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Sunday World | 6 March 2023 President Cyril Ramaphosa's first SONA speech promised a new dawn for South Africa. / RSA Parliament South Africa has faced leadership challenges over the years, even dating back from the Mbeki, Zuma and now Ramaphosa eras. However, the crisis of political leadership in South Africa has certainly spiralled out of control, with a myriad challenges, ranging from abuse of power, corruption, and to lack of accountability, to mention but a few. The current national gloom occasioned by perceived lack of response to unemployment(especially among the youth), searing poverty, obdurate inequality, rampant crime, and worsening corruption, is a plea for caring, empathetic and responsive leadership. Good leadership by our political leaders and the ability to make the country work for us should correlate. However, the poor ability to do this by our current political leaders has come to the fore over the past years. During the past decade or so, numerous negative political forces have conspired to frustrate or hinder the country’s socioeconomic development. Among these are bureaucratic party structures, mounting national debt, flawed parliamentary democracy, party factions, deployment misplacing employment, political leadership that excels in elaborate plans but short on implementation, moral decline caused by political patronage, and, most importantly, government officials who fail to do the right thing, always. When President Cyril Ramaphosa was sworn in as president of the Republic in 2018, he spoke of a “new dawn” in his first state of the nation address, which perhaps meant saving the country and working towards a better South Africa from what he found it to be following the previous Zuma administration. The president went as far as quoting the late Hugh Masekela’s song “Thuma mina” (send me), which highlights self-sacrifice, individual responsibility, and the importance of personal change in mindsets. This was a way for Ramaphosa to galvanise citizens and the nation to action and rebuild the embattled nation. It is now six years later and looking at the country, the president is certainly yet to fulfil his promises of a “new dawn”. Leadership is the ability to act morally right. Songezo Zibi in his book titled Manifesto – A new vision for South Africa describes moral leadership as “when a leader, political or otherwise, chooses consistently to try to do the right thing in their chosen role. “In their private life, it is about striving not to do anything so egregious as to offend the public spirit or expectations.” We continue to see the country deteriorate under various political leaderships, more especially of former president Zuma and now Ramaphosa. We have watched a president who is usually slow in action and lacks accountability. Some issues relating to this that are top of mind are the recent reports of alleged corruption at the embattled power utility Eskom with no accountability or action taken. Not to mention last year’s Phala Phala burning issue that occurred at the president’s farm. This was followed by an investigation by an independent panel, which has said there exists “prima facie” evidence that the president may have committed and breached anti-corruption laws. Is it not at a time like this when Ramaphosa should be accountable instead of challenging the independent panel’s findings, which was dismissed by the Constitutional Court this week? Recently, Media Monitoring Africa approached the Constitutional Court to compel Ramaphosa to appoint a new board for the struggling SABC. Why does Ramaphosa have to wait and have his hand forced to take decisions on so many pressing issues while the country is in a crisis? Sadly, the current political leaders have proven numerous times to be self-serving and more interested in self-enrichment. Our political leaders are certainly keeping social distance with the masses relating to the commitments they presented when they took power. Do they even care? South Africa is in dire need of firm, decisive leadership. I am of the view that leadership is a direct response to accountability in the area of public administration. In substance, leadership and accountability are both attributional phenomena. As I write this article, I remembered that this week on February 27 marked 45 years since the passing of South African revolutionary, Robert Mangaliso Sobukwe, who strongly believed that true leadership demands complete “subjugation of self, absolute honesty, integrity and uprightness of character”. Reflecting on the issue of what strong moral leadership would achieve for a country, I wonder if Sobukwe had lived to see this day, what would our nation South Africa look like had we followed his political principles and idea? Looking at the country today, what is Sobukwe’s legacy? As Sobukwe said: “We must, therefore, appreciate our role. We must appreciate our responsibility. The African people have entrusted their whole future to us. And we have sworn that we are leading them, not to death, but to life abundant.” This is what our leaders should be striving for, daily. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/opinion/editorial/our-president-is-too-slow-to-act-and-low-on-accountability/

Given Majola | 7 March 2023 Darkness surrounds residential homes due to a load shedding blackout by Eskom Holdings SOC Ltd. in the Troyeville suburb of Johannesburg. The local youth agency said the South African economy was facing multiple overlapping crises including the economic fallout associated with Covid-19, persistent electricity outages, high inflation, food insecurity, high oil prices and growing inequality. Photographer: Dean Hutton/Bloomberg South Africa’s greylisting by the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog, would stifle the country’s ability to do business globally, especially with EU members, says Youth Employment Service (YES) CEO Ravi Naidoo. YES is a business-led collaboration that seeks groundbreaking ways, through innovation and technological best practice, to reignite the economy and give youth a dignified first chance. Naidoo said that the greylisting, together with load shedding, would unfortunately also affect job creation. He said studies showed that greylisting negatively affected capital flows into countries, with consequent effects on economic activity, growth and employment levels. In response to a Business Report media enquiry, Naidoo said that the single biggest way to create jobs was to increase the country’s rate of economic growth. “We have to enable businesses to grow and be profitable. However, this requires an environment in which businesses are confident to make long-term job-creating investments and greylisting will directly impact the levels of investment into our country,” Naidoo said. He said that when it