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’.

Vanessa Poonah - 09 April 2023 Image: Twitter @ArchbishopThaboMakgoba Anglican Archbishop of Cape Town, Reverend Thabo Makgoba, says South Africans can draw hope from the story of Easter, while delivering his Easter message at a Vigil at St George’s Cathedral in Cape Town. Makgoba says whilst too many are still living in the tombs of poverty, young people can roll away the proverbial stone of corruption and inequality. He adds that the country’s politicians have not done enough to create a prosperous society. “You would think that if they were truly focused on the well-being of their constituents, they could overcome their differences enough to collaborate in coalition governments to put an end to corruption and provide decent services to our communities. But instead they play in-again-out-again revolving doors, changing mayors and speakers the way other people change their socks.” Economic equality Makgoba adds that young people should take up a new struggle to end economic inequity and to realise the promises of South Africa’s constitution. He says South Africans are experiencing a near biblical vortex of greed and corruption in which the unscrupulous steal from the poor and swallow the hope of ending inequality. He says accountability is lacking among the Country’s leadership. “The trickle of disconnected announcements on investigations arising from the theft of money from the President’s Phala phala farm still haven’t explained satisfactorily why such large amounts of money weren’t banked, and the ANC’s refusal to allow a parliamentary inquiry is reminiscent of the cover-ups of the Zuma administration. If we are to build the nation we want, one based on transparency and honesty, the President needs to give us a single comprehensive account of what happened and why it happened.” https://www.sabcnews.com/sabcnews/archbishop-makgoba-urges-young-people-to-take-on-the-fight-against-corruption-and-inequality/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Rand Show - 06 April 2023 The Rand Show, known for its annual entertainment and shopping extravaganza, is taking a huge leap forward in supporting Small to Medium Businesses (SMMEs) this year. The expo offers significant incentives and assistance to SMMEs, including a distinctive new summit held on Wednesday, 5 April 2023. This initiative proved to be an essential offering, considering that - according to the South African Government's National Development Plan - SMMEs are expected to create 90% of new jobs in the country by 2030, making them a crucial component of the country's economic growth and development. "The purpose of the summit was to boost small, medium and micro enterprises (SMMEs) by facilitating direct connections with representatives from the corporate and public sectors involved in SMME funding, training, and market access. By attending the summit, our SMMEs had the chance to engage, learn from, and interact with the individuals who have the potential to advance their businesses, presenting valuable prospects for expansion, progress, and operational enhancement in the SMME arena. Furthermore, we were proud to offer this free of charge, as added value, to participating SMMEs," said Adele Hartdegen, CEO of both Dogan Exhibitions and events at the Johannesburg Expo Centre. The summit included live streams, speeches, and panels hosted by industry experts in SMME development, training and assistance and was packed with advice for new and established companies. The keynote speaker was Lumka Dlomo, destination marketing manager, Joburg Tourism Company, who spoke about SMME development, support and empowerment in line with tourism and the growth of the economy within the City of Johannesburg. Other speakers and topics covered in the summit included: Weli Ntuli – Absa. Topic: Using funding to grow my business. Belinda Adams – Absa. Topic: Point of sale and payment available to SMMEs. Yankar Phiri – MTN. Topic: MTN Mobile Money. Sylvester Mpele - MTN. Topic: ICT FLTE and BUW business uncapped wireless. Daisy Moleko - Owner of Rabbilicious. Topic: Motivational talk from an SMME owner or entrepreneur who has made it - explaining how they reached their success. Thulani Msimango - Five Star Car Wash. Topic: Motivational talk from an SMME owner or entrepreneur who has made it - explaining how they reached their success. Simangele Nkwinika - Gauteng Department of Economic Development. Topic: Inclusive Economy Directorate. Siphiwe Ndlovu - Gauteng Department of Economic Development. Topic: Township Economic Development Act (TEDA), Broad-Based Black Economic Empowerment (B-BBEE), and Enterprise and Suppliers Development (ESD).Supt. Teleni Mbhalati -City of Joburg - Public Safety Department. Topic: Importance of Complying with City Bylaws. Maletlatsa Monica Ledingwane -Companies Tribunal. Topic: Speedy Resolution of Company Disputes. Marumo Modiba & Mr Simon