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Schalk Burger | 20 February 2023 Rescuing the small and medium-sized enterprises (SMEs) sector requires fundamental and large-scale interventions aimed at addressing their specific problems, including the energy crisis, the need for transport infrastructure and the need for supportive policy. Arguably, the most immediate concern for South Africa’s SME sector is the impact of the worsening energy crisis, says small business financier Business Partners chief investment officer Jeremy Lang. In the recent State of the Nation Address, President Cyril Ramaphosa indicated that State-level measures to help small businesses install solar power and energy-saving devices will be rolled out including through the adjustment of the bounce-back loan scheme. “Bringing SMEs into the supply chain for alternative, renewable sources of energy that will relieve pressure on the grid is one way in which government can boost the sector. Involving small businesses in the process of building an energy secure nation will also be a step in the right direction,” says Lang. The struggle of local small businesses against rising inflation and interest rates, petrol hikes and stage 6 loadshedding has been well-documented, with many businesses shutting their doors in 2022, he notes. During the 2022 Budget speech, Finance Minister Enoch Godongwana announced the launch of a government-initiated bounce-back scheme, which is a mechanism to offer financial support to businesses impacted by Covid-19. However, of the R15-billion that was to be deployed, only R140-million in loans had been approved, with only R77-million disbursed by late 2022. The discouragingly low approval rate and uptake are a testament to the far-reaching impact of the multi-layered economic decline that has undermined any progress towards post-pandemic recovery, Lang points out. Also in 2022, Godongwana committed R17.5-billion to the launch of infrastructure catalytic projects. “While good examples of planning have been seen in provinces such as KwaZulu-Natal, a more targeted approach to dealing with obstacles that are the most imperative to the growth of small businesses is needed,” he said. Rehabilitating and expanding the reach of the country’s urban rail network is a much-needed solution to more efficient public transport, he highlights. Additionally, initiatives such as the African Continental Free Trade Area are effective in principle, but not in terms of practicality, given the poor state of South African rails and roads, he notes. During this year’s National Budget Speech, on February 22, government should detail plans to bolster the growth of the SME sector and encourage entrepreneurial activity through tax breaks and incentives, Lang says. “Currently, SMEs qualifying as Small Business Corporations are exempt from paying income tax on the first R91 250 of their taxable income. This exemption, although renewed every year to account for inflationary pressures is not being increased at a rate high enough to make the difference that is needed for small businesses to regain ground in a way that is impactful and sustainable,” he highlights. This is a challenge that needs to be addressed as a matter of urgency and in tandem with revisions to the current employment tax incentive (ETI), which was increased by 50% to a maximum monthly value of R1 500 in the 2022 Budget Speech, he adds. “If SMEs are to benefit materially enough to grow their ventures and help alleviate the scourge of youth unemployment, tax incentives that support this objective need to be revised upwards at a rate that exceeds inflation. “Further interventions could include extending the applicable age bracket of the ETI to 35 and expanding the country’s designated special economic zones to include under-resourced communities in all nine provinces,” Lang notes. Many local small businesses emerged from the pandemic years last year as cautiously optimistic about the prospects of economic recovery. However, several socioeconomic factors have served to erode business confidence and thwart efforts to rebuild the already struggling SME sector, and there is a growing expectation for urgent government intervention that will offer much-needed relief, he adds. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/smes-need-energy-solution-transport-infrastructure-and-industry-development-2023-02-20

Thando Ntsinde | 17 February 2023 Accenture has announced that its third group of learners have graduated from a three-year EmployAbility Cadetship Programme. The programme was launched in 2016 in partnership with KLM Empowered. The learning experience is designed for young persons with disabilities. All 19 learners have been awarded their national qualifications at a celebratory ceremony in Johannesburg. "We designed the Accenture EmployAbility Cadetship Programme to help create meaningful career opportunities for people with disabilities within the information and communications technology (ICT) sector," says Khethiwe Nkuna, CSI and responsible business lead for Accenture in Africa. "The 19 learners who have graduated today are now highly skilled and motivated artisans who will be able to participate meaningfully in the economy and uplift their communities," Nkuna adds. The programme aims to serve as the best vehicle for attracting and retaining people with disabilities into the ICT sector and ensuring that more sustainable career opportunities are generated. Candidates obtain the theoretical grounding and on-the-job practical experience required for the current technological era. Emboldening and encouraging the graduates was guest speaker Dr Matete Lertula. The PhD