Zelda Venter | 28 March 2023 Pretoria - Five workers turned to the Labour Court to complain about unfair discrimination after they had a peek at a white colleague’s payslip and saw that she earned more than them. The workers, employed by Makro as merchandise controllers, said they saw the payslip after their colleague, who worked in the same division as them, by mistake left it on the printer. They were bitterly unhappy. They felt that while she performed the same tasks as them, she earned more simply because she was white. They took their complaints of discrimination to management and raised a grievance over salary disparities that were allegedly based on race. Management denied this. It held a meeting with the workers to discuss the alleged disparities and management subsequently adjusted the applicants' (and other employees) salaries. It told the disgruntled workers that this was done in accordance with a fair process to ensure disparities are eradicated. It said the business had exhausted the process and for this reason the grievance is concluded. Not satisfied, the workers turned to court. Their case was premised on the provisions of the Employment Equity Act that provides that a difference in terms and conditions of employment between employees of the same employer performing the same or substantially the same work amounts to unfair discrimination. The case was simply that a white woman, employed by Makro as a merchandise controller since June 2011, earned more than them – black workers who did similar work. In denying this, Makro said historically, the recruitment process included considering a candidate’s employment history and not the salary the candidate was earning at the time. It said it aimed to make an offer to a candidate attractive by increasing the candidate’s existing salary up to a maximum of 15%. In 2018, it introduced salary bands for all positions within the organisation, including the merchandise controller position. Management said it had subsequent to the introduction of salary bands adjusted the salaries of employees, including the applicant’s, to ensure remuneration was at least at the middle level of the respective salary band. Acting Judge G Mthalane said it was not disputed by the applicants that their salaries had been adjusted, in the meantime, to ensure that remuneration was at least at the middle level of the respective salary band. The judge added that it was common cause that there were some black employees who earned more than the white colleague in question. The applicants argued that the reason for that was because some black employees had longer service. “I find this irrelevant. The fact of the matter is that there are two black employees who earn more than the comparator (the white colleague).” The judge concluded that the process followed by the retailer and not race was the reason for the disparity. “Something more is required to prove discrimination. The unequal treatment must be based on attributes and characteristics attaching to a person before it can fall within the meaning of ‘discrimination’.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/pretoria-news/news/peek-at-white-colleagues-payslip-ends-badly-for-employees-claiming-racism-c2c19711-974c-4588-934a-ca295a2da86c

SA News | 25 March 2023 Government remains committed to supporting the black-owned business sector in their efforts to rebuild their businesses following the economic downturn, said Deputy President Paul Mashatile. “As government, we remain committed to supporting the black-owned business sector, in their efforts to rebuild their businesses after the economic downturn. We have begun to have important conversations about how people in the informal economy can get the most out of what our economy has to offer,” said the Deputy President. Delivering the keynote address at the Black Business Quarterly (BBQ) Awards ceremony, held at Emperors Palace in Kempton Park, Gauteng on Friday, the Deputy President spoke of the devastating and disruptive effects of load-shedding on the economy and the small business sector. This he said remains “a major concern for all of us”. “Load-shedding has cut business hours and production capacity, with the consequent result of reduced income. Businesses have also had to spend large amounts towards finding alternative energy sources to keep their operations viable. “Consequently, this has resulted in significant losses in jobs between the years 2019 and 2021, both in the formal and informal sectors. Nevertheless, the South African economy grew slightly for the second year in a row, expanding by at least 2.0 percent between the years 2021 and 2022, which represented an increase from 4,50 trillion Rands to 4,60 trillion Rands." The Deputy President also noted that the increase in the number of unemployed South Africans, particularly among the youth, necessitates more immediate steps to assist government in fundamentally altering the country’s economic growth trajectory. “As the sixth administration of government draws to a close, we must be truthful with ourselves. We must have an open and inclusive conversation about rebuilding that which will result in increased economic activity. “We must acknowledge that there is a greater and more pressing need to support aggressive means and forms of economic integration for black-owned firms, particularly in the historically untransformed sectors of the economy. “Furthermore, in order to give various economic issues urgency, including the evaluation of how we may reinforce policies that are focused on economic emancipation, it is necessary to look at the agenda of the governing party. We must pay close attention to how government at all levels, can create a supportive policy and regulatory environment that in turn supports the informal economy,” said the Deputy President. He spoke of the need to improve the state's overall capacity to expedite the processing of applications and approvals, in order to integrate the commercial and economic operations of unorganised players in the informal economy into the mainstream sector. “As such, it cannot be business as usual, when businesses, especially, black-owned enterprises, continue to experience the harshest types of hardship and depression as a result of a system that is unresponsive to their needs. “This includes the need to resolve the ongoing challenges of government’s non-payment and settlement of invoices due to small businesses within regulated time frames. The National Treasury requires that invoices for these critical service providers be paid and settled within 30 days.” He