Mail & Guardian | 14 June 2023 It provides the skills and work experience they need to navigate the world of employment. Kgomotso Sekhu thought that she had made it. A young woman from a remote rural village, she had overcome massive adversity to get a degree in mathematics from the University of Pretoria. But cruelly, landing a job still seemed beyond her grasp. Her quest for employment was hindered by numerous obstacles. Like millions of young jobseekers, she had no money for data or transport. She would use a local school’s Wi-Fi to send her documents and check for job posts. Then she discovered the Youth Employment Service (YES) programme, and her life changed forever. In 2019, she started a 12-month work experience as a data management trainee at Nedbank. With the help of YES and Nedbank, she honed her skills, fostered her talent, and rose through the ranks. Today, she’s a business intelligence data analyst in Nedbank’s Wealth Division. Sekhu is one of more than 113 000 young South Africans who have experienced the transformational effects of the YES programme, which aims to help shape the future workforce of the country by giving them the tools they need to navigate the world of employment and make their mark in society. By nurturing young talent and providing opportunities, YES is creating an army of game changers — the skilled professionals, leaders, managers, and entrepreneurs of tomorrow. These are the people who will be the future of the country. YES fuels youth potential YES works with the private sector to tackle South Africa’s persistent youth unemployment challenge by enabling, through powerful partnerships with the private sector, 12-month work experiences for the youth. These jobs, which are 100% funded by the private sector, give the youth the necessary skills and professional exposure they need for future employment opportunities. In the process, more than R6 billion in youth salaries has been injected into local economies across the country. Since its inception, YES has worked with more than 1 400 businesses of all sizes. They include corporate heavyweights such as Nedbank, Anglo American Platinum, The Foschini Group, Bidvest Protea Coin, BMW, Volkswagen South Africa, YUM! Pizza Hut, Investec, Toyota, Motus, SPAR group, Nestle, Mercedes-Benz, Multichoice and Ford. By sponsoring youth jobs, these companies gain up to two levels up on their broad-based black economic empowerment (B-BBEE) scorecards, while integrating into their environmental, social, and/or governance (ESG) and Sustainable Development Goal (SDG) strategies and reporting. YES also offers a turnkey solution for businesses that want to create work opportunities and improve their B-BBEE scores, but are unable to provide relevant work or space within their organisation. In such cases, YES’s implementation partners (IPs) will recruit, contract and manage the youth on behalf of the business for the full year of work, including training and hosting costs. Bryan Mposula’s journey: The YES impact YES’s approach of identifying and leapfrogging talented individuals into promising careers highlights the success of its model. It creates a conduit between talented youth and potential employers who may not have had the chance to connect otherwise. Bryan Mposula embarked on a 12-month journey of self-improvement and discovery at YES, acquiring valuable professional skills along the way. After completing this, Mposula found a new beginning as a business integration arch associate at a top consulting firm. These positions are highly sought after and often competed for by people with multiple degrees and broad experience. Keeping its finger on the pulse of SA youth As the leading voice for youth employment in South Africa, YES is continuously striving to understand the evolving employment landscape and the unique needs of the youth it serves. This commitment has led to the implementation of the country’s most extensive youth survey, which surveys approximately 38 000 youth each quarter — the Youth Employment Survey. This data-driven approach helps YES and its corporate partners curate successful programmes and effectively steer the youth towards meaningful, rewarding careers. According to the latest figures, 42% of YES Alumni are currently employed. As part of its strategy to address unemployment, YES is aligning its approach with so-called future-facing industries. Thousands of YES Youth have been placed in jobs like data capturers, business process outsourcing agents, cyber security agents, digital artisans, drone pilots and mechanics, content creators and software developers. Significantly, the survey shows that the top industries employing youth post-programme include the finance, creative, mining and digital sectors. The transformative potential of the YES programme is already visible in the successes of its alumni. Their journeys serve as testament to the power of practical work experience and the importance of partnerships in addressing youth unemployment. Saying YES to empowering change Unemployed and struggling to gain admission into a university or college, Tasneem Eckardt’s life was a series of setbacks and disappointments. However, her story took a dramatic turn when she joined YES. Through the programme, she gained vital skills that have since proven to be essential in the modern workplace. From understanding technology and its applications to acquiring proficiency in sending professional emails and using Google’s suite of tools, Eckardt has grown both personally and professionally. Today, she works as a client support associate within the Department of Partnerships at Zlto. Her journey through the YES programme has not only empowered her own career, but also inspired her to pay it forward. “My career path can be described as being a resource for others who undergo the same journey I have,” says Eckardt. “I want to be a motivation to others, giving them the same opportunities I was granted.” A ripple effect on society The effects of the YES programme extend well beyond the recipients of its 12-month work experience: it’s transforming entire families and communities. The Youth Employment Survey shows that as many as 62% of all YES Youth have children or family that depend on them financially. More than half (53%) come from grant recipient households. Every youth job that YES can create uplifts a family and a community in some way. Kesha Koopman was a young mother of a two-year-old. But with no work experience, she faced the very real risk of becoming homeless. With no steady income, food insecurity had become a reality. But everything started to change when she joined the YES programme. The programme gave her vital work skills, taught her effective communication and problem-solving methods, and even guided her in maintaining a professional appearance. YES also provided valuable lessons on managing conflict — a skill that would prove instrumental in her personal and professional life. Her experience in the YES programme also helped her master key skills such as time management, effective communication and team collaboration. Each of these has played a crucial role in shaping her future, allowing her to trust her team and understand the importance of joint efforts in achieving greater results. More importantly, through her transformation with YES, Koopman was able to effectively support her family. The stability that her career brought to her family was so profound that she was inspired to refer her cousin to the YES programme. She now works as a product manager for Zlto, a position that offers her both personal fulfillment and professional growth. Reflecting on her transformation, she says: “Overall, YES has shaped me for the better. Through YES, I’ve been able to learn and understand the fundamentals of how to carry myself and how things work in a work environment.” From YES programme to entrepreneurship Another key source of future employment lies in empowering the youth to create their own small businesses and entrepreneurial