Fenyane – CIPC. Topic: Company Registration Information and Compliance. Attendees were enthusiastic about the offering. ‘’I found the SMME Summit very informative as it allows the delegates attending to share more insight on their businesses and what they do. Absa shared that they have six different types of speed point machines that they use, which cover different sectors of a business. All in all, the SMME Summit was of great value,’’ said David Moipatli, area manager of the MTN Gauteng South Cluster. Elizabeth Mogale, owner of Diragotlhe Trading & Projects, said “I found SMME Summit to be very educational and interesting as we have learned a lot as entrepreneurs. What stood out for me was the talk on how to source funding as a small business owner,’’. ’The SMME Summit was very interesting, especially the talk on new products that have been introduced, such as gadgets that can be used to receive payment from clients. I found all the talks helpful and informative,” said Cordelia Nkabinde, owner of Ibhongo Group. ‘’I listened to the session by Absa where they were talking about how they are assisting small businesses to process transactions and general banking. This SMME Summit is a great platform for us as entrepreneurs to come and showcase our businesses and let people know what we do, which leads to brand awareness,” said Sphamandla Dlamini, owner of Yenza (sneaker brand). By connecting and growing this vital part of South Africa's economy, the Rand Show hopes to impact the country's future development. https://www.bizcommunity.com/Article/196/845/237516.html ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Samsung - 06 April 2023 Samsung has proudly announced that its continued investment in South Africa coupled with its dedication to remain an active contributor to the future of the local economy and strong supporter of economic transformation – has contributed to the company’s Level-1 B-BBEE status for five consecutive years. The company has achieved this incredible recognition by embarking on many empowerment, entrepreneurial and skills-based projects in the ICT sector in which it operates in. Samsung is augmenting its national transformation policies through Employment Equity, Enterprise Development and investment in education. In particular, the company is building on its landmark multi-millionaire Equity Equivalent Investment Programme (EEIP), which is already celebrating over three years of sustained success. Launched in May 2019, Samsung’s EEIP programme is expected to have a measurable impact on job creation with a projected contribution of over a billion rands to the South African economy at large. Samsung’s 10-year plan aims to address key developmental aspects linked to the National Development Plan and the overall transformation of the local economy. The company’s EEIP programme has seen an investment in black, female-owned entities who now operate in the full value chain of e-Waste. Samsung also has a strong focus on enterprise development and capacity building in ICT through scarce skills development. When Samsung entered South Africa at the dawn of democracy; it placed a great focus on harnessing the power of technology and innovation to effect great positive change in the country. Since then, Samsung has made incredible strides forward in its long-term vision for the country. Samsung is also developing 4IR skills in partnership with a number of institutions of higher learning in South Africa. The company has launched many skills development initiatives, which are not only created for developing internal employees, but also supporting university students studying in fields within Samsung’s ecosystem and value chain. With wide-ranging support of the country’s youth through bursaries, learnerships and the Samsung Engineering Academy programme, South African youth are gaining artisanal and electronics skills. Samsung is looking forward to a future defined by equality and empowerment for all through these initiatives that have and continue to make an impact across the country and are aimed at developing the youth’s skills-for-employability. The Solve For Tomorrow competition is a Science, Technology, Engineering and Maths (STEM) aligned educational programmes that encourages learners in grade 10 and 11 from underserved communities an opportunity to gain invaluable skills while solving some of the challenges within their communities. Recently launched, this competition is being piloted in 51 schools across the country. Learners are encouraged to use STEM in finding solutions to some of the most pressing societal challenges that are faced by their communities. Additionally, the Samsung Innovation Campus programme partners with universities of technology to develop and teach coding, software development, internet of things (IOT) and artificial intelligence (AI) skills to youth from under-serviced communities. Hlubi Shivanda – Director of Business Operations