added that government is committed to implementing consequence management for departments and state agencies that fail to implement these requirements. “We recognise that late payment after services have been rendered has significant repercussions for your businesses' finances.” Youth and job creation The Deputy President said government is also committed to creating more sustainable jobs, particularly for the youth. He highlighted that during the 2021/2022 financial year, the National Youth Development Agency (NYDA) Grant Programme provided more than 2000 youth-owned enterprises in rural and township economies with grant funds to launch their firms. “Moreover, supported by the National Youth Development Agency funding programme and the Youth Micro Business Relief Fund, youth-owned firms have created and maintained employment of 8,600 employees in the economy. Yet, these are by no means sufficient. “We need to grow these efforts further by scaling up on investments to build skills. On our side as government, we need to sharpen our role in coordinating, facilitating, as well as unlocking opportunities for people who wish to expand their local businesses,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/sa-must-brace-for-economic-headwinds-imf-warns/

Bongani Mdakane | 26 March 2023 South Africa’s economic and social challenges are a cause for concern, with mounting unmatched energy crisis, macro-financial instability, lack of jobs and a stalling transition to a greener economy taking a heavy toll. During the recent visit to the country by an International Monetary Fund (IMF) team led by Papa N’Diaye from 1-17 March, where the crew held meetings with the economic authorities and other stakeholders from the public and private sectors for the 2023 Article IV annual consultation, the IMF painted a grim picture and stated that South Africans should be ready for tough economic times ahead. This week the IMF stated that South Africa’s economic and social challenges were mounting, risking stagnation amid an unprecedented energy crisis, increasingly binding infrastructure and logistics bottlenecks, a less favorable external environment, and climate shocks. “A recovery in the services sector supported job creation in 2022, however, employment remains below pre-pandemic levels and unemployment close to record highs, on the back of already high poverty and inequality. In addition, the economy remains exposed to external shocks and capital flow volatility, in the context of tighter global financial conditions, and volatile commodity prices related to Russia’s war in Ukraine. The elevated public debt significantly limits the fiscal space available to respond to economic and climate shocks and meet social and developmental needs. Long-standing rigidities in product and labour markets, and governance and corruption vulnerabilities also weigh on growth and employment prospects, threatening social cohesion,” said IMF. The IMF said that the country’s large external asset position, low levels of foreign currency debt, diversified economy, sophisticated financial system, and flexible exchange rate regime are sources of strength, supported by the South African Reserve Bank’s (SARB) through its pro-active monetary policy that has kept inflation expectations anchored. “These features provide a favorable base for growth, as fiscal and structural challenges continue to be tackled, including through Operation Vulindlela. On the policy front, the government has made important headway on domestic revenue mobilisation, removed licensing requirements for embedded power generation, announced a plan to create a mechanism for private sector participation in transmission infrastructure, completed the spectrum auction, and has taken steps to improve third-party access to the country’s ports and freight network. “Anti-corruption measures in response to the judicial recommendations of the Commission of Inquiry into allegations of State Capture have also been announced in October 2022. This progress is welcome and needs to be sustained, but further reforms are urgently needed to durably lift potential growth, create enough jobs to reduce unemployment, absorb new entrants into the labour force, and reduce poverty and inequality,” said the IMF. However, the organisation stated that the near-term growth outlook had deteriorated as the real GDP growth was projected to slow down sharply to 0.1% in 2023 mainly due to a significant increase in the intensity of power cuts, as well as the weaker commodity prices and external environment. “In the medium term, growth is expected to rebound, though only to about 1,5% per year, with income per capita likely to stagnate as a result. This is because of long-standing structural impediments, such as product and labour market rigidities and human capital constraints, offsetting expected improvements in energy supply, higher private spending on energy-related infrastructure, and a more supportive external environment. Headline inflation is projected to fall back within the SARB target range of 3% to 6% in the second half of 2023. Lower food and fuel price inflation and the SARB’s less accommodative monetary policy stance are key factors behind this decline. Inflation is expected to reach the target range mid-point of 4.5% in 2024 and remain there through the medium term,’ said the IMF. Based on the challenges that the country is faced with, the current account is projected to move to a substantial deficit of 2.3% of GDP in 2023 and to deteriorate further to about 2,5% in 2024, on the back of softer commodity prices, weaker external demand, and higher energy-related capital imports. The IMF said that as these factors disintegrated and logistical constraints were alleviated, the deficit was expected to improve somewhat to about 2% of GDP over the medium term. “Despite recent improvements, fiscal accounts will remain under pressure with the overall balance projected to widen to a deficit of about -6.5% of GDP in the fiscal year (FY) 23/24, and deteriorate further through FY25/26, reflecting the Eskom debt relief operation, which entails a capital transfer, continued transfers to other loss-making state-owned enterprises, spending on the Social Relief Distress grants, and increased interest payments. The deficit is expected to narrow after FY26/27 assuming improved conditions at Eskom, though public debt would continue to rise,” said the IMF. The Financial Action Task Force (FATF) has placed South Africa on its list of jurisdictions under increased monitoring with strategic deficiencies in its anti-money laundering and counter-financing of terrorism (AML/CFT) framework. “FATF has recognised that South Africa has made significant progress on many of the recommended actions to improve its systems, including the passage of two key Acts of Parliament addressing technical compliance deficiencies, demonstrating the authorities’ strong political commitment. Exiting the greylist will require South Africa to continue to implement the agreed FATF implementation action plan in a timely manner. International experience suggests that the adverse impacts of greylisting increase the longer a country remains on the list. Therefore, the mission encourages stakeholders to continue working together to exit the list as quickly as possible, and closely monitor the impact of the greylisting on capital flows and the financial system,” said the IMF. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/sa-must-brace-for-economic-headwinds-imf-warns/

