Search Results

Sunday World | 15th Feb 2023 Employment and Labour Minister, Thulas Nxesi, says the social compact initiatives announced by President Cyril Ramaphosa during his State of the Nation Address are critical to promoting job creation. Nxesi said that there is a broad agreement from the social partners on eight priority interventions, and they anticipate that five or more Economic Sector compacts will come out of this process, as with the ESKOM social compact. The Minister was speaking on Tuesday at the Cape Town City Hall during a Parliamentary debate of President Cyril Ramaphosa’s State of the Nation Address (SONA). The Joint Sitting of the National Assembly (NA) and the National Council of Provinces (NCOP) today continues debating the President’s SONA and the President will respond to the debate on Thursday. On employment retention and creation, the Minister said the expanded mandate of the department, which includes employment, is reflected in the consultations with government departments on the National Employment Policy. This is envisioned to be finalised by September 2023, and thereafter it will be submitted to Cabinet for approval. “As Minister of Employment and Labour, we are establishing an Employment Creation Coordination Committee that is to be chaired by the Deputy President and will include Economic, Infrastructure and Employment Ministers, organised business and labour, and community organisations,” Nxesi said. Nxesi said the committee will be tasked with ensuring intergovernmental alignment, guided by pro-employment policies; a relevant skills and educational framework; the extension of social protection to workers, and support for work seekers. The committee will further be tasked with ensuring an ecosystem that promotes sustainable enterprise development, self-employment, and positive regulation for the informal sector, and a labour migration policy and a legislative framework that manages migration to and from South Africa to benefit the economic needs of our country. Presidential Employment Stimulus In support of the Presidential Employment Stimulus, Nxesi said the department and its entities continue to contribute to employment in the following manner: Coordinating the pathway management network with the Presidency to support young people. UIF has partnered with a number of institutions in creating and retaining jobs. Our focus is on supporting SMMEs. Productivity SA will accelerate its Enterprise Development and Support Programmes, with a focus on company turnarounds. The implementation of a Rehabilitation and Return to work framework in the COID Act will promote the reintegration of injured workers into employment. We also support the employment of people living with disabilities through our thirteen factories and subsidies to designated organisations. As part of eliminating red tape, the Department has tabled labour law amendment proposals to NEDLAC to reduce the regulatory burden on small businesses. In the proposed amendments to the Employment Equity Act (EEA), measures will be introduced to enhance the prohibition of unfair discrimination whilst improving the competitiveness of small businesses employing less than 49 employees. Enforcement and Inspectorate Services At the beginning of the year, Minister Nxesi visited farms in different provinces as part of the enforcement and inspection of adherence to labour and National Minimum Wage laws. “As at the end of quarter three, we have conducted 236,000 inspections and referred 5,100 cases for prosecution. “Our inspectorate recovered R150 million owed to vulnerable and migrant workers – who are often employed exactly to exploit their vulnerable status as migrants,” the minister said. Nxesi emphasised that combating child labour is part of the daily work of the inspectorate. He added that the Durban Call to Action, adopted by the 2022 ILO Global Conference on the Elimination of Child Labour, is a landmark in the movement against child labour. To deal with the high number of work-related injuries, the minister said the department is amending the Occupational Health and Safety Act (1993) to increase fines and penalties to deter unscrupulous employers. Minister Nxesi said that the findings by the department’s dedicated inspectors have resulted in the Department of Employment and Labour developing a National Labour Migration Policy which seeks to balance between four principles: The perception that employment of foreign workers is being done at the expense of citizens; The economic need to source and acquire global scarce and critical skills needed by the economy; Protection of rights of migrants in line with international treaties and our Constitution; and Locating all these within regional integration and cooperative imperatives.– SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/social-compact-initiatives-critical-to-job-creation/

