Search Results

Akhona Matshoba | 13 February 2023 Small businesses have been included in the president’s plans for economic recovery in the coming year. Image: Luis Tato/Bloomberg But national state of disaster declaration raises concerns around how the funds will be distributed. President Cyril Ramaphosa, in his State of the Nation Address (Sona) on Thursday, announced several initiatives to support the recovery of small- and medium-sized enterprises (SMEs), after the events of the last few years battered the sector. Ramaphosa revealed that government, working with the SA SME Fund, will establish a R10 billion fund aimed at supporting SMME (small, medium and micro-sized enterprise) growth. The majority of the funds are expected to come from the private sector, but the president did say that government is investigating the feasibility of contributing R2.5 billion to the fund. He also announced a plan to provide R1.4 billion in financing to the Small Enterprise Finance Agency (Sefa), which will go towards assisting 90 000 entrepreneurs. Read: SA’s SMEs face onslaughts from every direction Plans to assist businesses with their transition to alternative power generation, via the bounce-back loan scheme that government introduced in 2022 to assist businesses with their recovery from the pandemic, were also announced in Sona. While welcoming the government’s plans to support the sector, financial commentator Michelle Austin says it does little help to throw money at a problem if the economic environment does not allow for growth. She tells Moneyweb that to drive real impact, there needs to be a proper vetting of beneficiaries, to ensure that the financial support is directed to businesses that have greater growth potential. “I would say first priority needs to be given to businesses with high growth potential and that have a good, solid plan and government structures.” An entrepreneur just starting out, or a micro or even a medium-sized enterprise, won’t necessarily be able to achieve the desired impact, she says. “We should … concentrate on those high-growth potential companies or individuals who can bring about change and then further are able to invest in the infrastructure, or give back to the fund in a shorter space of time so that there is more to go around.” The funds that are set to be made available to business owners are likely to be distributed under state of disaster conditions, depending on how quickly the relevant stakeholders can get the ball rolling. State of disaster Less than a year after lifting the last national state of disaster, implemented to combat the Covid-19 pandemic, the president on Thursday declared a national state of disaster to deal with the country’s electricity crisis. It is not clear how the implementation of related regulations will affect the distribution of the above-mentioned funds to businesses. Concerns have however been raised that the declaration of a state of disaster may present the perfect conditions for corrupt activity to take place, as was the case during the peak of the pandemic. For Business Unity South Africa (Busa) CEO Cas Coovadia it is also unclear how the legislation will solve the country’s electricity woes. “We welcome the concentration in this Sona on the energy crisis, however we are not convinced that declaring a state of disaster will help address the crisis,” he said in a statement on Friday. “It must be seen as a low point in the life of our society that mismanagement and lack of governance has created circumstances in which a state of disaster has to be declared.” Raymond Parsons, an economist at North-West University Business School, fears that similar misdeeds reported in relation to the Covid-19 pandemic disaster period may resurface if government doesn’t implement the necessary safeguards. “It remains important that South Africa learns the lessons around the handling of the Covid-19 crisis. Safeguards are needed to prevent corruption and the intended role of the Auditor-General is welcome. “It is also important that a national state of disaster to deal with electricity crisis be seen as a temporary solution and that an exit strategy is already being planned,” says Parsons. “Timelines must be set and enforced, with consequences if they are not met. Implementation and accountability are paramount. “To rebuild business confidence political leadership must therefore ensure that, in the aftermath of the Sona, words will be backed by credible action.” Inospace – the owner of serviced logistics parks – believes that instead of providing assistance to help small businesses to migrate from the national grid on loan terms, government should provide the financing without conditions. “Solar tax relief is better than nothing, but this won’t help small businesses survive or bounce back,” says Inospace chief operating officer Jacques Weber. “We thus call on the government to immediately provide unconditional financial assistance to SMEs whose businesses are at an enormous risk of being annihilated by unending load shedding,” says Weber. “While load shedding persists, thousands of SMEs are staring down the barrel, contemplating shedding jobs, lowering production or possibly winding up,” he adds. “The SME segment of the economy does not have the means to get off the grid through costly alternative power solutions.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/south-africa/r10bn-fund-for-smes-must-prioritise-businesses-with-scale/

Simnikiwe Mzekandaba | 10 February 2023 The National Skills Fund (NSF) will provide R800 million towards skills development in the digital and technology sector, through a model that links payment for training to employment outcomes. This, in an effort to strengthen the link between the skills developed and the skills the workplace needs, according to president Cyril Ramaphosa. Ramaphosa delivered his 2023 State of the Nation Address (SONA) last night, following disruptions from members of the Economic Freedom Fighters, who were ultimately kicked out of the National Assembly. The president’s address was also clouded by the major socio-economic and basic service delivery challenges the country faces, with the power crisis, high unemployment and an ailing economy at the top of citizens’ concerns. Last night, the president noted the most effective and sustainable way to build an economy is to equip people with the skills and know-how to drive it. As a result, he stated. “We reiterate our call to companies, government departments and state-owned enterprises to remove the requirement for work experience for young people seeking entry-level positions.” An entity of the Department of Higher Education and Training, the NSF provides funding for national skills