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

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

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

Anelisa Sibanda | 24th Apr 2023 Localisation is a key part of economic reconstruction and recovery, says President Cyril Ramaphosa. The Department of Trade, Industry and Competition has prioritised building local industry capacity for the South African market, highlighting a growing need for organisations to promote localisation within the manufacturing sector. This, according to the department, is a crucial step towards reducing unemployment, improving skills development, and enhancing local demand through high-quality services and solutions. According to President Cyril Ramaphosa recently, localisation is a key part of economic reconstruction and recovery, and this is echoed by the World Bank, which pointed out that export-oriented industrialisation has failed to deliver on economic and unemployment promise. In addition, the organisation underscored the value of driving structural transformation through the combination of localised policy development that aligns local challenges and complexities with global market demand. Amith Singh, manufacturing manager at Nedbank, said the banking group has a clearly defined commitment to the manufacturing sector and to creating solutions that align with their unique needs and expectations. “We know that there is no such thing as a one-size-fits-all approach with our clients and that it is important to understand the market they operate in, their off-takers, and their trade partners, and then provide services that sit firmly at the table with them,” said Singh. According to Singh, providing a strategic advisory and rich understanding ensures that Nedbank can guide manufacturers successfully down the road to localisation and help them to capitalise on its potential and the resultant growth. “As a result, Nedbank has developed agile funding systems and solutions that are easily tailored to what the manufacturing sector requires, offering multiple ways of looking at investment and solution development that will ignite growth and transform localisation.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/promoting-localisation-in-south-africas-manufacturing-sector/

Mawande Amashabalala | 23rd April 2023 UDM leader Bantu Holomisa says it is possible for opposition parties to contest the 2024 National and Provincial Elections under one banner in the form of an alliance registered as a political party with the Electoral Commission. The proposal is contained in a discussion document of the UDM’s national general council kicking off on Friday at Gallagher Estate, north of Joburg. The envisioned opposition alliance would have its own memorandum of operation, constitution, name, logo, colours, vision, mission, and core principles. “We must strive to be as inclusive as possible, and we should champion inclusivity, equality, and transparency,” writes Holomisa in the document circulated to all UDM branches across the country. He said the responsibility for making this project work could not be placed on one party. In contrast to the DA’s so-called “moonshot pact”, Holomisa’s proposal opens the door for all parties, including those that garner less than 5% of the vote, which the blue party insists should be excluded. Also, the moonshot pact has as its primary goal the agenda not only to unseat the governing party but to keep out the EFF, a fellow opposition party that Holomisa is open to accommodating in the alliance coalition. According to Holomisa, some of the benefits of such an alliance include, but are not limited to, substantially improving competitiveness, and sharing and bundling competencies and resources across provinces. However, he said “the success of such an alliance depends on the stakeholders’ ability to create a win-win outcome for all the partners in the alliance”. He believes that formalising the arrangement would guide interaction with the public to avoid confusing the electorate and sending out mixed messages to the public. “Should there be consensus to form an alliance, interested stakeholders should establish an umbrella body where all partners could contest the 2024 elections under one banner, without them losing their identities.” Holomisa insists that this formula worked before during apartheid when the ANC brought together many different political formations. This forced the National Party government to the negotiation table. This coalition, he said, included the middle class and upper middle class, the working class, the poor, students, faith-based organisations, traditional leaders, business sections, and the international community. “Today the ANC represents only the interests of the African middle class and upper middle class. In adopting the policies of Black Economic Empowerment and Affirmative Action the multiracial coalition created to fight apartheid collapsed,” he said. For the core of its voters, he said, the ANC now depends on the poor population, especially in rural areas which “it bribes with social grants and other welfare programmes”. Holomisa said that the time had come for UDM to lead South Africa out of the “confusion and quagmire of corruption”. “The social and political revolution which released the dynamic energy that had been trapped by the social engineering of the past regimes has created a new socio-political climate in South Africa wherein new political and social alignments can take place.” Among other hot topics the UDM NGC will grapple with is the task of getting rid of what it terms “plastic, ice cream, or ghost branches” from within its ranks. “Evidence of this phenomenon has been seen when one collates the data from areas where it was reported that the UDM has ‘so many branches’, yet this promise of support did not culminate in votes. We must all agree that this practice severely weakens the UDM’s organisational capacity.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/politics/holomisa-counters-das-moonshot-pact-proposes-an-alternative/