Daily Vox Team | 14 February 2023 Recognizing the shortfall of specialized skills in South Africa, the government had created “Technical and Vocational Education and Training (TVET)” Colleges. These institutions aimed to make accredited vocational training more accessible, especially to previously marginalized groups. With little information on TVET Colleges, parents have shunned these institutions that offer vocational trade qualifications as it was considered that supporting a child in a vocational trade was setting them up for an unsuccessful future. Hence, the reputation of TVET is typically rather poor when compared to that of other educational institutions. This oversight, says Vimala Ariyan, the CEO of Star Schools, is robbing young people of the opportunity to use technical education as a launch pad into their future. “TVET institutions are excellent places to study and develop vocational or occupational skills such as those required in Building and Construction, Hospitality, Culinary, Tourism, Information Technology and many more occupations that respond to our fast-changing skills-demand across sectors. The diverse range of programmes offered by TVET Colleges is practical, skilled based and nuanced. As a result, these programmes will encourage self-learning, independence and provide learners with employment opportunities. A majority of TVET qualifications also provide another opportunity for learners – and that is to become self-employed. One needs to consider TVET Colleges as a route to secure employment/self-employment and as a stepping stone to Higher Education thereafter,” says Vimala Ariyan. Here are some more reasons why TVET can be an option for you: TVET colleges are an alternative to universities for learners who want to enter the workforce without getting a traditional degree. These institutions will provide the following: Increased job opportunities Most employers require qualifications for certain roles at their company. As many industry practices continue to evolve, attending TVET Colleges will provide one with the opportunity to keep one’s skills current while also learning something new. Furthermore, TVET colleges offer a wide variety of qualifications and courses in the most in-demand skill sectors, amplifying the opportunities available to students. Cheaper and easily accessible TVET institutions are known to be less expensive than other tertiary institutions. Also, their entry requirements are not as strict as universities, making TVET college an option that is more inclusive and accessible to all. Many TVET programmes are also funded by organisations and the government. Courses are externally and independently quality assured Students who study at a TVET College can be assured their qualifications are accredited and recognised by the South African Qualifications Authority (SAQA) and the Department of Higher Education and Training (DHET). Courses are also moderated, and quality assured by the Sector Education and Training Authorities (SETAs). Hands on experience Experience is something most employers want from their prospective employees, however, as a new job seeker this is often lacking. TVET colleges, unlike most theory-based institutions, offer hands-on practical experience in the workplace as part of the programme which means that by the time one graduates, one will have an actual understanding of how to execute tasks in one’s chosen field. There are 50 TVET Colleges with over 200 campuses in South Africa, each with its own focus areas and specialisations. MyStar Institute of Technology is an accredited subsidiary of Star Schools that offers accredited qualifications and short courses to youth as well as industries across sectors. The reasoning behind the launch of the institute is to ensure we provide a pathway of learning for our matriculants into higher levels of education. “Attending A TVET College is so much more than just getting a qualification and finding a job. It can be life changing, as one will get the opportunity to gain a variety of soft skills which will assist one in becoming more marketable. In addition, there has been an increase in the number of TVET graduates being hired by businesses in recent years. Learners must take advantage of the opportunities provided by TVET colleges to pursue a vocational career and position themselves in the labour market,” concludes Vimala. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.thedailyvox.co.za/reasons-why-school-leavers-should-consider-going-to-tvet-colleges/

Jeanette Clark | 15 Feb 2023 The turnover tax system introduced in 2009 to simplify tax compliance for small businesses hasn’t been widely adopted, suggesting a need for greater awareness of it. Image: Adobe Stock For South Africa to have employment-rich economic growth, SMEs need additional policies and support from government: Colin Timmis of Xero. The eyes and ears of South Africa were fixed on President Cyril Ramaphosa’s State of the Nation Address (Sona) last week, in anticipation of some positive news regarding the energy crisis, declining economic growth, and any signs of hope in a challenging environment. Small and medium-sized enterprises (SMEs) were part of that crowd, as the impact of Covid-19 lockdowns and persistent load shedding has made it difficult to stay operational. A report by the Small Enterprise Finance Agency (Sefa) found that 71% of the agency’s funded clients have been negatively impacted by load shedding, and the majority reported that they require an alternative power source, such as a generator, to continue operations during power outages. On a recent Small Business Conversations Podcast with Moneyweb, Small Business Institute CEO John Dludlu said the country needs approximately 39 000 to 40 000 new SMEs each year, to achieve the National Development Plan’s goal of 90% of all jobs coming from SMEs by 2030. There was hope that Sona would announce measures to enable the ecosystem that could help SMEs reach this target. Colin Timmis, country manager for South Africa at Xero, a provider of accounting software and digital solutions, was hoping for a more robust conversation on the crucial role of SMEs in fostering growth. “It is essential