development initiatives that are identified by the National Skills Development Plan 2030 as national priorities, or are related to the achievement of the Skills Development Act 97 of 1998. The NSF’s funding focus and skills development portfolio is two-pronged. First, a significant allocation of its annual and medium-term budget is aimed towards education and training initiatives such as bursaries and scholarships, learnership and skills programmes, and workplace-based learning. Secondly, NSF funding is aimed at improving the post-school, education and training system, with a focus on capacity-building, investing in skills infrastructure, research and innovation. With a rising unemployment rate, especially among young people, there is increased focus on addressing SA’s technological and skillset shortcomings by upskilling youth. One of the key findings of the South Africa ICT Talent Development White Papershows the country’s digital skills gap and demand for ICT talent continue to be inhibiting factors to the growth of the economy. Furthermore, the 2022 JCSE-IITPSA ICT Skills Survey shows South African organisations are recruiting outside the country’s borders for technologically- and digitally-skilled talent. Ramaphosa indicated that last year, government said it would place over 10 000 TVET college graduates in employment. “We have surpassed that figure and have now set a target for 2023 of 20 000 TVET to be placed in employment,” he stated. “The number of students entering artisan training in TVET colleges will be increased from 17 000 to 30 000 in the 2023 academic year.” According to Ramaphosa, the Department of Home Affairs (DHA) has appointed the first cohort of 10 000 unemployed young people. The young people have been employed to digitise more than 340 million paper-based civic records, with efforts to enhance their skills, as they contribute to the modernisation of citizen services. The DHA’s recruitment project is part of the Presidential Employment Stimulus programme. The president further noted there are now more than three million users registered on SAYouth.mobi, a zero-rated online platform for young South Africans to access opportunities for learning and earning. “This has been done in close collaboration with the National Youth Development Agency, which continues to provide valuable assistance to young entrepreneurs and work-seekers.” In addition, the Presidential Employment Stimulus is supporting people to earn their own living, he stated. “Around 140 000 small-scale farmers have received input vouchers to buy seeds, fertiliser and equipment, providing a boost for food security and agricultural reform. “This initiative has led to the cultivation of some 640 000 hectares of land. An impressive 68% of these farmers are women. This year, we aim to provide 250 000 more vouchers to small-scale farmers.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/LPp6VMrBLjYMDKQz

SA News | 9 February 2023 President Cyril Ramaphosa on Thursday announced that the country will expand its vocational education and training system to produce the skills that the country needs. According to President Ramaphosa, who was delivering the State of the Nation Address (SONA), this will be done through the implementation of the approved curriculum of the three-stream model. This year, he said government plans to finalise the Comprehensive Student Funding Model for higher education. This will be aimed at students who fall outside current National Student Financial Aid Scheme (NSFAS) criteria, reaching those who are known as the “missing middle”. Access to quality education for all is the most powerful instrument we have to end poverty, the President said. He said the country needs to start with very young children, providing them with the foundation they need to write and read for meaning, to learn and develop. “It is, therefore, significant that the number of children who receive the Early Childhood Development (ECD) subsidy has more than doubled between 2019 and 2022, reaching one and a half million children.” In addition, he announced that the Department of Basic Education is streamlining the requirements for ECD centres to access support and enable thousands more to receive subsidies from government. He applauded last year’s matric pass rate of 80%, with all provinces showing improved results. The share of bachelor passes in no-fee schools improved from 55% in 2019 to 64% in 2022. This, he said, means that the performance of learners from poorer schools is steadily improving, confirming the value of the support that government provides to them. “What these results reveal is that there is a silent revolution taking place in our schools,” he said. The President reiterated that schools should be safe and allow for effective learning and teaching. In this regard, he said the Sanitation Appropriate for Education Initiative – known as SAFE – together with government’s Accelerated School Infrastructure Delivery Initiative has built 55 000 appropriate toilets with resources from the public and private sectors. – SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/sa-revamp-its-vocational-training-system-produce-more-skills

Sowetan Live | 9 February 2023 The youth continue to bear the brunt of unemployment as the jobless rate among youngsters is much higher than the national average. Image:Antonio Muchave President Cyril Ramaphosa has repeated his call to companies, departments and SOEs to waive the requirement for work experience for young people seeking entry-level positions. Speaking on the government’s plans to encourage youth employment in his State of the Nation Address on Thursday, Ramaphosa said the employment tax incentive has been expanded to encourage businesses to hire more young people in large numbers. Other measures to address the dire unemployment numbers among those between the ages of 15 years and 24 years, Ramaphosa said that last week a new cohort of 150,000 school assistants started work at more than 22,000 schools, “offering dignity, hope and vital work experience to young people who were unemployed”. The Quarterly Labour Force Survey for the third quarter of 2022 reported that youth aged 15-24 years and 25-34 years recorded the highest unemployment rates of 59.6% and 40.5% respectively. Other measures included the Social Employment Fund recruiting 50,000 participants in its next phase to undertake work for the common good, and the revitalised National Youth Service will create a further 36,000 opportunities through non-profit and community-based organisations. The department of home affairs has appointed the first cohort of 10,000 unemployed young people to digitise more than 340-million paper-based civic records. Ramaphosa said there were now more than three million users registered on SAYouth.mobi, a zero-rated online platform for young South Africans to access opportunities for learning and earning. “This has been done in close collaboration with the National Youth Development Agency, which continues to provide valuable assistance to young entrepreneurs and work seekers.” In addition to these, the state had surpassed its target of placing over 10,000 TVET college graduates in employment. “We have surpassed that figure and have now set a target for 2023 of 20,000 TVET to be placed in employment,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/news/south-africa/2023-02-09-ramaphosa-calls-for-scrapping-of-work-experience-requirement-for-youth/

