Search Results

Yuneal Padayachy - 03 April 2023 The BEE Chamber offers advice regarding key considerations when employing Young People March 2023, it was announced that the Unemployment rate fell to 32.7% in the last quarter of 2022 from 32.9% in the July-September 2022 period. “Youth unemployment is one of the largest challenges faced globally and is particularly high in South Africa as many young job seekers are excluded from the social networks as a result of being in a non-working household, spatially isolated, or racial and gender issues,” says Yuneal Padayachy, Member Support Executive at the BEE Chamber. The big question is: Why employ young people in South Africa? The BEE Chamber offers the following five key considerations when employing youth: Growing Talent and Workforce Planning One the largest challenges faced with entities is succession planning. “An example of this would be an entity where an individual has been in the same position for 20 years and nobody really knows how this person works but they always meet deadlines and get their job done,” says Padayachy. “Once this person leaves the entity or retires, there is a gap that needs to be filled. However, there was no one in line to take over this position. Entities need to ensure that they remain competitive as well as grow talent and plan for the future and that starts by investing in the youth.” Workforce Diversity “Youth in the working environment brings about a sense of diversity whereby not everyone is the same age and have the same views.” Unique Skills and Talents Youth bring about a new way of thinking within the work environment offering fresh, new ideas that will have impact on an entity and its operations. “As we all know that technological advances are being made on a daily basis, Youth are considered to be quite ‘tech savvy’ and in the work environment, this can be effective and efficient.” Adaptability “Youth are also quite adaptable to a workplace situation. When change takes place within the workplace or something new is introduced, employees need to adapt to the change in order to be successful.” Opportunities “By providing an opportunity to a young person, this is the starting point of their career. This is the starting point of their journey to earn a living and often the starting point of changing a life,” says Padayachy. Padayachy says government and the private sector are proactively seeking ways to mitigate high unemployment rates with a particular focus on the youth. “I have had the pleasure of being a part of the Youth Employment Services (Y.E.S.) initiative since inception which addresses youth unemployment. It’s a key project that was introduced in 2018 to reduce unemployment.” The Y.E.S Initiative is to provide for, and institute, Broad-Based Black Economic Empowerment (B-BBEE) Recognition for Y.E.S measured entities and qualification criteria applicable to B-BBEE Recognition for job creation. It also seeks to address the issue of unemployment and place Black unemployed youth into job positions to gain experience. “The Y.E.S initiative aims to improve the grim employment outlook for young work seekers by offering a quality work experience over a period of 12 Months. This in turn should improve their chances of finding a job or starting their own business,” explains Padayachy. Only individuals who meet the below criteria are eligible for participation under the Y.E.S Initiative from a B-BBEE Perspective: Individuals are between the ages of 18 and 35; and meet the definition of “Black People” as defined in the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013. “Amongst the B-BBEE recognition awarded, entities are also eligible to access the Employment Tax Incentive (ETI). So not only does the Y.E.S. initiative offer benefits to the individual, the entity will benefit too – it is beneficial to all involved. If we are committed to seeing an ongoing drop in unemployment figures, it is imperative that we prioritise investing in youth with a particular focus on Black Youth,” says Padayachy. NOTE: THE B-BBEE RECOGNITION LEVELS AND THE Y.E.S. INITIATIVE The table below outlines the numerous levels of B-BBEE Recognition achievable through the Y.E.S initiative, provided that the preconditions and all requirements are met. B-BBEE RECOGNITION https://www.engineeringnews.co.za/article/why-employ-young-people-in-south-africa-2023-04-03/rep_id:4136

Sisanda Mbolekwa - 03 April 2023 President Cyril Ramaphosa says the YES programme doesn’t just create meaningful jobs, it also creates value for employers. File photo. Image:GCIS President Cyril Ramaphosa has applauded the youth employment service for helping reduce unemployment. He said many young South Africans found it difficult to get jobs because they lacked work experience, but the youth employment service was addressing the challenge. They come out of school, university or college with qualifications, but many employers are looking for people with experience. That is why, in 2018, we launched the Youth Employment Service (YES), an ambitious partnership with the private sector to address the crisis of youth unemployment,” said Ramaphosa. The president said the initiative worked with companies to provide work experience opportunities and, five years after its establishment, has helped reduce unemployment in practical ways. “To date, YES has placed over 100,000 South Africans between the ages of 18 and 29 in local businesses for a year of work experience. Through YES, about R6bn in youth salaries has been injected into the economy and has enabled participants to support their families,” said Ramaphosa. He said the programme was part of the broader presidential