to differentiate between different types of SMEs,” he says. “Those that employ people are critical to our economy and, in my opinion, should be the focus of policy and incentives to encourage more active participation and economic activity, so they can contribute to the tax system.” SMEs in Sona President Ramaphosa did speak on the state of small businesses in South Africa, unveiling initiatives aimed at promoting growth and sustainability. “The government,” he said, “will finalise amendments to the Business Act this year to reduce regulatory barriers for small, medium, and micro enterprises as well as co-operatives, making it easier to start a new business in the country.” The president highlighted the efforts of the Red Tape Reduction Team in the presidency, which has collaborated with various departments and agencies in streamlining processes related to mining rights, tourism transport operator licences, visas and work permits, and the informal sector. Ramaphosa announced that the Sefa would provide R1.4 billion in financing to over 90 000 entrepreneurs. Furthermore, the SA SME Fund is working to establish a R10 billion fund to support SMME growth. According to the president: “The government is considering a contribution of R2.5 billion, with the balance of R7.5 billion to be raised from the private sector.” What else is needed? Timmis is confident that simplifying the tax system will have a significant impact. “The South African Revenue Service already has a clear vision and strategy, but I believe we could do a better job of promoting it.” He highlights the low number of businesses that have adopted the turnover tax system, introduced in 2009 to simplify tax compliance for small businesses, possibly due to ignorance or a lack of understanding. To further assist SMEs, Timmis suggests improving payment policies to ensure larger corporates and government pay these businesses on time. “Many SMEs struggle with cash flow, so having policies in place that reduce late payments would improve their chances of success,” he says. Timmis is also passionate about the benefits of digital platforms and tools for SMEs, saying: “There is a real opportunity in South Africa to revolutionise small business development through technology.” These tools can aid in payment collection and tax compliance, and provide easier access to financing by offering financial statements for creditworthiness assessment. He proposes that the government consider an incentive scheme similar to the UK’s Help To Grow campaign, which offered a training programme for small business owners and subsidies for acquiring digital business tools. Although there was one reference to digital and technology skills development in Sona – with the National Skills Fund providing R800 million for skills development through a payment-to-training-to-employment model – no other incentives were announced. Optimism and resilience, despite challenges According to Xero’s ‘State of Small Business’ report, released last year, small business owners are optimistic about the future – 87% of respondents expressed confidence in their businesses and 99% expected to survive the following five years, which is a stark contrast to earlier, bleak predictions. One in three businesses also stated that they plan to expand into new markets in the coming year. Timmis states: “In the cohort of SMEs that we deal with, those that can afford digital tools and an accountant, this is the real on-the-ground feedback: businesses are doing better than ever.” However, he acknowledges that there are still many small businesses struggling to overcome challenges. He hopes the upcoming budget speech will recognise these difficulties and applaud the resilience of small businesses. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/in-depth/xero/sas-smes-essential-to-economic-growth-optimistic-about-the-future/

Media Update | 14 February 2023 Xaxis South Africa has announced the success of its pilot FastTrack programme for jobs in digital media. Xaxis, GroupM's outcome media specialist, will see the continuation of its FastTrack programme for 2023, following the success of its pilot initiative in 2021. The programme empowers the company to bolster its team while also addressing ongoing employment challenges in the region. The project evolved from the idea of Ursula Strauss, managing director of Xaxis South Africa. It aims at creating employment and skills development opportunities in digital media, an industry often overlooked due to perceived entry barriers. Despite the staggering youth unemployment rate of South Africa, which stands at 60%, businesses like Xaxis have struggled to grow their teams because they can't find candidates with the desired basic digital media skill set, says the team on the project. "We had jobs to offer but nobody to offer them to," says Strauss. Strauss adds, "Our sector is not reliant on traditional education structures; instead, we have been able to build career pathways working with those who have the fundamentals of digital media knowledge. Our emphasis has been to recruit those with a passion for learning and strengths in communication, team building and other core organisational skills." To launch the programme, Xaxis collaborated with Steffan van der Male, head of iHub Africa, an initiative committed to training underprivileged African youth in basic digital media skills, alongside general personal and business skills. The scheme has become a pivotal mechanism for building bridges between corporates and young African