Ina Opperman | 26 March 2023 If these important statistics do not get the department of small business development fired up to support small business, nothing will. A report on the current state of small businesses in South Africa shows how important the sector is for the country’s economy. The number of small businesses is still climbing, reaching 1.75 million by the final quarter of 2022, while the sector directly generates a third of the value added in the country and 30% of total employment. The ‘State of Small Business in South Africa’ report is the third one compiled by Trade & Industrial Policies Strategies (TIPS) – an independent, non-profit, economic research institution established in 1996 to support economic policy development. Number of small businesses The number of small formal businesses in South Africa reached 710 000 in 2022, increasing from 680 000 in 2019 and 590 000 in 2010. Although the Covid-19 pandemic caused an initial 25% decline in the second quarter of 2020, the number recovered to 710 000 by the second half of 2022. In addition, the number of informal businesses increased through the 2010s, jumping from 1.3 million to 1.6 million. However, this number fell sharply at the start of the pandemic, although it recovered faster to reach 1.75 million by the last quarter of 2022. While informal activities and waged employment experienced a very sharp downturn in the second quarter of 2020, the pandemic downturn affected the number of small formal businesses only gradually thanks primarily to substantial government support for employers. Despite the relief, formal employers’ incomes dropped by half in the first year of the pandemic and they shed around 400 000 jobs, or 5% of their total employment. Small formal business accounted for 85% of all net losses in waged jobs from 2019 to the third quarter of 2022. Virtually all of these job losses affected lower-level workers, with almost no decline in employment for professionals and managers. According to the report, the available data suggest that small formal businesses directly generate a third of value added in South Africa, while informal enterprise adds around 5%. In 2020, small formal firms held at least a quarter of total business assets. They were generally more labour intensive and more profitable than their larger counterparts. There is no similar data for informal business. Job creation and small business Small formal business generated 30% of total employment, 32% of all waged jobs, including informal and domestic work and half of waged work in the formal private sector according to the report. Their conditions of employment for both employers and waged workers lagged only slightly behind those in larger companies, far exceeding the norm for waged employees and own-account workers in informal and domestic work. Informal businesses, on the other hand, typically provided low incomes and comparatively insecure jobs. The number of people working in small formal businesses was flat through the 2010s and waged employment in small businesses trended down throughout the pandemic, accounting for almost all of the formal job losses. However, the number of formal employers and self-employed people remained relatively stable, with the fall in formal opportunities fuelling the extraordinary rebound in informal self-employment through most of 2022. The report indicates that stagnation in employment at small formal business resulted in a falling share in total employment, dropping from almost 35% in 2010 to 30% in 2022. The share of small formal business in private waged employment, excluding paid domestic work, fell from 46% in 2010 to 37% in the fourth quarter of 2022. In 2019, own-account workers, with no waged employees, operated a quarter of small formal businesses. Half had between one and 20 employees, while just under one in 10 had between 20 and 49 workers. In the informal sector, in contrast, own-account work dominated and four out of five informal enterprises were run by own-account workers and virtually all of the rest had four employees or fewer. Production structure Around a fifth of private formal small businesses provide professional services, ranging from education and healthcare to engineering, legal advice and creative work, according to the report. A quarter are in retail and hospitality, while the rest are mostly in construction, transport and communications, manufacturing and agriculture. In the informal sector retail trade accounts for close to half of all businesses and this figure includes around half a million street traders. The next largest sector for informal business is construction, with a tenth of the total. Only just over 5% of informal businesses provided professional services. The data show around 60 000 formal small businesses in manufacturing in 2019, or 10% more than a decade earlier, but the number is too small to analyse by industry. Education of people in small businesses The report shows that people with a university degree or other post-matric qualification were much more likely to become formal business owners than those with lower qualifications. Close to half of formal and own-account workers have post-matric qualification of some kind, compared to a seventh of their workers. Workers in smaller enterprises were slightly less educated than those in larger companies, but they had much higher education levels than informal business owners and their employees, as well as domestic workers. Youth in small businesses Business owners were significantly older than waged workers. In 2019, the median age for waged workers in both sectors was 35, while it was 45 for formal business owners and 41 for informal owners. In 2022, 4% of young people aged 15 to 34 were business owners, which equated to 15% of all employed youth. Among people aged 35 and over, 10% of the total population owned a business, which equalled 21% of the employed. Overall, young people were more likely than older people to be in school (that is, economically inactive) and, if out of school, still seeking work. In addition to the general obstacles to small business in South Africa, young people faced unique barriers. Above all, they still had to accumulate the experience, networks and financial resources needed to provide at least some cushion for the risks of entrepreneurship. That said, improving education levels since 1994 meant that they generally had higher education levels than older adults. In 2019, young business owners were almost as likely to have a degree as their older peers, and much more likely to have matric. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/business/personal-finance/current-state-of-small-business/

I have had what I believe is the privilege of working in the B-BBEE space for 11 years. My unique experience in this space has allowed me to have a bird’s-eye view of how organisations have approached B-BBEE since the implementation of the Codes of Good Practice (Codes). Over the years, I have seen many organisations moving from the transactional approach to the transformational one in implementing their B-BBEE Strategy. However, more attention still needs to be paid to moving more organisations towards embarking on the transformational approach when developing or evaluating their B-BBEE Strategy. In my experience working in the B-BBEE arena, I have witnessed various B-BBEE approaches undertaken by organisations. Some are impressive – entirely transformational. Others are short-sighted – a mix of transformational and transactional; and of course, there are the ones that simply boggle the mind – totally transactional, as they do not benefit the organisation or ‘Black’ People. A good indication of whether an organisation will implement a B-BBEE Strategy that is transformational versus transactional is its initial approach towards strategic development or evaluation. My birds-eye view of the initial process, more often than not, provides two scenarios: “Let’s get this done quickly; where do we find the points and people to make this happen”; and “If we’re gonna do this, let’s do it sustainably, so we yield a long-term return on our investment”. The first scenario indicates that an organisation is going to throw money at their B-BBEE Strategy and create an illusion of transformation. The second scenario, indicates it is going to meaningfully contribute to a transforming South Africa. Although these approaches are at separate ends of the scale, they do have one common denominator: each organisation believes its approach makes good business sense. However, each scenario establishes whether it is gearing towards a transformational or transactional approach. The idiom ‘Penny wise, Pound foolish’ pops to mind when comparing a Transformational and Transactional approach to B-BBEE. Suppose there was no B-BBEE framework in place. Would organisations consider who owns a business before procuring from them? Would they have processes in place to ensure fair representation of employees in their workforce? Would they invest in Skills Development? Would their preferred suppliers be representative of our national demographics? Would they develop small ‘Black’-owned businesses? Would they participate in income-generating activities to develop ‘Black’ Beneficiaries? Perhaps they would, marginally, but not to the extent necessary to include more ‘Black’ People in the economy and balance out the deficit of wealth facing our country. B-BBEE legislation may not be the perfect solution. Still, it is the chosen policy to transform the country, which is optional for organisations, as they are not legally obliged to have a B-BBEE Certificate. Granted, B-BBEE has garnered reputational damage over the years as tenderpreneurs, profit-driven Joint Venture agreements and questionable ownership schemes drive the transactional approach to B-BBEE. Unfortunately, they have outshone the meaningful and sustainable impact B-BBEE has had on many organisations and ‘Black’ People alike. However, regardless of which approach organisations take, one must remember that B-BBEE legislation guides organisations. Still, people of all races and genders either embrace it or circumvent it. It is essential to accept that B-BBEE is an economic policy that aims to invite more people into the economy. By design, it creates a synergy between all South Africans, as it is an unworkable policy without the buy-in of white-owned businesses or the participation of ‘Black’ People. South Africa’s B-BBEE legislation is globally unique. However, we have to remember that the foundation for B-BBEE began when the Native Land Act of 1913 was promulgated. Over the years of my in-the-field experience in the B-BBEE arena there have been negative connotations attached to ‘Black-owned businesses winning tenders. There is an immediate assumption that the business was gained through corruption. In effect, if a legitimate ‘Black’-owned business wins a tender, it highlights the success of B-BBEE legislation. I was recently party to a discussion whereby members of a white- owned family business did not want to change their ownership structure as they wished the business to be passed down in the family. The answer is simple, as B-BBEE compliance is not a legal requirement. They should not go the route of B-BBEE. However, in choosing to implement B-BBEE, it must be done within the legal parameters and spirit of the Codes. Such an organisation would have to measure the pros and cons of not transforming. Subsequently, if they choose not to have a B-BBEE Certificate and its clients have chosen the transformation route, there may well be a challenge to gain and retain business. It is essential to further take on board how such a white-owned family business established itself during the Apartheid era. From my bird’s-eye view, like it or not, a B-BBEE Certificate is key to conducting business in South Africa. Over the years, I have seen more organisations choose the ‘Penny wise Pound foolish’ approach to B-BBEE that commands financial output, little resources and instant gratification that benefits nobody. Remember, the bigger picture, sustainable B-BBEE, invites more people into the economy, allowing government coffers to invest in the national infrastructure to benefit all.

