployment. On top of that, the minimum wage is not close to a ‘living wage’. In April, the minister of labour, Thembelani Thulas Nxesi, said that the new minimum wage had not impacted employment numbers in several sectors, including mining, agriculture, manufacturing, trade and construction. He said that there was no observed shift in employment following the steady increases to the minim wage over the past few years – going against economist and analyst findings that argue that increases to the wage amid the current economic climate would cripple businesses and lead to job losses. Bagraim’s statements echo those of Daniel van der Merwe, an attorney and the National Collective Bargaining Co-ordinator for the Consolidated Employers’ Organisation, who raised concern over the sustainability of SMEs in South Africa following the announcement of the increase. As SMEs are the largest employer in the country, Van der Merwe said that the size of the increase had left many feeling like inputs from the sector in finding a fair level for the hike was ignored. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/684133/alarm-bells-over-minimum-wage-in-south-africa/

Given Majola | 2 May 2023 As South Africa commemorated workers' May Day yesterday, youth-focused organisations highlighted how the country’s young people are struggling to secure jobs. They also highlighted the importance of support skills development and placement initiatives, as well as entrepreneurship. Young people aged 15-24 and 25-34 are the most vulnerable in the South African labour market today, with the unemployment rate in these age groups reaching 61% and 39.9%, respectively, last year, according to Afrika Tikkun Services. The Level 1 Broad-Based Black Economic Empowerment advisory, recruitment, training and placement company's chief executive, Onyi Nwaneri, said this staggeringly high unemployment rate should be cause for grave concern. "Not only are young people excluded from participating in the labour market, denying them their right to work towards income security, they are also unable to lead lives of dignity." She said there were a number of reasons why the country’s youth struggled to secure employment. "Most notably is an increasingly skills-intensive labour market that is failing to create jobs for millions of unskilled youth. This, together with a deteriorating education system, which continues to churn out a workforce that is largely unskilled, has resulted in the gross mismatch between labour supply and demand, suggesting that skills development programmes should become a priority." She said young people lacked the basic framework, language and practical experience necessary to develop their professional behavioural competencies – the soft skills-needed to prepare them for work. They also lacked the technical skills for in-demand jobs and services that would enable them to enter the job market or set up their own enterprises. Nwaneri said solving this problem required collaboration among various sectors, which could complement each other's efforts. She said this started with committed funders deploying grants to support skills development and placement initiatives. "The government contributes with its incentives that encourage employers to take calculated risks and reform HR practices to accommodate youth. Training providers can focus on skills development programmes that include job-readiness skills, demand-driven training and entrepreneurship. “Non-profit organisations and local government services provide the psycho-social support that promotes social inclusion and resilience. Business needs to create opportunities for youth through workplace skills placements and job opportunities, and finally the youth themselves, who need to be motivated and committed to the programme." Nwaneri said that while this multi-tiered collaboration could not replace economic growth as a strategy for improving employment outcomes, it could, nevertheless, play a crucial role in supporting young people and offering bridges to the world of work. Without this the country could expect to see an increasing sense of exclusion among young people, heightened levels of frustration and lower levels of physical and mental well-being, which would then inevitably feed the vicious cycle of unemployment and poverty. Nwaneri said the outlook for employment in South Africa was challenging, given the country's socio-economic environment, with young people being disproportionately affected by unemployment compared to other age groups. This was due to a range of factors, including a lack of skills and training opportunities, limited access to finance for entrepreneurship, and an economy that has not grown at a rate that creates enough jobs. Meanwhile, National Youth Development Agency (NYDA) chief executive Waseem Carrim said South Africa had one of the highest unemployment rates and youth unemployment rates globally, describing it as a full blown national crisis. "South Africa faces a triple challenge of poverty, inequality, and unemployment. In addition to the divides of geography, race and education, Covid-19 has exacerbated the divide between those who are employed, have jobs and are ‘included’ in society, and those who are unemployed and are ‘excluded’. Women and young people have always struggled more in the labour market, and the pandemic has made them significantly worse off," Carrim said. He said South Africa’s economy had been stuck at a low level, with low GDP, stagnant fixed capital formation and a falling GNI per capita. "The status quo will not self-correct – a big push is required to achieve a higher equilibrium. South Africa spends significantly (across public and private institutions) on education