Donna Slater | 9 February 2023 Steinmüller Africa's current Pretoria-based 30 000 square metre facility under roof, which enables one-million productive hours each year. The company also has workshops in Sasolburg and Bethal. Steam generation and high-pressure piping solutions company Steinmüller Africa celebrated 60 years of business in Africa on November 7, 2022. The company started its presence in South Africa in 1962 with nothing but a post box, which was checked only when the company’s first MD Werner Oehler passed through South Africa en route to Australia from Germany. It was at this location that Steinmüller Africa received its first invitation to tender – an Eskom tender for its Grootvlei power station. This invitation to tender led to the company building its first African head office, just outside of the Grootvlei power station, in Mpumalanga, in the 1970s. The company has since conducted ongoing boiler and high-pressure piping maintenance at Eskom’s Arnot, Camden, Duvha, Hendrina, Matimba, Kriel, Tuthuka, Matla, Majuba, Grootvlei and Komati power stations. Industries that have benefitted from Steinmüller Africa’s progression on the continent and beyond include power generation, pulp and paper, chemical and petrochemical and mineral beneficiation. Its milestones are many and the company’s development is linked to South Africa’s industrial growth. The forerunners of this development were the building of boiler plants at Hendrina, Kriel, Duvha, Thuthuka, Majuba and Mathimba power stations from 1967 through to the early 1980s. The 1990s saw Steinmüller Africa increase its South African footprint with the Sasol rejuvenation project, the replacement of make-gas boilers at Mossgas and Iscor blast furnaces. It also expanded its African footprint by undertaking work for the Sappi mill, in Swaziland, and it conducted the refurbishment of the Zimbabwe Iron and Steel Company (Zisco) plant. The South Africa-based entity also took its footprint to Europe where it was contracted to fabricate pulverised coal-fired boilers in Iskenderun, Turkey. Between 2004 and 2010 it also undertook the return to service of mothballed plants at the Camden, Komati and Grootvlei power stations, and began fabrication of boilers and high-pressure pipework at these plants. In addition to its work for Zisco and the Zimbabwe Electricity Supply Authority (Zesa), Steinmüller Africa also has a footprint in Botswana, Mozambique and Namibia. Steinmüller Africa human capital management executive GM Karin Kaempffer says the company’s progression has been linked to South Africa’s industrial development. “Initially – in the early to mid-1990s – our technical expertise was overseas-based and our offering to the African market was largely based on our local capabilities.” She adds that Steinmüller Africa now employs advanced engineering tools in its South Africa-based design office and has invested significantly in automated welding technologies at its fabrication facilities. “Both of these developments are aligned to our drive to improve productivity, shorten lead times and be a premier utility boiler and steam piping service provider on the African continent. Our growth and sustainability, however, has remained within the power generation and chemical sectors. “Our expertise focuses on steam generation and reticulation, with an emphasis on complex, efficient high-temperature and high-pressure steam, meaning we are capable of providing solutions across the entire utility sector, where fuel efficiency is paramount,” says Kaempffer. Steinmüller Africa, which has supported the majority of major power generation and chemical utilities in South Africa, was one of the earliest companies to undertake transformation and localisation activities in line with the broad-based black economic empowerment (BBBEE) scorecard and has been a Level 1 contributor over the past several years. “We are proud to be a highly ethical organisation and a preferred employer in our sector. We have trained and produced a significant number of artisans and technicians for the South African industry,” she says. In addition to its BBBEE rating and local skills development, Steinmüller Africa has contributed significant funding to 24 tertiary institutions across Africa to benefit science and technology undergraduates. “We have covered a great amount of ground over the past 60 years, both geographically and on the innovation front. We look forward to another 60 years of growth, to the betterment of our company, the communities in which we work, and the industrial sectors we serve,” concludes Kaempffer. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/steinmller-africa-celebrates-60-years-of-growing-its-african-business-2023-02-09

Given Majola | 10 February 2023 The Amended AgriBEE Sector Code 2017, acknowledges the diversity and particularity of sub-sectors within the agricultural sector in South Africa, which is positive, but the wide scope also poses challenges, says Agbiz. File photo Cliffe Dekker Hofmeyr (CDH) yesterday said the Agriculture Sector Codes was still fairly new, but was a step in the right direction. CDH held a webinar yesterday, which focused on the B-BBEE regulatory environment applicable in South Africa in the agriculture and fishing sectors. With the advent of the Agriculture Sector Codes in December 2017, it made it easier to ensure and measure Broad-Based Black Economic Empowerment (B-BBEE) compliance. In CDH’s view it was likely to stay in place to allow the potential benefits and opportunities to crystallise over time. However, in the fishing industry, it said there was no B-BBEE sector code, and the generic code applied, but to a more limited extent. “There is accordingly, no sector specific B-BBEE regime applicable to the fishing industry which continues to apply its own policies and assessment processes which do take B-BBEE into account, but there are no fishing sector specific or relevant criteria in the generic B-BBEE Codes,” the firm said. It said