and Innovation and Corporate Affairs at Samsung South Africa said: “This incredible achievement of the Level 1–B-BBEE Rating for five consecutive years is a re-affirmation of Samsung’s commitment to prioritising B-BBEE as a non-negotiable practice within our businesses. The overarching goal of the country’s B-BBEE programme is the upliftment of the South African economy. As Samsung, we have over the years focused on policies that are designed to empower South Africans in meaningful ways. Our vision for the country is therefore closely aligned with the Government’s B-BBEE policy.” Samsung’s transformation efforts are a clear indication of the company’s tremendous contribution to the achievement of the country’s overall B-BBEE goals and objectives. The key focus areas of Samsung’s overall B-BBEE philosophy and strategy (excluding the Ownership element, which is subject to EEIP) are centred on the following: The annual progression of race and gender representation at each occupational level, with specific emphasis on African Male and African Female representation. Increased focus on both employed learners and unemployed learners, supported by an emphasis on creating work experiences post the learnership/internship period – this is over and above Samsung’s EEIP commitments; Provision of education support through bursaries, both internally and externally. Continued focus on development of black talent in the Samsung South Africa business. Re-directing existing spend to qualifying Black-Owned and Black-Women Owned (BWO) Qualifying Small Enterprises (“QSEs”) and Exempt Micro Enterprises (“EMEs”) to include them in the existing procurement value chain of Samsung South Africa with a focus on the following areas that have been approved – Marketing, Services, Sales, Logistics and Recruitment. Provision of grant and preferential loan funding to qualifying Enterprise Development beneficiaries, with the possibility of graduating them to become suppliers to Samsung South Africa. In addition to increasing spend with identified Supplier Development beneficiaries, the qualifying entities may be provided with grant and preferential loan funding; and Education-focused Socio-Economic Development initiatives through the Samsung Innovation Campus and Solve For Tomorrow competition umbrella as furtherance of the Samsung South Africa’s commitment to the upliftment of underserved communities. “Samsung knows that it is no small responsibility to realise the country’s long-term goals as this requires collective effort from citizens, corporate organisations and government. At Samsung, we believe that transformation is a business imperative and a requirement for the sustainability of our business. However, we are also convinced that concerted transformation efforts can have incredible socio-economic impact and lasting change in the country’s economy,” added Shivanda. https://news.samsung.com/za/samsungs-continued-investment-in-south-africa-contributes-to-level-1-b-bbee-status-for-5th-consecutive-year ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Qualifying Small Enterprises with less than 51% Black Ownership The construction sector in South Africa is expected to rebound in 2022 and expand by 9.1% in real terms. The industry will then stabilise at an annual average growth of 3.1% between 2023 and 2025. Output will not return to pre-pandemic levels during the forecast period. However, the sector’s growth over the forecast period will be due to Government’s support in investments in transport, energy, residential, telecommunication and industrial projects. The Government supports businesses and Small and Medium Enterprises (SMEs) to boost business confidence. In November 2021, the National Treasury announced a plan to spend R2.3b in the Financial Year (FY) - from April 2021 to March 2022. It will assist in rebuilding businesses affected by the third pandemic wave and reconstructing infrastructure damaged in the civil unrest that erupted in July 2021 in the Gauteng and KwaZulu- Natal provinces. Over the long term, the industry’s output will support investments related to the 10-year R2.2tr infrastructure plan unveiled by the Government last year. The plan comprises of 276 projects in various sectors, including transport, energy, industrial and housing. Of the total, R1tr will be spent over the next four years. With Government support, the industry aims to produce 26% of the total electricity from renewable energy sources by 2030. To achieve this goal, Eskom plans to invest R106tr in constructing wind farms and solar plants until 2030. The Government intends to increase the number of Special Economic Zones (SEZ) across the country, which will further support the industry’s growth. In October 2021, South Africa’s president Cyril Ramaphosa announced plans to designate the Sedibeng area as an SEZ, expecting to attract 99 investment opportunities worth R48b. The Amended Construction Sector Codes of