graduate, with a doctorate in business leadership student and author, gave words of encouragement about embracing your purpose from her most recent book, Walking in your Divine Purpose. "Cadets start with the Further Education and Training Certificate in Project Management (NQF Level 4) so that they gain project and self-management skills," says Lyn Mansour, CEO of KLM Empowered. "They then move on to the National Certificate in IT Systems Development (NQF Level 5), which focuses on coding, AI and app development. And in their third year, they complete the National Diploma in Project Management (NQF Level 5), so that as developers they understand how to manage the implementation of new software or systems, and manage change effectively," Mansour adds. According to KLM Empowered, the programme is about more than just education — it is also about employment. "We call it a cadetship because it does more than develop a set of skills over three years. Learners also go through a rigorous work readiness programme where they develop behavioural skills like emotional intelligence, relationship management, personal effectiveness and critical thinking," says Mansour. "They participate in several masterclasses, introducing them to new, disruptive technologies and empowering them with future-focused skills. And they complete many international IT certifications along the way. Through all of this, we exponentially enhance their employability so that by the end of their cadetship, they are seriously in demand as individuals," adds Mansour. On completion, learners go through an 18-month internship programme within Accenture. This practical approach is the best way of ensuring that the programme creates sustainable and career-focused employment instead of ad-hoc temporary work opportunities. Currently, nine candidates from this group are interning with Accenture. "We believe in giving these young people a hand up, not a handout. It is an opportunity for them to disassociate themselves from the stigma that comes with living with a disability and allowing them to develop skills and face challenges with the mindset of a young person without feeling particularly disadvantaged," Nkuna says. Since 2021, the format of the cadetship has changed to a two-year programme to keep pace with the changing technology arena. In the current cohort, 10 learners are ready to enter their second year, and another 15 will enter their second year later. All interested potential candidates are encouraged to contact Portia Matuludi to find out about the next intake and other opportunities. Accenture Research reveals that it pays to be inclusive. When companies create an inclusive culture for persons with disabilities, everyone benefits, says Accenture. Companies that embrace best practices for employing and supporting more persons with disabilities in their workforces have outperformed their peers. "Our vision is to create a barrier-free environment by investing in and developing this untapped talent — and we've seen some amazing success stories so far," Nkuna says. "At Accenture, we welcome people with different capabilities, perspectives and experiences. We believe that this diversity emanates in novel ideas and approaches to business challenges, a higher level of innovative thinking and more varied tactics that help achieve greater levels of success," says Nkuna. "We're not only opening more opportunities for people with disabilities in South Africa but developing them with industry-relevant skills that can be used anywhere they decide to work," Nkuna concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.mediaupdate.co.za/publicity/153428/accenture-celebrates-graduates-from-its-employability-cadetship-programme

Anelisa Sibanda | 19th Feb 2023 As the unemployment rate continues to sky-rocket, Masimbonge Vuma decided to venture into farming after he finished his diploma in mechanical engineering. But this was only after a long period of hopping from one company to another trying to find employment. The 26-year-old lad from Cala in Eastern Cape is the youngest from a family of four. Vuma was raised by his late mother and grandmother. Vuma also holds a diploma in agricultural management from Nelson Mandela University, which he used to start his farming business, Sahaba Holdings. “I have two sisters, who are both married. Currently, I live with my brother at home who assists me with my farming business. My uncle played a huge role in my life. He had tractors, which he used to plant for small-time farmers, and I used to accompany him. That’s when I was first introduced to farming but it wasn’t something I thought I would pursue in future as a career.” When Vuma started five years ago, he farmed in his backyard until he acquired land from which to ply his farming business. “The business did not make any sense when I started but I persevered and worked hard to make it work. The land I currently work is 200 hectares, but due to lack of funds I only occupy 11 hectares of it.” Vuma used the money he made from selling second-hand textbooks in university as well profit from selling fast food to fund his business. He said one needs to be patient, be willing to start small and grow in the industry. “In terms of capital, the government helps sometimes with grants and loans, so you need to do a lot of paperwork as a farmer to apply for these loans and grants, that’s how you keep the wheels rolling.” “We produce a variety of vegetables in the field and in greenhouse tunnels. We produce cabbage, spinach, lettuce, bell/sweet peppers, maize and herbs. We also farm in livestock such as pigs, chicken broilers and layers. We sell our livestock to an abattoir.” Vuma has eight