ventures. While township economies are largely informal, they’re also far bigger than many realise. Starting a micro-business can be the first step a young person can take to get into the mainstream economy. Currently, 4% of employed YES Alumni are running their own businesses as their “main hustle”. Another 15% of all YES Youth are engaging in “side hustles” over and above their day jobs, which is double the national average of 7%. YES Alumni Sabelo Thabethe graduated from the ZIAO Coding Bootcamp through the programme, which kicked off a journey that led him to becoming a tech entrepreneur. Harnessing his newly gained technical expertise and entrepreneurial skills, he collaborated with friends to establish his own fintech startup, Zaka Manager, which demystifies personal finance by offering insights into spending and transactional behaviour. “We aim to tackle the issue of limited financial literacy, and low understanding regarding personal spending habits, by analysing transactions and providing valuable insights to users,” says Thabethe. “The YES programme gave me essential abilities and understanding in business planning, marketing, and financial management. Thanks to the mentorship, I received invaluable guidance from seasoned entrepreneurs.” The path to entrepreneurship is often paved with courage and initiative. Thobani May turned a pressing environmental issue in his community into an environmentally friendly business opportunity. Concerned about the abundance of invasive wattle trees in his area, he saw an opportunity to use these alien trees to create Eco Char, an environmentally conscious business that produces charcoal. Eco Char not only helps restore the community’s land but also generates income, providing a practical solution to an environmental issue while contributing to the local economy. What began as a small operation using recycled oil drums has evolved into a business using kilns that produce 20 times more charcoal. Each year, the business has experienced consistent growth, a testament to May’s commitment and entrepreneurial spirit. His business now employs five people. Looking back on his journey, he credits the programme for preparing him for the rigours and rewards of entrepreneurship. The programme made him more hands-on and business savvy, equipping him with the necessary skills and knowledge that he continues to apply in running his business. From side hustle to success Asanda Nqoko, a talented 25-year-old photographer, was trying to make ends meet through ad-hoc gigs such as shooting events, but he yearned for stability and an opportunity to turn his side hustle into a legitimate, full-time business. After learning about YES Hubs, he registered on the YES database, eager to use the resources and knowledge offered. He attended short workshops, sharpening his entrepreneurial acumen and preparing for his journey. When the Covid-19 pandemic swept through South Africa in 2020, shutting down events and plunging the industry into uncertainty, Nqoko felt the full force of the economic blow. He found himself with little to no work, struggling to afford even the basic necessities. In February 2021, an email arrived from the YES head office, inviting young people to apply for open positions. He seized the opportunity with both hands. As part of the YES programme, he acquired skills in Excel, web development, Microsoft, and graphic design using Adobe programmes. The YES team became a supportive community, encouraging his development and even granting him certificates of completion for the online modules he finished. Through participating in the YES programme, Nqoko reignited his photography passion, and his side business picked up. YES proved instrumental once again, providing entrepreneurship modules that equipped him with the tools to run a business effectively. A golden opportunity came his way when he got to shoot for the mega-star Beyoncé’s clothing brand, Ivy Park. This marked a turning point. His side hustle was ready to blossom into a full-fledged enterprise, 39 Pictures Ltd. 39 Pictures now employs four previously unemployed individuals, providing positions for a graphic designer, a lighting assistant, a camera assistant and a deals booker. Turning dreams into digital reality Born in Nomlacu and now based in Bizana in the Eastern Cape, Chulumanco Lonwabo Nomtyala is testament to the transformative power of the YES programme. At 25, he has already made a significant impact in his community, using technology to create solutions that improve the lives of his fellow South Africans. His academic journey involved completing an Honours degree in Human Settlement Development at Nelson Mandela University, complementary certificates in Project Management Foundations and a Master’s in Demand Professional Soft Skills through LinkedIn Learning. He is also an alumnus of the YES programme. Fuelled by a deep understanding of Human Settlement Development, he identified an opportunity to simplify the process of housing subsidy applications. His solution, an app called Soft 4IR Apps, allows people to easily apply for housing subsidies, streamlines the process for municipalities, and provides applicants with real-time updates throughout the application process. By partnering with local municipalities, he aims to ensure a smoother, more transparent housing grant and subsidy application experience for everyone. His broader vision involves educating people about the range of available grants and subsidies available, ensuring they have the information they need to successfully access these resources. “The Digital Pathway transformed my perspective on how people can thrive in the digital era,” he says. “Through this programme, I was able to develop an app that will enhance people’s livelihoods and simplify their lives. I am proud to offer a local solution.” YES Alumni tips to other youth job seekers There are several tips and tricks that YES has picked up by studying employed YES alumni through the Youth Employment Survey. 1. Develop skills for the future. The job market is continuously evolving. You must adapt and learn new skills. Identify required skills in your industry of interest, such as IT, solar panel installation, or the creative gig economy, and find ways to acquire them, be it through formal education, online certifications, training programmes or internships. 2. Related work experience can replace formal qualifications. Don’t underestimate the value of practical work experience. This can provide a good alternative to formal qualifications. Often, two years’ experience in a relevant field is considered as valuable as a formal qualification. 3. Cultivate a strong work ethic. There is simply no substitute for having a strong work ethic. Things like being punctual, reliable, and showing an interest in ongoing skills development can stand you in good stead to position yourself as an active contributor to your company. 4. Network and seek growth opportunities. Networking can open many doors in your career journey. Actively engage in industry events, join professional associations, and build connections in your field. This can lead to job referrals, mentorship opportunities, and may accelerate your career growth. 5. Get a side hustle or start your own business. South Africa is known for its culture of entrepreneurship. This can be a viable option to become economically active, especially in the township economy. Consider starting a micro-business; it could be your stepping stone into the mainstream economy. 6. Maintain good mental fitness. Mental fitness is vital in your job search journey and handling unemployment. YES’s new initiative, YES Mindful Matters, is aimed at providing active YES Youth with access to valuable online support services delivered by registered counsellors. Your mental wellbeing is important: don’t neglect it. A bright future Investing in the youth of South Africa through programmes like YES is not only imperative, but is an opportunity. When young people are equipped to contribute to and shape our economy, the employment opportunities will follow. While the path to entrepreneurship and youth employment can be challenging, success stories of YES alumni like Nqoko, Nomtyala and others illustrate that with resilience, creativity, and the right support, one can thrive even in the face of adversity. As a South African business, whether you’re seeking to improve your B-BBEE levels or not, consider saying YES to youth employment and becoming part of this powerful movement. Visit the YES website to find out more: https://www.yes4youth.co.za/4-business. Together, we can empower the next generation of game-changers and reshape the future of the country’s economy. #SayYES to a future that works. Our youth deserve no less. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/partner-content/2023-06-14-yes-nurtures-the-game-changers-of-tomorrow/