and skills development, with very low returns on investment leading to poor impact. "Youth unemployment is the greatest concern, with two-thirds of the more than one million young people entering the labour market each year not in any form of employment, education or training. “Food poverty has increased for several years, with almost one-in-five households reporting going hungry on a regular basis. This must be addressed in the short term while we achieve higher growth and employment in the long-run," Carrim said. The NYDA believed the greatest potential for job creation lay with small businesses and in the informal sector. This as the formal economy served as the growth engine for the South African economy, contributing to 85% of economic output with relatively high productivity in all major economic sectors. "However, self-employment represents only 10% of all jobs, compared to 30% in most upper middle-income countries such as Turkey, Mexico and Brazil. If South Africa were to match the self-employment rates of our peers, we could potentially halve our unemployment rate. “The only solution to unemployment in the long term is to achieve higher and more inclusive economic growth. If economic reforms are not implemented to address the binding constraints on economic growth, employment will not grow and additional social spending will not be sustainable. "However, in the short term, public employment and social spending act as an important buffer to provide work experience and pathways for young people,“ Carrim said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/sa-youth-unemployment-at-national-crisis-levels-d6778156-02c1-4476-8d17-7142276b741a

27 April 2023 - Mpumelelo Maphalala Image: sabc news Today South Africa celebrates 29 years of democracy, but many young South Africans don’t feel they have anything worth celebrating. Many feel that economic challenges like the lack of economic growth, unemployment, high cost of living and lack of electricity are hindering them from reaching their full potential. Among the many reflections brought about by Freedom Day is economic freedom. On the streets of Maboneng in Johannesburg, young people are despondent, saying there’s not much to celebrate, especially with the kind of challenges they face daily. “It is Freedom Day today. We are celebrating 29 years but the core issue that is concerning me is electricity,” a young person said. “We still have people who are living in shacks,” another young person explains. “Economic freedom for youth, I don’t see it in any kind of way. The government is lacking in all sorts of ways,” another young person reiterates. In his official speech for Freedom Day celebrations, President Cyril Ramaphosa reassured the nation that measures such as the investment drive are being put in place to combat inequalities and factors that hinder the economy and make it less attractive to investors. But some youth feel more government intervention is needed to upskill the youth so that they can fend for themselves. “In my view, I think they (government) need to put more funding on the youth development. It’s needed,” a young person said. According to the 2023 Index of Economic Freedom by the Heritage Foundation, South Africa’s economic freedom score sits at 55.7%, making its economy the 116th freest in the 2023 Index of Economic Freedom out of 184 countries. It’s also ranked 17th out of 47 countries in the Sub-Saharan Africa region, and its overall score is below the world average, alongside its African counterparts such as Namibia, Mozambique, Lesotho and Eswatini. https://www.sabcnews.com/sabcnews/youth-concerned-about-economic-freedom-as-south-africa-marks-freedom-day/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

26 April 2023 - Samsung Hlubi Shivanda, director of business operations, innovation & corporate affairs at Samsung SA. Picture: Samsung SA The leading electronics company credits this achievement to its continued investment in SA. Harnessing the power of technology and innovation can greatly benefit Mzansi — this is something Samsung SA has proved again and again through the success of its many local empowerment, entrepreneurial and skills-based projects. In fact, the leading electronics company credits its continued corporate social investment in SA as being a strong contributor to it achieving level 1 broad-based BEE (BBBEE) status for the fifth consecutive year. “This incredible achievement is a reaffirmation of Samsung’s commitment to prioritising BBBEE as a non-negotiable practice within our businesses,” says Hlubi Shivanda, director of business operations, innovation & corporate affairs at Samsung SA. “The overarching goal of the country’s BBBEE programme is the upliftment of the South African economy. Over the years, Samsung has focused on policies that are designed to empower South Africans in meaningful ways. Our vision for the country is therefore closely aligned with the government’s BBBEE policy.” Samsung’s 10-year plan aims to address key developmental aspects linked to the National Development Plan and the overall transformation of the local economy. In particular, the company continues to build on its landmark multi-million-rand Equity Equivalent Investment Programme (EEIP), which aims to empower previously disadvantaged South Africans through enterprise development, with a focus on women and youth in the ICT sector. Launched in 2019, Samsung's EEIP is expected to have a measurable impact on job creation, with a projected contribution of more than R1bn to the local economy. Samsung’s commitment to SA’s future success and economic growth is also illustrated through its many initiatives to address youth unemployment and the shortage of critical skills in