the fishing sector might have to look at developing a B-BBEE sector code in the future, but at this stage it did not appear as if this was on the cards. But the changing nature of the Agriculture Sector Codes remained a challenge, Theo Boshoff, the CEO at Agricultural Business Chamber (Agbiz) said yesterday. Agbiz said promoting inclusive growth in the agro-food value chain was one of their core objectives. “B-BBEE remains directed at big businesses. In this regard, businesses in the value chains have made significant investments into B-BBEE. Investments that are made towards gaining greater recognition can be undermined when codes change. Long-term stability is required,” he said. Agbiz said the fundamental objective of the Act was to advance economic transformation and enhance the economic participation of black people in the South African economy. For this objective to be realised, the Code must be implemented, but there were geographic and financial challenges hampering its effective implementation. “Supplier development can be a powerful tool to aid black businesses throughout the value chain, but the rural nature of agriculture typically results in limited options as far as suppliers are concerned. For farmers, they need to source inputs from companies within the region to avoid exorbitant transport costs. There may therefore be areas where black suppliers are available but likewise, remote areas where the options are limited. “Agro-processors and food companies have invested substantially into developing black farmers and bringing them into their value chains. There are great examples within multiple value chains and some of the leading supplier development programmes empowering black farmers are being implemented by Agbiz members,” Agbiz said. But it said access to funding and the slow pace of land reform in South Africa continued to be a challenge to reaching industry goals and sourcing more produce from black farmers, however there were praiseworthy programmes that had made real progress. Boshoff said likewise, many agribusinesses and co-operatives who supplied inputs to farmers, had comprehensive farmer development programmes. These companies provided technical support, training, skills development and finance to black farmers. “Likewise, many commercial farmers provide mentorship and lend equipment to neighbouring black farmers. While this is very positive, the codes unfortunately provide little recognition for these companies as enterprise development (building black businesses who are not your suppliers) carries little weight in the codes. Here there is a clear mis-match between genuine efforts to build black businesses and the recognition provided by the codes,” he said. Boshoff said the Amended AgriBEE Sector Code 2017, acknowledged the diversity and particularity of sub-sectors within the agricultural sector in South Africa, which it said was positive, but the wide scope also posed challenges. This as the same code sought to cover input suppliers, agro-processors, traders and farmers. These companies operated in vastly different areas with very different issues. “A number of tweaks can certainly be made. For instance, voting rights as a measure of ownership may work for companies but not for co-operatives, which work on the basis of one-member, one vote. Using turn-over as a measurement of an entity’s size is also a challenge for agricultural commodity traders who move product through their books. They typically have a high turnover based on buying and selling stock, but with very low profit margins, thereby giving the impression that they are larger companies than they really are,” he said. Boshoff said elements such as preferential procurement was a challenge for farming as the options for procurement were very limited in deep rural areas. This was also the case with many farming enterprises that do not have multiple tiers of management. “An alternative, a simplified scorecard for primary agriculture should be considered. Overall, implementation and funding remains problematic. Verification is a costly process that adds to the cost of doing business. If the codes can be simplified and mechanisms be put in place to assist implementation (for instance, soft-finance for BBBEE deals), the uptake would likely be greater,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/agriculture-sector-code-is-a-step-in-the-right-direction-says-law-firm-c0de17c8-ea74-4f09-8dac-17199edfddbc

News24Wire | 8 February 2023 SA's highest court has declined to hear an application for leave to appeal a lower court's ruling that found the state was wrong to include Broad-based Black Economic Empowerment (B-BBEE) as a criterion to access Covid-19 relief grants in the tourism sector. In April 2020, as the Covid-19 pandemic caused local and international tourism to grind to a halt, then-tourism minister Mmamoloko Kubayi set up a Tourism Relief Fund. Some R200 million was to be allocated for once-off payments of up to R50 000 for struggling small businesses. The minister included the B-BBEE status level of applicants as one of the criteria for funding. Trade union Solidarity and lobby group AfriForum then took the Department of Tourism to the North Gauteng High Court in Pretoria, arguing there was no need to use "race as a benchmark" for relief. While they lost their initial case, AfriForum and Solidarity won on appeal in the Supreme Court of Appeal (SCA) in September 2021. CODES The minister argued she was bound to include the B-BBEE level of applicants as one of the criteria for relief under the B-BBEE Tourism Sector Code. But the court found that the minister was mistaken, as relief grants administered under the Disaster Management Act could not be viewed as grants "in support of B-BBEE". The SCA said: Her inclusion of the B-BBEE status level of applicants for assistance as a criterion for eligibility for grants from the fund was therefore invalid. The court did not, however, rule that the R200 million already distributed to small businesses should be recovered, noting that neither Solidarity nor AfriForum has asked for this. APPEAL BID The department then applied for leave to appeal the SCA ruling before the Constitutional Court. On Wednesday, the apex court denied leave to the appeal. This means that the SCA's September 2021 ruling stands. In its ruling, the Constitutional Court noted that the issue was "moot" as SA's state of disaster had long been lifted and the funds already distributed. And while it would at times rule on "moot" issues, an increased workload means it must pick and choose its cases carefully. Solidarity deputy chief executive for legal matters, Anton van der Bijl, said that while some could view the case as "academic", it still set an important precedent. It would be harder for the state to include B-BEEE requirements as part of the criteria for relief funds in the future, he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/concourt-shoots-down-govt-appeal-over-bee-in-covid-19-tourism-funds-case-2023-02-08