Creamer Media | 14 June 2023 This article has not been written or solicited by Creamer Media and has been supplied by the author. The inclusion of people with disabilities is a key focus area of Engen’s social investment, with all supported projects seeking to create sustainable value for all parties concerned. Amongst various success stories, Engen’s support of the Breede Valley Association of and for Persons with Disabilities (BVAPD) to drive a new skills-based project called WeMove is bearing fruit. BVAPD is a Western Cape-based non-profit organisation that renders therapeutic, social and community development services to persons with disabilities in the areas of Worcester, Rawsonville, De Doorns, Touws River and surrounds. Buoyed by a three-year R846 680 donation, WeMove’s first intake of 20 beneficiaries commenced in September 2022, of which 13 candidates have been successfully placed in off-site jobs. Anelda Rabie, a social worker at BVAPD explains: “In September last year we identified 20 candidates who underwent training and attended various theory, creative and life skills training workshops and we carefully evaluated each candidate to ascertain their talents, skills, interests and what they were capable of. “Our goal was to place 10 of the best beneficiaries in off-site jobs, while the remaining beneficiaries would continue to fulfil on-site positions and put their new skills to work”. Adds BVAPD’s Head of Office, Michelle Vos: “We are very excited to report that the pilot has been such a success that we have managed to secure off-site positions for 13 of our beneficiaries at various organisations including a major grocery chain, local panel beaters, a creche and a bike shop. “We are like a bunch of proud mother hens,” add the duo. “We can see the training is working and the feedback from all employees has been incredibly positive. “This in turn has boosted the confidence of the beneficiaries who have seen for themselves that they are more than capable of working in the open marketplace.” Vos further explains that all partner organisations who employ beneficiaries are enrolled in a desensitisation programme to ensure proper preparedness in the workplace. “There is always a contact person on premises who has been specially trained and can fully support beneficiaries should any problems arise, and we also do monthly check-ins with employees and have daily contact with our beneficiaries,” adds Vos. With a long waiting list of both beneficiaries and companies wanting to get involved, Rabie has confirmed that the next group of 20 beneficiaries will commence training in September this year and once complete will have the chance to work off-site. “In supporting Breede Valley APD we hope to create an equitable society where persons with disabilities can share access to every sphere of educational, work and social life so that together we can forge a future that is inclusive of all people,” comments Dr James Nyawera, Engen’s Stakeholder Engagement and Transformation Manager. “As a caring and inclusive company with ‘heart’, this aligns with Engen’s commitment to the United Nations Sustainable Development Goals, which endeavour to ensure a better and more sustainable future for all. “For Engen, disability inclusion is one of the company’s key social investment focus areas, giving us an opportunity to contribute towards inclusive rights in South Africa,” he adds. As a company, Engen champions nine of the UN’s Sustainable Development Goals (SDGs), including SDG 4 – Quality Education, which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all and SDG 8 – Decent Work and Economic Growth, which aims to drive progress, create decent jobs for all and improve living standards. “We are grateful to Engen for assisting us in empowering persons with disabilities to improve their socio-economic future,” comments Vos. “Access to skills development and employment for persons with disabilities remains extremely limited and deprives them of taking their rightful place in the socio-economic life of South Africa.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/engen-backed-skills-programme-for-people-with-disabilities-a-huge-success-2023-06-14

Staff Writer | 12 June 2023 It is easy to add the youth to our extensive to-do list of areas that require intervention, without taking action. Children should be seen and not heard, the adage goes. While we have fortunately left behind the notion that the voices and fortunes of the youth are less important than those of their senior counterparts, unfortunately in this Youth Month, statistics that quantify the reality of the SA youth scream louder than words: we are failing the next generation. In May, the latest Progress in International Reading Literacy Study (Pirls) showed that more than 80% of grade 4 children in SA could not read for meaning. It is estimated that only about half of the children that start school each year will go on to matriculate. And regrettably, it becomes increasing difficult to overcome the skills deficit as time goes on. Stats SA’s latest Quarterly Labour Force Survey shows that youths aged 15-24 years and 25-34 years recorded the highest unemployment rates of all age groups at 62.1% and 40.7%, respectively. The challenges facing our youth are multifaceted, and as SA continues to grapple with heightened load-shedding, stubbornly high inflation and a plethora of other matters, it is easy to add the youth to our extensive to-do list of areas that require intervention, without taking action or hoping that someone else would come along to fix things. Yet the power of incremental progress, achieved by combining committed individual efforts and contributions, is often underestimated. Long-term success would not be possible by acting alone — it requires a collective and integrated approach with buy-in from the public as well as private sectors, civil society and all stakeholders involved. But what can corporates do to put our youth on a different trajectory, even if each step may only help to make a little headway? While the list of possible interventions is long and intricate, I believe there are three small steps in particular that can make a significant impact over time: Entrepreneurship support Fostering an entrepreneurial culture by providing mentorship, training and financial support has never been more important. The Covid-19 pandemic has been a particularly difficult time for many entrepreneurs, and with indications that load-shedding will escalate this winter the challenge for financial institutions is to not only offer financial products, but solutions that can truly improve the environment for these vital enablers. Recognising the unique challenges facing young entrepreneurs, solutions should be tailored to meet their specific needs and address some of the key obstacles they are facing, including access to finance, access to market and access to nonfinancial support. Skills development Equipping young people with the practical skills required by the formal job and entrepreneurial market will be a key factor in addressing SA’s youth unemployment crisis. In this regard, it is