employees on contract and gets additional people to assist when there is too much work. The employees are responsible for daily farming activities, planting, weeding, irrigation, harvesting and packing fresh produce. “We sell our produce to Spar, Boxer, Usave and fresh produce market. Most of our customers collect their goods, for those who do not we offer delivery services. For now, we cater for local people and surrounding areas like Ngcobo and Queenstown.” He said farmers are faced with challenges when a business is still in its infancy due to a lack of resources. “Farming needs a lot of capital, especially if you want to farm on a large scale.” He added that the forever-rising fuel costs and load shedding challenges put further strain on farmers. “Speaking about his proudest accomplishments since he ventured into farming, Vuma said being able to create employment is one of them. “With my business, I have created jobs for the young unemployed and this gives me a lot of joy to contribute to fighting unemployment in my community. “I am hoping to run a self-sustained business and commercialise the business and help ensure South Africa is a food-secured country. Over the years, I have learnt that farming is not only about getting your hands dirty, but it is a business to be taken seriously.” Vuma said he hoped to supply goods nationwide in the future. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/hustlers-avenue/i-never-thought-id-become-a-farmer/

Ina Opperman | 19 February 2023 Image: iStock Small business owners were glad to hear they will get help to find alternative power sources, but what is the plan with the loan scheme? It is time for government to clarify and augment its bounce-back loan scheme to support small businesses affected by rolling blackouts. Solar tax relief must also be extended to financial assistance to match small business cash flow and the extent of the impact experienced due to load shedding. President Cyril Ramaphosa announced a raft of new measures to combat the country’s existential power crisis in his state of the nation address recently after the country had over 200 days of load shedding in 2022 and not a single day without blackouts since the beginning of 2023. Needless to say, the power crisis decimated small businesses that cannot afford to manage the unreliable electricity supply. Ramaphosa also announced that last year’s Covid-19 “bounce-back” loan scheme to help businesses recover from the pandemic would now be used to assist them in getting funding for solar power. “National Treasury is working on adjustments to the bounce-back loan scheme to help small businesses to invest in solar equipment and allow banks and development finance institutions to borrow directly from the scheme to facilitate the leasing of solar panels to customers,” he said. Bounce-back loan scheme for effects of pandemic Last year, government launched the bounce-back loan scheme administered by banks and other financial institutions and guaranteed by the government for companies that need finance to recover from the effects of the pandemic. Ramaphosa said the department of small business development will work with National Treasury on how the scheme can be strengthened to assist small and medium enterprises and businesses in the informal sector. Now Inospace, South Africa’s largest owner of serviced logistics parks, is pushing for government to clarify what the loan scheme will entail. “Inospace believes government must urgently provide funds and facilities to help small businesses with their existing debts and payments, buy raw materials and manage other operational and procurement costs,” Jacques Weber, COO of Inospace says. “These interventions must be structured to match the patterns of small business cash flow and the extent of the impact experienced due to load shedding.” Weber says solar tax relief is better than nothing, but this will not help small businesses survive or bounce back. “We therefore call on government to immediately provide unconditional financial assistance to SMEs whose businesses are at an enormous risk of being annihilated by unending load shedding.” Any help from department of small business development? The department of small business development recently said that, together with public and private stakeholders, it was working on an energy relief package for SMEs affected by load-shedding. “We would welcome “bounce-back” measures that translate into financial assistance,” says Weber. SMEs are often called the lifeblood of South Africa’s economy and represent over 98% of businesses, employing up to 60% of the workforce with a gross domestic product (GDP) contribution of 39%. Weber says SME’s contribution should increase in the future, further cementing their importance to the economy. “However, these businesses are also the most vulnerable to economic upheaval and externally driven pressures.” While load shedding persists, thousands of SMEs are staring down the barrel contemplating shedding jobs, lowering production or possibly winding up. The SME segment of the economy does not have the means to get off the grid through costly alternative power solutions, he says. The department of trade, industry and competition launched the Intsimbi Future Production Technologies Initiative (IFPTI) in 2019 to position the country’s advanced manufacturing sector for the fourth industrial revolution. Load shedding not ending soon “Despite the president’s optimism to end load shedding, Inospace believes the problem will not disappear quickly. The company has launched a Living with Load Shedding project to help its clients minimise disruptions to their business operations and negotiated