Staff Writer - 22 March 2023 Jobs portal CareerJunction has published its employment insights report for February 2023, highlighting the job skills that are most in demand in South Africa right now. The report is based on comprehensive data gathered from Saongroup South Africa – where around 5,000 of the country’s top recruiters advertise their positions to millions of registered jobseekers. Hiring activity increased by 2% from February 2022 to February 2023 (year-on-year), the group noted, with recruitment activity increasing 8% over the last month. This is a stark contrast to data from the start of the year which showed that hiring activity was down quite significantly and no specific job categories were in high demand. The increase in hiring activity has been driven by growth in demand for Business & Management, Information Technology, Finance as well as Admin, Office & Support staff during the month, CareerJunction said. However, since the increases in hiring activity across these four sectors is very recent, this trend is not reflected in the group’s three-month analysis. In fact, the three-month trend analysis shows that hiring activity and employment trends are still largely subdued, with only the warehousing and logistics and building and construction sectors showing longer-term demand. The most significant shifts are as follows: In these fields, during the last three months, hiring activity grew by the percentage shown. Roles in the sub-sectors shown have been advertised more frequently. Building and Construction +2% Electrician Construction worker Warehousing and Logistics +1% Dispatch and receiving Conversely, there has been a sharp drop in demand for two other sectors, with Admin, Office and Support hiring activity dropping 17% and IT hiring activity dropping 14%, the group said. In these fields, during the last three months, hiring activity declined by the percentage shown. Roles in the sub-sectors shown have been advertised less frequently. Information Technology -14% Business analysis Software development Database design/development/admin Data analysis/Data warehousing Admin, Office and Support – 17% Teller/Cashier People looking for jobs While hiring activity remains subdued, CareerJunction noted an increase in candidates signing up and applying for jobs from the design, media and arts, hospitality and manufacturing sectors. This implies that there is in increased number of journalists, graphic designers, web designers, waiters, artisans, machinists and controllers in the market, but not the demand from employers for those skills. Most of the jobs on offer are still mostly based in Gauteng, where 54% of recruitment ads are placed. This is followed by the Western Cape and KwaZulu Natal. For design and media jobs, the Western Cape and KwaZulu-Natal have seen a downturn in hiring activity when comparing the last three months compared with the same period a year ago. On the other hand, Gauteng has shown consistent growth in hiring activity for this sector over the last three years, CareerJunction said. For sales and marketing, KwaZulu-Natal and Gauteng have seen consistent growth in hiring activity for this sector over the last three years. The Western Cape, however, has seen a 19% decline year-on-year. According to CareerJunction finance jobs remain in demand, with most people in this field (61%) based in Gauteng, followed by the Western Cape and KZN (13% each). Job roles within the sector are still in demand, with the group highlighting accountants, bookkeepers and creditors clerks are being sought after where positions are available. Some pay scales for positions in the finance sector include: Payroll Administrator: from R18,958 to R21,872 per month Creditors Clerk: from R15,801 to R18,682 per month Financial Controller: from R46,322 to R59,618 per month https://businesstech.co.za/news/lifestyle/674487/the-most-in-demand-job-skills-in-south-africa-right-now-15/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Prinesha Naidoo - 23 March 2023 Image: Dean Hutton, Bloomberg Severe power outages, coupled with softer commodity prices mean Africa’s most industrialised economy will probably only grow 0.1% in 2023. South Africa must implement reforms to boost private-sector investment, promote good governance and improve the efficiency of public spending to shore up an economy hamstrung by rolling blackouts, the International Monetary Fund said. Severe power outages, known locally as load shedding, coupled with softer commodity prices mean Africa’s most industrialised economy will probably only grow 0.1% in 2023, the Washington-based lender said Wednesday after a staff visit to South Africa. That compares with its January estimate of 1.2% and the National Treasury’s projection of 0.9%. State-owned company Eskom has implemented daily blackouts for more than 200 days last year and on all but one day of 2023. The rolling outages, which started in 2008, are needed to protect the grid from collapse when the company’s old, and mostly coal-fired plants can’t meet demand. The National Treasury is aware of “most of the risks to economic growth” flagged by the lender and is working on measures to address them, it said in a statement. It plans to respond to more detailed analysis and recommendations when the IMF publishes an Article IV report on the country. Reforms aimed at restoring energy security that attract private-sector participation in the electricity market and address Eskom’s operational and financial challenges may help to bolster output growth and create jobs, according to the IMF. If implemented, a R254 billion debt-relief strategy the Treasury has announced for Eskom “should ensure material improvement in the company’s operation and establish its long-term viability,” it said. Still, it warned that the plan, together with continued support for other loss-making state companies, spending on temporary welfare grants and increased debt-service costs, will see the budget deficit widen to 6.5% of gross domestic product in the fiscal year ending March 2024, and deteriorate further through 2026. Creating the conditions for higher economic growth and a reduction in South Africa’s debt vulnerabilities will require stronger fiscal consolidation efforts, including plans to reduce the public-sector wage bill and transfers to state companies while protecting well-targeted social spending and