Are you aware that, for the most, Broad-Based Black Economic Empowerment (B-BBEE) Practitioners are the weakest link in terms of fulfilling the country’s economic growth framework? Economists have established that increasing the diversity of shareholding, improving skills and expanding small business participation in supply chains are all components which could contribute to economic growth. However, only if it is done strategically by aligning with economic growth principles. The B-BBEE Act (The Act) has specific but broad, qualitative objectives which organisations and B-BBEE Rating Agencies generally choose to overlook in favour of the quantitative measurement benchmark of B-BBEE, namely The Codes of Good Practice (The Codes). However, subsequent amendments to The Actintroduced a risk as to the legitimacy of an organisation’s B-BBEE claims if they fails to recognise the link between The Act and The Codes. The consequence of failing to acknowledge the objectives of The Act could result in up to 10 years imprisonment and up to 10% of a Juristic Person’s annual revenue. Entrusted with defending the principles of The Act, The B-BBEE Commission is responsible for investigating activities that undermine or frustrate the objectives thereof. The mandate of the B-BBEE Commission is not only to evaluate the registrar of ownership transactions and report on the state of Transformation on an annual basis, but to also oversee, supervise and promote adherence to the B-BBEE Act. The mandate of the B-BBEE Commission is not to draft, implement or amend policies, but to provide interpretive guidance based on the objectives set out in the B-BBEE Act. Since being established in 2015, the B-BBEE Commission has increased its capacity and competence, thus increasing the risk to any individual or juristic person who engages in Fronting Practices. The people at risk of being prosecuted for Fronting Practices include, but are not limited to, directors, managers, administrators and B-BBEE Rating Agency employees. The Act leaves no place to hide for those flouting its mandate, as it defines a ‘knowing person’ as one that either had actual knowledge of a matter in question or was in a position in which they reasonably ought tohave known. It extends to a ‘knowing person’s’ obligation to investigate any matter in question to the extent that the outcome would have provided the ‘knowing person’ with the actual knowledge. The question is: if checks and balances were in place, would there be a different outcome? With such checks and balances in place would it be reasonable to assume that a ‘knowing person’ would, in effect, have had actual knowledge of the matter in question? For the most part, organisations have failed to develop internal competencies that create and drive B-BBEE Strategies. Consequently, there is a massive over-reliance on external B-BBEE consultants, B-BBEE Rating Agencies, accountants and lawyers. The Act indirectly defines the Board of Directors, the Executive Committee members and management teams as ‘knowing people’. Such ‘knowing people’, due to their limited technical understanding of B-BBEE, accept guidance from external advisers often without question. Subsequently, by the nature of what they do in their daily functions, they are ‘knowing people’ therefore, they are potentially personally liable and accountable if an organisation is found guilty of Fronting Practices. Considering the risk of exposure such ‘knowing people’ have while carrying out their daily duties, one would think that addressing such internal competencies would be a high priority for them. Solid internal competency is essential as it mitigates the risks to ‘knowing people‘. To achieve this, it is necessary to develop such people through high-quality broad theoretical training on all areas of B-BBEE legislation. It is imperative that ‘knowing people’ have the ability to create a control point so they can manage the B-BBEE process without being exposed to Fronting Practices. Core to mitigating such risk is introducing checks and balances on the processes in line with policy and procedure. This operational governance is imperative so that every ‘knowing person’ is secure in the claims they present for a B-BBEE Audit. Examples of typical Fronting Practices that ‘knowing people’ should be fully aware of include, but are not limited to: Ownership Fictitious Voting Rights claims whereby ‘Black’ People do not exercise these rights; Economic Interest claims with limitations on the utilisation of dividends; Net Value claims where ‘Black’ People do not benefit from the underlying value of their shareholding; Voting Rights claims of ‘Black’ People on the Board of Directors where such ‘Black’ People are not afforded these rights. Skills Development Expenditure claims for ‘Black’ persons living with disabilities whereby they do not meet the criteria of persons with a disability as defined in the Codes of Good Practice on Key Aspects of Disability in the Workplace issued under section 54 of the Employment Equity Act; Failing to confirm that the content of informal training is indeed training in line with the requirements of the Learning Programme matrix. Enterprise & Supplier Development Preferential Procurement expenditure with suppliers that do not qualify as an EME or QSE, otherwise suppliers that are at least 51% ‘Black’-owned, at least 30% ‘Black’- Women-owned or at least 51% ‘Black’ Designated Group Suppliers. Preferential Procurement expenditure where B-BBEE Credentials, presented by organisations without the resources to deliver, form part of the overall claim. Enterprise Development and Supplier Development claims where Beneficiaries do not qualify as per the criteria, or contributions did not meet the required objectives. Socio-Economic Development Claims where the status of the Beneficiaries is not confirmed; Contributions where the requirements did not meet the criteria. In conclusion, my advice to all ‘knowing people’ is always ascertain whether the B-BBEE advice you act on is indeed substantiated and aligns with both The Act and The Codes, whether or not it is for free or if you are paying for it. Be cognisant of the consequences of taking advice that cuts corners. Essentially, organisations should treat their B-BBEE Audit just as they would their financial audit by understanding the dynamics, using qualified suppliers and adhering to legislation in a meaningful and ethical manner.