youth employment intervention, government’s flagship initiative to respond to youth unemployment. “It includes a range of programmes to help young South Africans transition from learning to earning. Among these programmes is SAYouth.mobi, a zero-rated mobile platform where young people can access opportunities and support.” In his weekly newsletter, Ramaphosa applauded that over 4-million young people have registered on the platform, citing an estimated 61% of YES participants come from households reliant on social grants. “One participant, who was placed with Mercedes-Benz for a year, was the sole breadwinner for a family of four. She told YES that not only was she able to support her family, she was also able to save up to start a broiler chicken business,” he said. “Many young people have been placed in future-facing industries such as IT, the green economy, systems and software engineering, app development and others. In addition to facilitating work experience, YES also operates several training hubs across the country.” According to YES, an estimated 40% of participants are employed on completion of the programme, he said. “In this year already, YES has achieved a new record of 32,400 jobs. "Over 1,400 businesses participate in YES, and the aim is to increase the pace of placements as more companies come on board and more opportunities are made available. “The YES programme doesn’t just create meaningful jobs, it also creates value for employers that are able to facilitate the entry of more young South Africans into the mainstream of the economy.” The government has put an enabling legislative environment in place to incentivise businesses to participate in youth employment creation, said Ramaphosa. “For example, both large and small qualifying enterprises can improve their broad-based black economic empowerment (BBBEE) status by participating in YES.” The employment tax incentive reduced the costs to companies of hiring young people, he added, citing how he has always maintained that the unemployment crisis can only be overcome if all social partners come on board. “As the main source of job creation and retention in most countries around the world, including our own, the private sector’s involvement is critical. As government we will continue to play our part by putting in place regulatory and legislative tools to encourage business to hire more young South Africans.” Congratulating the service and its partners for reaching this milestone and offering a chance at a better life to 100,000 young people, Ramaphosa said we can expect to see these numbers increase in the months and years ahead. “I call on more businesses to become part of this life-changing programme and to contribute to the recovery and reconstruction of our economy and society.” https://www.sowetanlive.co.za/news/south-africa/2023-04-03-ramaphosa-praises-youth-employment-service-for-reducing-unemployment/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

Luke Fraser - 03 April 2023 Absa says it will provide R50 million in energy subsidies under its Green Asset Finance programme to qualifying small and medium enterprises (SMEs). The energy subsidy will provide relief to small business customers looking to finance solar installations to minimise the effects of load shedding in South Africa, the group said. All eligible SMEs that have their commercial properties financed by Absa will be contacted by the bank and will not need to apply for this support. Subsidies can reach up to R50,000 or 10% of the overall installation value and will be determined by clearly set-out factors. Absa will invite all identified SME customers to opt-in or opt-out of the subsidy for their green finance needs. “SMEs make a significant contribution to job creation and economic growth in South Africa. However, in many instances, the operating environment over the past few years has made it very difficult for these vital enablers to grow and thrive,” said Ronnie Mbatsane, Managing Executive for SME Business at Absa Relationship Banking. “Load shedding in particular continues to hamper the potential of many SMEs. Through these subsidies we are helping to put liquidity back into the hands of small businesses to power their business into full production,” Absa said that the launch follows considerable investments made in the renewable energy sector, such as solar offerings for Absa Home Loan clients, personal loan options for retail customers looking to acquire alternative power sources, and other customised solutions backed by subject matter experts that have helped SMEs to find the best solution for their requirements. The bank said that it enables customers to determine their energy needs, calculate costs and link them to a trusted energy supplier. It added that its Supplier Value Chain development initiative has supported SME installers in their SAPVIA PV Green Card accreditation, which supports emerging township economies, pipeline commercialisation and allowed Absa’s SME customers to engage in the value chain. “The Absa energy grants underscore our commitment to this vital segment and connecting individuals and businesses to communities,” concluded Mbatsane. https://businesstech.co.za/news/banking/677491/absa-launches-new-solar-subsidy-for-businesses-in-south-africa/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Karabo Mokgonyana - 27 March 2023 During a UN General Assembly speech to commemorate this year’s International Women’s Day and launch the Commission on the Status of Women, secretary general Antonio Guterres outlined that, “Gender equality is growing more distant. On the current track, UN Women puts it 300 years away.” He