vital to develop those skills that can offer solutions to our country’s unique challenges. With this in mind, Absa, in collaboration with the National Business Initiative, put its weight behind the Sapvia PV GreenCard and funded the training and assessments of 50 township SMEs. (The GreenCard has been developed in an effort to support best practice standardisation across the industry and encourage safe, reliable and compliant solar installations.) The aim of the initiative is to assist these township SMEs to unlock new opportunities in the green economy, but also increase their capacity to host unemployed young people while providing on-the-job experience. Education It is also critically important to invest in training and education programmes that will equip our youth with the skills needed to compete in a competitive market, whether as employees or entrepreneurs. The opportunity for corporates to contribute to changing the future trajectory of SA’s youth is immense. Ultimately, the evolution and development of our nation is an ongoing commitment, but we need to invest in our youth if we are to transform SA society into one that can hold its own globally, and outperform other markets. As leaders, the challenge is simple: how can we, little by little and collectively, make a difference and ensure SA youth are not only seen and heard, but equipped to excel? • Mkhize is CEO for relationship banking at Absa Group. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-06-13-faisal-mkhize-how-to-change-the-trajectory-for-sas-youth/

Staff Writer | 12 June 2023 The Department of Small Business Development has gazetted its intentions to introduce a new bill to parliament, which would see a new state-owned company established in the country to support small businesses. Minister Stella Ndabeni-Abrahams said that The National Small Enterprise Amendment Bill would amend the National Small Enterprise Act, making way for the new state company, as well as allow for the establishment of a small business ombudsman, and expand the minister’s powers in the sector. Specifically, the bill enables the minister to declare certain practices in relation to small enterprises to be prohibited as unfair trading practices and to make regulations regarding them. The bill will also deal with changes to definitions of small businesses in South Africa by getting rid of the “very small” category and moving away from using asset value as a criterion. New state-owned company The new bill would allow the department to establish a new state company in the form of the Small Enterprise Development Finance Agency (SEDFA). This would see the subsequent disestablishment of the Small Enterprise Financing Agency (Sefa), the Co-operative Banks Development Agency (CBDA) and the Small Enterprise Development Agency (Seda), the department said. This is part of a concerted effort to rationalise the number of public entities, it said. SEDFA’s role would be to provide support – both financial and non-financial – to small enterprises, including co-operatives. “The purpose of SEDFA will be to ensure that the small enterprise and cooperative ecosystem is able to offer the most efficient business advice, business development services, investment support, business facilitation and incubator support,” the department said. “The vision of the SEDFA is to be a leading business development entity that will drive economic transformation and inclusive growth in the economy through ensuring the provision of customised financial and non-financial support and greater access to finance for small enterprises and co-operatives.” The state will be the sole shareholder of the company, with the minister as the sole representative of the shareholder. Finances for SEDFA will be derived from money appropriated by Parliament, grants, donations and bequests made to the SEDFA, funding raised through investments and money lawfully obtained or raised by SEDFA from any other source. Ombud The bill also provides for the establishment of the Office of the Small Enterprise Ombud Service and outlines the functions of the office. Broadly, the ombud will be required to consider and dispose of complaints by small enterprises in relation to the interpretation of the terms of an agreement for the procurement of goods or services or the late or non-payment of amounts due and payable to the small enterprises. Through consultation with the ombud, the minister responsible for small business development, by notice in the Gazette, can declare certain practices in relation to small enterprises to be prohibited unfair trading practices. It furthermore empowers the minister to make regulations relating to unfair trading practices and deal with “mischief” in the sector. “The mischief the bill aims to remedy is the lack of effective and affordable access to a justice mechanism for small enterprises,” the department said. “Business-to-business disputes and late or non-payment of amounts due and payable to small enterprises, are a significant reality in the lives of small enterprises across the world, with very adverse implications on their growth. “Therefore, like all businesses, small enterprises need effective mechanisms to resolve their disputes in an efficient and cost-effective manner.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/695639/government-setting-up-new-state-owned-company-for-businesses-in-south-africa/

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Piet le Roux | 12 June 2023 Organisation says it would help if Eskom got rid of BEE-based and local content-based preferential procurement. Sakeliga has sent a report on value-for-money state procurement to the Minister of Electricity, Kgosientsho Ramokgopa which, if followed, could reduce the need for load-shedding by up to three stages. This follows after the minister stated in a recent interview, that non-value-adding intermediaries are causing supply chain delays that add, on average, three stages of load-shedding.* The prevalence of non-value adding intermediaries was to be expected given Eskom’s history of prioritising BEE-based and local content-based preferential procurement, which prioritises the interests of intermediaries above those of electricity users. Sakeliga’s report explains the non-value adding intermediary phenomenon and how to avoid it by building on our victory last year in the Constitutional Court regarding preferential procurement. In sharp contrast to the historic misconception that state entities are bound to invariably implement preferential procurement policies, neither the Constitution nor the PPPFA imposes such a requirement. The apparent “requirement,” in other words, is a political, not a legal one. If Ramokgopa is serious about getting rid of non-value adding intermediaries, he would help Eskom get rid of BEE-based and local content-based preferential procurement. Sakeliga’s report explains how a state entity can immediately improve its procurement processes, by 1) respecting the Constitutional Court judgement in Sakeliga’s favour against Pravin Gordhan’s unlawful 2017 BEE-based and local content-based Preferential Procurement Regulations; and 2) exercising its constitutionally mandated discretion to prioritise 60 million people and waive preferential procurement where it benefits a favoured clique of intermediaries at public expense. It would do Ramokgopa and Eskom well to heed the call of the Zondo Report. In part 1 of its report, the Zondo Commission asks about preferential procurement: “Is it the primary intention of the Constitution to procure goods at least cost or … to prioritize the transformative potential identified in section 217(2) [of the Constitution]?” The Commission answers as follows: “Ultimately in the view of the Commission the primary national interest is best served when the government derives the maximum value-for-money in the procurement process and procurement officials should be so advised.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/how-ramokgopa-can-roll-back-three-stages-of-loadsh

