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Karl Gernetzky - 13 April 2023 Getty Images President Cyril Ramaphosa on Wednesday signed the Employment Equity Amendment Bill of 2020 into law, which will, among other things, empower the Department of Labour to set new transformation targets for industries, including regional ones, while also sparing many smaller businesses from the need to report annually. The bill amends the Employment Equity Act of 1998, which was implemented with an aim of preventing discrimination in the workplace and to address SA's history of structural exclusion on the basis of race. The new measures will promote diversity and equality in the workplace and require enterprises to develop transformation plans, while compelling labour inspectors to inspect workplaces and to issue employers with compliance orders, the Presidency said in a statement. Trade union Solidarity said on Thursday it was gearing up for a "huge legal battle" over the bill, which it said was unconstitutional, will keep businesses small, and cost thousands of jobs. "If there is no intervention, this government will carry on with its policy of ineffective centralisation and it will even go so far as to take over the human resources function in organisations," Solidarity CEO Dirk Hermann said in a statement. The DA said on Thursday it would join Solidarity's legal action, maintaining that the act wouldn't bring about transformation, but would rather enrich a number of politically connected individuals, while it would also reinforce the racial categorisation of the past. Business Unity SA (BUSA), meanwhile, welcomed the step, given that it ended a period of uncertainty but also formed part of the transformation agenda, and would help affirm social dialogue through meaningful dialogue on sector targets. BUSA, however, said it would continue to engage with the Department of Labour, given that some areas of the bill are still "problematic". This includes "concerns around the fragmentation of policy objectives and enforcement mechanisms within government, with some companies, because of their sectors, expected to comply with different transformation targets administered by different government departments or entities". The amended act allows the minister of employment and labour to set regional targets given that racial diversity in SA often has regional differences, the Presidency said. The law also requires employers with more than 50 employees to submit employment equity plans for their companies, spelling out how they will achieve these targets. Employers are then required to submit annual reports to the Department of Employment and Labour. According to law firm Cliffe Dekker Hofmeyr, the amendment significantly relieves the administrative burden on these smaller employers, which can still seek compliance certificates if they are looking to do business with the state. The firm said the new changes in terms of allowing for setting numerical targets was, importantly, a discretionary power which requires consultation with the relevant sectors and advice of the Employment Equity Commission. "The outcome of this exercise should ideally result in the minister setting numerical targets based on the reality of the sector, the composition of the workforces within the sector, and the shifting needs for certain skills or proficiencies. This means that the target should neither be arbitrary nor rigid," it said. https://www.news24.com/fin24/economy/ramaphosa-signs-new-employment-equity-act-into-law-which-solidarity-gears-up-to-fight-20230413 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

LUYOLO MKENTANE - 13 April 2023 Employment & labour minister Thulas Nxesi. Picture: FREDDY MAVUNDA Business and labour have welcomed President Cyril Ramaphosa’s signing into law on Wednesday of the Employment Equity Amendment Act, allowing employment & labour minister Thulas Nxesi to set workplace transformation targets. The legislation is aimed at accelerating transformation in the workplace by putting clear targets in place, and empowers Nxesi, in consultation with sector stakeholders, to introduce sector-specific employment equity targets. The government previously had no real targets as the Employment Equity Act required only “reasonable progress” in terms of workplace transformation. According to data from the latest Labour Market Dynamics, compiled by Stats SA, black African men and women had the highest unemployment rate compared with those of other groups while the white population group had the lowest unemployment rate in 2016 and 2021. The study found that men are more likely to be employed regardless of race. Business Unity SA CEO Cas Coovadia said the amendment act ends a “long period of uncertainty on the proposed changes and impact of our transformation laws”. He said Busa was pleased that the minister will set employment equity targets for sectors “only after consultation with the relevant business and employer bodies”. “In our view, meaningful consultation on sector targets affirms social dialogue and will ensure the relevance of the set targets,” said Coovadia. “Busa is, however, aware that some aspects of the law remain problematic, as the organisation had raised in parliament during the public hearings process in 2021 and 2022. For example, measuring compliance and issuing compliance certificates as a licence to do business with the state will depend on whether a company has met its targets and does not have a case of unfair discrimination raised against it at the CCMA [Commission for Conciliation, Mediation and Arbitration] or labour court in the previous 12 months.” Coovadia said Busa is concerned about “treating targets as quotas, which would be against the spirit and letter of the law anyway”. “Companies should not be subjected to double punishment by the CCMA or labour court and the department of employment