Good Practice (CSC) align with the Amended Generic Codes of Good Practice (Generic Codes); however, they hold additional requirements to address the challenges in the sector. The objective is to enhance the capacity of ‘Black’ Contractors, ‘Black’ Built Environment Professionals (BEPs), ‘Black’ Material Suppliers, Industry Workers and the community at large to transform and increase productivity and transformation in the sector. The Construction Sector Charter Council (CSCC) was established in 2009 with the mandate to oversee and monitor the implementation of the CSC. Annually it provides a report highlighting the progress of transformation in the sector. The CSC is comprehensive; however, the requirements are more complex than its sector-specific counterparts. Although published four years ago, misinterpretation of many aspects of the provisions remains a challenge. The consequence is that organisations do not adequately plan their strategy in accordance with the requirements, resulting in a shortfall in evidence at the time of their B-BBEE Verification. The CSC is a complex document due to the categories, financial thresholds and manner in which those in the ambit of the CSC present their B-BBEE Credentials. Unique to the CSC is that it does not incorporate the traditional Enterprise Development element. Being the second in a series of three, this article addresses how the CSC impacts all QSEs with less than 51% ‘Black’ Ownership. Scope of Application An organisation qualifies for measurement on a specific code; therefore, choosing a more convenient one to be measured on is not an option. The criteria as to what code an organisation must be measured on depends on the sector from which it derives the majority of its income, however, some organisations represent two sectors. Nonetheless, an organisation must measure against the code that generates the most of its Annual Revenue in a specific financial period. Therefore, if a gazetted sector code in line with section 21 of the B-BBEE Act represents an organisation’s core business, that is the code it must be measured on; however, with no sector code in place, measurement reverts to the Generic Codes. The CSC scope of application has three categories for an organisation within its ambit, namely Contractors, Built Environment Professionals (BEPs) and Construction Material Suppliers: Contractors conduct construction project activities that include civil engineering, electrical engineering, power transmission, general building and specialist construction work as per the CIBD grading tables below: Construction Material Suppliers are measured against the same scorecard as Contractors. The measurement for both is against given thresholds, targets, weighting points and methodology. However, an organisation can only measure Construction Material Suppliers and Contractors against one another where it can prove that there is compulsory legislative compliance and/or a licensing requirement linked to that specific sector. BEPs, however, are generally not limited to the following activities: > Planning, design and costing of construction projects in a built environment. > Project management and configuration of a construction value chain, including the environment. > Energy, industrial, property, transport and infrastructure; and > Consulting engineering practices, architects, quantity surveyors and town planners. This article applies to Qualifying Small Enterprises (QSEs) with less than 51% ‘Black’ Ownership (BO-QSEs) and Exempt Micro Enterprises that opt to be measured on the QSE Scorecard when tendering above their threshold. There is no option for Enhanced Recognition. Construction Material Suppliers, Contractors and BEPS fall under the following thresholds and are measured against the QSE Scorecard as follows: Priority Elements A QSE must meet the 40% sub-minimum requirements of two of the three identified Priority Elements. Ownership is compulsory, then either Skills Development or Preferential Procurement & Supplier Development. By not achieving the 40% sub-minimum requirement results in the Discounting Principle being triggered, which means a drop of one Status Level and corresponding Preferential Procurement Recognition Level, which will appear on an organisation’s B-BBEE Certificate. A B-BBEE Rating Agency will indicate whether they applied the Discounting Principle on the B-BBEE Certificate. Ownership Ownership is measured on the date of an organisation’s B-BBEE Verification. Apart from a natural person that holds Ownership directly, ‘Black’ People may hold ownership in one of the following forms: Company - as defined by the Companies Act; Close Corporation; Co-operative; Partnership or other association of natural persons; Any form of a juristic person recognised under South African law; Discretionary Collective Enterprises such as: a. Trust; b. Broad-Based Ownership Scheme; and c. Employee Share Ownership Programme; The