came to fixing the greylisting problem and ensuring South Africa exited it, the country could learn from Mauritius, who were able to have their listing lifted within two years by getting key stakeholders to work together. “Interestingly, many of the challenges we face as a nation, like youth unemployment, also require collaboration. So, essentially, the solution we require to address greylisting is the same solution we need to address unemployment: sustained collaboration between key stakeholders,” Naidoo said. According to Statistics South Africa’s (StatsSA) Quarterly Labour Force Survey, South Africa’s unemployment rate eased to 32.7% in the fourth quarter of 2022, the lowest since the first quarter of 2021, from 32.9% in the prior period. The number of unemployed persons rose by 28 000 to 7.753 million, the employed increased by 169 000 to 15.934 million and the labour force went up by 197 000 to 23.688 million. Among sectors, finance (+103 000), private households (+54 000), trade (+52 000) and transport (+43 000) posted the largest job gains, while community and social services (-122 000) and construction and agriculture (-12 000 each) shed jobs. The expanded definition of unemployment, which includes those discouraged from seeking work, was 42.6% in the fourth quarter, down from 43.1% in the third quarter. Meanwhile, the youth unemployment rate, measuring job-seekers between 15 and 24 years old, rose to 61% in the last quarter of last year, up from an over two-year low of 59.6% in the previous period. NYDA CEO, Waseem Carrim described the greylisting as disappointing for an economy of South Africa’s size and scale. “At a time when the economy is battling challenges on multiple fronts, it is another unnecessary blow,” Carrim said. The local youth agency said the South African economy was facing multiple overlapping crises including the economic fallout associated with Covid-19, persistent electricity outages, high inflation, food insecurity, high oil prices and growing inequality. It said that throughout all of these crises, young men and women continue to be hardest hit - triply exposed by being in jobs that are most exposed to financial shocks, being least covered by social protections such as the Unemployment Insurance Fund (UIF), and facing additional burdens of household duties and unpaid care work that exacerbated economic poverty with time-poverty. “These factors compound, severely impacting their ability to look for work. The greylisting adds to the multiple overlapping crises and deters much needed local and foreign investment which is needed to grow the economy and create jobs at scale.” Carrim said economists have reflected that South Africa has taken a number of steps already to avoid greylisting and that if the country continued down this path, it could exit greylisting in 18 months. “We must continue with structural reforms to fix the economy in areas such as energy, water, ease of doing business and reducing basic education drop-out rate. We must build on the positive work that has been started in Operation Vulindlela. In the interim, public employment programs and the repurposing of the Social Relief of Distress grant are effective mechanisms to cushion the economic challenges being faced,” he said. Reacting to President Cyril Ramaphosa’s State of the Nation Address last month, Onyi Nwaneri, CEO of Afrika Tikkun Services (ATS), a division of Afrika Tikkun specialising in recruitment, training, placement, and corporate transformation, said increasing the number of employed people, especially young South Africans, was one of the keys to driving development. Even so, Nwaneri said, there has been a pattern of the government saying the right things when it comes to providing this kind of support, but then for some or other reason, it often ends up not being able to fully realise its promises. She said the country’s inability to provide a constant supply of electricity was such an example. Nwaneri said ATS has seen first-hand how job seekers struggle to get placed. “SMMES have taken the brunt of power utility Eskom’s inability to supply electricity, as they have been unable to operate as a result of the blackouts. The impact of the blackouts on SMMES is not only detrimental to these businesses, but also severely caps job growth,” she said. “Skills development initiatives have also been seriously affected as blackouts stall training programmes and make online learning almost impossible. For organisations like ATS, they have had to spend huge amounts of scarce funds on generator and diesel costs,” she said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/sas-greylisting-and-load-shedding-bane-will-also-affect-job-creation-241f836f-221f-49fd-a606-996433cc85d6

The SANAS Website publishes information on all accredited B-BBEE Rating Agencies, which, apart from the contact details, includes: The unique SANAS accreditation number; The date of SANAS accreditation and the expiry; The status of accreditation, which could include one of the following: Accredited | A B-BBEE Rating agency has successfully passed the SANAS accreditation process and applied to retain its status as a SANAS Accredited B-BBEE Rating Agency. Expired | When a B-BBEE Rating Agency has allowed its SANAS Accreditation to expire. Withdrawn | Where a B-BBEE Rating Agency either voluntarily or involuntarily withdraws its accreditation. Suspended | SANAS has issued a B-BBEE Rating Agency with a serious non-conformance/s regarding their B-BBEE Verification processes and procedures that needs to be addressed. A B-BBEE Rating Agency may retain its accreditation status depending on the result of actions implemented. The scope of Accreditation, which is a certificate that states what code they are accredited to measure. For example, there may be an accreditation allowing a B-BBEE Rating Agency to conduct a B-BBEE Verification on the Generic Codes, The Construction Sector Code and Financial Sector Code. However, without specific accreditation, it would not be able to conduct a B-BBEE Verification on the Tourism Sector Code. Therefore, before choosing a B-BBEE Rating Agency, an organisation must check its Scope of Accreditation to ensure that it can conduct a B-BBEE Verification on the relevant Sector Code. If a B-BBEE Rating Agency conducts a B-BBEE Verification on a Sector Code they are not accredited to measure, the B-BBEE Certificate issued on this basis will be null and void. Support Services are available to guide members on how to select a B-BBEE Rating Agency.

VAT is a Total Measured Procurement Spend (TMPS) exclusion as per Clause 6.1 of Statement 400 of the Amended Generic Codes of Good Practice : “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government." Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements. Support Services are available to guide members on TMPS Exclusions.