Bizcommunity | 21 April 2023 President Cyril Ramaphosa recently signed the Employment Equity Bill into law, which empowers the government to set specific equity targets and regulate sector-specific employment equity (EE) targets. The new legislation requires companies with more than 50 employees to submit employment equity plans and annual reports to the Department of Employment and Labour. This increased transparency and accountability will require South African companies including those in the media and advertising sector to be more diligent in their compliance efforts, which may result in a higher degree of scrutiny from regulators and the public. Consequently, the MAC Charter, a sector-specific framework for implementing B-BBEE, may encounter even more challenges as it adapts to these new requirements. One of the biggest now being that companies with fewer than 50 employees no longer have to report regardless of their annual turnover whilst larger agency groups with more than 50 employees will be subject to the Employment and Labour Minister's ambit on sectorial employment equity (EE) targets and compliance criteria. The first of these changes, highlighted above, is quite significant in that those agencies that fall outside of these revised criteria, such as agencies that fall under the Qualifying Small Enterprise (QSE) category under the B-BBEE Act, will no longer be required to account for or implement measures within their businesses that promote employment equity, skills development, and an increased share of management control or equitable representation at all levels of management. This provision would then also fly against the provisions of the MAC charter in this instance and may take the industry a step backwards in truly reflecting the society we live in today. The second fundamental change that will impact larger agency groups, on the one hand does provide more strengthening to the MAC charter provisions albeit that the industry can come together and provide real targets to be shared with the department for implementation, but on the other hand may present some significant challenges especially as most of these organisations still have significant foreign investor influence while also maintaining competitiveness and profitability. Additionally, some organisations may experience difficulty in retaining top talent from designated groups if they perceive that their career growth is limited by the new equity targets. It goes without saying that our industry has made significant strides in addressing many of the challenges that the newly gazetted laws seek to address, but still more needs to be done without a doubt. And, whilst the larger agencies will now have more to account for when reporting to the Ministry, it’s the 'smaller' agencies that will now fall outside this ambit that will need to show an even more concerted effort in their employment equity initiatives outside of government and public scrutiny. All in all the new B-BBEE laws present both opportunities and challenges for South Africa's media and advertising sector. While the increased scrutiny and focus on diversity and representation may lead to a more inclusive and innovative industry, companies and industry bodies will need to navigate the potential pitfalls posed by the new regulations. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/12/237800.html

Staff Writer | 21 April 2023 President Cyril Ramaphosa has signed the Employment Equity Amendment Bill of 2020 into law, heralding a host of new controversial transformation laws that will have a significant impact on businesses and employment in South Africa. The new laws give the minister of employment and labour wide-ranging powers to establish set employment equity targets across various sectors of the economy. Businesses will also need to establish employment equity plans, do annual reporting and acquire compliance certificates showing they are following the laws, in order to do business with the state. The laws also alter the definition of ‘designated employers’ – companies that are required to comply with the changes. Designated employers are now any business, irrespective of turnover, that employ more than 50 people. Designated employers must comply with the laws even if they do not intend on doing business with the state. Failure to comply with the laws can result in penalties, such as fines. Businesses have already raised concerns over the new laws, while unions and other business interest groups are gearing up to launch legal challenges. In the interim, the changes are now law – but they are not yet in effect. Legal firm, Bowmans, has broken down some of the most pertinent points of the new laws, and where they currently stand. Melissa Cogger and Talita Laubscher have answered some of the most common questions being raised by employers: Are the amendments in force yet? The Employment Equity Amendment Act, 2022 was assented to by the President on 6 April 2023. The amendments are not yet in force. They will take effect on a date fixed by the President by proclamation in the Government Gazette. In a previous media release by the Department of Employment and Labour it was announced that the amendments would take effect on 1 September 2023 but this still needs to be confirmed. Are the sectoral targets published yet? One of the amendments to the Employment Equity Act is that the Minister of Employment and Labour may identify sectors and publish sectoral targets after a consultation process with the sector concerned. The Minister has not yet definitively determined these sectors, consulted on sectoral targets or published them. While consultation processes were undertaken during 2021 to 2022 with various stakeholders in a number of sectors and proposed sector targets were discussed, the Amendment Act requires a multi-stage process before sectors are identified or sectoral targets are set. This includes: The publication of a draft notice identifying specific national economic sectors which permits interested parties at least 30 days to comment; Once the sectors are identified in the Government Gazette, the Minister will then be obliged to consult with the relevant sectors, and take advice from the National Minimum Wage Commission; The Minister will then publish a draft notice of numerical targets in the Government Gazette, allowing interested parties at least 30 days to comment; and Once the above process of consultation and comment is complete, the Minister will publish a notice in the Government Gazette setting out the sectoral numerical targets. While stakeholders have previously been consulted, the Department is still required to conduct fresh consultations and cannot retrospectively apply previous consultation processes, without risk of legal challenge. Can employers simply apply the sectoral targets? No. A designated employer is obliged to consult with representatives of its employees on the preparation and implementation of its employment equity plan and its analysis of the degree of underrepresentation of people from designated groups in various occupational levels in the workforce. This necessarily entails consultation on any numerical goals set to achieve the equitable representation of suitably qualified people from designated groups within each occupational level in the workforce, the timetable within which this is to be achieved, and the strategies intended to achieve the goals. The numerical goals are a designated employer’s projection of which it seeks to achieve at the end of its current employment equity plan in relation to its entire workforce. Numerical targets are a designated employer’s projection of what it seeks to achieve at the end of its current reporting period (annually). The amendments require numerical goals to comply with any sectoral target applicable to the designated employer. Designated employers will thus be setting their numerical goals and targets in line with the sectoral targets in future. An employment equity plan must include a timetable for the achievement of the goals and objectives in each year of the plan. The employment equity plan cannot be shorter than one year but may not be longer than five years. The designated employer must have procedures to monitor and evaluate the implementation of the plan over the time period. By the time the sectoral targets are published, a designated employer may only be part way through its current employment equity plan. In this case, a designated employer will be required to revise its plan in line with the amendments, which will include the requirement to take into account sectoral targets when setting numerical goals. What if the employer fails to meet its targets? The Employment Equity Act, 1998 contemplates that a designated employer will be given an opportunity to justify non-compliance with numerical targets, on a case-by-case basis before both the Director-General and the Labour Court prior to the imposition of any fine. The draft regulations set out examples of justifiable reasons for not complying with targets, which include for example, insufficient recruitment opportunities, insufficient promotion opportunities, insufficient target individuals from the designated groups with the relevant qualifications, skills and experience, mergers and acquisitions, transfers, and impacts on business economic activities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/682093/south-africas-strict-new-bee-and-transformation-laws-what-you-need-to-know/