and labour for the same issue, which could lead to unnecessary litigation and derail our objective of transformed workplaces,” he said. Cosatu parliamentary co-ordinator Matthew Parks said the labour federation, a key ally of the ANC, welcomed the signing of the act into law. He said the law provides “badly needed interventions to strengthen government’s ability to hold employers accountable for their role and failures to adhere to the Employment Equity Act”. “Cosatu urges the department of employment and labour to move with speed to ensure the promulgation and implementation of these long overdue provisions,” Parks said. “Organised business must do its bit to ensure employers are aware of these new requirements. Cosatu will be working with its affiliates, endeavouring to empower shop stewards and workers on this progressive amendment act.” Meanwhile, Solidarity said it will challenge the “unconstitutional” law which granted “draconian” racial powers to Nxesi. Solidarity’s legal team will serve court papers soon. The presidency says the law is intended to advance transformation of the country’s workforce by setting employment equity targets for economic sectors and geographical regions, and requires enterprises to develop transformation plans. Employers with more than 50 staff must submit employment equity plans, specifying how they will achieve the targets. Employers must also submit annual reports to the department. Solidarity said it informed Ramaphosa of its views on August 23, obtained legal opinion confirming its stance and had made submissions to parliament. “The president is ... aware that Solidarity would go to court should he sign this act into law. This is precisely what he has now done. We are now preparing for court,” said Solidarity CEO Dirk Hermann. The union said the amended act empowered the minister to undertake centralised racial planning at his or her discretion. “This would be the most drastic race-manipulating legislation in the world.” Solidarity expects the private sector will have to follow the state’s example. “Private enterprises will become state-run racial enterprises,” Hermann said. The law will also have dire consequences for the economy, he said. “New definitions of ‘designated employers’ will force small businesses to remain small and will cost thousands of jobs. “Any promotion opportunities for those fortunate enough to keep their jobs will be completely stopped. This will mean that the skills exodus will merely be accelerated. SA’s economy, like its public service, will become increasingly trapped in a spiral of inefficiency, contraction and imminent collapse.” Hermann said the state’s obsession with race must be opposed. https://www.businesslive.co.za/bd/national/2023-04-13-business-and-labour-welcome-employment-equity-amendment-act/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

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The most significant risk to an organisation meeting its Preferential Procurement targets is fraudulent B-BBEE Certificates and Affidavits. They not only go against the spirit of B-BBEE, but they put an organisation at risk, as fraudulent B-BBEE Credentials only reveal themselves at the time of an organisation’s B-BBEE Verification. If any members have suspicions about B-BBEE Credentials currently on any Entity, Certificate Collection Services are on hand to assist with verification of their authenticity.

Critical points are lost on the Preferential Procurement Scorecard of many organisations, as they are unfamiliar with the requirements of the Sector Codes of Good Practice. For example, if a supplier operates in the tourism sector and then presents a B-BBEE Certificate or Affidavit based on the Generic Codes of Good Practice (Generic Codes) instead of the Tourism Sector Code, it is invalid. Unfortunately, the extent to which this happens only reveals itself at the time of an organisation’s B-BBEE Verification. A supplier may not choose the Code against which they are measured. The rule is that an organisation qualifies to be measured on the Code of the sector from which most of its income is derived. However, confusion often reigns when suppliers present B-BBEE Credentials across sectors. For example, ABC Construction is an organisation measured on the Amended Construction Sector Code. They book accommodation at the XYZ Hotel. The B-BBEE Credentials presented for the accommodation must reflect the Amended Tourism Sector Code against those criteria. The procurement person at ABC Construction should know that XYZ Hotel’s B-BBEE Credentials must align with the Tourism Sector Code. In addition, it is imperative that those in procurement are aware of the turnover thresholds, targets, and the Weighting Points of all sector codes, as they, in some cases, differ from the Generic Codes. Enterprise & Supplier Development Services are available to guide organisations in addressing challenges in procuring across sectors.

As per Paragraph 3.1 statement 300 , the Generic Codes of Good Practice, Skills Development only award points if an organisation directly implements Priority Skills for 'Black' People. Although it does not require that all training aligns with Priority Skills, they must form part of a Skills Development intervention. Therefore, Bursaries within a Measurement Period must align with the needs of an organisation's core services and Priority Skills identified by the sector in which they operate. Consequently, during a B-BBEE Verification, when measuring Bursaries, indicators are assessed per line on the scorecard to ascertain whether Priority Skills form part of the criteria. Therefore, category B, C and D Skills programmes and Bursaries must align with sector-specific Priority Skills requirements. Skills Development Services are available to guide members in identifying Priority Skills relevant to the sector in which they operate.