03 March 2023 | Shawn Hagedorn Authoritarianism threatens as long as SA remains one of the worst countries at trickle-down economics. A recent Business Day editorial spoke of an “unacceptably high level of youth unemployment” and how it “is now probably the biggest threat to SA’s stability” (“President must assemble a wartime cabinet”, February 7). Since then Stats SA’s labour force figures for the fourth quarter of 2022 revealed that this figure has increased still further, to an eye-watering 61% of those between 15 and 24 years old. While it is easy to validate the assessment of the threat this poses to SA’s stability, the implications are difficult to confront. Brazil’s unemployment rate is second only to ours among Group of 20 countries, yet ours is twice as high. Worse still, our official youth unemployment rate substantially understates our extreme outlier status. The more telling metric is the portion of our young adults who will be unemployed for so long that they become permanently marginalised. Nearly all of our currently unemployed young adults will eventually fit this description due to our low growth trajectory. Those who are unemployed two years after leaving school still offer youthful adaptability. After another, say, half-dozen years of continued unemployment, this group becomes far less attractive to employers than younger cohorts. Aspirations give way to coping. Pervasive damage becomes permanent. Accepting the implications of our youth unemployment crisis should jolt our economic sensibilities as much as the Gupta email leaks revealed how we had been politically duped. Insights from scholars and journalists helped us then to accept how wide of the mark our perceptions had been. Will we now accept that mineral wealth does not allow us to reject 21st-century development drivers? Will we appreciate that many democratic movements have been vanquished by authoritarianism amid mounting economic grief? While the French Revolution still inspires, its governance innovations were unable to quell the social unrest that then beset France. Rather, dissatisfaction was soon exploited by Napoleon Bonaparte to create a military dictatorship. If, while making national emergencies seem routine, the ANC continues to dominate the Union Buildings after the 2024 elections, is it reasonable to presume the constitution will survive for elections to be contested in 2029? Have the ANC’s leaders not made clear that they prioritise their party’s interests ahead of the nation’s? We can be certain that our youth unemployment crisis will intensify — with powder keg effects — as the ranks of the permanently marginalised bulge. Yet, notwithstanding how easy it was to provoke social unrest in July 2021, many expect the ANC to root out corruption for the next several years and then accept its being dispatched by 2029 voters. Is this realistic? All functioning governments avoid significant youth unemployment for fear of forfeiting political stability. Is the ANC more a violence-prone patronage network than a constitutionally committed political party? Would many of its members welcome a transition from democracy to authoritarian rule? Suspending the constitution would spark international condemnation — mostly among Western countries. But by aligning with anti-Western nations the ANC can reframe the blowback risks. Does this help explain the ANC’s increasing tilt toward Russia and China? A 2029 transition to a coalition government dominated by well-meaning, competent politicians seems alluringly plausible. But there are equally realistic scenarios in which the country’s social cohesion breaks down before then. As five years of a hard-left, ANC-dominated coalition national government would ensure continued low growth, most of our young adults would feel marginalised and cheated. Alternatively, percolating economic agony could make next year’s election a turning point. Yet our economic discourse has lagged. Instead of focusing on powerful solutions, the ANC has succeeded in framing our employment challenges as a moral dilemma between fiscal rectitude and compassionate subsistence payments. This reflects meagre political accountability that traces to social justice emotions having been systematically exploited. It also involves isolationist impulses being indulged despite global integration being central to this economic era. Globally determined success drivers are then ignored to favour vested interests. The belief persists that investment-led growth is viable despite policies that undermine both exporting and domestic growth. When our dissimilar leaders advocate investment-led growth they are saying their interests must be prioritised. This is termed “trickle-down economics”. Our global rankings for inequality and youth unemployment confirm that SA is among the world’s worst countries at trickle-down economics. Our socially destabilising unemployment and poverty trace to inward-focused economic policies amid a deeply integrated global economy. Corruption and incompetent execution are more visible yet, ultimately, less debilitating. We must aggressively pivot to achieve employment-led growth through far greater global integration. This is difficult but doable, whereas the alternatives threaten unacceptable outcomes. • Hagedorn (@shawnhagedorn) is an independent strategy adviser. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.businesslive.co.za/bd/opinion/2023-03-03-shawn-hagedorn-as-youth-unemployment-grows-the-powder-keg-swells/

Biznews | 3 March 2023 Coca-Cola Beverages South Africa (CCBSA) is partnering with the Henley Business School on a strategic learning partnership to empower select suppliers to the beverage company. The CCBSA-Henley Business School Supplier Development programme kicked off on 1 March 2023 at the Henley Business School. The partnership will see 20 qualifying suppliers attend a 12-month programme at Henley Business School to obtain an NQF-8 Qualification, a Postgraduate Diploma in Management Practice Supplier Development Programme (PDiMPSD). The programme is targeted at suppliers who are at least 51% Black-owned enterprises, exempt micro-enterprises or qualifying small enterprises in line with the Broad-Based Black Economic Empowerment Codes of Good Practice. “We are proud to be able to offer our suppliers this qualification to help them develop their businesses further. Entrepreneurs are special in that they are willing to take risks, and through the knowledge acquired during the course, they will be able to enhance their service and goods offerings even further,” says CCBSA managing director, Velaphi Ratshefola. Tools and knowledge to scale By offering entrepreneurs the opportunity to learn additional and specialised business skills, CCBSA hopes they will be able to grow and expand their small and medium-sized businesses. “Our plan is to assist our suppliers to upscale their businesses and grow their annual revenue by increasing their customer base, and in turn generate much needed employment and contribute to the growth of our economy,” Ratshefola adds. Linda Buckley, director for executive education at Henley Business School, comments, “As an institution of higher learning with a footprint on the continent and presence in South Africa, our primary focus with a venture of this nature, is to ensure that small, micro, and medium enterprises can play a meaningful role in the mainstream economy. We are happy and excited to co-create opportunities that will go a long way towards improving small businesses and our country for the better.” The course, which will be offered through online and face-to-face contact, includes Systematic Management Practice, Innovative Wealth Creation, Managing Value Streams and Synthesis and Integration among others. It is open to advanced diploma and bachelor degree graduates, managers with three to four years of middle to senior management experience, technical or other specialists, as well as senior managers with no degree qualification but can register in line with the country’s Recognition of Prior Learning (RPL). ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/186/236488.html