definition of ‘Black’ People’ applies to the CSC, being a generic term for African, Coloured and Indian People: Who are citizens of the Republic of South Africa by birth or descent; or Who became citizens of the Republic of South Africa by naturalisation - Before 27th April 1994; or On or after 27th April 1994 and who should have been entitled to acquire citizenship by naturalisation prior to that date. Ownership measures Net Value, Economic Interest and Voting Rights with three Bonus Points available. The key measurement principles are: The criteria for measuring Rights of Ownership held by ‘Black’ People in South African multinationals relates to the value of its South African operations. When measuring the Rights of Ownership of any category of ‘Black’ People and the Ownership of a ‘Black’ Person passing through a juristic person – which South African law recognises – then the Flow-Through Principle applies to every tier of a multi-tiered ownership chain until it ends with a natural person meeting the definition of a ‘Black’ Person. The Modified Flow-Through Principle applies when measuring the Voting Rights and Economic Interest of ‘Black’ People. However, it does not apply when calculating the Voting Rights and Economic Interest of ‘Black’ Women, New Entrants or Designated Management Control Management Control is measured on the date of an organisation’s B-BBEE Verification. It determines the representation of ‘Black’ Management that controls or makes decisions in an organisation. The key measurement principles include: The calculation for the score is against an organisation’s current payroll data. Therefore, a B-BBEE Rating Agency must access the complete data set, including a Payment Parity of the EEA4 or similar report. A B-BBEE Rating Agency is responsible for confirming that a ‘Black’ Person counted in the report receives remuneration in line with their occupational level. Without evidence supporting employment conditions, an agency will not award points for this element. If an organisation qualifies as a Designated Employer and does not make its Employment Equity submission, a B-BBEE Rating Agency will not award points for this element. Skills Development The period for measuring Skills Development is an organisation’s Financial Year. A B-BBEE Rating Agency will only recognise contributions payable within this period. All applicable organisations must comply with the Skills Development Act. The key measurement principles include: > All skills interventions must align with the CSC LearningMatrix. Therefore, the following is necessary to receive points on the Skills Development scorecard. Where legislation requires, an organisation must: Present a SETA-approved Workplace Skills Plan, Annual Training Report and Pivotal Report; and Implement a general Priority Skills Programme incorporating ‘Black’ People. Targets for Skills Development expenditure can include external training for ‘Black’ People who are not employees. However, an organisation may not repeat that claim under any other scorecard element when claiming for Skills Development. In other words, double claiming is not allowed. The CSC limits Mandatory Sectoral Training to: a. Site, projects or safety inductions; b. Toolbox talks; and c. Operators’ re-certification. Skills Development expenditure is any legitimate training expense for any learning programme for ‘Black’ People that includes, but is not limited to, the cost of: Skills Development expenditure arising from informal training - categories F and G - under the Learning Programme Matrix cannot accumulate more than 35% of the total value. Providing a learning programme is applicable during an organisation’s Measurement Period; salaries or wages for Learners in categories B, C or D programmes are Skills Development expenditure. The maximum period an employee is eligible for Professional Registration learning programmes - category C - is five years, which is the duration of the calculation. Skills Development expenditure does not constitute a claim if: Any portion of the expenditure stems from a grant or another such avenue; or There are any conditions attached to a Bursary or Scholarship, except for: Successful completion of studies within an allocated time frame; and The continuation of employment for a period following successful completion of studies. However, the time frame must not be greater than the time frame of the study period. All foreign service providers must be accredited, registered or formally approved by a statutory occupational or professional body in South Africa or abroad. Any training outside South Africa, provided locally but with foreign service providers, in line with the Learning Programme Matrix, meets the requirements. However, it must align with the Skills Matrix for a ‘professional registration body’ and be accredited or registered with a formal learning institution.

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