further outlined that, “Women’s rights are being abused, threatened and violated around the world,” noting key issues like caregivers denied work, child marriage, maternal mortality and girls being denied access to education. Although there is concern regarding the “300 years away” remark made by the secretary general, there is sufficient indication on the African continent that this could be a reality. Africa has a long way to go in addressing gender inequality — from the household to higher positions of power. The progression of fighting against gender inequality is stagnant due to a lack of resourcing and investing in gender equality, patriarchal norms in leadership and decision-making and increased exclusion of gender mainstreaming in addressing environmental, social and economic issues. Women and girls carry the majority of the care and domestic burden in Africa and are less likely to be employed in the formal sector (and where they are employed, earn lower wages), are less likely to be able to influence government policy and they continue to experience high levels of violence. Differentiated treatment according to gender is particularly acute during adolescence, when many girls are faced with the prospect of marriage (often before reaching the age of 18), adolescent pregnancy and gender-based violence, as well as a heightened risk of HIV transmission. The risk of dropping out of school is high for girls at this age in Africa. This compromises education and training opportunities for women and girls. Women experience different forms of violence because of their gender, especially in the social sphere. They are often subjected to domination by their spouses, which leads to unfair discrimination. According to Unicef, approximately two out of three married girls aged 20 to 24 were married to a partner at least 10 years older in Gambia, Guinea and Senegal. The majority of underage marriages globally occur in West Africa, with a prevalence of 77% and 61% in Niger and Mali, respectively. This can be explained by the importance of social norms and traditions, which influence the choice to marry one’s daughter. Having a child out of wedlock is perceived as a disgrace and the earlier a girl is married, the lower the risk of pregnancy outside marriage. These child marriages then create inequalities in schooling and training, for example, out of 916 women married at an early age in Mali, 366 had to leave school and 294 never went to school. This lack of access to education for girls has consequences for the country’s development. Economically, women also face discrimination and are still far from empowerment. There are many obstacles to their participation in economic activities, mainly due to the disparities between women and men, both in terms of access to economic resources and in the various sectors of activity. Women’s economic empowerment remains at the bottom of the ladder and they work in difficult conditions, with low incomes. The wage gap difference can be explained by parameters such as age, type of job and level of education. These results then demonstrate that Africa is missing out on its full growth potential because a considerable portion of its growth pool, namely women, is not being fully harnessed for state development. In addition, African women are more likely than men to be in vulnerable employment and work primarily in the informal sector. In 2010, 65.4% of non-agricultural jobs in the informal sector were held by women in Liberia and 62.2% in Uganda. Women working in the informal sector lack social protection, reinforcing their precariousness. According to Louise Jousse, women are largely underrepresented in ministries and other legislative and executive bodies. Nevertheless, despite this low percentage, some countries stand out, such as Rwanda, the first country in which women make up more than half of parliamentarians, making up 61.3% of them in 2018. African women are slowly taking ownership of the political sphere and are gaining greater visibility, allowing them to push the political agenda in their countries. However, progress is measured in micro-advances and several African countries have less than 10% of women in mid-level positions, such as Morocco with 5.6%, Nigeria with 8% and Sudan with 9%. Africa does not contribute significantly to climate change but, despite this, the continent is heavily negatively affected by it because of multiple factors that include underdevelopment, low adaptive capacity, heavy dependence on climate-sensitive sectors and limited access to finance and technology. It goes without saying that women are highly impacted by climate change due to gender inequalities and gender roles and responsibilities. Climate change exacerbates vulnerabilities and exposes underlying discrimination. Women rely more on natural resources and climate-sensitive sectors for their livelihoods than men. Climate Change adds to household burdens, threatens economic opportunities and increases health risks for women. Gender inequality causes women to be poorer, have less education and face more health risks than men. Labour markets are heavily gender-segregated and women are employed primarily in low-paying and insecure occupations. They carry a disproportionate unpaid work burden and rely more on natural resources and climate-sensitive sectors for their livelihoods than men. Making it more challenging is the fact that women often don’t own land and they have declining water access. Despite all of this, women remain underrepresented and excluded from decision-making processes on climate change responses. Further, Aimee-Noel Mbiyozo, from the Institute for Security