Johan Botes | 8 February 2023 In a post-pandemic search for meaning, the modern workforce is increasingly demanding that their employers’ activities match their own personal ideals, and the mining sector is no different. Employees expect the company they work for to operate in a sustainable way and provide benefits for the environment, local economies and surrounding communities, all while maintaining a core focus on employee wellbeing, as well as their physical health and safety. With this renewed focus on corporate citizenship, mining companies have had to ensure they identify sustainability risks and opportunities in every part of their business strategy, including in workforce planning. Attracting the right talent particularly requires responsible leadership and increasing transparency. Employees of the modern workforce want to be in an environment where they feel they are making a meaningful contribution to the greater global issues. Employees, customers, shareholders and other stakeholders are also demanding that organizations take a stance on important issues such as racism, sexual harassment, unemployment, climate change and income inequality, for example. In the mining sector this extends to the communities in which the mines are located and incorporates ensuring that such communities are cared for and included. Mining companies are turning this challenge into a competitive advantage by creating workplaces with purposeful engagement and ways to accommodate a diverse set of employees with differing needs. Changing strategies While labour unrest in the mining industry, and those industries that support mining, is increasing, mining employers are also considering changes in their employee relations strategy that move from the primary focus being on collective engagement to recognizing the needs of smaller interest groups or, where possible, individual employees. Employee engagement surveys, individual feedback sessions, career planning, performance management, employee goal and expectation setting, anonymized feedback channels and exit interviews are useful tools in the arsenal of the modern people practitioner and line manager. These and other communication vehicles are likely to be a more accurate barometer of the employee relations climate than considering the number of days lost due to industrial action, number of grievances filed, or labour disputes declared. In this era of high employee mobility – even when taking into account the dramatic unemployment rate – staff appear to become more inclined to vote with their feet than filing a grievance or demanding that their trade union resolve the issue with the employer. A successful business will also create opportunities for feedback and information from staff and stakeholders outside (or in addition to) the traditional upward communication channels. They will also find workplace-appropriate mechanisms to regularly test the employee relations climate, being nimble to adjust employee relations strategies to tailor to the fast-changing views of society as reflected in the workplace. A further imperative for employers of the modern workforce will be creating purpose for employees by communicating an understanding of what the business is and the reason for its existence, then linking that to the function of the teams and individuals. Dealing with violence and harassment at work It is undisputed that there is an increasingly high rate of global violence against women, and with more studies pointing to the growing rate of the violent harassment of men, especially those in vulnerable social positions such as migrants. As such, employers are assessing their current policies and considering whether they are fulfilling their common law and statutory obligations when dealing with violence and harassment in the workplace. Further, some employers are now going further and considering establishing workplace rules that make it a workplace offense to commit acts of violence against women or men, stating employees who are convicted of violent crimes may be dismissed, even if the crime took place away from the workplace and against a private person. I&D programmes Mining companies know that inclusive and diverse (I&D) corporate cultures lead to increased productivity and meaningful employee engagement, which ultimately offer immense value to businesses. I&D fosters innovative participation, which gives rise to a confluence of creative ideas arising from the richness of different backgrounds and experiences, all of which work together in the formulation of solutions to business challenges and idea-generation. Simply put, diverse spaces ultimately lead to better outcomes than homogenous spaces. As such, conscious and forward-looking businesses consider I&D to be a measure of their success and indispensable to their overall sustainability. I&D is firmly on the agenda of most organizations and businesses around the world. Scrutiny of income inequality Recent reports show that South Africa is one of the worlds’ most unequal countries when it comes to income. Research by Aroop Chatterjee, Léo Czajka and Amory Gethin found that, before taxes, the share of average income going to the top 1% of earners in South Africa increased by 50% in the period 1993 to 2019, while the income of the poorest 50% decreased by more than 30%, after inflation. In South Africa, Section 27 of the Employment Equity Act (EEA) requires designated employers (employers who employ more than 50 employees or meet a certain annual turnover threshold specific to their threshold) to report income differentials across both race and gender groups, but this is a confidential document submitted to the Department of Labour and it does not have to be made transparent. In addition to complying with these legal requirements, mining companies are addressing income inequality within their businesses through analysing data on pay differentials and conducting audits of their employment policies and practices. Income equality considerations should permeate all business processes that relate to and influence the employee experience – from recruitment to inclusive onboarding initiatives, teambuilding culture, performance reviews, succession planning, mentoring and sponsorship, for example. The focus should be on empowering employees to have, not only equal pay for work of equal value, but also, for example, equitable access to work opportunities, skills development and training, the right to capital assets, as well as access to programmes that focus on, for example, women’s health and well-being in the workplace. Employers should set targets and measurable goals to address income equality and ensure that such targets are published in the public domain. Transparency has been noted as key in addressing and being held accountable for reducing global income inequality. Beyond the need to do the right thing, as well as to comply with country-specific employment regulations, there are other reasons for addressing income equality – most notably the high correlation between income equality and diversity, workforce productivity and business profits. Essentially, employees want to know they are working in a role that provides not only personal meaning, but that the business is fulfilling its responsibilities to society and the environment. In return for providing this, businesses are able to attract and keep their most precious commodity – thriving, happy employees who gain meaningful, layered rewards from their work. By Johan Botes, Partner and Head of the Employment & Compensation Practice, Baker McKenzie ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://africanminingmarket.com/the-rise-of-employee-value-in-the-mining-workplace/15045/