South Africa The Good News | 20 April 2023 Business Process Outsourcing is a burgeoning sector offering rewarding career opportunities There is no denying South Africa’s youth unemployment crisis. At 42%, nearly half of the people aged between 25 and 34 years old are unemployed. However, there is one sector that continues to offer our youngsters hope of employment and a rewarding career, our burgeoning call centre industry. Rajan Naidoo, Managing Director of EduPower Skills Academy, says Business Process Outsourcing (BPO) or the call centre industry in South Africa has become a significant employer in recent years, providing jobs for thousands of people across the country. The good news is that the opportunities will keep on coming too as the sector is expected to almost triple in size by the end of the decade. “More than 270 000 people currently work in the industry and recent reports estimate this will grow to around 775 000 jobs by 2030,” says Naidoo. “This is great news for South African youngsters as the sector provides job seekers with access to a rewarding career as well as further skills training and work experience, delivering much needed economic and social relief for South African families.” Why should you consider a career in a call centre? No experience required Most call centre jobs are entry-level and all that is generally required to apply is a matric certificate. Unlike most roles, previous experience is not usually a prerequisite. Instead, it’s all about a great attitude because recruiters are looking for people with a positive outlook, good communications skills and a willingness to learn. More rapid advancement Whilst it’s fair comment that call centres often have a high employee turnover as it is a fast-paced environment not suited to everyone, people who thrive in this environment can do well – and so can their careers. That’s why most call centres offer opportunities for advancement, including supervisory and management positions. There are also numerous roles into which you can develop, including quality assurance, training, human resources, marketing and finance, accounting, IT, business intelligence and data management. Access to in-house training Training is part of the experience when you work in a call centre. This allows you to develop new skills and enhance existing ones such as communication and multitasking. As the job involves dealing with particular products or services offered by the employer, you will also gain an understanding of the company and the industry in which it operates and learn skills that will transfer to other jobs in the future. Fun work environment It’s expensive to recruit and train call centre agents so these businesses are at the forefront of employee engagement initiatives. From senior leadership to team leaders, everyone is committed to ensuring that you enjoy coming to work. With structured reward and recognition schemes as well as fun theme days such as fitness, charity, dress-up and food forays, there is always something going on to ensure you will feel valued, enjoy being part of a team and have opportunities to advance. Better basic pay Call centre jobs generally offer a higher basic salary than most entry-level positions. However, many companies will incentivize employees to meet and exceed their targets, so your earnings are really up to how much effort you are prepared to put in. With call centres providing such significant impetus to job creation, Naidoo says that EduPower – a leading learnership training provider – focuses on upskilling its learners with work experience to meet the needs of the industry. From day one, learners are deeply immersed in the BPO world, developing both practical and relevant skills. “Our learnerships deliver structured experiential on-the-job learning opportunities through which our youth can develop career competencies sought after by today’s employers,” he adds. “Working with live campaigns, not simulations, that include surveys, lead generation and sales, our learners get real experience that develops both their abilities and their confidence. The result is a proven model that provides invaluable experience for young people who struggle to access the labour market, and successfully bridges the gap.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sagoodnews.co.za/call-centre-industry-a-beacon-of-hope-for-south-africas-unemployed-youth/