the ICT sector. The company provides wide-ranging support to SA's youth through bursaries, learnerships and the Samsung Engineering Academy programme. The Samsung Innovation Campus programme partners the company with universities to develop and teach coding, software development, the internet of things and artificial intelligence skills to youth from underserviced communities. This year, Samsung also introduced of the inaugural SA edition of its global Solve for Tomorrow competition. With a focus on enhancing grade 10 and 11 leaners' science, technology, engineering and maths (Stem) skills, this contest challenges them to use innovative thinking, creative problem-solving and teamwork to address pressing problems affecting their communities. Samsung’s transformation efforts are a clear indication of the company’s tremendous contribution to the achievement of the country’s overall BBBEE goals and objectives. “Samsung knows that it is no small responsibility to realise the country’s long-term goals as this requires collective effort from citizens, corporate organisations and government,” says Shivanda. “At Samsung, we believe that transformation is a business imperative and a requirement for the sustainability of our business. However, we are also convinced that concerted transformation efforts can have an incredible socioeconomic impact and effect lasting change in the country’s economy.” Samsung's BBBEE strategy at a glance The focus areas of Samsung’s overall BBBEE philosophy and strategy (excluding the ownership element, which is subject to EEIP) include: The annual progression of race and gender representation at each occupational level, with specific emphasis on African male and African female representation. Increased focus on both employed learners and unemployed learners, supported by an emphasis on creating work experiences post the learnership/internship period; this is over and above Samsung’s EEIP commitments. Provision of education support through bursaries, both internally and externally. Continued focus on development of black talent in the Samsung SA business. Redirecting existing spend to qualifying black-owned and black-women-owned small enterprises and exempt micro enterprises to include them in Samsung SA's existing procurement value chain with a focus on marketing, services, sales, logistics and recruitment. Provision of grant and preferential loan funding to qualifying enterprise development beneficiaries, with the possibility of graduating them to become suppliers to Samsung SA. In addition to increasing spend with identified supplier development beneficiaries, the qualifying entities may be provided with grant and preferential loan funding. Education-focused socioeconomic development initiatives through the Samsung Innovation Campus and Solve For Tomorrow competition umbrella to further Samsung SA’s commitment to the upliftment of underserved communities. https://www.businesslive.co.za/bd/companies/telecoms-and-technology/2023-04-26-native-samsung-maintains-level-1-b-bbee-status-for-fifth-year-in-a-row/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Michael Bagraim | 24 April 2023 Michael Bagraim writes that most unfortunately, President Cyril Ramaphosa has signed the new BEE transformation rules for South Africa into law. Most unfortunately, President Cyril Ramaphosa has signed the new BEE transformation rules for South Africa into law. The Employment Equity Act brought into our statute book 20 years ago has not only been disastrous as a piece of legislation, but it has had far-reaching destructive effects on the business community. Government officials have unfortunately taken a decision that if the law has not worked for the past 20 years, then obviously one would have to make it much more stringent and bring in harsher regulations. This is a sure sign of madness. If a law doesn’t work, it might be useful to go back to the drawing board and remove the repugnant legislation and tackle the problem from another angle. The government and the governing ANC don’t want to admit that social engineering, so fondly practised by the Nazis and the Nationalist Party, is not the way to go in the future. The world of employment has moved on. To force employment of individuals on the basis of their skin colour has always been immoral and backward thinking. The system of apartheid was based on exactly the same type of legislation that we see repeated in the Employment Equity Legislation. Clearly, the business community are just trying to make a profit despite the negative regulations imposed upon them. Even these regulations did not produce results. Negative legislation with no functional reasons cannot produce positive results. It is clear that we have still not overcome the apartheid negativity and that the higher echelons of staff structures still reflect a disproportionate white and male managerial class. To bring in harsher legislation to force this change will merely encourage businesses to produce elsewhere, outsource work to foreign jurisdictions, and will probably put further projects on hold. We have seen over the past 20 years how many businesses have gone on an investment strike, and others have just merely closed their doors. Negative legislation coupled with a myriad added factors has been evidenced in the worst unemployment in the world coupled with the worst productivity in the world. Every factor is another nail in the coffin of employment in South Africa. We have had a few glimmers of hope, including the last two quarters of last year, where there was slight increases in employment. This is owed to temporary jobs during a bumper tourism season. Unfortunately, this will be quickly turned around, taking into account the