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Dimakatso Leshoro | 3 May 2023 Small-to-medium-sized enterprises (SMEs) are buckling under the pressure of load shedding and liquidity challenges. That’s according to last year's fourth quarter SME Confidence Index. It found that confidence has plummeted among SMEs as the 15-year long energy crisis in South Africa escalates. Confidence had improved after the 2020 slump because of the Covid19 pandemic lockdowns, but the onset of stage 6 load shedding last year saw businesses hit hard by interruptions in power supply. Executive general manager for impact investing at Business Partners David Morobe said the SME sector was being hammered by headwinds both on a national and global front. It was therefore not surprising that their confidence had taken a knock. "In light of this, small businesses are now faced with the option of investing in alternatives to limit their reliance on the national grid. With load shedding expected to persist indefinitely, accessing a predictable source of power is imperative to business continuity and should be treated as a top priority, which might remain a challenge for 27% of the SMEs surveyed who indicated that their businesses could not afford to invest in alternative energy solutions,” he said. SMEs are the heart of the economy and job creation, however, business owners confidence that their ventures will grow in the next 12 months dropped by 9% to 56%. While confidence that the domestic economy will be conducive for business growth within the next 12 months also dropped 13% to 64%. The survey found that SMEs were concerned about a lack of support from bigger private sector businesses, suggesting that big businesses themselves were under pressure from domestic and global factors such that support to grow the SMEs may not be there. “It's a red flag given the critical role of the private sector in supporting the growth of small businesses. Many SMEs rely on supplier agreements with the private sector and structure their business models around this demand. Private sector players also provide small businesses with much-needed access to funding for kickstarting their ventures, purchasing assets and hiring talent. As such, the return of the SME confidence in this area is a vital factor in creating an enabling environment for entrepreneurs, who are essential contributors to job creation, social empowerment and economic growth,” Morobe said. He said cashflow retains its position as the most long-standing challenge identified by South African SMEs in the SME Index. While crime was reported as the second most pressing concern, followed by funding, which replaced "economic conditions" as the third biggest roadblock to success. Cashflow challenges have been exacerbated by the increase in load shedding, with the national grid buckling under existing pressures. 41% of SMEs surveyed reported having suffered business interruption and 39% claimed to have experienced a loss in productivity as a direct result of load shedding. "This was compounded by interest rate hikes which escalated significantly towards the end of last year – for 60% of local small businesses, this market factor contributed to increased financial distress,” Morobe explained. Outside of load shedding, the SMEs were upbeat that government was doing enough to foster small business development and that the red tape unit in the presidency may help in this regard. Other key developments for the SME sector include the exemption of these businesses who employ less than 50 employees from the annual reporting requirements in terms of the New Employment Equity Act. Meanwhile, there are proposals to amend the National Small Enterprise Act (1996) to level the playing field between government, big business and the SMEs and to create a statutory body to resolve SMEs-related issues. DA’s Henro Kruger welcomed the move saying the lack of adequate legislative support for the SMEs had long been a concern. “The amendment of the Act is necessary because of the apathetic government and the department of small business development, which have been painfully slow in providing the necessary legislative support for small businesses to thrive. The lack of urgency displayed by these entities is unacceptable., and this amendment seeks to address it effectively,” Kruger said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.news24.com/citypress/business/smes-confidence-plummets-thanks-to-load-shedding-20230503