Siphelele Dludla | 12 June 2023 Minister of Women, Youth and Persons with Disabilities Nkosazana Dlamini-Zuma last week said B-BBEE laws needed to be transformational instead of transactional. File photo The government has committed to moving ahead and implementing revised Broad-Based Black Economic Empowerment (B-BBEE) legislation, in spite of pushback from some quarters. This comes as trade union Solidarity published an “Impact Study” detailing what would need to happen in South Africa’s economy to make the government’s new BEE targets a reality. Minister of Women, Youth and Persons with Disabilities Nkosazana Dlamini-Zuma last week said B-BBEE laws needed to be transformational instead of transactional. Dlamini-Zuma noted the importance of economic empowerment of black South Africans and encouraged large organisations to participate in sustainable B-BBEE initiatives. “Until the paradox of rich Africa, poor Africans is resolved, there will be more, not less, broad-based black economic empowerment,” she said. “The relatively peaceful transition to democracy is generally lauded as a major victory in the struggle for racial equality and an exemplary post-conflict transition towards a disaggregated society.” Dlamini Zuma was speaking in Johannesburg during a ministerial discussion at the Deloitte Sustainability Summit Africa on the importance of sustainable B-BBEE implementation by the private sector. BEE Chamber chief support officer Yuneal Padayachy emphasised that the principal objectives of B-BBEE are to promote economic transformation and enable meaningful participation of black people in the South African economy. Padayachy said they were trying to put across the message of a move away from transactional towards transformational BEE, as well as changing the mindsets of individuals about BEE. “When you think about transformation in South Africa, a lot of people have this misconception that it’s taking from one and giving to the other, corrupt activities and so on,” he said. “It’s not about that. It’s about how best you can bring black people into the economy in a sustainable manner.” A number of stakeholders who participated in the discussions decried how BEE was still being used as a “tick-box exercise” that never materialised in any meaningful transformation. Nomaswazi Shabangu, president of the SA Women Lawyers Association (Sawla), said women were at the bottom of the food chain when it came to empowerment opportunities. Shabangu said their commitment as Sawla was to advance the transformation agenda and push for gender equality for women in the legal fraternity. “Unfortunately, we are still facing challenges that our women faced 100 years ago. Women lawyers are still faced with skewed briefing patterns. Even in the Constitutional Court, how many times have we seen women representing our government or the corporate sector? It’s only men,” Shabangu said. “We’ve got a development fund that we have established to train women so they can compete in all spheres of the law. However, we don’t have money. We also depend on [donor] funding.” AgriBEE Charter Council deputy chairperson Ndivhuho Phungo said businesses had to embrace a radical shift and change their mindset when it came to BEE’s transformational goals. “We have come to realise that although compliance comes at a cost to measured entities and those that participate, there is more value to be derived from complying with BEE that far outweighs the cost involved. And businesses are warming up to this,” Phungo said. “Some businesses have attested to the fact that now their incomes have tripled, sometimes quadrupled. You have today a whole new industry of beneficiation agencies, of auditors, just to audit BEE. So there is a lot of job creation that came with this thing.” Meanwhile, B-BBEE was last week identified as one of South Africa’s anti-growth strategies by the independent policy research organisation Centre for Development and Enterprise (CDE). CDE executive director Ann Bernstein said B-BBEE and localisation were two government policies that have inhibited growth, though they were aimed at economic transformation. “Products designated for local procurement are generally more expensive or of a lower quality relative to possible imports (which is why local products are not chosen on their own merits), while BBBEE has raised the costs of doing business and introduced new uncertainties that affect investment plans,” she said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/sa-committed-to-revised-bee-targets-despite-pushback-from-business-37e9c25e-6fa9-45a0-ba8f-0f892622a9a3

Staff Writer | 9 June 2023 Trade union Solidarity has published an “Impact Study” detailing what would need to happen in South Africa’s economy to make the government’s new BEE targets a reality. The study is in response to the Department of Employment and Labour’s proposed sectoral targets for employment equity, which aims to push all designated businesses in South Africa to transform their employee makeup to be demographically representative. Designated businesses are all those that employ 50 or more workers in the country. The minister has been empowered to set the targets through the new Employment Equity Amendment Act, which was assented to by President Cyril Ramaphosa in April. The Act is not yet in effect, with the department expecting to promulgate the laws in September. Failure to meet the targets could result in hefty penalties, including millions of rands in fines. Despite not yet being in effect, the laws and proposed targets have drawn the ire of business organisations and unions like Solidarity, which have warned that the measures will effectively force businesses to implement racial quotas. The government has argued that the targets are not quotas, because they are flexible, only have to be met over a five-year period, and are open to exemptions based on various reasoning. However, groups like Solidarity say that there is no other way to interpret the new laws – simply because the reality of South Africa’s job landscape and dwindling economy make it impossible for any business to meet them in a natural way. Two options to meet the targets According to Solidarity, there are only two ways businesses can meet the targets: either they have to expand and grow so that new hires can build up the employee profile to match the targets, or they have to find another way to replace the employees they currently have with the required racial groups to meet them. For example, looking at a national company operating in the agriculture sector, a company would have to adjust its skilled employee base so that it is made up of: 68% black workers 8% coloured workers 2% Indian workers 8% white workers (The remaining 14% is not accounted for in the new regulations, which is another huge problem legal experts have identified) According to the Department of Labour, the current makeup for this sector is 51% black, 18% coloured, 2% Indian and 26% white (3% unaccounted for). To ensure the targets are represented, a company of 100 people would have to grow to 325 people – growing by 225%. It would have to hire five Indian workers, eight coloured workers and 170 black employees to match the targets (an additional 45 workers would be present to account for the fact the target figures don’t add up). In South Africa’s economic environment – excluding all the other pitfalls, red tape, and anti-business legislation in effect – such growth for any business over a period of five years is highly unlikely, Solidarity said. This leaves option two: lean into following rigid racial quotas with the employee base you have. Instead of hiring workers, it’s far easier for a business to simply get rid of their white and coloured employees and replace them with black workers. Following this method would be unlawful, legal experts warn. Meeting the targets by replacing the workforce Hitting all sectors While the example above is a rudimentary assessment of one category in one