vulnerability of our currency and other very worrying factors, such as the lack of generation capacity within Eskom. This has likewise destroyed small businesses, and in particular businesses in previously disadvantaged areas. A very worrying study done by Nedbank showed how the spaza shop economy has been almost decimated, mostly because of electrical failure. Coupled with the minimum wage legislation, small businesses are being battered from every side – mostly small businesses in the townships. Economists the world over tell us that it is small businesses that will be creating the jobs in the future. Our government, under the ANC, has been hellbent on incredibly negative labour legislation, which is affecting small black businesses more than the larger established business community. Now we have the absolute folly of the Employment Equity Amendment Bill, which was passed by Parliament on May 17 last year. This bill is now law, empowering the government to set specific equity targets by sector and region. To my mind, unemployment is our biggest problem in South Africa today. The ANC government has just ensured that an amendment to our labour legislation will make it worse. * Michael Bagraim. ** The views expressed here are not necessarily those of Independent Media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capeargus/opinion/new-bee-law-is-a-sure-sign-of-madness-b7bd7843-ad36-49c4-9232-3ffefdff0ff5

Biznews | 24 April 2023 The signing into law of the Employment Equity Amendment Act in South Africa has been met with opposition, particularly from the Institute of Race Relations. The Act grants the Minister of Employment and Labour the power to impose “targets” for employment of people according to the requirements for transformation as envisaged by the Minister. The Act exposes roughly 85% of the formal private sector workforce to the power of the Minister to impose race quotas and effectively reintroduces the pre-disqualification system in government procurement. This approach is criticized for playing with numbers at the top end of employment without addressing the issue of unemployment among under-educated and under-trained individuals. In a related matter, South Africa could be one of the few African countries not to receive Elon Musk’s Starlink’s satellite Internet service due to regulatory hurdles that require a minimum 30% equity ownership held by persons from historically disadvantaged groups. This provision is seen as a shakedown by some and is among the top reasons why foreign companies may not invest in South Africa. ‘Equity’ requirement dashes Starlink opportunity By Sara Gon* The major news last week, and deservedly so, has been the signing into law of the Employment Equity Amendment Act (the Act). The Institute of Race Relations has been implacably opposed to it since it first saw light of day as a Bill. The Minister of Employment and Labour (who is living down to his title) now has the power to impose ‘targets’, not ‘quotas’, mind you, for the employment of people according to the requirements for transformation as envisaged by the Minister. IRR Fellow, Gabriel Crouse, states that the Act’s two primary effects are to expose roughly 85% of the formal private sector workforce to the power of Minister Nxesi to impose race quotas, and secondly to effectively reintroduce the pre-disqualification system in government procurement, according to which companies are prevented from bidding if they do not abide by racial requirements. This is an aggressive strategy. It means playing with numbers at the top end of employment on behalf of people who are either already in employment or are employable. It does absolutely nothing for the millions and millions of people who are not employed, and are increasingly less likely to be employed. It is the people who are either under-educated, under-trained or just having to compete with too many other people with limited skills, who need to be employed. The problem is that most of these people are competing desperately for jobs where there is more than an oversupply of potential applicants. Employ more people These are the people who need employment without reference to skin colour and quotas. Investment in this country has to be increased, to encourage business growth and thus the need to employ more people. The Act is unconstitutional in at least four ways: Section 1 requires the certainty demanded by law; Section 9 prohibits forms of BEE that make the rich richer while leaving the poor to languish in poverty; A technically precise reading of Section 195 indicates that public sector measures should not bleed into the private sector in this way; It violates Section 217 which requires adherence to the imperative to ‘maximize value-for-money’. The national handwringing that accompanies ever-increasing ‘inequality’ in this country is not due to the predominance of whites in employment. Inequality increases even more when the number of whites is discounted. Inequality is greatest when measuring poor blacks against middle class and rich blacks. This is not a crisis that can be resolved by putting more blacks in senior management; it needs to be addressed at the level of the over 7,000,000 unemployed people. In a related matter Eswatini, Nigeria, Mozambique, Angola, Gabon, Kenya, Malawi, Rwanda, and Tanzania have taken up Elon Musk’s Starlink’s satellite Internet service globally when it opened its beta testing to the public in November 2020. Spread internet availability The satellite internet system from SpaceX is capable of delivering 150Mbps internet speeds to theoretically any place on the planet. The idea is to spread internet availability to many more people than have access as present. Starlink involves