Studies, outlines that over three-quarters of climate development finance in Africa has failed to consider gender dynamics. Women on the continent are often at the forefront of developing effective mitigation and adaptation strategies because they suffer the most from climate change. There is a lack of understanding on the continent that giving women land rights would significantly reduce the risk of displacement, increase crop productivity and lead to improved investing and access to credit for women. Although the overall picture is one of stagnation, or even reversals, in the journey towards parity, some countries have shown remarkable improvement. For instance, Rwanda and South Africa have increased women’s representation in middle-management roles by 27% and 15%, respectively. Algeria has cut maternal mortality rates by around 9%. Egypt has tripled its score and Guinea and Liberia doubled their scores on legal protection of women. These examples of rapid progress should inspire others to forge ahead with actions to advance gender equality. According to McKinsey’s Power of Parity Report: Advancing Women’s Equality in Africa, to reduce this 300 year gap, African countries should invest in human capital by driving sustained economic growth and boosting productivity by investing sufficient resources to improve the skills, experience, resilience and knowledge of women and girls. Further, they need to unlock opportunities for women-owned businesses, develop public and household infrastructure and improve the quality of jobs in the informal sector. In addition, African countries should leverage technology to close the gender gap and enforce laws, policies and regulations. Arguably, any drive toward gender parity in Africa starts with efforts to change entrenched and widespread attitudes about women’s role in society, an extremely difficult and complex challenge that will require all stakeholders to play a part that is sustained over the long term. Fighting against social, economic and political inequalities demands a change of mentality. For this to happen, society as a whole must become aware of the importance of valuing the status of women and therefore question its practices, both for men and for women who have internalised and accepted the norms to which they are subjected. https://mg.co.za/opinion/2023-03-27-gender-equality-in-africa-is-really-300-years-away/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Neesa Moodley - 02 April 2023 In the week that the Financial Sector Conduct Authority released its final strategy for promoting transformation in the financial services sector, one of the country’s biggest banks, Absa, announced an R11.2bn broad-based black economic empowerment deal, subject to shareholder approval. The deal is expected to allocate 7% of the total group shareholding to structures that will benefit ordinary black South Africans through a Corporate Social Investment (CSI) trust, and employees through a staff trust. Once the broad-based black economic empowerment deal is finalised, black ownership of Absa will exceed the 25% threshold set out in the Financial Sector Charter. The 4% perpetual CSI trust will be focused on education and youth employability support for black South African beneficiaries. The trust will receive an annual dividend equal to 25% of the dividend per share paid by Absa Group. The CSI trust will spend the money it receives on CSI programmes in South Africa and beneficiaries will be reviewed annually. Absa staff employed in South Africa will participate in the 3% component of the transaction, subject to shareholder approval. All eligible employees will receive the same share allocation, irrespective of race, background or seniority. Black staff will receive an additional 20% allocation, which means black staff members will receive just over 82% of the value of the staff trust. All staff in the 3% component will receive an annual dividend equal to 25% of the dividend per share paid by Absa Group. The shares will vest after a five-year period, meaning eligible employees will take ownership of the shares, net of applicable taxes and any outstanding funding costs. Staff employed by Absa subsidiaries in other countries will be able to participate in a similar award programme, provided those subsidiaries elect to participate based on local considerations. However, this initiative will be based on cash rather than Absa Group shares, given regulatory and taxation complexities related to cross-border shareholding. ‘Force for good’ Absa says the intention is that the programme will broadly mirror the terms of the 3% share scheme in South Africa, with all eligible employees receiving an allocation equal in value to that awarded to staff in South Africa, as well as an annual payment equivalent to a 25% trickle dividend, and a net cash payment five years after implementation. The value of the programme will equate to about 1% of Absa Group’s market capitalisation. “The transaction was specifically designed to align with our intent of being an active force for good, firmly demonstrating our commitment to broad-based black economic empowerment as we build a diverse and inclusive organisation not only in South Africa, but also more broadly across our business,” said Arrie Rautenbach, Absa Group CEO. “The transaction is the next big step in our broader transformation journey and, at the same time, recognises the role that our staff and communities play by giving them the opportunity to benefit from the value generated by the group.” A CSI trust, benefiting black communities, will indirectly own a 4% shareholding, while a staff trust will indirectly hold 3% of Absa