Nokukhanya Mntambo - 13 April 2023 Picture: Eyewitness News JOHANNESBURG - President Cyril Ramaphosa will have the tough job of bringing investors on board as the country's Investment Conference rolls around for a fifth and final time in Sandton on Thursday morning. Ramaphosa is expected to parade South Africa's business potential in a bid to achieve its optimistic target of R1.2 trillion in five years. While the target was initially thought to be overzealous, the country now looks set to exceed it. The investment drive in 2022 pulled an impressive R1.1 trillion in pledges. Some of these pledges are yet to materialise, with about 40% of the commitments having been finalised. In the final leg of 2023, the country needs a small push to meet the five-year target. Team South Africa is expected to rely on its strategic importance in the African region and promise economic recovery and reconstruction to draw in investors. While the country remains a favourable tourist destination, Ramaphosa might still have to convince some investors believed to be spooked by the country's woes. This includes power cuts that continue to cripple the economy, low economic growth, poor consumer sentiment, and some policy uncertainty. Crime and corruption also threaten the country's profile, with the elaborate prison escape of rapist and murderer Thabo Bester further smearing the country's image. Considering this, team South Africa remains adamant it can clean up its image. https://ewn.co.za/0001/01/01/sa-investment-conference-ramaphosa-facing-tough-job-to-bring-investors-on-board ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Staff Writer - 12 April 2023 Trade union Solidarity says that it is preparing for a huge legal battle over the new Employment Equity Act. This comes after president Cyril Ramaphosa signed the Act into law on Wednesday (12 April). Solidarity has maintained that the amendments are unconstitutional and wrote to the president in August 2022, objecting to the laws. “Solidarity also obtained legal opinion which confirms this, and it has made submissions to this effect to Parliament,” it said. “The president is therefore aware of the fact that Solidarity would go to court should he sign this Act into law. This is precisely what he has now done, and we are now preparing for court,” said Solidarity chief executive, Dirk Hermann. According to Solidarity, the legislation “grants draconian racial powers to the minister (of employment and labour)”. Under the country’s new laws, the minister is empowered to set specific employment equity targets across various sectors and regions, and businesses who qualify as ‘designated employers’ will be required to establish employment equity plans to meet these targets. Designated employers are defined in the new Act as businesses who employ more than 50 people. These businesses will also have to do annual reporting on these measures. Further, to do business with the state, these employers will have to receive a certificate that indicated they are compliant with the laws. However, designated employers will be required to comply with the laws whether they intend to do business with the state or not. “The minister can now do central racial planning at his own discretion. This would be the most drastic race-manipulating legislation in the world. It is anticipated that the private sector would have to follow the state’s example. Private enterprises will become state-run racial enterprises,” Hermann said. Solidarity said it is of the opinion that this Act is unconstitutional and that it is, moreover, directly contrary to an earlier finding of the South African Human Rights Commission (SAHRC) which indicated that, even in its current format, South Africa’s racial legislation is unconstitutional and not in accordance with international norms and values. “This Act which imposes race targets on all sectors will have dire consequences for our economy. New definitions of ‘designated employers’ will force small businesses to remain small and will cost thousands of jobs,” Hermann said. “Any promotion opportunities for those fortunate enough to keep their jobs will be completely stopped. This will mean that the skills exodus would merely be accelerated and South Africa’s economy – like its public service – will become increasingly trapped in a spiral of inefficiency, contraction and imminent collapse. “The state’s obsession with race must be opposed at all costs. We simply cannot afford it not to do so. Without intervention, this government would pursue its policy of ineffective centralisation, even going so far as to take over the human resource function in organisations,” Hermann said. Solidarity said its legal team has started to prepare for litigation and has indicated that it will serve its court papers soon. https://businesstech.co.za/news/government/679709/south-africas-new-transformation-laws-already-facing-legal-challenge/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Staff Writer - 13 April 2023 President Cyril Ramaphosa has signed the Employment Equity Bill into law. Presidential spokesperson Vincent Magwenya noted the signing of the bill during a briefing on Wednesday (12 April). The Employment Equity Amendment Bill, 2020 was passed by Parliament (National Assembly and National Council of Provinces) on 17 May 2022. Magwenya said that the new laws will promote diversity and equality in the workplace and empower the government to set specific equity targets by sector and region, where transformation initiatives have lagged. The law requires companies with more than 50 employees to submit employment equity plans for their companies on how to meet these targets, and then submit annual reports to the Department