Linda Ensor | 3 May 2023 Minister warns of ‘harsh’ treatment for companies that fail to comply with Employment Equity Amendment Act Companies that failed to comply with the Employment Equity Amendment Act, which provides for the setting of numerical targets for different economic sectors, will be barred from doing business with the state, employment & labour minister Thulas Nxesi said in the National Assembly on Wednesday. He was one of the economic cluster of ministers who replied to questions by MPs and was asked by DA MP Michael Cardo what methodology or criteria he would use to determine the numerical targets. Nxesi said the sector stakeholder engagements had been concluded and the employment equity numerical targets for each sector would soon be published in the Government Gazette for public comment for 30 days. A number of proposals had been made by stakeholders that were being consolidated. “We will listen carefully,” the minister said. The law would first be applied by using corrective measures, but if there was resistance by companies it would be applied very harshly. “If people violate the law we are going to have to be harsh, and if they are doing business with government we are going to have to say you can’t do business with government if you are violating the law. We just have to be harsh for the sake of transformation. “We have to ensure that transformation cannot be frustrated. We are ready to fight this one, we are ready to fight because it will benefit the majority of our people, including those who are unemployed. What we cannot allow is for people to protect the privileges of the past.” This was positive discrimination or affirmative action, Nxesi said but Cardo stated that the numerical targets were a form of job reservation and quota. “This law is a vicious piece of social engineering and gives you [Nxesi] powers incompatible with a free-market economy and will deter investors, strangle growth and kill jobs,” Cardo said. The minister said the aim of the act was to ensure transformation and the equitable representation of suitably qualified people at all occupational levels from the groups designated in the act. The designated groups are African, coloured, Indian, women of all races and people with disabilities. In terms of the act, the minister may, after consulting the relevant sectors and the Commission for Employment Equity, set numerical targets for each national economic sector in accordance with the demographics of the regional and national economically active population as published by Stats SA in its quarterly labour force survey. Nxesi said he would also take into account the latest employment equity status of the designated groups in the specific economic sectors. This will include issues such as recruitment, promotional and skills development opportunities, termination rates, economic circumstances and other dynamics of each the sectors as reported on by the relevant stakeholders in the sector during the consultation process. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/national/2023-05-03-workplace-equity-delinquents-to-be-barred-from-state-contracts-says-nxesi/

Fuzile Jwara | 3 May 2023 Child support and old age grants account for 70% of government’s spending on social grants which is due to reach R284bn by 2026. In SA, there has been a pervasive perspective that economic development can best be measured by Gross Domestic Product (GDP). However, this analysis is not only inaccurate, but is also misrepresentative of socioeconomic realities. The point that is often overlooked is that GDP only measures production and consumption of goods in a particular country. As such, GDP alone cannot reflect the socioeconomic disparities in SA. Better analysis of welfare should be conscious of capital accumulation, e.g, as offered by German activist Rosa Luxemburg in 1913, and redefined by Marxist geographer David Harvey as “Accumulation by Dispossession”. These theories explain how the SA economy can be considered an historically oppressive settler-colonial economy based on the exploitation of indigenous people and mineral resources for the benefit of colonial and neocolonial capital. The SA economy historically relied on cheap black labour through the migrant labour system, whereby labourers travelled from various parts of Southern Africa to work in the mines. The class dynamics were simple: indigenous people experienced economic exclusion from owning the means of production. An historical class analysis of SA enables us to understand the very foundations of the economy as we know it today. There has been minimal transformation of the colonial economy and its labour processes. SA’s economic arrangement illustrates the absolute peak of racial capitalism. Simply put, SA labour relations are comparable to a cargo ship crossing the Atlantic Ocean with a rusty, leaky engine and the captain of the ship blames the chef. In post-apartheid SA, old colonial structures remain entrenched in economic activity, and in the disparities between those who control the means of productions and labourers. One thing endures in contemporary SA – the exploitation of workers and extraction of mineral wealth. In this regard, how does one apply the GDP as a reliable measurement of SA when our labour force consistently ranks among the most militant in the world? Better yet, how does a GDP per capita of $7,055 (about R129,691) in 2021 (37th highest in the world) reflect well in what is now deemed the most unequal country in the world, with my home city Johannesburg being the most unequal city in the world, according to Euromonitor. The top 1% owns 50% of the country’s wealth. This elucidates racial overtones of capital accumulation in SA bears. It is no surprise that SA ranks as only the 91st happiest country out of 149 countries, which indicates that the general population is gatvol with the state of the country. I understand that there will be an argument of SA having too much red tape when it comes to labour relations. However, we rank 4th only behind Britain, US and Canada in “labour flexibility”, according to the OECD. Importantly, this can be linked to the neoliberal policies adopted by the ANC government since 1994. Capital strike and much lower corporate taxes have decayed the state’s ability to provide the basic necessities for the people. In a world where neoliberal policies reinforce the reproduction of inequality and poverty, how do we rationalise the historical disenfranchisement of indigenous people with the idea of capital-driven solutions, which are tokenistic at best as leading political philosopher Nancy Fraser theorises in her new book on “cannibal capitalism?" Subsequently, neoliberal tools such as GDP also illustrate that the idea of capitalists acting in good faith is farcical, particularly in a country where the private sector consistently ranks among the three most corrupt in the world, according to biannual PwC “Economic Crime and Fraud” surveys. Going forward, neoliberalism ought to follow the same fate as the National Party, a painful death reflective of the millions who died in the capital cannibalisation of social reproduction, the environment and the state. GDP cannot nourish people. The state should be measured on its ability to care for its most vulnerable. A battle the government is currently not winning. A case of the blind leading the blind. • Jwara is an MA in sociology candidate at the University of Johannesburg ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/columnists/2023-05-03-fuzile-jwara-gdp-indicates-that-poverty-inequality-have-reproduced/