Biznews | 3 March 2023 The opinion piece below discusses the role of intellectuals in society and the potential consequences of their ideas and actions. Author Sibusiso Ngwena argues that intellectuals have the responsibility of being purveyors of ideas in an open and free society, but they must also be willing to question prevailing assumptions and follow facts. However, Ngwena suggests that the standards for judging intellectuals are often different from those in other professions, leading to a culture of overreach and catastrophic consequences. Further, examples are provided for the intellectuals who have overreached their expertise in South Africa, from a math professor advocating for economic policy to a health ombudsman endorsing national health insurance. Intellectual overreach can harm If mere mortals are to navigate the ebbs and flows of the world, intellectuals, especially public intellectuals, can play an indispensable role. In an open and free society, their chief role is to be the purveyors of ideas. This skill widens the knowledge pool, enabling individuals and collectives to make cost and benefit analyses. Conversely, intellectuals are also tasked with questioning prevailing assumptions, withstanding coercive pressures from the ruling elite, and following the facts to wherever they might lead. Double standards Our world is partially open and, to a large extent, not free. Different or even double standards are often based on proximity to the ruling class, and/or how loud your megaphone is. If a master builder built a house which collapsed under its own weight, it wouldn’t matter if it was the most beautiful house ever built, that master builder’s reputation would be ruined. This standard is not applicable to intellectuals. This class is mainly judged by what sounds good in theory, and whether other intellectuals agree with them. Ideas with catastrophic consequences are even likely to be rewarded with a promotion and a hagiography after death. Some of them tend to “fail up”, as it were. Human Design F.A. Hayek once said, “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design”. But unsurprisingly, history is littered with examples of intellectuals who believed they were omniscient, or that they could engineer the “perfect” society, with predictable devastating consequences. The disaster that was the French Revolution was initiated and led by intellectuals. The Russian revolution was spearheaded by Lenin and his intellectual ilk. Some officers in the Nazi war machine held PhDs. The “mother” of modern-day environmentalism, Rachel Carson campaigned against the use of pesticides (DDT) and left a trail of death in poor countries across Africa. Neil Ferguson’s Covid-19 modelling petrified politicians, who adopted reckless policies with cataclysmic consequences which will be felt for a long time to come. South Africa is no exception. The fingerprints of intellectuals are all over the failed and incapable state that South Africa has become. The impressive list of calamities that the country suffers through today is the intellectual’s or expert class’s creation and/or endorsement. The adoption of policies such as BEE, localisation, the Employment Equity Act, and priority public procurement, just to name a few, has enabled the conditions in which rampant pillaging of the public purse, high unemployment rates, high crime rates, and corruption found room to fester. This brings us to current and previous proposals from some prominent South African intellectuals. Overreach In his widely received book, Intellectuals and Society, Thomas Sowell outlines the conceit that bedevils intellectuals, which is that superior ability in a specific field implies superior ability in general. This conceit leads them to pontificate about subjects or areas they know little or nothing about. This overreach is demonstrated by comments made by the following intellectuals: 1. UCT vice-chancellor Professor Mamokgethi Phakeng called for a wealth tax to ‘catch well-heeled citizens who are operating under the radar’. Also: ‘The gap between the rich and the poor keeps widening’. Does a PhD in mathematics education give one a licence to publicly pontificate about economic policy? This overreach is akin to asking the government to rob other people on your behalf. Her “Rome” is burning while she fiddles. 2. Health ombudsman, Professor Malegapuru Makgoba strongly endorsed National Health Insurance when he said that ‘the NHI is a necessary evil we must swallow,’ and continued to say that ‘I strongly support it – it will bring health equity’. Why is a medical doctor-turned-bureaucrat publicly advocating for this boondoggle? A single-payer healthcare system managed by the ANC government will only bring equal health misery. He must remember the oath he took. This scheme will harm especially the people (poor) he claims to care about. Clearly, the mess that is the NHS in the UK didn’t teach him anything about socialised medicine. 3. Professor Salim Abdool Karim became the face of Covid-19, with almost daily updates about the virus. His expertise lay in epidemiology and virology, but he saw fit to preach on subjects beyond his proficiency. This he did when he strongly advocated for perpetual lockdowns, banning alcohol sales and other drastic measures in the name of fighting a novel airborne disease. The lives ruined due to his overreach are unknown at this stage. 4. Professor Mark Swilling of the University of Stellenbosch whose PhD is in Sociology calls for a move away from fossil fuels to his preferred ‘clean’ energy sources such as solar, to ensure environmental sustainability and reduce carbon intensity. He veered too far from his area of expertise. I am quite certain that he doesn’t even fathom the costs involved as he has no “skin in the game” as it were. I would challenge him to use his own money and install his preferred energy sources instead of trying to use the government to achieve his desired ends. 5. Other intellectuals who over–stepped include Glen Retief whose PhD is in English Philosophy. The recent Durban floods were enough for him to make an alarming prediction about the future, essentially saying that the country is facing grim future climate conditions unless it invests in ‘infrastructure’. 