Group, collectively constituting the 7% shareholding in the transaction. Black staff members in South Africa will receive just over 82% of the value of the staff trust. A further equivalent of about 1% of Absa Group shareholding will be made available to staff employed by subsidiaries in other markets. Rautenbach says the transaction signals another substantial milestone in Absa’s ongoing efforts to empower communities. A transaction circular will be published in May and shareholders will vote on the transaction at a general meeting on 2 June 2023. The Conduct of Financial Institutions Bill, to be tabled in Parliament by National Treasury this year, will make the promotion of financial sector transformation an explicit function of the Financial Sector Conduct Authority and empowering it to take reasonable regulatory action against financial institutions that do not uphold transformation commitments as set out in their plans. BM/DM https://www.dailymaverick.co.za/article/2023-04-02-the-nitty-gritty-of-absas-r11-2-billion-black-economic-empowerment-deal/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Staff Writer - 03 April 2023 President Cyril Ramaphosa says that a five-year-old employment initiative is showing positive progress and is likely to provide even better results down the line. In his weekly open letter to the public, Ramaphosa said that a 2018 work experience program called the Youth Employment Service (YES) had provided over 100,000 South Africans between the age of 18 and 29 with a year of work experience in local businesses. “Through YES, approximately R6 billion in youth salaries has been injected into the economy and has enabled participants to support their families,” said Ramaphosa. The YES program came to fruition in partnership with private companies to address the crisis of youth unemployment and is part of the broader Presidential Youth Employment Intervention that includes various programmes to assist younger job seekers. During his tenure, Ramaphosa has repeatedly mentioned the need for prospective employees to have valid work experience in order for more opportunities to be opened for them. Back in August last year, he called on businesses across the country to upskill and hire more young people through incentivised tax reductions. He said that South Africans face a major barrier to finding a job, with many businesses requiring some level of quality work experience and training prior to employment. According to the latest Quarterly Labour Force Survey (QLFS) published by Statistics South Africa showed that there were roughly 7.8 million unemployed people in the country during the final quarter of 2022. The statistics further showed that the number of people who were not economically active for reasons other than discouragement increased to 13.4 million. Ramaphosa said the YES programme goes beyond creating jobs but also creates value for employers – facilitating the entry of more young South Africans into the mainstream of the economy. “In this year already, YES has achieved a new record of 32,400 jobs. Currently, over 1,400 businesses participate in YES, and the aim is to increase the pace of placements as more companies come on board and more opportunities are made available,” said the president. He added that research into the program has found that roughly 40% of participants are employed upon completion of the programme. “An estimated 61% of YES participants come from households reliant on social grants,” Ramaphosa said. Despite the positive signs from the YES programme, South Africa’s job prospects are likely to dwindle further, according to financial service firm PwC. The group’s Employment Outlook Forecast predicts that the economy will only add approximately 200,000 jobs in 2023 due to revised GDP growth projections as published in January. PwC said that the pandemic job bounce-back has ended, and economic growth is pushing the likelihood of the job market expanding lower. https://businesstech.co.za/news/government/677483/ramaphosas-youth-employment-programme-is-doing-some-good/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Staff Writer - 01 April 2023 New technologies such as ChatGPT are making professionals nervous, and it is up to job seekers to best prepare themselves. Micheal Hanly, the managing director of online learning provider New Leaf Technologies, said that there are learnable skills that people can equip themselves for in the ‘new world’. “The rapid speed at which technology is advancing can be terrifying for many people, as just as they have become used to a certain way of doing things, they need to be retrained.” “Professionals are suddenly questioning whether they are even needed anymore or whether they might be retrenched,” said Hanly. Hanly said some of the most notable high-demand skills required to get ahead of technology include: Digital literacy: As more businesses move online and remote work becomes increasingly common, digital literacy is becoming a fundamental skill. This includes proficiency in basic computer skills as well as more advanced knowledge of software, data analytics and cybersecurity. Leadership and management: Leaders need to navigate complex business environments, motivate teams and drive innovation. Creativity and innovation: These are essential for companies looking to stay ahead of the curve. Emotional intelligence: Emotional intelligence (EQ) helps workers at all levels communicate effectively, manage stress and build strong relationships. Cultural competence: Understanding different cultural norms and values and being able to work effectively with people from different backgrounds is crucial in South