More often than not when organisations enter into a relationship with an Enterprise Development or Supplier Development Beneficiary, it wants a guarantee that their investment will be successful. Hence, many choose to incorporate accountability clauses to secure their investment. However, clause 4.12 in statement 400 of the Generic Codes states: "4.12 Measured Entities are encouraged to develop and implement an Enterprise Development plan and Supplier Development plan for Qualifying Beneficiaries. The plan should include: 4.12.1 Clear Objectives; 4.12.2 Priority Interventions; 4.12.3 Key Performance indicators; and 4.12.4 A concise implementation plan with clearly articulated milestones". Placing accountability conditions on Beneficiaries may be punitive without taking into account all factors in clause 4.12. Enterprise & Supplier Development Services are available to guide members on the implementation of sustainable Enterprise & Supplier Development Initiatives.

In certain areas of the B-BBEE Scorecard, once a B-BBEE claim has been made under one element, the same spend must not form part of another claim in another element. For example, if an organisation claims the headcount of a Y.E.S Employee, under no circumstances can that spend for a salary be recycled and then claimed under Skills Development. Although an organisation can claim training for a Y.E.S Employee, this needs to then align to the Skills Development Learning Programme Matrix. Technical Support Services are available to advise Members on B-BBEE Claims.

Khensani Ntlemo | 21 April 2023 The transition from apartheid to democracy 29 years ago represented the promise of a new start for many black South Africans. One of many promises was equality for all. This meant that black people who were segregated, discriminated against and oppressed for decades were now moving into the direction of political freedom, financial success, service delivery, access to public goods and human dignity. Almost three decades down the line, the South African unemployment rate is sitting at 32,7%, and about 30.4 million people are living below the poverty line. Therefore, a question one could ask is, what happened to the promises that the African National Congress made? Was it all propaganda? The ANC is still led by people born and raised in the apartheid era, so the party lacks new and fresh ideas. It has been leading South Africa astray. The drastic increase of youth unemployment every year is evidence enough that the country is in a dark alley. South Africa currently suffers a 61% youth unemployment rate, which is far higher than it was during the apartheid era (29. 92%). Some people would argue that this is due to the rural-urban migration and the increasing population in the country compared to the apartheid era. Nevertheless, it is apparent that the government has dismally failed to create jobs and provide black South Africans with the financial freedom that was promised by the ANC when it took power in 1994. Since 1994, various initiatives to reduce the rate of youth unemployment in South Africa have been implemented, but most were not effective. For example, former president Jacob Zuma adopted a new youth policy in 2015. It promised that all government departments would prioritise programmes that are critical to youth development. There is hardly any evidence that the national youth policy and the ones that came after, such as “democracy development”, achieved anything. The youth are facing many barriers to employment. “The challenge for unemployed youth is not only one of skills. There are many graduates, who have completed university degrees, who are still unemployed,” said President Cyril Ramaphosa at the Youth Day celebrations at Orlando Stadium in Soweto on June 16, 2018. He further called on both public and private companies to scrap the experience requirement. However, his call was not effective as many companies still require two to five years’ experience for entry-level jobs. Initiatives such as the YES program and the Presidential Youth Employment Intervention (PYEI) only offer the youth 12 months of internships and temporary work. This is another issue that the youth are confronted with, as 8 out of 10 interns do not get permanently employed after the programmes. Therefore, they must start looking for other jobs which, in most cases, 5 out of 8 do not get them. As mentioned, the experience requirement is not the only employment barrier that the youth is facing. Ramaphosa’s focus must not be narrow. Firstly, the quality of education that is provided from primary to tertiary is a major down slope to the employability criteria. The government must invest in educational programs and teachings that cater for coding, technology, engineering, IT as we are moving towards the world of Fourth Industrial Revolution (4IR). The Covid-19 pandemic also took a toll on South Africans, especially in the work industry. Three million people lost their jobs during lockdown, which drastically increased the number of unemployed youths. Subsequent to this, Ramaphosa’s administration has not made an adequate effort to help the country to recover from the pandemic. Therefore, many people remain unemployed. In addition to the baneful effects of the Covid-19 pandemic, South Africa is currently confronted by an energy crisis ‘load shedding’. Consequently, many private businesses had to let go of their employees, and some closed down. This is another increase in the rate of youth unemployment and an ongoing downstream to poverty as businesses cannot function properly without electricity. As Ramaphosa said, he is not obligated to provide South Africans with electricity. In essence, South Africans are on their own. Democracy is just a fancy non-functional word used to describe South Africa. * Khensani Ntlemo is studying Master’s in Industrial Sociology at the University of Johannesburg and is an administrative officer at the Centre for Africa-China Studies. ** The views expressed do not necessarily reflect the views of Independent Media or IOL. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/opinion/the-bleak-reality-of-youth-unemployment-in-post-apartheid-sa-a339f9e8-083b-424f-8974-de13479b0929