productive public investments, the IMF said. “South Africa’s public debt is among the highest in emerging markets and is set to continue rising on current policies,” the lender said. “This leaves limited fiscal space to respond to adverse shocks, including from contingent liabilities from state-owned enterprises, social spending needs, and climate events. It also exposes the government to increasing borrowing costs, diverting limited resources away from more productive capital and social spending.” The IMF also recommended that authorities work to broaden the tax base, strengthen the fiscal framework by introducing a debt ceiling, address shortfalls in public procurement and improve public investment management. Last month, Finance Minister Enoch Godongwana ruled out introducing a new fiscal anchor in the country’s budget framework. https://www.moneyweb.co.za/news/economy/imf-pares-sa-economic-growth-forecast-urges-reforms/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Tshepiso Moche - 21 March 2023 Image: GCIS President Cyril Ramaphosa says if the government is to advance social and economic rights, it must tackle poverty and inequality in the country. Ramaphosa delivered the official Human Rights Day commemoration keynote address at the De Aar Stadium, in the Northern Cape. The President says government cannot claim to care about the social welfare of its citizens if it can’t deliver basic services. “If we are to advance and secure these social and economic rights into the future, then we need to tackle poverty and inequality. We need to create employment and economic opportunity.” The President was welcomed by cheering crowds as he entered the stadium. He was flanked by Northern Cape Premier Dr Zamani Saul, Sports, Arts, and Culture Minister Zizi Kodwa; and Minister of Justice and Correctional Services, Ronald Lamola. During his address, Ramaphosa told locals that for the government to achieve its objectives, the country needed to grow the economy and achieve far greater levels of investment. “The work that is being undertaken to increase investment in both economic and social infrastructure is a vital part of the effort to improve the provision of services to all South Africans. This includes investment in roads and rural bridges, in new housing settlements, in water schemes, and in expanding our electricity network,” adds Ramaphosa. President Ramaphosa’s address comes as the country continues to battle many social ills, including GBV, inequalities, poverty, racism, load shedding, and high number of unemployment. Over the last few months, the government has been criticized for not adequately addressing some of these social challenges that plagued the country. In February, Statistics South Africa announced that the country’s official unemployment rate eased slightly to 32.7% in the fourth quarter of 2022. This is a decrease of 0.2 percentage points from the previous quarter’s 32.9%. But despite the slight decline, about 15.9 million people remain employed. Other commemorative events are held by different political parties in different parts of the country. https://www.sabcnews.com/sabcnews/govt-must-tackle-poverty-inequality-to-advnace-social-and-economic-rights/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Khwezi Mabasa - 21 March 2023 60 years since the Sharpeville Massacre. Photo: Supplied South Africans commemorate Human Rights Day annually by drawing attention to the historical and political significance of this day. Sixty-nine people lost their lives on 21 March 1960 while demonstrating against the unjust pass laws. This massacre illuminated the apartheid state’s brutality and intensified the need for using armed resistance in challenging the authoritarianism prevalent across society. The formal adoption of a democratic Constitution in parliament in 1996 signalled a shift towards a society that protects basic political, socio-economic and civil liberties. Former president Thabo Mbeki, who delivered his lauded “I am an African” speech on this occasion, stated that the Constitution “recognises the fact that the dignity of the individual is both an objective which society must pursue and is a goal which cannot be separated from the material well-being of that individual”. He was alluding to the importance of addressing political and socio-economic injustices simultaneously. Democratic consolidation and the substantive realisation of human rights necessitates democratising politics, the economy and other social institutions. South Africans’ lived experiences and researched policy evidence shows this human rights vision has not been fully achieved. The country is ranked highly in several international comparative indexes on democracy and civil liberties, such as Freedom House and the Ibrahim Index of African Governance, yet it performs poorly in essential socio-economic and human development indicators. High levels of socio-economic exclusion, poverty, inequality and uneven spatial development characterise post-1994 South Africa. Unequal race, gender and class power relations underpin this exclusionary socio-economic structure, which often produces conflict in what author Karl von Holdt describes as a violent democracy. Hence, many residents believe the human rights celebrated annually have not addressed historical injustices or improved their livelihoods significantly. In other words, systemic race, class and gender inequalities in the economic structure undermine the consolidation of democracy in South Africa. Economic and social policy shortcomings limit efforts aimed at democratising the country’s economy to address past and present socio-economic injustices. These policy choices, based on the prescripts of dominant international financial institutions, continue to fail South Africans. The policy directives place primacy on market-led development models that elevate labour market flexibility, lessening financial exchange controls, privatising public goods and decreasing welfare support as core measures for sustained economic development. They equally coerce governments in less developed countries to adopt rigid macro-economic targets, which focus narrowly on debt containment, attracting private investment and inflation targeting. We need alternative human rights-centred economic and social policy frameworks, highlighting the following points for transitioning beyond a market-led