discounted prices with various service providers of alternative energy solutions, including solar energy, inverter and generator options, to assist SMEs within its portfolio.” Inospace also established a hotline service to provide clients with advice or emergency relief and installs solar plants in its parks to reduce consumption and lower demand on various power grids. Through this project, clients can now install their dedicated solar plants to reduce electricity bills. “Many property companies use solar as a yield-enhancing profit generator, but we will use solar to keep our clients in business. Our clients can move between logistics parks to use the business hubs with 24/7 power, enabling them to work through the different load shedding schedules and stages. “With no new generation capacity added to the system, the possibility of unplanned breakdowns of generation power units will continue. Planning for load shedding in our business operations and strategies will be essential for at least a few years,” Weber says. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/business/personal-finance/clarify-bounce-back-loan-scheme-for-small-business/

Luke Fraser | 19 February 2023 South Africa is facing a critical shortage of skilled artisans. According to Jendamark Automation, which builds and exports electric automotive component parts, artisans are in high demand globally, with good career prospects for those who finish their vocational training programmes. However, Jendamark’s Marinus van Rooyen said that the tech company noticed a worrying decline in the number of applications for artisan positions – most notably for toolmakers. “We are concerned about this trend and have found that this challenge is not unique to Jendamark, as our local and national manufacturing suppliers are experiencing the same frustration,” said Van Rooyen. He added that South Africa’s manufacturing sector could only grow if there is a steady supply of engineers, artisans and technicians who can build and fix things. Solutions Despite the challenging situation, numerous programs are in place to increase the number of skilled artisans across the country. Last November, Blade Nzimande, Minister of higher education, science and innovation, said that South Africa needed at least 60% of those leaving school to become artisans to meet the country’s demand for the skills. The National Development Plan aims to add 30,000 artisans per annum by 2030; however, current estimates predict only 20,000 per year, resulting in a shortage of “priority skills.” Van Rooyen said that Jendamark contributed to skills development by running its own in-house apprenticeship programme for mechanical fitters, electricians and toolmakers. The program is four years long and is overseen by MERSETA and endorsed by the Department of Higher Education and Training. “For trade-tested artisans, the world is their oyster. There is a shortage of technical skills globally, and we have found that many South Africans are being lured overseas by international recruiters,” Van Rooyen said. Additionally, as reported by the Mail and Guardian, American Tech conglomerate Cisco said that it will upskill 10 million people in the next 10 years in the digital and cybersecurity space – with three million being trained in Africa. “The youth of today will be the green engineers of tomorrow. We need engineers with new skill sets to build solar panels and wind turbines, sustainability offices and become new energy analysts,” Reem Asaad, vice president at Cisco EMEA, said. In Africa, Cisco first launched the digital acceleration programme – a collaboration with government leaders to build sustainable, inclusive and innovative technology solutions – in South Africa due to the greatest short-term assurance for growth and opportunity. Cisco said that it is not only dedicated to training and education but also mentoring and consulting to help small businesses succeed. “The challenge in South Africa is how to take an already young, agile, well-educated and ambitious population and give them a pathway to success,” Cisco’s global innovation officer Guy Diedrich said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/technology/664855/south-african-tech-company-sounds-the-alarm-on-skills-shortage/

Kevin Brandt | 17 February 2023 CAPE TOWN - Local youth development in electro-mobility is set for a major boost as part of the 2023 Cape Town E-Prix. There are nine days left before the mother city hosts the fifth leg of this year's Formula E race. It's the world’s first international, fully electric street racing series. The event aims to bring the latest innovations in electric vehicles and alternative energy solutions to the globe's major city centres. One of the initiatives being a launch at the E-Fest includes Formula Student Africa. Alexander McLeod, from the University of Warwick, explained that the campus has partnered with six local tertiary institutions to get the skills development project off the ground. “What we're looking to do is to work in high schools and in universities to advocate E-mobility, to create opportunities for skills development and knowledge transfer so that we have more young people understanding what opportunities are available in that space and it's not just engineering-focused - in a typical Formula E team or any racing team there's commercial people, there's brand people, there's HR, there's legal..." McLeod said that they were in discussions with representatives at the Cape Peninsula University of Technology, University of the Witwatersrand, University of Cape Town, and others. "We've got the University of Warwick and their Warwick Racing Formula Student team that are coming across to South Africa, which is absolutely fantastic. They'll be at our stand on Saturday at the E-Fest. Having E-movement as our partner is just incredible, it's opening up doors, opening up avenues and we really look forward to working with Iain and his team in bringing our youth into this space." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://ewn.co.za/2023/02/17/cape-town-e-prix-set-to-give-youth-development-in-electro-mobility-set-a-boost