sector, Solidarity’s Impact Study looked at and extrapolated the targets across all sectors. The union said that huge – and impossible – levels of growth are required across every sector in every skill category to make the growth option viable for businesses in the country. The table below outlines the growth requirements just for the skilled workforce (which represents the bulk of hires). “Given South Africa’s enormous economic challenges, it already is tough for a sector to basically achieve any growth at all.” “Expecting sustained double-digit growth is exceedingly unrealistic, and expecting sectors to more than double over the next five years is nothing but wishful thinking. For virtually all sectors, it is impossible at this level to grow into the ministerial targets without people having to vacate their posts,” it said. Underpinning the entire study, however, is the macroeconomic reality. As South Africa grapples with a possible full year recession, the required levels of economic growth to make the employment targets work is unimaginable. According to Solidarity, the country would need to hit 11% growth per annum is an absolute minimum requirement to hit the targets, with the more realistic growth figure per annum closer to 25% per annum. South Africa’s GDP over the past ten years has struggled to achieve growth of more than 1%. “It, therefore, is painfully obvious that it is impossible for the national economy, as well as for individual sectors, to grow into the minister’s targets,” it said. Instead, it appears the only option left to businesses is to replace their workforces, which would result in massive job losses for racial groups other than black South Africans. Solidarity said that analysis shows that the targets are completely detached from reality, and has sent warnings and formal messages to the department to this effect. Meanwhile, legal challenges to the new laws and targets loom large, as business groups start organising to push back against them. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business-opinion/695017/south-africas-new-bee-targets-the-massive-dilemma-for-businesses/

SA News | 9 June 2023 To contribute to the expansion of the wildlife economy, the South African National Parks (SANParks) will donate 2 448 plains game and 12 high value species to emerging game farmers in the coming year. This will be done through the SANParks Socio-Economic Transformation Action Plan, which aims to support greater participation of black-owned businesses, especially women, youth and people with disabilities, in infrastructure development and commercial tourism opportunities. This is according to the Minister of Forestry, Fisheries and the Environment, Barbara Creecy, who delivered the department’s Budget Vote in the National Council of Provinces (NCOP) on Thursday. Other focus areas include supplier development; direct and indirect employment creation; awareness, knowledge creation and exchange, and meaningful land claimant beneficiation. “In additional initiatives to address visitor safety and combat marine and terrestrial wildlife crime in all our national parks, SANParks has deployed the Sea-Air-Mountain Team in Table Mountain National Park to address safety concerns, wildlife crime, and search and rescue. It is also in the final consultation phase of the Baboon Management Plan for the Western Cape. “Through the development of SANParks Vision 2040, all South Africans can participate in the re-imagining and co-creating of a new future for conservation in and through national protected areas. “The focus here is on co-creating the future with diverse stakeholders, where youth, in particular, will play a significant role as custodians of that future. Given that SANParks will celebrate a century of existence in 2026, the development of Vision 2040 is a great opportunity to re-calibrate its future,” the Minister said. SANParks will also undertake a strategic review of all programmes in line with the recommendations of the High Level Panel. “In this regard, the process of re-imagining protected areas, in close collaboration with the department, commenced and new models of both expansion of national parks and establishment of new national parks are being explored. “This includes different models of ownership, linkages through corridors with compatible land uses, integration with provincial and private conservation areas and strengthening co-management,” Creecy said. iSimangaliso Following the release last year of the Panel Review Report on the artificial breaching of the St Lucia Estuary in January 2021, the iSimangaliso Wetland Park management has taken a number of steps to address back flooding and the clearing of invasive species. In 2022, the Minister made a commitment that St Lucia Lake, which is protected and managed by the iSimangaliso Wetland Park Authority, will no longer be managed as an isolated system, which ignores surrounding stakeholders. “I am pleased to report that from my engagements in March this year, relations between the Park Management and the surrounding stakeholders have considerably improved. “Last year, iSimangaliso received R340 million from government for infrastructure projects, including road construction; the finalisation of the office block; new staff quarters for field rangers and the development of new lodges in the park as part of its commercialisation drive. “These projects contribute to job creation and socio-economic improvement in an economically depressed area, where the park represents the only major economic development opportunity for adjacent communities,” the Minister said. Through the infrastructure and environmental management projects, the park has created around 5 000 work opportunities in the past year. More funding will be allocated this year to fund biodiversity conservation projects, while addressing unemployment, poverty and inequality in the area. “iSimangaliso management is also working closely with municipalities in the implementation of the District Development Model by introducing environmentally friendly projects through municipal cleaning and greening programmes,” the Minister said. Addressing unemployment rate In the past year, the South African National Biodiversity Institute (SANBI) has successfully implemented its Biodiversity Human Capital Development Strategy to address the high unemployment rate amongst young people. This is being done through the Groen Sebenza Graduate Programme, post-graduate studentships, work integrated learning and internship programmes. “In the past year, SANBI has employed 1 653 people in its ecological infrastructure programme to clear 5 137 hectares of land. A total of 96% of the 442 Eco Champs employed were youth, while 87% of the 911 people employed in zoos and gardens in eight provinces were young people, and 57% women. A total of 758 rural careers were established and 206 research assistants employed,” the Minister said. – SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/sanparks-donate-game-emerging-farmers