democracy. First, we need broader concepts of labour and livelihood development that do not confine society to wage-led industrial labour as the only solution to the employment crisis. South Africa’s economy (historically) has been run by big corporates operating in different private sector markets and a public sector at different governance levels. Society’s thinking about jobs and livelihoods is confined to formal wage labour or economic participation in these institutions. However, there are innovative ideas emerging about diverse policy strategies for addressing South Africa’s socio-economic crisis which provide more policy options for increasing decent work and supporting community-led livelihood strategies. These proposals factor in the effects of the nascent low-carbon and digital technologies. In addition, there is a call for more emphasis on the care economy and its relation to expanding social security systems. Social redistribution and transfer interventions are positioned as enablers of multiple livelihood options rather than non-productive expenditure line items. Second, the country’s labour and industrial relations regimes should protect the rights of all workers in the economy. Strengthening labour rights, institutional oversight and adapting laws to structural labour market changes are important for achieving this goal. Several industrial relations conflict case studies and continued worker exploitation illustrate that human rights violations are still prevalent in labour markets. Race, gender, class and national inequalities determine the form and patterns of exploitation. And there are sectors, such as domestic work, retail, construction and hospitality, where labour-related human rights violations are more rife. Furthermore, economy-wide labour market restructuring, anchored on emerging technologies or lean business models, has deepened this trend in most cases. Technology and industrial upgrading are presented as benign product market and business operation changes by large corporates. The proponents promote the efficiency, profit and production cost gains associated with these technological innovations. But the technologies are equally used to undermine labour rights, collective bargaining and lower labour costs exponentially. This is alarming because labour market disparities are the main driver of socio-economic inequalities. Third, there is a need to draw from the policy literature about interesting economic experiments that diverge from market-led democracy policy prescripts. Alternatives such as the solidarity economy, eco-socialism, circular economy and social economy are instructive. These development models challenge market primacy, concentrated ownership patterns, ecological destruction and labour exploitation. The alternatives encourage us to think about economic development beyond the confines of growth that is measured using market or financial indicators, such as gross domestic product and rating agency assessments. All these models place human development indicators, equal access to public goods and broader non-market social returns at the centre of economic development. In summary, human well-being, universal human rights, socio-economic inclusion and social redress must become central economic policy targets in South Africa. https://mg.co.za/opinion/2023-03-21-south-africas-market-led-democracy-undermines-human-rights/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

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Partner - March 2023 Telkom Business has launched YEP!, a portal dedicated to helping South Africa’s struggling SMMEs transition onto digital platforms. Keneilwe Gwabeni, Telkom’s Chief Information Officer says that the portal aims to provide SMMEs with an easy way to set up a shopfront in a national digital marketplace. “YEP! is essentially the reinvention of the Yellow Pages for the Digital Age, providing an online marketplace where customers and businesses can find each other,” she says. “YEP! is creating a digital ecosystem in which SMMEs can expand their reach to acquire new customers and develop new linkages with other SMMEs whose businesses complement their own—collaboration is key in the modern, digitalised economy.” YEP! was conceptualised with the difficulties faced by SMMEs in South Africa very much in mind. Globally, according to figures from the Small Business Institute, SMMEs are seen as engines of growth and job creation—just the medicine our ailing economy desperately needs. But despite making up 98.5% of the economy, South African SMMEs create only 28% of its jobs. By contrast, in successful economies, SMMEs also make up the bulk of the economy but they also employ 60%-70% of the workforce and account for up to 60% of GDP. One of the reasons for the underperformance of the SMME sector could be the unwillingness of South African entrepreneurs to adjust their business plans to new realities. In this case, the new reality is the unstoppable shift to digital platforms, accelerated by the COVID-19 lockdowns. Digital platforms are essential on many grounds, not least the opportunities they offer to reach new markets and streamline business processes. YEP! will instantly give an SMME the kind of national shop window that would take a brick-and-mortar business years to develop. YEP! backs this up by providing assistance in setting of the necessary website, and training as needed to help SMMEs begin optimising their business processes. Further assistance in creating and building a brand, and marketing products and services is also available if required. Another key benefit of moving online means SMMEs will be able to accept digital payments, something that’s important for security and also because digital payments automatically create a financial record that can be used to access capital funding. “Access to capital is one of the key challenges for SMMEs, as is the ability to find new customers—YEP! will provide a solution to both these issues,” concludes Gwabeni. “As a leading corporate we see this not as just a business opportunity, but also an obligation to help nurture the vital SMME sector in the quest for a more inclusive and vibrant economy.” https://businesstech.co.za/news/industry-news/673979/telkom-businesss-yep-portal-designed-to-help-smmes-make-the-big-digital-leap/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.