Section 3.7, held in Statement 400 in the Codes, allows an active Enterprise Development Beneficiary that is an EME or QSE, which is at least 51% Black Owned, to continue as a Beneficiary when their annual turnover increases to elevate them to the Large Enterprise threshold. However, it is critical to note that an organisation may not support a Large Enterprise as an Enterprise Development Beneficiary unless there was previous support for the Beneficiary when they were a QSE or EME. Notwithstanding, such recognition for those measured on the generic scorecard is for five years only from the first instance assistance was provided. Note that such graduation would elevate them to Supplier Development status and not to that of a Supplier Development Beneficiary. The reason is that an Enterprise Development Beneficiary does not form part of an organisation’s supply chain, but a Supplier Development Beneficiary does. To qualify for the 2 Bonus Points on offer, an organisation must provide evidence that an Enterprise Development Beneficiary did not form part of its supply chain before becoming a Beneficiary. Enterprise & Supplier Development (ESD) Services are available to guide members on the implementation of sustainable ESD Strategies.

The objective of Absorption, as outlined in the 2019 amendments to Statement 300 , is to create employment for unemployed learners upon completing their learnerships. Absorption must happen before the end of an organisation's B-BBEE verification, irrespective of the Measurement Period. As long as the person was a learner within the financial period, it should be claimable where they have completed the learnership programme by the time of verification. Skills Development Services are available to advise Members on Absorption strategies.

Often an unemployed learner shows incredible potential. Hence, organisations want to recruit them before the end of their 12-month learnership. However, will employing a previously unemployed learner before the 12 months allow an organisation to claim Absorption? What does Statement 300 say? Point Indicator 2.1.3 of the Skills Development scorecard under Statement 300 of the Generic Codes of Good Practice states: "2.1.3 Number of black people absorbed by the Measured Entity and Industry Entity at the End of the Internship, Learnership and Apprenticeship programme under paragraph 2.1.2.1." Therefore, Absorption can only take place at the end of a learnership, apprenticeship or internship. As per Schedule 1 , the definition of Absorption is as follows: "… a measure of the Measured Entity's ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice”. The concept of a long-term contract of employment under Schedule 1 has the following definition: "… a legal agreement between an individual and an entity that this individual would work for until his or her mandatory retirement date." Skills Development Services are available to advise Members on Absorption strategies.