Africa. Data analysis: There is an increasing demand for professionals who can analyze and interpret large volumes of data to inform business decisions. Communication skills: This includes not only written and verbal communication but also the ability to listen actively and work collaboratively with others. Critical thinking and problem-solving: Analyzing information, identifying patterns and trends, and developing creative solutions to complex problems are a must these days. Hanly said these skills would likely remain in high demand for the foreseeable future, and businesses should invest in learning and development programmes for their employees. “These programmes should be designed to meet the specific needs of the learners and should include a variety of learning methods, such as classroom-based training, online learning and on-the-job training,” he said. E-learning platforms can now be introduced into a company with the aim of upskilling in-house employees. Hanly said that e-learning platforms are very well at meeting the demands of the skills gap in South Africa. Even large banks are looking to upskill their employees. Capitec said that poor digital literacy is hampering businesses. It is essential that a workforce also has the freedom to self-upskill beyond traditional methods, said the bank. According to Capitec, the significance of data in the digital economy should not be underestimated by businesses. It further said that the responsibility of managing data is no longer restricted to data scientists only, as it now involves every member of an organization. https://businesstech.co.za/news/trending/676477/new-skills-south-africans-need-to-survive-the-future-of-work/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Ravi Naidoo - 31 March 2023 File image. Johannesburg - Four years ago, the Youth Employment Service (Yes) was created by the private sector as an important contribution to addressing South Africa’s crippling youth unemployment crisis. Youth unemployment, a crisis of history, education, and low economic growth has left two in three youth jobless. This month, Yes passed the 100 000 youth jobs milestone, making it the largest scale job creation programme that is entirely funded by the private sector. That’s worth celebrating, for many reasons. For a start, we haven’t just created 100 000 jobs. We’ve given 100 000 young people the skills, work experience, and social networks they need to contribute to the economy for the next 40 years and beyond. We’ve created jobs with impact that will act as a catalyst to create more employment inside and outside their current job sectors. It is these future professionals, entrepreneurs and change-makers who will drive our economic prosperity in the years to come. The impact on social mobility is considerable. 61% of Yes Youth come from social grant-recipient households and 77% have dependants. Right now, South Africa ranks 77th out of 82 countries on the WEF’s Global Social Mobility Index 2020, which reflects the ability of a child to experience a better life than their parents. Without access to programmes such as Yes, it will take nine generations for a person born into poverty to reach the middle-class. Better social mobility means we can build a broader economic base for a sustainable future. However, given the low rates of economic growth, South Africa is currently producing neither the volume nor type of jobs required to reverse the current unemployment trend. Currently, more than 400 000 new job-seekers enter the market every year, but the country has only created around an average of 150 000 net jobs per year since over the past 10 years. On its own, no special programme can directly generate enough youth jobs to compensate for the lack of economic growth. However, if programmes are catalytic in their structure, they can have a longer-term multiplier effect that far exceeds the direct jobs created. If we get as many of our talented youth as possible into meaningful roles in the economy, they will be able to generate the jobs and future-facing businesses that South Africa so desperately needs. This can be done through unleashing the potential of the country’s youth by creating a talent pipeline for young people from poor households to enter the economy. In other words, putting our best young talent to work is the key to future economic success. According to the International Labour Office’s G20 Skills Strategy, the development of higher-level skills – professional, technical and human resource skills – enables workers to profit from or create opportunities for high-quality and/or high-wage jobs. And Research by UK-based think-tank Centre for Cities suggests that for every 10 jobs created in skilled businesses, and in particular high-tech businesses, up to 25 jobs are created in local services. In the past 12 months, Yes put around 30 000 young people into pathways that will lead them to becoming game-changers in the public and private sectors. Yes research shows that 40% of alumni are currently employed, and 15% of all Yes Youth are involved in entrepreneurial activity. The phenomenon of youth going into entrepreneurial activities is particularly interesting. Take 25-year-old Chulumanco Lonwabo Nomtyala, who completed his Yes programme through the Microsoft Development Pathway. With a degree in Human Settlement Development, he saw an opportunity to help people with housing subsidy applications and designed an App that helps people apply for housing subsidies. As Stats SA points out, prior work experience, particularly quality experience that provides social networks, makes a huge difference to your economic prospects. In fact, prior