Ina Opperman - 19 March 2023 Image: iStock The country urgently needs technical skills, particularly in the areas of electrical, mechanical, industrial and civil engineering. South Africa’s youth need technical skills to help solve South Africa’s unemployment crisis, where 4.6 million young people are looking for work. Considering that 90% of the country’s employment opportunities require youth with technical and vocational skills, as reported by the Human Resource Development Council, equipping them with these skills is crucial for reducing the country’s unemployment rate, Dr Andrew Dickson, engineering executive at CBI-electric: low voltage, says. There is also an increasing need for artisans and technicians to support base operations within the engineering disciplines, especially as infrastructure repair and maintenance become more crucial than ever for keeping the country’s lights on, he says. This sentiment was reinforced by President Cyril Ramaphosa in his State of the Nation speech when he said that technical skills are what South Africa requires. He said the skills our country needs, the jobs that can grow our economy and importantly, the avenues for entrepreneurship that are so sorely needed, can best be achieved by increasing learner access to technical and vocational subjects. Government cannot do everything “However, government is unfortunately limited in its ability to bridge the skills gap and therefore the private sector needs to step in by investing in institutions or individuals. With state funding reduced for universities and technikons, additional support is vital. This option may not appeal to shareholders, but it is important to see the bigger picture where the value lies in investing in employees of the future who will be key for taking the country forward.” Dickson says another option is for businesses to work with institutions by providing practical learning opportunities for graduates so that they learn how to apply the skills they acquired. “For example, we provide training to electrical engineering students at Technical Vocational Education and Training (TVET) colleges around the country on electrical safety compliance, as well as the practical use of products such as circuit breakers, wiring accessories and earth leakage devices.” The CBI holding company took this a step further with the establishment of Reunert College, which offers a bridging programme for school leavers from previously disadvantaged communities that enables them to improve their matric results which might otherwise have prevented them from getting a university exemption and/or from becoming employed. Dickson says many participants who successfully completed the programme secured bursaries to study further. Investing in individuals When it comes to investing in individuals, he recommends that more industries consider making apprenticeships mandatory, similar to the accounting and law fields where new graduates are required to do their articles. “It ensures that companies take on apprentices and equip them with the experience required to meet the demands of the working world.” He says businesses that choose this route, must note that they do not have to shoulder the total cost alone, as government provides support via the Skills Development Levy and the provisions of the Income Tax Act. This requires that, if individuals are trained, they need to be placed in a position in a company afterwards. “One of the biggest skills gaps plaguing the country, particularly in the technical and electrical environments, is a lack of practical know-how among new employees. In the past, this would be passed down by veteran employees, but as this practice is no longer in place due to factors like the brain drain and retirement of seasoned workers, inherent institutional knowledge is lost. Mentorship must be provided to develop new hires into competent employees who can acquire these intricacies and ultimately pass them on to the next generation.” South Africa has the highest unemployment rate in Africa and the third highest in the world, according to a global list of 82 countries monitored by Bloomberg. Dickson says our plight is far too big for government to tackle alone. In South Africa, 3.1 million companies are registered with the Companies and Intellectual Property Commission (CIPC). Dickson says just imagine what could be achieved if they all invested in institutions and individuals, especially those operating in the technical space.” https://www.citizen.co.za/business/personal-finance/technical-skills-required-to-tackle-youth-unemployment/ ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.