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

Rising Sun Overport | 2 May 2023 The entrepreneurs had the opportunity to compete for an on-the-spot cash prize of R15, 000, in addition to (and perhaps more importantly) pitching their businesses to unlock commercial opportunities to supply the Dragons, capital investment interventions for growth, and mentorship from industry experts. The eThekwini Furniture Cluster Business Accelerator hosted its second ‘Dragons’ Den’ event at the Toyota Wessels Institute for Manufacturing Studies (TWIMS) in Kloof, KwaZulu-Natal, recently. The event featured a unique ‘Dragons’ Den’ format where nine aspiring, young, black entrepreneurs presented their businesses to a panel of three ‘Dragons’ from leading retailers, Mr Price Home, Homewood, and Sheet Street. The entrepreneurs had the opportunity to compete for an on-the-spot cash prize of R15, 000, in addition to (and perhaps more importantly) pitching their businesses to unlock commercial opportunities to supply the Dragons, capital investment interventions for growth, and mentorship from industry experts. Mikhael Benefeldt emerged as the winner of the ‘Best Business Case’, earning the cash prize in what was a highly contested category. Meanwhile, Sibusisiwe Msimanga from The Beanbag Specialist was recognised as the Industry Gamechanger, and Blessing Zondi from Bfurn was named the Most Promising/Innovative Business. Kyle Ballard, head of the Accelerators, and an eThekwini Furniture Cluster representative stated that the second Business Accelerator exceeded the expectations of its funder, eThekwini Municipality. Ballard further explained that the accelerator is a vital programme for achieving significant economic transformation in the regional furniture sector and supporting the participating large customers to find and develop their future, local suppliers. “Small business owners often encounter challenges related to market access and exposure to networking opportunities. Therefore, events such as the Business Accelerator play a significant role in facilitating direct dialogue and providing high-potential SMMEs with a unique platform to pitch their value proposition and innovative ideas to leading furniture retailers to unlock their growth. Considering the quality of the SMMEs that presented their ideas during the event, large customers are eager to pursue commercial agreements with several new suppliers,” he said. Ravesha Govender, the programme manager of the Economic Development Unit at eThekwini Municipality, shared that the presentations delivered were exceptional. She acknowledged that these pitches were the result of the SMMEs and all stakeholders’ tireless efforts and investments and added that she was amazed by the quality and potential of the top businesses showcased at the event. Govender believes that the initiative is genuinely driving localisation and promoting significant transformation in the local furniture industry. While the Dragons’ Den may be over for 2023, the eThekwini Furniture Cluster’s support for SMMEs is steadfast and ongoing through the accelerator. For more information on the cluster and the various services and programmes available, visit http://furniturecluster.org.za or email efc@bmanalysts.com ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://risingsunoverport.co.za/128847/business-accelerator-set-to-transform-smmes-in-the-furniture-sector/

SABC News | 2 May 2023 Image: DA Eastern Cape Facebook DA members picket outside NMB Metro offices The Democratic Alliance (DA) held a picket in Gqeberha calling for the amendment of the employment equity legislation as applied in Nelson Mandela Bay Municipality. The party says the legislation is discriminatory and called on the labour minister to revise the legislation in order to allow the municipality to implement an employment equity policy based on municipal demographics. DA Provincial Chairperson Yusuf Cassim says with the current legislation reflects the demographics of the province and not the metro. The office of the Minister of Employment and Labour, Thulas Nxesi, says it has not seen the petition and cannot answer on it yet, but that the minister will answer questions regarding employment equity during a parliamentary sitting dealing with this issue on Wednesday. “What we are saying is that employment legislation is not fair because it benefits only a few and marginalizes those that have already been disadvantaged by the apartheid system. We are against something that puts people of any race in the back seat and others above them, which is what we are seeing now. It can’t be that only a certain race benefits from jobs while others have to move to other cities within their own provinces just to get a job. Everyone must get jobs, no matter what race, and we can’t allow anyone to suffer under our watch.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sabcnews.com/sabcnews/da-calls-for-amendment-of-employment-equity-act-at-nmb-metro/

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

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