talent. After completing a nine-month iHub course, graduates Nvelwenhle Ncube, Camilla Moyo and Immaculate Moyo then enrolled in the Xaxis FastTrack programme. Leaning on Xaxis United Kingdom, the South Africa team was able to provide access to a wealth of resources, such as: webinars learning material, and Google-certified exams. "I never imagined myself in a corporate environment," says Ncube. "I fell in love with my profession and today I am working hard to be the best at it." Strauss concludes, "There is a huge education, skill and employment gap in South Africa. I believe we are bridging it by providing these young people with opportunities to change their own and their family's circumstances — allowing them to dream more, learn more and become more. I'm extremely fortunate and grateful to play a small part in driving this initiative forward year-on-year." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.mediaupdate.co.za/marketing/153407/xaxis-south-africa-announces-success-of-its-pilot-fasttrack-programme

Pula Capital Partners | 14 February 2023 Pula Capital Partners, LRMG's investment arm, is pleased to announce a strategic investment in and partnership with Torque. Torque is an employee experience agency that partners with various organisations to create integrated and holistic employee experience (EX) solutions, from hire to retire. Offerings range from employee experience consultancy and strategy to employee engagement portals and facilitated conversations and toolkits around topical subjects such as Diversity, Equity, and Inclusion (DEI). Further portfolio offerings within their solution suite include EX communication strategy and solution design; end-to-end EX content creation, design, and management; employee value proposition (EVP) workshops and organisational roll-out; and bespoke employee wellness strategies and communication. CEO of LRMG, Ricky Robinson, says, “Torque is highly complementary to our own business of enabling high performance in organisations and has special synergies with our culture, change, and organisational design consulting division. We are especially excited to have attracted Sally and her team, who have recently again been recognised as one of SA's Top Women Empowered Companies.” Sally Acton, Torque's founder and CEO, states, “We are very excited to have found in LRMG a well-established and reputable B-BBEE partner that can add significant value to our business by unlocking joint opportunities in an enlarged client base. The cultural fit and LRMG's particular efforts in woman's empowerment is a bonus….” Pula delivers a highly innovative approach and value proposition to apply support, knowledge, and networks to help grow the companies they invest in. About LRMG LRMG is a 25-year-old business specialising in helping organisations maximise their performance through their people. LRMG does this by enabling all levels within an organisation to improve their core competencies and leadership ability, from high-level executive leadership development programmes and coaching to on-the-job and in-the-flow learning at the entry level and everything in between. At the forefront of delivering digital solutions, LRMG represents the global best-of-breed in both contents (e.g. eLearning) and platforms such as Learning Management Systems and Human Resource Management Systems. LRMG has offices in Johannesburg, Cape Town, Kenya and Mauritius and representation in another 18 African territories and is a AAA level 1 accredited B-BBEE company. Its homepage is: www.lrmg.co.za. About Pula Capital Partners Pula Capital Partners is a subsidiary of LRMG, and its value proposition sits squarely with leveraging the value that LRMG has to offer investees. Pula Capital's mission is to grow companies through B-BBEE and integrate them into LRMG's broad client base and market-facing value propositions whilst supporting their sales efforts and business development into the broader market. For more information, visit www.pulapartners.co.za. About Torque Torque is an Employee Experience (EX) agency committed to building meaningful employee experiences, from hire to retire. Torque is passionate about developing Employee Value Propositions (EVPs), communication strategies, and digital experiences that are applicable and accessible to everyone in the business - no matter their device, job function, or region. By creating experiences that speak to employees in a hyper-targeted and relevant way, Torque inspires a culture of conversation and positively impacts employee engagement and productivity. Torque is positioned as a team of trusted partners and valuable advisors to their clients for their unique employee insights, problem-solving abilities, excellent customer service, and quick turnaround times. For more information about the business visit the Torque website: https://torque.pro/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/516/235937.html

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

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