6.The University of Johannesburg Council which includes Vice-Chancellor Prof. Tshilidzi Marwala was hiding behind ivory tower language such as ‘international and national best practices’ and ‘peer-reviewed literature’ in an effort to steamroll the Covid-19 vaccine mandate in a public institution. The predictable outcome was a protest. For academics to cherry-pick literature so that they can implement their preferences, especially in a partly taxpayer-funded institution, is unequivocally sinister. This overreach might have negative consequences in the long run. Concluding thoughts H.L Mencken once said, ‘For every complex problem there is an answer that is clear, simple, and wrong’. South Africans should guard against simple “solutions” for complex problems proposed and/or endorsed by people who, as Thomas Sowell would say, pay no price for being wrong. Especially people who veer way outside their knowledge areas into areas they know little and/or nothing about. Leaders seldom apologise for embracing disastrous schemes with deadly consequences and, with intellectuals on hand, even failed schemes can elicit self-flattery. The views of the writer are not necessarily the views of the Daily Friend or the IRR. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.biznews.com/news/2023/03/03/the-costly-consequence-intellectual-overreach

IT Online | 3 March 2023 As of 1 March 2023, South Africans saw the implementation of the increased annual earnings threshold determined by the Minister of Employment and Labour (Minister) in the amount of R241 110.59. This represents an increase of R17,030.11 from the previous amount of R224 080.48, which has been in effect since 1 March 2022. CDH’s Employment Law practice unpacks what this means for employers. The earnings threshold impacts on the application of provisions of the Basic Conditions of Employment Act, 1997 (BCEA), the Labour Relations Act, 1995 (LRA) and the Employment Equity Act, 1998 (EEA). In terms of the BCEA, employees earning in excess of the earnings threshold are excluded from the provisions, which regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays. With regards to the LRA, employees earning in excess of the earnings threshold are not subject to the deeming provision in accordance with which employees engaged by a temporary employment service or labour broker who are not performing a temporary service are deemed to be employees of the client for purposes of the LRA. In addition, employees earning in excess of the earnings threshold fall outside the scope of the provisions relating to fixed-term employees who are deemed to be employed indefinitely after three months (in the absence of justifiable reasons for fixing the term of the contract). Looking at the EEA, an employee earning in excess of the earnings threshold, who has a dispute under Chapter II of the EEA relating to unfair discrimination, is not permitted to refer the dispute to the CCMA for arbitration (unless the dispute relates to alleged unfair discrimination on the grounds of sexual harassment, or the parties all agree to arbitration) and is obliged to refer the dispute to the Labour Court for adjudication. For purposes of determining whether an employee earns in excess of the earnings threshold, “earnings” means an employee’s regular annual remuneration before the deduction of income tax, pension fund contributions, medical aid contributions and similar payments, but excludes similar contributions made by the employer in respect of the employee. This is subject to the proviso that subsistence and transport allowances received, achievement awards and payments for overtime worked do not fall within the scope of remuneration. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2023/03/03/new-earnings-threshold-comes-into-play/

Ashley Lechman | 2 March 2023 Head Buyer: Private Label – Shoprite, Eunice Nyobole, from Khayelitsha Cookies, Renee de Sousa, Khayelitsha Cookies and Maude Modise, GM: Enterprise & Supplier Development. Image: Supplied. Shoprite, one of the country’s biggest retailers, has announced that it is the first South African retailer to introduce an exclusive private label product range primarily sourced from local small, medium and micro enterprises (SMMEs). The group said the ‘Homegrown’ label creates opportunities for emerging enterprises to thrive in the retail space. With access to the market via Shoprite’s 534 supermarkets nationwide, it enables SMMEs to get their products onto shelves, increase turnover, and impact their local community by creating more jobs. This comes only months after the launch of Shoprite Next Capital, a business division dedicated to giving small suppliers access to its consumer market. ‘Homegrown’ speaks to the products within the new private label being 100% made in South Africa by local businesses, while the product range consists of everyday favourites including chutney, tomato sauce, atchar, biscuits, chips and candy, according to the retailer. It also provides an opportunity for customers to buy a more quality range at Shoprite stores, without compromising their budget. The following businesses form part of the initial range of Homegrown products launching into stores: Wonder Snacks is a family-owned and operated business that started in 2017 with a few small popcorn poppers. Today it houses a fully automated popcorn plant in Parow, Cape Town, says co-founder Mubeen Ebrahim. The business has grown its staff complement by more than a third by being part of Homegrown, to 11. Its product range consists of popcorn in various unforgettably tasty flavours such as uShatini and Sticky BBQ Chicken. Khayelitsha Cookies is owned by former employees Adri Williams and Eunice Nyobole. They have turned it into a thriving Cape Town baking business with 87 employees that is devoted to empowering women. Its range includes the best hand-baked Strawberry Flavoured Cookies with White Chocolate Chips, and scrumptious Lemon Flavoured Cookies. Exotic Taste was started in 2006 by single mother Amina Abrahams in her home kitchen. The business has since expanded to a 200m2 factory. Being part of Homegrown has enabled Amina to employ more than 30 people. Ignite your tastebuds with Exotic Taste’s delicious mango and vegetable atchars. All products under the new label are MSG-free, Tartrazine and Azo Dye-free and are made using sustainable palm oil. The range will continue to grow as new products and suppliers are added. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/companies/small-businesses-the-backbone-of-shoprites-new-homegrown-private-label-range-8b1dc3cd-3f57-46a6-bbb6-1bd4b09658c7