Jabu Tshabalala | 7th Feb 2023 We need 11 million more jobs, and small businesses will create 90% of them. We cannot have 70% youth unemployment and expect peace. During his state of the nation address (Sona) on Thursday, South African business organisations hope President Cyril Ramaphosa will recognise the country’s crises and also acknowledge a black economic empowerment (BEE) milestone. Business Unity South Africa (Busa) chief executive Cas Coovadia told Sunday World during an interview that Ramaphosa needed to recognise the country was in crisis. “We have a multifaceted crisis. The starting point when dealing with it is decisive and courageous leadership from the president,” Coovadia said. Black Business Council (BBC) chief executive Kganki Matabane said 2023 was significant as the Broad-based Black Economic Empowerment Act turns 20 years this year. “We’re expecting the president to reflect on that, and the progress made so far,” he added. The BBC wants Ramaphosa to indicate what the government’s plans to accelerate BEE are going to look like. This is particularly in light of the BBC’s data showing that black people own less than 5% of the economy and government employment equity reports indicating about 70% of JSE-listed company CEOs were white males, Matabane said. Coovadia said Ramaphosa needed to address several critical issues in his 2023 Sona. “The top issue is energy. The president’s energy plan is on the table, and he needs to assure the country that the government will urgently implement it. “But unfortunately, that plan will only bear fruit in two years,” he added. Matabane also believes the country’s first issue is solving the power crisis. “It needs to be sorted out as soon as possible. If we continue like this for the next three years – the economy may collapse,” he added. The National Development Plan aims to cut unemployment to 6% by 2030 from more than 30% today. “We need 11-million more jobs, and small businesses will create 90% of them. We cannot have 70% youth unemployment and expect peace. We want the president to say something about that,” Matabane said. The BBC also wants the president to deal with crime and corruption during the Sona and for him to put the National Prosecuting Authority under pressure to act. He added it was important that the government announced measures to deal with crime and protect South African citizens. “If they have to hire more police, let them do that,” he added. This is particularly important as Matabane said many high-net-worth individuals were leaving South Africa because of crime and loadshedding. This emigration is reducing the country’s tax base. Coovadia said Busa expected the president to address the country’s logistical problems. “Transnet’s performance is far from optimal, and our road network is collapsing after being one of the best on the continent.” “I don’t know if the president will have announced his cabinet by then, but his cabinet needs to speak with one voice under his leadership and not have mixed messages from different ministers,” he added. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/business-cries-out-for-light-at-end-of-sona-tunnel/

Department of Women, Youth and Persons with Disabilities | 8 February 2023 Gender-Responsive Budgeting Workshop seeks to restructure the way Government looks at financing the gender agenda The Department of Women, Youth and Persons with Disabilities held a 2-day workshop on Gender Responsive Planning, Budgeting, Monitoring, Evaluation and Auditing (GRPBMEA) from 6-7 February 2023 in Benoni, Gauteng Province. The workshop was attended by officials representing the three tiers of government, as well as civil society organisations and academia. The national workshop, attended by over 500 officials working in planning, monitoring and evaluation, and finance, focussed on the implementation and institutionalisation of the Gender Responsive Planning, Budgeting, Monitoring, Evaluation and Auditing Framework (GRPBMEAF), approved by Cabinet in 2019. It is important to note that, as the department, our implementation of the framework covers priorities for women, youth and persons with disabilities (WYPD). The workshop aimed to reflect, engage, and share progress made and lessons learned towards knowledge improvement and commitment to the institutionalisation and mainstreaming of women, youth and persons with disabilities. The workshop was themed: “Leaping towards the achievement of the MTSF 2019-2024 target to institutionalise 100% women, youth and persons with disabilities Responsive Planning, Budgeting, Monitoring, Evaluation and Auditing.” The DWYPD has a critical mandate to regulate the promotion of women empowerment and gender equality, youth development and the promotion of the rights of persons with disabilities. The GRPBMEAF is therefore one of a number of tools used by DWYPD to regulate the institutionalisation of mainstreaming of WYPD priorities across the work of government. With this workshop the department sought to encourage and ensure that the broader public service prioritises women, youth, and people with disabilities priorities into all plans and budgets in order to improve the results for women's empowerment, youth development and realisation of the rights of the persons with disabilities in the country. The workshop sought to: Broaden the status on progress made on the implementation of GRPBMEAF by national departments and provincial departments and related stakeholders is provided; Share best practices and relevant knowledge regarding policies, programmes and institutional mechanisms which have successfully advanced WYPD empowerment and equality related matters; Strengthen monitoring, evaluation and reporting on the