SA Good News | 17 February 2023 The Anglo American ICT learnership programme in South Africa has produced 35 graduates with a set of new digital skills contributing to the country’s overall ICT development focus. All 35 young graduates have achieved an NQF 4 qualification and are part of the first cohort of the programme. The ICT learnership programme included subjects such as e-commerce, graphic designing, UI/UX and cloud computing to help school leavers continue to build ICT skills post-matric. The learnership aims to give candidates certified skills and experience through on-the-job training in order to secure jobs in the ICT sector and close the country’s massive digital skills gap. The 12-month SETA-accredited learnership is managed by local development specialists, Summit. Each student receives a monthly stipend, a device, and data, and is allocated an employee mentor by Anglo American. At least 40% of their time is spent doing practical training. Of this first group of graduates, 11 have been employed full-time by the non-profit organisation Edunova, 10 will be pursuing an NQF5 coding learnership, and 14 will be enrolling in various tertiary education undergraduate programmes. Zaheera Soomar, global lead for education and community skills at Anglo American, said: “It is through such partnerships that opportunities and pathways are created for our communities, particularly in accessing quality education, technology, and digital skills. As the programme upscales to more young people, I look forward to seeing the impact it has for them, their families, and communities”. Tshegofatso Mosiapoa, one of the graduates, said: “On the first day of the learnership, the instructor asked us to switch on the laptops and open Microsoft Word. I had no clue what he was talking about, as it was my first time working on a laptop. A year later, I am an ICT graduate with my own small business, helping people in my community run, install, and update software and teaching them how to use Microsoft. The learnership has given me skills to earn an income for myself. I am excited to further my skills by studying an NQF 5 Systems Development course as well”. Based on its success, the programme will increase its intake to 120 learners this year coming from communities close to Anglo American’s operations in Limpopo, North West and Northern Cape. The learnership will also be launched in Botswana in communities around De Beers’ Debswana operations, and a similar learnership will be established in our Australia host community. The 2021 ICT Skills Survey, carried out by Wits University’s Joburg Centre for Software Engineering (JCSE) in partnership with the Institute of Information Technology Professionals South Africa (IITPSA), highlighted the fact that significant digital skills gaps remain in South Africa, with not enough new skills coming through the pipeline. The learnership programme was established following the success of a Google Sprint between July and December 2021. The Sprint saw more than 150 Grade 12 students from schools around Anglo American’s mining operations complete courses in IT Support, UX/UI Design, Project Management, and Data Analytics. Three of the Google Sprint graduates were part of the learnership’s first intake. As the learnership progresses, the programme aims to deploy learners as ICT champions in schools that are part of Anglo American’s Education Programme. Their duties will include setting up devices at schools; securing and maintaining devices and ICT infrastructure; supporting the adoption of ICT into teaching methods; and giving students ICT skills. About the Anglo American Education programme The Anglo American South Africa Education Programme aims to improve learners’ educational outcomes, and quality passes through addressing some of the underlying reasons for poor education outcomes by supporting school management teams, governing bodies, principals, and teaching staff. The programme forms part of Anglo American’s Sustainable Mining Plan, and one of its pillars is to create thriving communities close to its operations, with education as a key building block. The programme has set ambitious learner-focussed targets, including: · 90% of learners aged five meeting the minimum requirements for school readiness · 90% of grade 3 learners passing with at least 50% in Numeracy and Literacy · 75% of grade 6 learners passing with at least 50% in Mathematics and English First Additional Language · 90% matriculation pass rate, with a 50% university entrance · 65% of grade 12 learners passing with at least 50% in Mathematics In July 2022, Anglo American announced that it would be extending its education programme in South Africa. By 2027, Anglo American will have invested R1 billion in improving educational outcomes in South Africa, with the ultimate target for schools in host communities to perform within the top 20% of state schools nationally by 2030 – per the ambitions of our Sustainable Mining Plan. For further information, requests for media interviews please contact: Media South Africa Nompumelelo Kunene nompumelelo.kunene@angloamerican.com ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sagoodnews.co.za/anglo-american-ict-learnership-programme-in-south-africa-produces-its-first-cohort-graduates/