Bizcommunity | 13 February 2023 Delivering the State of the Nation Address (Sona) on Thursday, the president said the government plans to provide R1.4bn to finance over 90,000 entrepreneurs. In addition, the government in partnership with the SA SME Fund is working to establish a R10bn fund to support SMME growth. “Government is looking at the possibility of providing R2.5bn for the fund and for the balance of R7.5bn to be raised from the private sector,” President Ramaphosa said. He was addressing a Joint Sitting of Parliament in the City Hall, Cape Town. This year, the government will finalise amendments to the Businesses Act to reduce regulatory impediments for small, medium and micro enterprises (SMMEs) and co-operatives and make it easier for entrepreneurs to start businesses. He said the licensing of the PostBank would lay the foundation for the creation of a state bank that will provide financial services to SMMEs, youth- and women-owned businesses and underserved communities. “As the National Assembly considers the Postbank Amendment Bill, the Postbank is reviewing its service offerings so that it can provide a viable and affordable alternative to the commercial banks,” the president said. In an effort to address the challenge of youth unemployment, the Employment Tax Incentive has been expanded to encourage businesses to hire more young people in large numbers. “Last year I announced that we would be seeking to reduce red tape so that we can rid our country of the unnecessary bureaucracy that often holds us back. “The red tape reduction team in the presidency under Sipho Nkosi has been working with various departments to make it easier to do business. “It has taken a collaborative approach, working with departments and agencies in areas such as the mining rights system, tourism transport operator licenses, visas and work permits, early childhood development and the informal sector,” the President said. The red tape reduction team was established to improve the business environment for companies of all sizes through a dedicated capacity in the Presidency to reduce red tape. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/839/235907.html

Opera News | 13 February 2023 As we reject legalized bribery I am one person who never believed in Black Economic EMPOWERMENT (BEE) policy, for whatever motivation in my eyes BEE is a legalized bribery in which white capital is allowed to bribe black elites for the continued plundering of our resources and license to make black people poor. Politicians were eager for access to riches and quickly got the policy approved looking back it's still what it was intended, bribery If we were to speak about true black empowered economy we should be referring to an economy that is led by black people, are producers and consumers of the goods and services and also being majority owners of capital. Once you talk of schemes in which the 94% of population are given a mere 30% of the economic ownership of business then you are structuring inequality, and giving the minority the right to continue milking the economy. After all even the 30% shares the black people were not given skills and opportunity to manage the companies. We may differ on the approach but the biggest sin we have committed is to allow thieves to continue ownership of property that is a results of stolen money, companies built on racially skewed laws that made one race to accumulate at the expense of the majority who for centuries, they were excluded and dispossessed of their land. I for one think we need ECONOMIC JUSTICE, if we were serious about ensuring black people are compensated for the hundreds of years of looting we should demand that every white company should contribute to a fund for black ownership, and cede 51% ownership to black entrepreneurs. I know that many will talk about corruption which is true but a committed society must speak of the need to settle the past, launch a program to provide skills and capital to black people at lower level than picking black elites who use their proximity to power and boardrooms to amass wealth for themselves. Today the white settlers are using these black elites and agents to manage other blacks so that the white capital can flourish undisturbed, any illusion of tilting balance of Economic power is a pipe dream without forcing Economic Justice. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://opera.news/za/en/economy-finance/982ade37a86beecbd7001ef7c9d7416b

Chris Bishop | 13 February 2023 ‘The BEE Billionaires’, by Chris Bishop book cover. Image: Supplied / The Reading List In ‘The BEE Billionaires’, Chris Bishop hopes to answer one question: Has BEE achieved what it was set up to do, or, in the long term, will it prove more of a hindrance than a help? South Africa is in the eye of a slow-building economic storm: political upheaval, junk status, civil unrest, spiralling unemployment, State Capture and the fallout from Covid-19. There is no better time to assess the impact of one of the biggest economic experiments in Africa that began a quarter of a century ago: black economic empowerment, or BEE, the legislation-backed effort to transfer wealth to black people and to facilitate their broader participation in the economy to redress the inequalities created by apartheid. In The BEE Billionaires, veteran journalist Chris Bishop gets up close and personal with some of the biggest names in BEE. By examining their struggles and the impact of BEE on their successes, Bishop seeks to uncover the ways in which BEE as an upliftment scheme has both succeeded and failed. Because while BEE has made billionaires of some, it has ruined others and remains one of the most controversial policies born in those first heady days of democracy. Bishop is the founding editor of Forbes Africa and Billionaire Tomorrow, a former head of programming at CNBC Africa, and is the author of the bestselling book Africa’s Billionaires. Read the excerpt. The Bee Sheriff on the Trail of the Bad Guys She is supposed to be the all-powerful sheriff