beaming internet data, not through cables, but via radio signals through the vacuum of space. Ground stations on the planet broadcast the signals to satellites in orbit, which can then relay the data back to users on Earth. Despite multiple Starlink satellites covering the country at any point during the day, the company has not launched in South Africa. It said availability would be subject to regulatory approvals. This is according to Democratic Alliance (DA) MP Dianne Kohler Barnard, who was responding to a written response to Parliamentary questions from the Minister of Communications and Digital Technologies, Mondli Gungubele. There may be a number of regulatory approvals required but the kicker is this one from Gungubele: ‘For Starlink to operate in South Africa, they require… Individual IECS/IECNS applicants or licensees to have a minimum 30% equity ownership held by persons from historically disadvantaged groups’. Kohler Barnard said: ’It is simply laughable that an international multibillion-dollar company must hand over at least 30% of its equity to the ANC government in order to operate. She added that, instead, the ANC would prefer to ‘keep the people in the digital dark, uneducated, and unable to create prosperous opportunities for themselves or lift themselves out of extreme poverty’. Regulatory hurdles More than 20 countries on the continent have either rolled out or are scheduled to receive the satellite Internet service in the near future. South Africa could be one of the few African countries not to receive Starlink due to these regulatory hurdles. Well, there it is then. The 30% ownership provision is one of the top reasons why foreign companies will not invest in this country. In Mafia-speak this would be called a shakedown. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.biznews.com/sa-investing/2023/04/24/sas-regulatory-hurdles-limit-investment-satellite-internet-service-starlink

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An organisation may not claim the salary for an employee Bursar as part of its Bursary Programme. However, as per 2.1.1.2 of the Skills Development Scorecard & clause 5.5 of Statement 300 of the Amended General B-BBEE Codes of Good Practice, an organisation may claim a stipend for an unemployed Bursar. 2.1.1.2 refers: “Skills Development Expenditure on bursaries for ‘Black’ Students at Higher Education Institutions”. Based on prior behaviour, this principle results in organisations giving preference to unemployed Bursaries through which they can claim a higher overall cost. Members need to consider the return on investment as well as the B-BBEE points when developing their Bursary strategy and assess where Bursaries may fall into their Employee Value Proposition (EVP) and their Training Plan before being driven blindly by the B-BBEE points in isolation. Skills Development Services are available to guide members on the implementation of sustainable Bursary Initiatives.

It is fair to surmise that the points earned on Supplier Development, especially since Enterprise & Supplier Development is a Priority Element, will impact an organisation’s overall scorecard. Statement 400 of the Generic Codes of Good Practice allocates 10 Weighting Points with a compliance target of 2% Net Profit After Tax, based on the following criteria: 2.2 Supplier Development 2.2.1 Annual value of all Supplier Development Contributions made by the Measured Entity as a target percentage. There are another 2 Bonus Points available for job creation and elevation from an Enterprise Development Beneficiary to a Supplier Development one. It is therefore vital that the Supplier Development Strategy of an organisation reflects the importance of this element. A Beneficiary must be identified as per the criteria in the correct timeline. The contract should highlight all interventions and contributions with evidence to support those contractual obligations were met. Enterprise & Supplier Development Services are available to guide Members on the implementation of Sustainable Supplier Development initiatives.

More than any other element in the Generic Codes of Good Practice (Codes), Enterprise & Supplier Development was carefully crafted so that each of the sub-elements complement one another. The Codes, in terms of Enterprise & Supplier Development, have no limitation on a chosen beneficiary, other than that they align with Statement 400 . The total Weighting Points this element has on offer is 42 on the overall scorecard, excluding Bonus Points. Supplier Development is 10 in exchange for 2% Net Profit After Tax, whilst Enterprise Development affords 5 points in exchange for 1% Net Profit After Tax and the balance towards Preferential Procurement. There are an additional 4 Bonus Points allocated to this element. The best-case scenario is going above and beyond the sub-minimum requirements, whereby this element can boost an organisation's scorecard. The worst-case scenario for not meeting sub-minimum requirements is the discounting of one status level. If implemented as the Codes designed it, an organisation would embrace an Enterprise Development Beneficiary. Then they would procure goods or services from them and then elevate them to a Supplier Development Beneficiary and forge a supplier relationship with them. The results would see the Preferential Procurement sub-element reap the rewards as outlined in statement 400. Therefore, with the tools to succeed written into this element, it is baffling why organisations choose to leave more than 40% of their total B-BBEE scorecard to chance. Enterprise & Supplier Development Services are available to advise Members on how best to approach the Enterprise & Supplier Development element.