Sarah Smit | 2 Mar 2023 A protester reacts as Reigers Park community members protest outside the municipal offices over service delivery and housing issues on March 9, 2017 in Boksburg, South Africa. (Photo by JOHN WESSELS / AFP) Last week, I wrote about my feelings towards the unemployment statistics, a print I have covered since I started my career with the ambition of reviving a disappearing beat — labour journalism. Every couple of months, this data drops, breaks our hearts and then, as chronically crestfallen people are wont to do, we move on. This week’s data — which showed that the unemployment rate retreated almost imperceptibly, from 32.9% to 32.7% in the fourth quarter of 2022 — was certainly not enough to ruin our week. In fact, the fourth consecutive decline in the unemployment rate gave some reason for a pat on the back because, according to Minister in the Presidency Mondli Gungubele, it is evidence that the government’s economic recovery plan is working. But as good news goes, it is still pretty bad news, especially considering that the youth unemployment rate rose to an unacceptably high 61%. Apart from its temporarily sobering effect, the unemployment data is important for another reason — its ability to impart a pretty down to earth reading of what is going on in our economy. This is where one interesting feature of this week’s print comes in. According to Statistics South Africa’s report, the largest increase in employment over the quarter stemmed from the Western Cape at 6.9%. Gauteng saw employment numbers drop by -0.4% quarter-on-quarter. As Investec economist Lara Hodes pointed out, the bump in jobs in the Western Cape likely has something to do with the so-called semigration trend, which has seen an influx of skilled workers moving to the province. Migration in itself is an important lens through which to analyse the shape of economies. Afterall, throughout history people have tended to move towards opportunity and away from the promise of misfortune. South Africa’s economy is a product of migration — and the other way round. Consider the mining industry, the historic bedrock of the economy, which would not have grown to the extent that it did without the migration of prospectors and labourers to certain parts of the country. Johannesburg, now a city that some seem to be fleeing in favour of a coastal lifestyle, was forged of gold. The discovery of those glittering nuggets in the Witwatersrand in 1886 prompted a gold rush that made titans of industry, who would go on to control other parts of the South African economy, including the country’s media. The ascent of the Randlords also gave rise to repressive labour policies, which protected their wealth and the interests of white workers, and paved the way for apartheid. The Truth and Reconciliation Commission’s business and labour hearings found that the mining industry was deeply complicit in apartheid, noting that its “direct involvement with the state in the formulation of oppressive policies or practices that resulted in low labour costs (or otherwise boosted profits) can be described as first-order involvement [in apartheid]”. Apartheid-era policies left scars that South Africa’s economy still wears. That dark period’s economic tyranny also had a profound effect on how — and in what parts — the country’s urban centres grew. In Johannesburg, apartheid ensured that the city’s leafy suburbs remained white enclaves, which are now dotted with “For Sale” signs. The semigration trend is largely associated with changes in the way that we do our jobs, set off by the pandemic and the rise of remote work. Though it feels like a distinctly South African phenomenon, the white elite fleeing south, Covid-era semigration happened all over. In the US, where gold and oil discoveries once led to the growth of boomtowns, the pandemic triggered the rise of “Zoom towns”, like Truckee in California. A newsletter for NPR’s Planet Money podcast called the housing boom in that particular mountain town “the perfect symbol of two Americas in the age of the pandemic recession”. You might describe South Africa’s semigration in similar terms. For the majority, the pandemic marked the beginning of a long slide in their standards of living. Compared to the first few months of 2020, this group is significantly worse off. But for others, the pandemic represented an opportunity — to escape Johannesburg’s hard edge in favour of a softer, less backbreaking, lifestyle. In the wake of an historic downturn, which resulted in 2.2 million people losing their jobs, those who were able to take advantage of this opportunity had to have had the means to do so. They had to have the requisite wealth and they had to have the right jobs, which in South Africa are still largely determined by the divisions entrenched by apartheid. As much as this group was chasing opportunity, it was also fleeing misfortune. You see, the semigration phenomenon is about more than just different ways of working. The recent Knight Frank Wealth Report, which is touted as a guide to prime property markets and global wealth distribution, showed that Cape Town moved up 63 places on the Prime International Residential Index from 94th to 31st. Of Cape Town’s rise, Knight Frank South Africa director Nick Gaertner said: “Having slipped due to it feeling the effects of the pandemic on a third world country, it has again proved incredibly resilient and is once again attracting both South Africans from other territories as well as foreign buyers … While the broader South Africa continues to struggle with poor governance, strong leadership in the City of Cape Town has managed to steadily separate it from other regions within the country and develop itself into a growlingly desirable destination globally.” While semigration has not exactly taken the life out of Johannesburg, it has exposed the city’s underlying hostility — which has seemingly become more acute in recent years amid a steady deterioration of services. And what has now become clear is that some parts of the country’s economy will be hit harder by inadequate service delivery than others. Economies tend to grow where people flock and wither where they flee. So as long as the country’s economy continues to be split between these two South Africas, its growth will remain uneven. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/business/2023-03-02-semigration-a-tale-of-two-south-africas/