work experience makes you seven times more likely to transition into full-time employment. Kgomotso Sekhu, 29, was the first in her family to get a degree – a BSc in Mathematics at the University of Pretoria. But she couldn’t find a job. Today, she’s a business intelligence analyst, thanks to her Yes programme that was sponsored by Nedbank. To date, many of the Yes jobs are being created in future-facing industries such as drones, tech/ICT, creative, tourism, coding, and finance. Mawanda Faniso, 31, was part of the first Yes Drone Academy programme at the Genesis Hub in Saldanha in 2021, which saw a 100% absorption rate post-training. He left the academy with a remote pilot’s licence (RPL), which allows him to fly, fix and work on drones. He’s not only employed, but there’s a real demand for his services. There are millions of Mawandas, Kgomotsos and Lonwabos out there. And, typically, they need three things to get the big break in life. One is the right attitude: resilience, an eagerness to learn, a passion to better themselves and their circumstances. Two is the right support – in this case, from the 1 400 corporates who support the Yes programme, and the support the programme provides. And three, as we all know very well, is the right amount of luck (say, for instance, government introducing policies that boost economic growth). Imagine if, within the next 10 years, even 10% of our Yes Alumni go on to become successful professionals or entrepreneurs, then we are looking at a massive job and economic impact. If our youth have hope in their eyes, and not despair. If we are going to move the dial on unemployment in our lifetime, we must focus less on low-impact and temporary jobs and look to create the next 100 000 young game-changers in the economy. Now that’s something to get the whole country celebrating. https://www.iol.co.za/saturday-star/news/its-time-to-let-the-youth-be-the-game-changers-south-africa-needs-ea9666c8-e562-4e29-a9aa-b58e099f8dd1 'Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Ina Opperman - 01 April 2023 Image: iStock The development of small business in South Africa is extremely important as small and medium-sized businesses are the backbone of economic development in emerging markets such as India, South Africa, Kenya and Colombia, where these enterprises contribute up to 40% of national gross domestic product. SMEs in these nations developed at different speeds during recent years, with countries such as Brazil joining economic powerhouses like the UK and America in topping the list of countries with the largest new business growth. “These inspiring examples are key learning opportunities for South African small businesses,” says Mark Paper, chief operation officer at Business Partners Limited. The three-pronged approach to sector development Paper uses the success of India’s IT industry as an example of how strategic positioning and long-term planning can reap huge dividends for the country and its people. During the early 1990s, India experienced a ‘brain drain’ in its fledgling IT industry, with local talent emigrating to other markets. This loss of key talent served as a prompt for key decision-makers to boost investment into building new capacities. For India, an intervention at school-level education was identified as a possible solution. Therefore, government poured resources into encouraging young children to pursue careers in IT and technology-related fields. Today, India is a global technology hub, producing between 600 000 and 800 000 tertiary IT graduates per year, according to Bombay-listed software and services giant, Zensar Technologies. “India’s success in this arena cannot be attributed to the state acting alone but rather to the collaborative efforts of multiple stakeholders in civil society, education, training and development, career development and the corporate realm.” He says true impact for small business development requires the cooperation and collaboration of the golden tripartite: the public sector, the private sector and the South African public. “Our country is well-positioned to follow India’s lead, albeit in the broader context of STEM (science, technology, engineering and mathematics), but more investment needs to flow in from multiple directions.” State-led interventions to encourage education-driven initiatives are important, he says, but points out that the private sector must employ these graduates at scale. “This also needs the backing of civil society, which plays a crucial role as the parents and caregivers of young talent in promoting STEM education and equipping young people with the tools they need to succeed in these areas.” https://www.citizen.co.za/business/boost-development-of-small-business-sa/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

By Ntando Thukwana - 01 April 2023 Picture: iStock/Rich Townsend The deal will see 7% of Absa’s shareholding distributed to black employees. Banking group Absa has finalised a R11.2 billion empowerment deal that will see 7% of its shares in the hands of its black employees. Absa’s empowerment deal The bank said that after the transaction, which remains subject to shareholder approval and effectively increases black ownership, Absa’s black ownership will exceed the 25% threshold set out in the Financial Sector Charter. “Notwithstanding Absa’s current Level 1 broad-based black economic empowerment (B-BBEE) rating, Absa’s current Black equity ownership per the B-BBEE scorecard in respect of the 2022 financial year is 17.44%. Following the implementation of the proposed B-BBEE transaction, Absa expects to increase its Black equity ownership to be sustainably above 25%,” Absa