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

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

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

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

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