Vaal University of Technology | 16 February 2023 The signing of a Memorandum of Understanding (MoU) between VUT, North-West University (NWU) and the Vaal Special Economic Zone (SEZ) This follows the recent signing of a Memorandum of Understanding (MoU) between VUT, North-West University (NWU) and the Vaal Special Economic Zone (SEZ). The strategic collaboration between the three seeks to enhance skills, re-industrialise and rejuvenate the declining economy of the Vaal region. The agreement was signed by Dr Simphiwe Nelana (VUT acting DVC: Research, Innovation, Commercialisation, and Internationalisation), Prof Dr Bismark Tyobeka (NWU vice chancellor and principal) and Xola Sithole (SEZ Programme director). Highlighting some of VUT’s strengths that would be relevant and valuable to this project, Nelana singled out the University’s Centre for Alternative Energy which has a focus on fuel cells research, dating back from 2004 and has grown to a point that a novel membrane has been developed and manufactured. “This research centre, working with other departments will play a vital role in the project on green energy generation, green hydrogen, green steel,” he said. He further emphasised that the University will play a major in the focus area on greenhouse farming, and agri-processing, cannabis related farming, adding that the VUT’s Institute for Chemical and Biotechnology (ICBT) has secured a license to be a testing centre for cannabis growers around Gauteng, and that they have been awarded a grant for infrastructure development by the Gauteng Department of Agriculture and Rural Development (GDARD). Tyobeka, on the other hand, didn’t mince his words when he emphasised how important it is for universities to conduct research that is relevant and has impact in the communities, adding that there is an even greater need for the integration of research and community engagement. “The signing of this MOU is a great step in ensuring that universities participate in the activation of the local and rural economy, in this instance, at Vanderbijlpark,” he added. Prior to signing on the dotted lines, Sithole gave an overview and vision of Vaal SEZ, saying that primarily, it aims to build a multi-site, multi-sector SEZ throughout the Sedibeng district and regenerate the Vaal region by supporting new economic activity within the area. Referring to the twelve-page MOU as 'the pursuit of the mission to reignite the birthplace of industrialisation in South Africa', he highlighted that building on the historic competitive strengths and skills base of the area, this is not ‘mission impossible’. On the rationale for collaborating with VUT and NWU, he said some of the expected priority outcomes include bespoke basic and applied research and innovation in the priority investment areas for the SEZ, as well as skills development to meet the requirements of the investors over the medium to long-term. “This partnership is a critical to the establishment of an ecosystem that will power the successful implementation of the Vaal SEZ,” he concluded. Also in attendance at the momentous event were the executive mayor of Emfuleni Local Municipality, Cllr Sipho Radebe and political head of Local Economic Development in Sedibeng District Municipality, MMC Lulama Gamede, who pledged their support for the initiative. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/499/236042.html

Michael Ketz | 16 February 2023 Share incentive plans are becoming more and more popular among private companies as a means of remunerating employees and improving staff retention. Increasingly, these organisations are looking to implement share-based remuneration that extends beyond the executive pool. Private companies offering incentive plans must carefully navigate a maze of complexities related to their incentive plan administration, accounting, and communication – even more so than their listed counterparts. If these are not managed effectively, there can be adverse effects for both the company and the employees it is looking to remunerate and retain. Incentives that work In recent years, private companies have moved away from phantom share plans, which pay out the equivalent cash value of an equity incentive when they vest, to rewarding staff with a share in the company. Share incentives have emerged as a desirable option for companies looking to keep their cash flow steady while allowing employees the chance to reap long-term benefits from their employment and business growth. The opportunity to partake in long-term company growth has become a popular choice amongst employees who are opting to retain their shares rather than cash out when these incentives vest, displaying an enthusiasm to become part of something more significant. Several factors play a pivotal role in ensuring a successful incentive plan, among them being the requirement for clear and ongoing communication of the plan with employees. When an incentive plan is not well understood by employees, it is likely to have its value eroded by competing interests or other factors that adversely affect loyalty — such as changes in management or corporate strategy — and its effectiveness as an incentive tool can diminish. Communicating the value For private companies, effective communication with share plan participants is even more important due to the lack of publicly available financial information, such as readily available share price information or news on corporate actions. Unlike listed companies, private company shares are not traded on an open market, making it difficult for shareholders to easily understand the value of their equity