implementation of the GRPBMEAF in support of the prioritisation of the institutionalisation and mainstreaming of WYPD; Promote accountability for full implementation of GRPBMEAF as well as strengthened knowledge on WYPD evidence; and To discuss the recommendations and interventions for continuous improvement on the process of the implementation of GRPBMEAF and WYPD priorities. A gender responsive budget is an important mechanism for ensuring greater consistency between economic goals and social commitments. Periodically, DWYPD hosts meetings with national and provincial departments to capacitate departments and track progress on the implementation of the framework. The results are an improved awareness and understanding of the framework as well as an improved response rate on the self-assessment reports by departments to over 50%, which provides a baseline on institutionalising the framework. What is the Gender-Responsive Planning, Budgeting, Monitoring, Evaluation and Auditing Framework? The Bill of Rights guarantees full and equal enjoyment of all rights by all genders and the protection of people against any form of discrimination. In addition, South Africa is a signatory to a number of international and regional commitments to gender equality and women empowerment, including the Convention on the Elimination of all Forms of Discrimination Against Women (1995) and the Southern African Development Community Protocol on Gender and Development (2012), amongst others. The South African Parliament has passed legislations that further the goals of gender equality, including the Employment Equity Act, 1998, and the Promotion of Equality and Prevention of Unfair Discrimination Act, 2000. South Africa initiated a number of gender responsive budget initiatives since the dawn of democracy in 1994 and was seen as leading both on the continent and globally in developing and implementing Gender Responsive Budgeting methodologies. However, as a country we have since regressed. There is much to learn from these initiatives and the evolving legislative and policy context in South Africa, and how to sustain our gains. The Department of Women, Youth and Persons with Disabilities (DWYPD) developed the Gender Responsive Planning, Budgeting, Monitoring, Evaluation and Auditing (GRPBMEA) Framework that was approved by Cabinet in 2019. The Framework sets out an approach to ensure that the country and government-wide systems explicitly and consistently respond to women’s empowerment and gender equality priorities. The institutionalisation of GRPBMEA is directly linked to gender mainstreaming across the state. Gender-responsive budgeting initiatives seek to create a direct linkage between social and economic policies through the application of a gender analysis to the formulation and implementation of government budgets. A gender analysis can also demonstrate the ways in which social institutions that are seemingly “gender neutral” do in fact bear and transmit gender biases. Gender budget analyses can be applied to gender specific expenditures, expenditures that promote gender equity within the public service and general or mainstream expenditures. The achievement of Gender Equality and Women Empowerment (GEWE) requires a greater equal sharing of the allocated financial resources towards programmes and interventions which should equally benefit women and men. This will ensure the achievement of women’s economic, social and political empowerment. In order to achieve this, engagements with relevant stakeholders is crucial to facilitate commitment towards ensuring the inclusion of gender in the budgeting process. As DWYPD coordinate the implementation of the GRPBMEAF, centre of government departments have been central to driving the government wide institutionalisation of the framework, in particular Department of Planning, Monitoring and Evaluation (DPME) and National Treasury (NT). Find the Gender-Responsive Planning, Budgeting, Monitoring, Evaluation and Auditing Framework here: https://tinyurl.com/yc6fj6wz(link is external) For media related queries: Mr Shalen Gajadhar Director: Communications, Department of Women, Youth and Persons with Disabilities Cell: 060 979 4235 For media engagements: Ms Xolelwa Siya Dwesini Xolelwa.Dwesini@dwypd.gov.za Cell: 081 030 9109 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/gender-responsive-budgeting-workshop-seeks-restructure-way-government-looks-financing

Pieter Groenewald | 8 February 2023 South Africa has had enough of empty promises and President Cyril Ramaphosa cannot simply repeat the same plans and promises he made in previous State of the Nation Addresses (SONA). These empty promises by ANC heads of state have formed a pattern where the same plans are rehashed, or tweaked a little, every year to try and fool the public. An example is the 2022 promise that more will be done to create a favourable environment for the private sector in order to stimulate economic growth. Nothing came of it. On the contrary, along with administrative red tape the suffocating screws of Black Economic Empowerment (BEE) and Affirmative Action (AA) have only been turned tighter. That is evident in the Employment Equity Amendment Bill, which was passed last year. It affords the Minister of Trade and Industry extensive powers to decide for himself where transformation in the workplace is falling short, and what the new transformation targets ought to be. All that is left is for the President to sign it. It is the complete opposite of what he promised a year ago. Legislation like this has caused South Africa's private sector and the country's economy unmeasurable damage. The President's promises and reality are obviously two vastly different things. Likewise, very few of the other SONA promises realised. The President must say why they were not implemented, and he must announce decisive plans for stimulating the economy. The President must be very honest about the ongoing power crisis and he must put forward government's plans to address it in great detail. Harsh experience has, however, taught that it is best to temper any optimism about the practicality of SONA promises. Thursday's SONA will, like before, probably be no more than a rehash of the grand ideas and impractical plans of the past. Under ANC rule, the country's administration has deteriorated to such an extent that even viable plans are difficult to implement. It has plunged the country into this current crisis. The FF Plus does not foresee any deviation from the recipe that the ANC has been following to run South Africa into the ground over the past three decades. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/sona-empty-promises-will-fool-noone--pieter-groene