of Employment and Labour. Companies seeking to do business with the state will be required to submit a certificate from the Department confirming that they are in compliance with the Employment Equity Act and its objectives, and that they do not pay their employees less than the national minimum wage. As part of ensuring the employment equity objectives become reality, the law now compels labour inspectors to inspect workplaces and to issue employers with compliance orders. The Department of Employment and Labour has committed to increase the number of labour inspectors and health and safety inspectors who will enforce compliance. What to expect The main objectives of the amendments are to empower the Employment and Labour Minister to regulate sector-specific Employment Equity (EE) targets and to regulate compliance criteria to issue EE Compliance Certificates in terms of Section 53 of the EE Act. This means that organisations, especially those that do business with the state, will have to be in good standing when it comes to compliance with EE. A key aspect of the new laws is determining which businesses are regarded as “designated employers” – the businesses which have to submit things like EE reports – as it is these employers that the laws directly address. Under the previous act, a “designated employer” was an employer that employs 50 or more employees or an employer that employs fewer than 50 employees but has an annual turnover that is equal to or above the threshold determined by the EE Act, depending on the relevant sector. This designated employer definition has now changed so that employers that employ fewer than 50 employees, irrespective of their annual turnover, will no longer form part of the designated employer definition and, therefore, will be exempt from compliance. This is quite a significant change as these companies will not be required to implement measures to ensure suitably qualified people from designated groups have equal employment opportunities and are represented at all occupational levels in the workplace. For the big businesses that fall under the definition of a designated employer, however, the most impactful change is the empowerment of the employment and labour minister to regulate sectorial EE targets and compliance criteria. This means EE targets for different sectors will be at the minister’s discretion. While these targets are not yet known, designated employers will have to keep a close watch on the regulations that the minister puts in place as it has a significant practical impact on the way that they are compliant with the act. Even businesses that do not necessarily deal directly with the state will need to comply with the law. Acting deputy director-general of Labour Policy and Industrial Relations, Thembinkosi Mkalipi, previously noted that a new EE online assessment system would be created to monitor the implementation of sector targets, and the assessment will be done annually. https://businesstech.co.za/news/ /679621/ramaphosa-signs-major-new-bee-and-transformation-rules-for-south-africa-into-law/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Luke Fraser - 10 April 2023 South Africa currently has a skills gap in cybersecurity, according to the cyber security group Fortinet’s 2023 Cybersecurity Skills Gap report. The report is based on a survey of over 1,800 IT and cybersecurity decision-makers from 29 countries, including South Africa. The report said that approximately 3.4 million professionals will be needed to fill the cybersecurity workforce gap globally, with the cybersecurity talent shortage being one of the main issues putting organisations at risk. 86% of companies that took part in the report said that they experienced more than one cyberattack in the last year, which could be partially linked to a lack of cybersecurity skills in their staff. 52% of South African respondents said that they expected cyberattacks to increase within the next 12 months. In response, 94% of South African companies said that they would be willing to pay an employee to get a cybersecurity certificate. Despite the desire for cybersecurity certifications, more than 70% of global respondents said that it is difficult to find people with the necessary certificate. A lack of cybersecurity skills is having a major economic effect on businesses. Close to 50% of global organisations said that they were impacted financially due to security breaches in the year, with it costing over $1 million to solve these issues – a 38% increase from the previous year’s report. The report said that phishing, malware and password attacks made up 81% of the attacks by the surveyed participants in 2022. These types of attacks can target systems and users directly. Phishing schemes are especially notable as they can deliver the other attack types, with malware and social engineering leading to password and web attacks. Other cyberattacks Fortinet previously said that a growing number of cybercrime incidents are occurring due to the work-from-home and hybrid work models. According to the group, nearly two-thirds of companies in South Africa have reported data breaches due to work-from-anywhere (WFA) susceptibilities. Due to load shedding, South Africans are particularly at risk as a lack of power forces WFA workers to alternate between networks – fibre, mobile, and public Wi-Fi – creating opportunities for attackers to intercept business communications on an unprotected device. The group said that cyber security needs to be a major priority for companies but believes that WFA will likely be here to say as it does have several benefits. “Only a third of employees in EMEA countries, including South Africa, have returned