and, consequently, the value of equity incentives. Therefore, this value must be communicated to participants to maximise the incentives' efficacy and keep them abreast of any corporate news - such as plans to list or possible liquidity events. Fair valuing incentive plans can be a tricky task, but attempting to estimate the value without proper guidance could not only prove costly - but it may also work against staff retention. Fortunately, technology is on hand to support and automate these complex computations - saving time and money while also providing transparency into how successful each initiative truly is in driving engagement and retaining valued staff members. Managing the reward lifecycle from issuance to settlement For private companies, the administration of equity compensation provides a unique set of complex challenges. Awarding and tracking these awards is only part of it – settling them in an environment where liquidity issues will most likely arise makes it all the more difficult. For example, employees may not be able to sell a portion of their equity until the company goes public or undergoes a liquidity event. Therefore, planning couldn’t be more important when launching an equity-based incentive plan. Companies must carefully consider the implications of enabling their incentive plan participants to sell their equity while considering liquidity constraints and incentive-related taxes, as well as how best to ensure funds are transferred securely into participants' bank accounts. These decisions will have a significant financial effect on employees, requiring thoughtful attention from all parties involved. Working with the right technology partner can bring immense value in tackling complex incentive plan challenges. It can personalise communication and create customised processes such as online award issue flows with digital signing capabilities that enable electronic tracking of orders from start to finish. Furthermore, tax calculations and payment automation through specialised incentive technology can facilitate a more streamlined, communicative experience that everyone can rely on. Managing the share register Ensuring adequate tracking of equity ownership is critical in understanding the influence that share dilutions can have on current shareholders and potential investors alike. A highly-intelligent, automated system prevents any unnecessary complexity associated with managing a share register, specifically during liquidity or capital events. With an appropriate technology solution, companies can store all pertinent documentation related to both shareholdings and dividends on one central repository (often referred to as a "Cap Table"), allowing it not only to facilitate future investments but also to execute dilution scenarios for adequate funding management. Simplifying the complexity Consideration of administration, remuneration and compliance reporting is vital in maintaining cost-effective yet compliant incentive plans. Accounting for equity-settled or phantom plans must also be achieved in line with the financial reporting standards on share-based transactions. Keeping up with all these areas can be simplified through automated processes. Automated integration can reduce risk and simplify complex processes using step-by-step procedures, making calculations easier and providing the necessary monitoring and recordkeeping to ensure efficient administration across the organisation. By implementing a digital tool, businesses can instil order in their operations. Employees are kept in the loop, and a culture of ownership is established, which in turn drives greater employee engagement and retention. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/how-private-companies-can-manage-equity-compensation-effectively-2023-02-16-1/rep_id:4136

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17 February 2023 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, 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”. Furthermore, clause 5.5 states: “Salaries or wages paid to an employee participating as a learner in any Learning Programme constitute Skills Development Expenditure if the Learning Programme is a Learnership, Internship and Apprenticeship (Category B, C and D) of the Learning Programme Matrix or a stipend linked to a bursary programme in terms of paragraph 2.1.1.2.” Historically, this principle results in organisations giving preference to unemployed Bursars, where 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. Additionally, members must ascertain whether bursaries 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 on hand to guide members in making expenditure claims.

17 February 2023 For most SETAs, the deadline for submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) is 30th April 2023. Where organisations must submit these reports to their relevant SETA, they should obtain points under the Skills Development element. As Skills Development is an identified Priority Element, not submitting an ATR and WSP could trigger the Discounting Principle, which will impact an organisation’s overall score. The information contained in the WSP and ATR must coincide with the data submitted to an organisation's B-BBEE Rating Agency at the time of their B-BBEE Verification. Both the WSP and ATR are strategically designed documents that systematically identify any skills gaps, which align with the government's overall Skills Development Strategy. Both intend to track development, plot succession plans and monitor the overall progress of organisations against set targets. Skills Development Services are available for any queries or challenges regarding submissions.