Ravi Naidoo | 2 March 2023 (Image: iStock) The results of policy experiments over the past three decades make it clear that South Africa needs to begin to do things differently if it wants different results. We need bold people and institutions to take the initiative and walk through that door. Aldous Huxley wrote in his classic novel, Doors of Perception, “Experience is not what happens to you; it’s what you do with what happens to you.” Our country is fast approaching its 30th anniversary as a democracy. This is a long enough time to learn from experience. If Huxley means nothing to you, then perhaps the “probability theory” may offer you another way to come to that same conclusion: if you want to improve your likelihood of success, you need to update your prior beliefs about a hypothesis considering new evidence. South Africa has nearly three decades of experience and evidence from which to learn. In December 2021, President Cyril Ramaphosa appointed the third National Planning Commission (NPC), which effectively began its work in February 2022. High on its agenda was the need to consider what has undermined the progress towards achieving the National Development Plan’s Vision 2030 (NDP) — and what to do about it. As a reminder, the NDP is the long-term blueprint for South Africa’s economic and social development. Its goals are to eliminate poverty and reduce inequality through sustainable economic growth. The NDP is intended to shape government’s five-year Medium-Term Strategic Framework, which is given financial expression through the three-year Medium-Term Expenditure Framework, as updated by the Minister of Finance each year in his Budget Speech. Little achieved When the NDP was adopted in 2012, it postulated that an average economic growth rate of 5.4% would be required to reduce unemployment to 6% by 2030. Instead, as we are all only too aware, South Africa has achieved very little of that economic growth rate in real terms, and factoring in population growth, the economy is smaller per capita now than it was in 2012. Unless the necessary restructuring and reforms can be put in place to drive up the rates of economic growth, South Africa will not achieve Vision 2030 — or any iteration of that vision in the foreseeable future. However, we recognise that much progress has been made since 1994. Whereas 51% of children under 15 years of age were in school in 1994, the figure today is closer to 99%. Access to various basic services is also much higher, with the access levels at 89% for piped water, 82% for improved sanitation facilities, and 90% to grid electricity. In addition, it is true — despite recent collapses in economic growth — that the economy is still twice what it was in 1994. Unfortunately, that is not enough progress, both in terms of quantity and quality, for a G20-level country. Most critically, with unemployment rising from 25% in 2012 to 33% today (it’s 43% if you include those who have given up searching), it is evident that South Africa is not on a path to sustainable employment creation. An inescapable observation is that where development plans were heavily predicated on the state playing a pivotal implementation role, results have been particularly poor. A capable state would be advantageous to our national interests. However, the underperformance of some state institutions, and the poor ability of the public service to implement effectively, have let the country down. Much of this implementation quandary was on display in the Minister of Finance’s Budget Speech. The minister pragmatically sought to incentivise private companies and households to do more, while hoping for improved performance from the state. South Africa’s manufacturing, finance and mining sectors have boosted revenue growth, with mining profiting from strong commodity prices and tax revenues. However, as such commodity prices are not sustainable, this relief is temporary, which means that government must make the most of this limited window. Despite higher tax revenues, government spending and service delivery quality have been inadequate. Government debt is expected to reach R5.9-trillion in 2025/6, and debt servicing costs will become the second highest budget item in that same year, reaching R397-billion (16% of annual expenditure). This year, total government expenditure will be R2.24-trillion, with an expected total expenditure of R7.08-trillion over three years. This is not an insubstantial amount of taxpayer money. The biggest portion of these taxpayer funds — 60% or R1.35-trillion — goes towards paying for the social wage. Of this, R457-billion goes to education and training. Many will question whether this spending is reflected in the outcomes — with reviews finding learners far below par for numeracy and literacy: 78% of South African Grade 4 children were not able to reach the lowest benchmark, compared to 4% internationally. According to the September 2021 progress reviews of the Department of Performance Monitoring and Evaluation, only 48% of the interventions aimed at building a capable, ethical and developmental state are on track. With regard to the economy and job creation, only 38% of interventions are on track. Performance improvement There is, therefore, unquestionably a need to improve the performance of the state. The NPC contributed to the National Implementation Framework towards the Professionalisation of the Public Service through engagements with the State from early 2020. Among the requirements for this Framework, adopted by Cabinet in October 2022, is that the public service must be non-partisan and insulated from political parties. It sets the context for implementing competency assessments and measures to retain and develop high-level skills, including through secondments. Given the vast scale of the public service and its state of disarray, these changes at best could only be expected to take effect over the longer term. As the capable state is unlikely to make an appearance in the short term, there is a pragmatic requirement for effective partnership and collaboration with the private sector, through which the national capacity to implement can be bolstered. Electricity crisis Such a collaboration is most critical for urgent priorities, such as alleviating rolling blackouts. The state-owned electricity supplier Eskom has been plagued with problems such as ageing infrastructure, corruption scandals and financial mismanagement, leading to rolling blackouts and power outages. This has resulted in significant disruptions to the economy as a whole. In July 2022, the NPC released an advisory note on rolling blackouts/ energy security, some of whose recommendations were adopted by the President, principally proposing the removal of the 100MW ceiling for private producers (after all, why would we want a ceiling?) and the replacement of the current requirements for Nersa registration with an online process, among various other measures, to fast-track new private capacity onto the grid. The NPC ventured into the rolling blackouts and energy security debate early on in its new term, because it was quickly apparent that much of the NDP goals and targets cannot be attained under the current conditions of disrupted electricity supply. It was, therefore, positive that the most material aspects of the Budget Speech were energy-related issues. These included government taking on R254-billion of Eskom’s debt, an important step if the utility is able to use the space to fundamentally restructure its operations and end rolling blackouts. The other key energy announcements included R4-billion in relief provided for individuals that install solar panels (which, at 25% tax benefit capped at R15,000, is too small to incentivise behaviour and moreover of no benefit to poor households), and R5-billion to companies through an expansion of the renewable energy tax incentive (this 125% tax deduction in one year is a significant benefit). Development opportunities Given the limited fiscal space, the Budget was inevitably going to offer only a partial solution to South Africa’s problems. Nonetheless, as a country, we must