said. Diversity and inclusion Arrie Rautenbach, Absa group CEO, said the deal firmly demonstrates the bank’s commitment to broad-based black economic empowerment, which is critical in fostering a diverse and inclusive South African organisation. “The transaction is the next big step in our broader transformation journey and, at the same time, recognises the role that our staff and communities play by giving them the opportunity to benefit from the value generated by the group,” Rautenbach said. Empowering communities The transaction comprises a Corporate Social Investment (CSI) trust which will also benefit black communities who will indirectly own a 4% shareholding. A staff trust will indirectly hold 3% of the Absa Group, collectively constituting the 7% representing Absa’s group shareholding, the bank said. A further equivalent of approximately 1% of Absa’s group shareholding will be made available to staff employed by subsidiaries in other markets, it added. “Although primarily designed to achieve our black economic empowerment and transformation objectives, it was also important for us to ensure that a portion of the benefit will be used to empower communities through education and youth employability initiatives,” said Rautenbach. He further said the deal signals a substantial milestone in the company’s efforts to empower communities. “We believe that staff will also be incentivised in a way that promotes engagement and our espoused culture objectives,” he said. https://www.citizen.co.za/business/absa-finalises-empowerment-deal-april-2023/ 'Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Sune Payne | 29 March 2023 Image: Getty Images | NSF logo The troubled fund – meant to focus on the education and training of learners – returned to Parliament to account for issues such as governance, management and a forensic report. During a parliamentary committee meeting about the National Skills Fund (NSF) on Wednesday, DA MP Chantel King said a lot of development had taken place at the fund, which she described as “very good”. Representatives of the fund and the Department of Higher Education and Training (DHET) briefed Parliament’s oversight committee on higher education on the implementation of an audit action plan and recommendations from a ministerial task team on the NSF. The fund – which is primarily focused on the training and education of learners – made headlines in 2022 when reports emerged that R5-billion was missing from it. Higher Education Minister Dr Blade Nzimande confirmed that just under “R5-billion could not be properly accounted for over two financial years”. This prompted a forensic investigation into the NSF’s financial affairs. On Wednesday, issues came up again during a scheduled virtual session. Consequence management According to David Mabusela, the fund’s acting CEO, a committee was established to look into the recommendations of the ministerial task team, which was put in place to get to the bottom of the fund’s governance and administrative problems. Officials who were implicated in a forensic report – which was not submitted to Parliament after Nzimande said it contained the names of implicated persons, which could lead to possible litigation against the department – have faced disciplinary measures. Mabusela added that five NSF officials implicated in the forensic report were placed on precautionary suspension and later served with charge sheets. Implicated officials have responded to the charge sheets, some using their own legal services support. The Nexus forensic firm, which is carrying out the forensic investigation, has conducted inspections, and disciplinary sessions will start before the end of March 2023, confirmed Mabusela. In addition to the work done by the department, the DHET’s director-general, Nkosinathi Sishi, has had meetings with the Special Investigating Unit, with the last meeting on 14 February, where the scope of engagement on the NSF was discussed. There were also meetings with the Directorate for Priority Crime Investigation – the first one took place on 8 December 2022. More hirings During the briefing, the committee heard the fund would implement action plans based on audit findings from the Auditor-General in the NSF 2020/2021 Annual Report and Financial Statements. At the time, the NSF was spotlighted for having a 60% vacancy rate among senior management and a slow recruitment process. In 2021/22, the NSF filled 35 of 69 posts. Senior management posts that have been filled or are in the process of being filled include: A chief financial officer was appointed and started on 1 November 2022; A director of fund management was appointed and started on 1 October 2022; A director of information communication and technology was appointed and started on 3 January 2023; A director of financial planning and reporting had interviews scheduled before the end of March 2023; and Advertisements have been sent out for directors of financial administration, organisational strategy and work-integrated learning. Sishi said “interviews are scheduled” for a chief executive officer. He said he was “touched” by King’s comments and that he knew the committee would hold the NSF accountable for its actions, whether they were good or bad. In his State of the Nation Address in February, President Cyril Ramaphosa said the skills fund will “provide R800-million to develop skills in the digital and technology sector through an innovative model that links payment for training to employment outcomes”. The forensic report has not yet been made public. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-03-29-troubled-national-skills-fund-draws-praise-from-da-mp/