back to the office full-time. Most companies in this region allow for a mixture of remote work up to four days per week or even permanently,” Fortinet said. Companies will thus have to invest and develop a cybersecurity footprint, with 94% of companies surveyed in the group’s 2023 WFA Global study expecting to increase their security budget in line with WFA policies. https://businesstech.co.za/news/technology/676197/one-skill-south-africa-desperately-needs/#:~:text=South%20Africa%20currently%20has%20a,29%20countries%2C%20including%20South%20Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Devdiscourse - 11 April 2023 Image Credit: Twitter(@SAgovnews) In its 5th year since inception, President Ramaphosa convened the South Africa Investment Conference with an objective of achieving R1.2 trillion in investments targets. President Cyril Ramaphosa will address the South Africa Investment Conference (SAIC) on Thursday. The SAIC will be attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg. In its 5th year since inception, President Ramaphosa convened the South Africa Investment Conference with an objective of achieving R1.2 trillion in investments targets. Investors heeding the call have over the last four conferences declared R1.14 trillion in investment commitments. “Of the 152 investment announcements made previously, 45 projects have already been completed, while a further 57 projects are currently under construction. These investments have resulted in new factories, call centres, solar power plants, undersea fibre optic cables, expansion of production lines and the adoption of new technologies,” said the Presidency. It said the new investments also significantly contribute to South Africa’s national goals of socio-economic development to create sustainable jobs, reduce poverty and drive back inequality. These investments have also contributed to a substantial increase in local production and encouraged efforts to buy local. President Ramaphosa is expected to address the opening of the South Africa Investment Conference on the Thursday morning and also take part in the panel discussion on “South Africa: Resolving the Energy Crisis”. Companies significant investments will be pronounced in the opening session. Delegates at the conference will participates in breakaway sessions ranging from discussions on Digital opportunities in SA, Agriculture, Infrastructure, Tourism, Digital and Creative Economy, Capital markets, The Just Energy Transition in South Africa, Mining and Manufacturing. Ministers and leading industry experts will partake in the breakaway sessions. In the afternoon, President Ramaphosa will officiate at the closing and announcement ceremony of the 5th South Africa Investment Ceremony. The 4th SAIC raised R367 billion in investment commitments, bringing the five-year investment target firmly into sight. Later, the President will host a business and awards dinner in honour of investors and companies participating at the SAIC. https://www.devdiscourse.com/article/business/2412995-president-ramaphosa-to-address-south-africa-investment-conference ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Karren Singh - 11 April 2023 South Durban residents to benefit from new Engen Global Citizen Development Programme (EGCDP). Picture: Supplied. Durban - The Engen Global Citizen Development Programme (EGCDP), aimed at providing skills to 100 unemployed South Durban residents, was launched at the Engen Refinery in Wentworth on Thursday. James Nyawera, Engen’s head of Transformation and Stakeholder Engagement, said it was an exciting venture. “The EGCDP, in partnership with the Community-Engen Joint Committee, is set to boost future job prospects for residents from the Umlazi, Wentworth, Lamontville and Merebank areas, by providing them with artisan training, learnership opportunities, accredited qualifications and Adult Based Education and Training (ABET),” he said. Engen Skills Development Manager, Mmalenyalo Galane, said the company was passionate about upskilling and empowering the youth and unemployed. “The EGCDP provides a literal springboard towards a brighter future by teaching skills that can be used throughout people’s lives either as employees or as entrepreneurs,” she said. Galane said ABET was designed for adults and youth who do not meet the Grade 12 requirement but would like to venture into the various learning programmes on offer. “ABET offers opportunities to those who have always wanted to complete their Grades 10, 11 and 12 certificate but may not have had the financial means to do so,” she said. Through the Engen programme: 50 ABET beneficiaries will have the opportunity to obtain their high school grade certificate as well as move onto post matric programmes. The artisan skills programme, which runs over 36 months, will empower 21 future artisans who have already passed matric maths and science, with qualifications as electricians, mechanical fitters, and instrument mechanics. Boosting youth unemployment, 29 beneficiaries with grade 11 or 12 certificates are set to embark on various learnerships, which run over 18 months and promise to provide invaluable work experience. “We wish all EGCDP beneficiaries the best of luck as they embark on this new chapter of their lives. It is Engen’s ultimate reward to empower and upskill members of the community to pursue stimulating careers that won’t only benefit them personally, but also their families and the broader economy of South Africa,” added Nyawera. https://www.iol.co.za/mercury/news/south-durban-residents-to-benefit-from-new-skills-development-and-learnership-programme-d9d3e7a1-5f51-4fdb-b995-b89ad30c592e ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.