look to seize development opportunities from the current crisis. The first opportunity is to look to create new industries that can solve our crises, such as building a leading global solar and renewables industry in response to the Eskom crisis. Here, government has recognised the importance of renewable energy and has implemented various policies and incentives to promote the uptake of solar rooftop programmes. Municipalities should be enabled to launch programmes that offer rebates to homeowners who install solar panels on their roofs. The more obstacles we can remove to municipal procurement of energy from independent power producers (IPPs) and households, the better. This will include enabling wheeling across the grid so that municipalities can procure directly from IPPs and from solar rooftop systems. Such distributed networks and microgrids are the way of the future. Apart from alleviating rolling blackouts in municipalities, this will also catalyse a massive amount of SMME activity and jobs through the demand for new solar installations, maintenance and local manufacturing. Small business The second opportunity is to unshackle the potential of small businesses and individual talent. The Budget Speech gave some, but not enough, attention to the role of small-, medium- and micro-enterprises (SMMEs). South Africa has a particularly over-regulated and underdeveloped SMME sector. Only 16% of South African businesses are small- or micro-enterprises compared with 35% in similar middle-income countries. Yet the NDP projected we will need 90% of all our future employment to be created in SMMEs. It is, therefore, critical to look for ways to unlock entrepreneurship of individuals — especially the youth. In general, countries that have succeeded in creating a positive business environment for small businesses have implemented policies that encourage entrepreneurship and innovation (only about 6-7% of South Africans start their own businesses, far below international benchmarks), provide funding and support for startups, and create a supportive regulatory environment. In particular, there is a need to explore offering a range of exemptions and benefits to SMMEs with a turnover below R50-million to encourage the creation and growth of more SMMEs as potential future national champions. Collaboration While we must seek to rebuild state capacity over the next decade, the future success of South Africa’s economy depends on a much more collaborative approach between the state, private sector and individuals. The National Development Plan is unequivocal that the future of this country is the responsibility of all – as is evidenced by its subtitle, ‘Our Future, Make it Work’ and its basic premise of effective leadership, a capable state and an active citizenry. Having seen the results of our policy experiments of the last 30 years, we need to do things differently if we want different results. The President and Minister of Finance, in emphasising the essential need for collaboration, may have unlocked the door to a new development mindset. Now South Africa needs bold people and institutions to take the initiative and walk through that door. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-03-02-a-new-mindset-is-needed-to-realise-south-africas-development-ambitions/

Media Statement | 3 March 2023 Coega Young Professionals: Front left to right: Lesedi Sipuka, Sustainability and SHEQ; Thandolwethu Mali, Graphic Design and Administration. Back left to right: Yamkela Nqwelo, Coega Africa Programme; Anam Booi, Digital Media; Lihle Mbetshu, Marketing and Communications; Phelisa Moyana, Marketing and Communications; Nikita Kwanini, Information Technology; and Abongile Ntabeni, Marketing and Administration. Gqeberha, South Africa, 1 March 2023 – Against the backdrop of the Eastern Cape’s current youth employment crisis, the Coega Internship Programme continues to serve as a beacon of hope for many graduates in search of opportunities to boost their career prospects. Since inception in 2008, the Programme has mentored thousands of young professionals who have gone on to become successful businesspeople and specialists in their fields. The Programme offers opportunities across the corporation’s various business units and has assisted in the career development of thousands of talented graduates, including SABC Radio Station (Tru FM) Programme Manager, Sakikaya Makapela. Makapela is a graduate of the Nelson Mandela University, who joined the Class of 2007 Coega Internship Programme to kickstart his career. Today, Makapela is a media practitioner with over 15 years’ experience acquired in various aspects of media, marketing, and communications. Makapela shares that "a Coega internship is a great opportunity to begin a future career. A developed mentor system, a strong and resilient corporate culture, and assistance for newcomers are all demonstrated by the company. You will receive aid and advice on how to improve things, but what's also crucial is that your suggestions will be acknowledged and are likely to be used.” “We are proud to welcome young professionals into our space and offer them the experience they need to prosper as candidates in the job market. Young minds fuel the engine room of this organisation in line with our culture of innovation and continuous improvement, and we appreciate their contribution to the Coega vision of championing socio-economic development," says Bronwen Addison, Coega Unit Head of Human Resource Management (Acting). Coega established the Programme with the aim of providing the platform for experiential learning opportunities to unemployed graduates and students in specific study disciplines – who are required to complete practical work to obtain a qualification. The Programme forms part of the Corporation’s Social Responsibility Initiatives. Another Coega Internship Programme alumni who is employed as a Coega Digital Media Specialist by the organisation, Rene Marais, recommends the Programme to recent graduates looking to gain professional experience. She states that “the Programme provides hands-on learning through experienced mentors and specialists and gives interns the chance to practice their skills and gain real-life work exposure and training.” Babalwa Menze, who is one of the current Coega Internship Programme Finance Interns, also shared her thoughts: "I want to express my gratitude to the entire Coega corporate team for their welcoming and kind manner at the start of the programme. My internship, in my perspective, will assist me in expanding my skills and experience, enhance my self-confidence, and help me determine my career goals." If you would like to follow in the same footsteps as Makapela, Marais, Menze and many other young professionals who have gone on to become successful businesspeople and specialists in their fields, you are encouraged to follow the Coega Development Corporation on social media for future internship vacancies. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/follow-coega-for-future-internship-programme-opportunities-developing-the-leaders-of-tomorrow-2023-03-02