Agri SA - Department of Water and Sanitation | 9 June 2023 Agri SA in a media statement issued on 1 June says focusing solely on ownership, to the exclusion of all other relevant factors, will mean the loss - or partial loss - of water resources for numerous currently viable commercial farming enterprises. AGRICULTURE NEWS - Agri SA says the race quotas required by the draft amendments to the regulations pertaining to water use license applications would have devastating consequences for food security and the sustainability of the agricultural sector if they are passed in their current form. According to the Department of Water and Sanitation's (DWS) draft regulations, certain enterprises applying for water use licenses to take or store water, will in the future have to allocate shares of up to 75% to black South Africans in order for such water use licenses to be granted. Agri SA in a media statement issued on 1 June says focusing solely on ownership, to the exclusion of all other relevant factors, will mean the loss - or partial loss - of water resources for numerous currently viable commercial farming enterprises. Similar requirements are also prescribed in the draft with respect to so-called 'stream flow reduction activities', essentially commercial forestry plantations. The regulations also make provision for hydraulic fracturing, which is a further risk and threat to food security, says AgriSA. The prescribed minimum black South African shareholding requirements of 25%, 50%, or 75%, required for a water use license to succeed depends on the volume of water abstracted or stored, or the area covered (in the case of commercial forest plantations). "The proposed regulations are seen as the DWS’s most radical and sweeping effort to date toward changing the demographics with respect to water use in South Africa. The agricultural and forestry sectors appear to be the primary target of the proposed regulations. The agricultural sector accounts for approximately 60% of South Africa’s total water use. It is worth noting that the proposed regulations exempt mining companies, the state and state-owned entities, as well as 100% black-owned entities. “Agri SA is of the view that the proposed regulations will have a devastating effect on South Africa’s commercial agricultural sector if adopted in their current form,” says Janse Rabie, legal and policy executive at Agri SA. “It is well known that the DWS envisages compulsory licensing of existing lawful water uses in the near future - a fact which is emphasised by regulation 13 of the proposed regulations. By far the greatest number of agricultural water uses are exercised in terms of historic existing lawful water uses.” Concerningly, the draft regulations would seem to be attempting to replace the current suite of considerations which apply to granting water licenses with ownership demographics. In terms of section 27 of the National Water Act, the DWS must take all relevant factors into account when issuing a water use license. This already includes the need to redress the results of past racial and gender discrimination. “Section 27 of the National Water Act however also contains at least 10 other considerations that the DWS - as being the responsible authority for granting water use licenses - needs to consider before granting any application for a water use license. What the proposed regulations seek to achieve is to make BBBEE the sole consideration for granting licenses,” says Rabie. The Supreme Court of Appeal dealt with this issue in 2012 in a matter supported at the time by Agri SA. “In the so-called Goede Wellington case, the SCA specifically stated that all the relevant factors contained in section 27 of the National Water Act had to be considered together in deciding whether to grant an application for a water use license. These include factors such as efficient and beneficial use of water in the public interest, socio-economic impact, and investments already made by a water user in respect of the water use in question.” These considerations remain important and are especially so when considering the foundational role played by the sector in terms of food security, employment as well as the very significant headwinds farmers are currently facing. Water is the most vital input for the sector and if farmers lose the lawful use of this input, the impact will be catastrophic. Agri SA acknowledges that water belongs to all South Africa’s people and fully appreciates the importance of achieving an inclusive and fairly representative agricultural sector in our country. “The consequences that the draft regulations in their current form will have with respect to agriculture and food production in South Africa, will be fatal as it will essentially force the transfer of ownership of the ability to lawfully use water, commercial agriculture’s most crucial input factor,” says Rabie. Concerningly, these regulations are also unlikely to achieve the goal of further transformation in the sector. Achieving this will require creating an environment which is conducive to growth and investment in the sector, and which provides meaningful support for new entrants. By contrast, Rabie stresses that this effort by government cannot have come at a worse time for the sector and the economy, which is already reeling from the impact of load shedding, rural crime and deteriorating public infrastructure. The commentary period on the proposed revision of regulations regarding the Procedural Requirements for Water Use Licence Applications and Amendments will expire on 18 July 2023. 'Equitable allocation of water use' DWS says in a 5 June statement the purpose of the amendments is to effect reforms in relation to "equitable allocation of water use", as well as to amend the procedural requirements related to applications of new water use licences, including reviewing of timeframes and fees linked to licence application processes, according to the department. The department says the National Water Act (NWA), no 36 of 1998 "recognises that water is a natural resource that belongs to all people and should be allocated to all users equitably". "Section 3 of the Act provides for the Minister of Water and Sanitation, as the public trustee of the country's water resources, to ensure that water is protected, used, developed, conserved, managed and controlled in a sustainable and equitable manner, for the benefit of all persons and in accordance with its constitutional mandate. The minister is responsible for ensuring that water is allocated equitably and used beneficially in the public interest, while promoting environmental values." Catchments in deficit The department says South Africa is among the 30 driest countries in the world with limited water resources, and the majority of the catchments are in deficit (water requirements exceed the yields). It is estimated that 98% of South Africa's water resources were already allocated by 2004, of which the majority of allocations are through the recognition of old water use entitlements (what is termed Existing Lawful Water Use (ELWU)). "Comparative statistics drawn from issued water use licences to historically advantaged individuals (HAI) and historically disadvantaged individuals (HDIs) since 1998 indicate that a total of 412 million cubic metres (m3) of water have been allocated amongst the two groups. Of the 412 million m3, 313 million m3 (75.93 %) have been allocated to historically advantaged individuals (HAI), whilst a modest 99 million m3 (24.07 %) have been allocated to Historically Disadvantaged Individuals (HDIs). The same analysis for water allocated by means of Existing Lawful Water Use (ELU) shows that a total of 5.83 bn m3 of water is allocated, where 5.74 bn m3 (98.54 %) are allocated to HAIs and only 90 million (1.46 %) to HDIs. These statistics indicate that water allocations remain highly skewed towards the HAI group. Hence the department should make efforts to improve this situation." Abstraction thresholds against black ownership The department says the revised regulations have introduced proposed thresholds of abstraction volumes of water against the level of black ownership in applications submitted for new water use allocations. "This is done to ensure that there is transformation of water use allocations, to address the disparities in access to water use from Apartheid. Interested and affected stakeholders are encouraged to make constructive proposals on this critical mandate of the Department." The draft regulations also include amendments to water use licencing fees. The proposed fees of different licences take into account the complexities associated with the administrative processing of these licences, resources required, and the accelerated approach in line with the reduced period, according to the department. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.oudtshoorncourant.com/News/Article/General/race-quotas-for-water-use-licences-would-be-fatal-202306081206