with the big guns, tall in the saddle, hunting down the bad guys – the frauds and the cheats – trying to sidestep their black empowerment obligations, in the interests of the people. Instead, to stretch the metaphor, she sits with precious few bullets astride a scrawny horse, limping along with a fraction of the money needed to hunt down the bandits on the dodge; struggling on the trail of the lonesome prosecution. This is the unenviable lot of Zodwa Ntuli, the current B-BBEE commissioner. As the independent regulator, it is her job to oversee compliance in the implementation of black empowerment policies in South Africa, in the face of indifference, chicanery and confusion over the rules. It is a tough job, to say the least, as she battles through penury and pandemic. ‘In 2021, the B-BBEE Commission published an eighteen-year review, delving into the figures that measure its effectiveness. What they found was a world where white males still dominate the corridors of power …’ ‘The first thing that I must say is that we actually are encouraged by the fact that there are so many B-BBEE initiatives that are being implemented in this country,’ she tells me with a whiff of optimism on a cloudy day in Pretoria, between meetings. ‘That tells us that, increasingly, more and more entities are trying to actually comply with the legislation and get the entities more transformed, and to meet their targets … even during the Covid pandemic, in 2019 and 2020, we still saw activities, we still saw ownership deals that were reported to us, because, by law, any major B-BBEE transaction – that is a transaction that is R25 million and above – is required to be reported to the B-BBEE Commission.’ Ntuli is a fairly low-profile and pragmatic civil servant. She has a ready smile and scarce biographical details on the internet but takes a professional and serious approach to a tricky and thankless job. In her position, no matter who you are, you are hardly going to be liked. Lawyers and businesspeople mutter that Ntuli is difficult to deal with and sometimes doesn’t listen. In November 2020, an editorial in the Business Day accused her of abusing her powers and going ‘rogue’ in her approach to transformation. Even Wiphold, the legendary women’s investment outfit, founded in the 1990s with the avowed intention of garnering black empowerment deals for women, had harsh words for Ntuli and the government. Louisa Mojela, a Wiphold founder, complained about the regulatory confusion around the broad-based schemes after Ntuli had questioned whether these schemes fit in with the legislation. ‘You talk to the commissioner and she says one thing. You talk to the minister and the minister says another thing,’ Mojela commented to the Sunday Times in November 2020. ‘You have a commissioner who seems to be fighting and wanting to come up with her own interpretation of this policy. Then you talk to the department and they seem to be understanding and supportive of our broad-based ownership.’ These broad-based schemes, aimed at bringing ownership and wealth to communities, were at the heart of the second issuing of the BEE codes. According to lawyer Caryn Leclercq, they can be successful, but are difficult to manage and often beset by squabbles. ‘I think they are a beautiful thing,’ she says. But, as she points out in Chapter 7, one of the main problems ‘is managing the expectations of the community’, who are unlikely to see any returns for a long time. Employee schemes in companies can be fraught for the same reason, because of having to lend workers capital, through vendor financing, to be repaid by foregoing share dividends. ‘You would have vendor finance and [the employees] would have to pay off their dividends,’ Leclercq explains. ‘That didn’t really work, because then [they] wouldn’t see dividends for ten years and you have unhappy employees, of course. I have certainly seen that, which is why they used the trickled dividend device; even though the dividends are still paying off the debt, you push some of the money through to the employees to keep them happy – show them the money, in other words.’ All part of a day’s work for the commissioner. Yet, you get the feeling Ntuli is determined to slay any dragon that threatens the future of black empowerment – especially the beast of fronting. On public platforms, she has railed against fronting, calling it fraud, thieving, rent-seeking and money-laundering. ‘It takes a very simple form, at times, a very straightforward form, where an unsuspecting black person, who is either a worker or a domestic worker [or] a gardener, is then listed as a shareholder, just for the purpose of the company looking black,’ she says. ‘But then it also [works] in a sophisticated manner, when deals are structured in such a way that even with people that are knowledgeable of these deals … the financing arrangements that are involved are such that the deal will never actually result in a transfer of that particular shareholding into black hands. Because basically the transaction is structured [in] such [a way] that the black people will never be able to repay that loan that was attached to that particular date.’ As we saw in Chapter 7, the penalties for fronting are stiff. The law has the power to imprison a director for up to ten years, fine a company up to 10 per cent of its turnover or ban it from doing business with government for up to ten years. Yet it remains stubbornly part of the black empowerment scene, undermining those schemes that are designed to really transform. Fronting schemes are structured ‘to circumvent’, says Ntuli. ‘[They] are designed in such a way that when you assess it and test it, you can clearly see that in ten years, there is no way these black people that are said to be 51 per cent black owners would be owning this stake. Because the funding arrangement is so severely restraining on the black shareholders, but also, you find that the arrangements include restrictions on the dividend flow, that maybe for the duration of that particular arrangement there would not be any dividend flow.’ Ntuli warms to her theme with further explanation: ‘When there are no dividend flows, what that means, essentially, is that the black people [who] did not even have the real funding, and were vendor-financed for the deal, will not be able to receive any income for the duration of that particular deal up until they fully repaid the loan, but then they will not be able to repay the loan because there is no dividend flow. There is no money that is coming through to them for them to service the loan. So, you find those types of deals that clearly tell you that the way it is structured, there’s absolutely no way that ownership [can be] transferred.’ The problem of fronting goes deeper, Ntuli says, in that often the appointments of black managers in companies are not what they seem. This is ‘window dressing’, when black people are appointed to what appear to be senior positions, but all the decisions are made by others within the organisation. Ntuli says this undermines the intention of the legislation, ‘because the intention is to make sure that your votes are reflective of the demographics, and that black people do participate in decision-making structures’. In 2021, the B-BBEE Commission published an eighteen-year review, delving into the figures that measure its effectiveness. What they found was a world where white males still dominate the corridors of power, and where white and Indian managers are over-represented. The picture was both encouraging and unsettling for Ntuli and her team. They found that the commission had been operating on a zero budget since 2016, with a mere 22 per cent of the approved staff complement of 113, and with scant resources for investigation into compliance. Furthermore, the war on fronting – Ntuli’s holy grail – appeared to be faltering. Of the thirty cases referred to the police and the National Prosecuting Authority (NPA), not one had been processed. There were some bright spots, however: On ownership patterns, our Annual National Status and Trends on B-BBEE Report for 2020 shows that black ownership moved from 29% in 2019 to 31%, with black women ownership up from 12% to 14%, but still low compared to the 2016 benchmark study of 32%. Closely related to this was a slight increase in management control from 39% in 2019 to 57%. The report also shows that the least transformed sectors are the property, financial and tourism sectors. In 2019 only 3.3% of the JSE listed entities were 100% black owned, fast forward to 2020, the report shows 0% … ‘What is worrying is when we regress,’ says Ntuli in our interview. ‘The question is, why are we regressing? We should be pushing towards more inclusion, as opposed to regressing … Are we becoming relaxed about it? Because even if we become relaxed, the inequality gap does not necessarily change itself; it will not dramatically change by itself. There needs to be a conscious effort to change the ownership patterns in this country and to bring inclusivity in a sense that black people must be part and parcel of this economy, and in real terms.’ Ntuli argues that the commission should be given greater administrative powers to prohibit specific practices and provide remedies. Her request has so far fallen on deaf ears. On a more positive note, the commission has issued findings on the violation of the B-BBEE Act to 505 entities, some of which have been made to pay out black shareholders who were denied economic benefits and restore participation of excluded black people. Eight of the entities have appealed and the commission is defending. ‘What we picked up is that it is how people choose to implement it – that is a problem – and not what needs to be implemented,’ explains Ntuli. ‘In those cases, where it is a problem, they are trying to create schemes that are designed to circumvent it. To make it look like they are complying when they’re not complying. The tick-box exercise of just looking for a consultant to give you the quick way of getting the points but without doing what is necessary.’ Ntuli says the regulator has also successfully concluded twenty-two alternative dispute-resolution agreements, resulting in over R100 million in compensation being paid to black shareholders. It is also pursuing the cancellation of contracts and licences of entities found to be fronting or misrepresenting. What about the accusation that those deals that do pass muster are merely for the ‘usual suspects’, the politically connected elite? Ntuli strongly denies this. ‘I would like to implore you … to go onto our website and just look at the list of the registered measured BEE transactions. Those are the transactions that we have registered since 2017. And then to look at the parties involved in those transactions and begin to see whether it is true that the majority of the people that are involved are politically connected people,’ she says. ‘In the analysis that we’ve done, more and more, the initiatives are becoming broad-based. More and more employees are [able] to get into these initiatives.’ With a mountain to climb – on the back of a scrawny horse – Ntuli could be forgiven for being downhearted. Yet, she does not appear to be so, even though she stresses in our interview that, as a civil servant, she is not allowed to give her personal views. ‘Sometimes we lament so much, on maybe the wrongs or the things that do not go right with B-BBEE,’ she says thoughtfully, ‘but I can tell you that a majority of people that are in business right now, and that are occupying positions – senior positions in the public and the private sector – they actually have the legislation to thank; certain things were made possible because government has made the framework to bring about that inclusivity. So, there are gains, but we must accept that they’re not coming as quickly as they should … But to say that there is no benefit would not be honest of us. And we do believe that we can work better; we can improve on it.’ Undoubtedly, that is what many people in the black majority want to hear, but their question is likely to be: When? ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-02-13-no-money-no-bullets-the-unenviable-lot-of-the-bee-sheriff/

SA Government | 13 February 2023 Minister in the Presidency, Mondli Gungubele calls for public comments on a revised MAC Charter Sector Code. The Minister in the Presidency, Mondli Gungubele has published a notice in a government gazette (Gazette number 47804 ) calling on the public and interested stakeholders to work with the Marketing and Advertising Communication (MAC) Charter Council to make oral and written inputs to review the current MAC Sector Code. The MAC Charter Council will be conducting virtual and physical public hearings to review the current Code from 20 January to 09 February 2023 in order to comply with the Department of Trade, Industry and Competition’s (thedtic) gazetted changes to the Statement 000; Statement 300 and Statement 400 of the Amended Generic Code of Good Practice of 31 May 2019. The MAC Charter Council, which is directed towards ensuring that transformation in the sector, is promoted, monitored and reported on annually in line with the law in these sectors; Advertising and Communication practices in Media; Integrated Marketing Communication (IMC); Digital (Paid and Social); Public Relations, Out-of-Home; Experiential marketing; Content; Creative Agencies and Research companies and associations such as Black Agencies Network Association (BANA); AC(S)A, Loeries; SMARTIES; AMASA; Bookly; ADFOCUS, ASSAGAI, PRISMA and other affiliated industry awards. The MAC sector council will also ensure consumer awareness to the public on all the Marketing, Advertising and Communication developments are communicated timeously over the next four years (2023-2026). To make written and oral inputs as well as to access for information such as the MAC Sector Code, stakeholders are encouraged to visit GCIS website: www.gcis.gov.za. Enquiries: Sandile Nene. GCIS- Chief Director: Media Policy and MAC Sector Secretariat Cell: 083 712 2316 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/minister-mondli-gungubele-calls-public-comments-revised-mac-charter-sector-code-13-feb-2023

SA News | 13 February 2023 President Cyril Ramaphosa has announced funding initiatives for small businesses with the intention of creating jobs and growing established small businesses. Delivering the State of the Nation Address (SONA) on Thursday, the President said government plans to provide R1.4 billion to finance over 90 000 entrepreneurs. In addition, government in partnership with the SA SME Fund is working to establish a R10 billion fund to support SMME growth. “Government is looking at the possibility of providing R2.5 billion for the fund and for the balance of R7.5 billion to be raised from the private sector,” President Ramaphosa said. He was addressing a Joint Sitting of Parliament in the City Hall, Cape Town. This year, government will finalise amendments to the Businesses Act to reduce regulatory impediments for Small, Medium and Micro Enterprises (SMMEs) and co-operatives and make it easier for entrepreneurs to start businesses. He said the licensing of the PostBank would lay the foundation for the creation of a state bank that will provide financial services to SMMEs, youth- and women-owned businesses and underserved communities. “As the National Assembly considers the Postbank Amendment Bill, the Postbank is reviewing its service offerings so that it can provide a viable and affordable alternative to the commercial banks,” the President said. In an effort to address the challenge of youth unemployment, the Employment Tax Incentive has been expanded to encourage businesses to hire more young people in large numbers. “Last year I announced that we would be seeking to reduce red tape so that we can rid our country of the unnecessary bureaucracy that often holds us back. “The red tape reduction team in the Presidency under Mr Sipho Nkosi has been working with various departments to make it easier to do business. “It has taken a collaborative approach, working with departments and agencies in areas such as the mining rights system, tourism transport operator licenses, visas and work permits, early childhood development and the informal sector,” the President said. The red tape reduction team was established to improve the business environment for companies of all sizes through a dedicated capacity in the Presidency to reduce red tape. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/government-commits-funding-smmes