Kizito Okechukwu | 9 June 2023 African Bank top five winners receiving a grant of R200 000 each. Last year, African Bank embarked on a journey in partnership with 22 On Sloane to support 20 SMEs every year with capacity building programmes. Photo: Supplied If one speaks to entrepreneurs that have scaled their businesses amid the challenges they faced when starting, one of the biggest stumbling blocks most will mention will be lack of access to capital. In-depth research has also shown that many businesses fail due to little or no access to capital and effective capacity building programmes. Capacity building for small and medium-sized enterprises (SMEs) basically means putting together measures that will assist them to grow their business, which could include, but not limited to, operational soundness, financial management, talent management and building a strong management team. Through capacity building, SMEs are more prepared to access various markets that they would not have necessarily accessed and also enjoy the support to access the financial capital that they may need to stabilise and scale their business. The story of how African Bank started is a story of how most, if not all, businesses started. The history of a few black businessmen who felt that other banks did not serve their business needs joined forces and put some money together to start a bank. Yet this collaboration could not raise the R1 million that was needed to start a bank in 1964. However, they fought hard and long and, a decade later, managed to raise the funds required. This is the major challenge of every business. Even the likes of Airbnb shared a story of how no one believed in them back in Silicon Valley because investors couldn’t buy into their concept that homeowners would allow a total stranger to stay in their homes. How wrong they were. Today, Airbnb has transformed the accommodation industry more than one would ever have imagined. As entrepreneurs, it’s all about the audacity to believe that anything is possible. As co-founder of Netflix, Marc Randolph, once said, “No one really fully knows if an idea will work till it’s put out there and tested”. Last year, African Bank embarked on a journey in partnership with 22 On Sloane to support 20 SMEs every year with capacity building programmes. These SMEs will have the opportunity to access African Bank’s supply chain and network. The programme includes intense mentoring and coaching and the opportunity for the SMEs to pitch their business to the Bank’s supply chain and executives. From the 20, five businesses came out tops, and earlier this week, they were awarded R200 000 each for their business. The Bank is now working on ways to potentially integrate them into their business. As Edna Montse, the African Bank Executive for Transformation and Sustainability said: “Building entrepreneurs is not an easy task. In most developing economies, SMEs are the engine of the economy. The reality is that it’s a lonely journey for most SMEs, and giving them the support to continue growing and having corporates also chip in on their journey gives them the audacity to keep believing that anything is possible.” The private and public sectors must continue supporting SMEs through effective capacity building programmes while also ensuring they have access to capital. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/building-entrepreneurs-by-seed-funding-their-business-86bfe82b-4862-46c3-8bb9-4c66e6e1dfed

Ben Bierman | 9 June 2023 Failing to nurture and retain the right kind of talent also has substantial cost implications for small businesses, says the author. Photo: Pixabay The onset of the pandemic brought matters relating to employee health and wellness into stark focus. Employers were greatly impacted when their team members suffered from burnout, experienced high levels of stress and were absent from work due to physical or mental health issues. The ripple effect that these realities had on productivity and, ultimately, profitability highlighted the importance of ensuring that their employees were afforded a workplace that provided them with support, work-life balance and a culture of recognition. An investment in people is an investment in your small business’ future success. In the recent Business Partners Limited Q4 2022 SME Index, South African small business owners reported feeling only 64% confident that they would be able to find staff with the right skills and experience – a 6% decrease from the previous quarter's survey. This represents a significant challenge for the future prospects of many small businesses whose long-term growth relies heavily on the proficiency of their staff. Failing to nurture and retain the right kind of talent also has substantial cost implications for small businesses. The cost of acquiring and on-boarding a new team member is infinitely greater than the cost of retaining employees. One global study found that every time an employee resigns, the hiring process involved with replacing them is at least half of that employee’s annual salary. Holding onto the right talent and fostering a workplace culture that is conducive to job satisfaction and fulfilment is, therefore, in the best interests of businesses of all sizes. As a business owner, investing in the people who are the pillars of your success should be a top priority. Not only is there value in attracting the right people, but the benefits of encouraging staff to reach their full potential can be one of the most effective ways of gaining a competitive advantage. These are three key ways in which you can provide better support for your invaluable team members: Keep an eye on company culture In research conducted by Remchannel in 2022, it was found that for 53% of employees leaving their jobs, two of the three main reasons for doing so were related to a toxic working environment. In a small business, where business owners have to fulfil several roles, owners are often removed from what is happening on the ground. But making time to engage with employees, hear their concerns, consider their feedback and pay attention to the culture in which they work could help reduce staff turnover. Business owners should also be aware of what the signs of a toxic work culture are. Some red flags include micro-management, disregard for the work/life balance of employees, lack of career support and ineffective management, all of which should be addressed as a matter of urgency. Provide opportunities for growth and enrichment Employees who are encouraged to grow professionally and expand their abilities often feel more fulfilled and become more willing to go the extra mile within their roles. For this reason, investing in training and development opportunities for staff is one way of demonstrating your commitment to helping them reach their career goals. In a small business, where the budget for training may be limited, business owners could consider hosting workshops, speaker sessions, knowledge-sharing presentations, opting for free online courses, approaching a Sector Education and Training Authority (Seta) for assistance and providing written resources. Reward employees for their efforts Incentivising staff for a job well done and finding ways to recognise them for their individual talents and efforts is a great way to build a more engaged workforce. While monetary rewards are undoubtedly the most popular form of recognition, there are also several non-monetary options that are just as effective. Rewards could take the form of time off, public recognition and office perks. However, one of the most valued forms of reward is a simple acknowledgement to let employees know that their efforts are not going unnoticed. Here, the expression that “it’s the thought that counts” could not be more apt. Ben Bierman is the Managing Director of Business Partners. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/business-101-advice-for-small-business-owners-investing-in-your-employees-is-key-to-your-success-3a47a4fa-853e-48bf-bd4d-117a59bc6e12