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- SPAR LOANS WORTH R11M FLAGGED TO REGULATORY BOARD
Eye Witness News | 19 January 2023 Outgoing Spar CEO Brett Botten. Picture: Spar South Africa JOHANNESBURG - Three fraudulent loans reported by retailer Spar are believed to be "isolated" incidents, a statement released on Thursday by the company stated. Spar has battled a wave of negative publicity emanating last year, which included allegations it had manipulated the value of stores, fictitious loans, and discriminating against black franchisees. Eyewitness News reported earlier this week that legal firm Harris Nupen Molebatsi Attorneys found widespread fronting and fraud in some Spar franchises. The firm's report also said that black economic empowerment (BEE) loans were used to inflate profit at the retailer. Spar, however, said the report contained "highly confidential" but "unfounded" information regarding allegations of discrimination, but did find "certain areas of improvement" that were being addressed. "Spar would like to reiterate its deep regret over the allegations of discrimination against certain of our retailers." Eight retailers and Spar are currently involved in a "mediation process". FICTITIOUS LOANS Spar's auditors, PricewaterhouseCoopers, revealed to the company that a loan they entered into was a reportable irregularity. The loan agreement was entered into between a "willing lender and borrower through a commercial bank", it said. The matter was reported to the Independent Regulatory Board of Auditors (IRBA), which confirmed that an irregularity had taken place. The IRBA's investigation concluded the loan "did not seem to have served any real commercial or economic purpose", and "should not have taken place". Two other transactions of a similar nature were subsequently flagged, the value of which totalled R11 million. The retailer said "adequate steps" were being taken to prevent any losses incurred as a result of the loans. "These loans were isolated and occurred five years ago. This arrangement is not Spar practice and there is no evidence to support any allegations of accounting irregularities with any other loan transactions." Spar CEO Brett Botten is stepping down at the end of the month, and former board chair and CEO Graham O'Connor did not make himself available for re-election. Succession discussions are reportedly under way. "The board believes the changes in respect of non-executive directors adequately addresses any existing shareholder concerns around independence." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://ewn.co.za/2023/01/19/spar-loans-worth-r11m-flagged-to-regulatory-board
- IF ANCYL IS SERIOUS ABOUT TACKLING SA’S ENERGY CRISIS, THEY’LL JOIN DA’S MARCH TO LUTHULI HOUSE
Lindokuhle Sixabayi | 19 Jan 2023 ANC Luthuli House in Pixley Ka Isaka Seme St, Johannesburg. Photo: Supplied The ANC Youth League (ANCYL) appears to have once again found its rusty voice. Mute on growing youth unemployment, deepening inequality and lack of access to opportunities for more than two-thirds of young South Africans, the league’s national leadership put out a statement condemning the DA’s planned march on 25 January to the ANC’s headquarters, Luthuli House, in what can only be described as a vitriolic rant. While their profanity is hardly surprising, I can’t help but spare a thought for the ANCYL as they too are incapable of defending the ANC’s epic failure in managing Eskom and other collapsed state-owned entities (SOEs). The DA’s march to Luthuli House is an opportunity for honest, hardworking South Africans to take their pain and frustrations to the seat of the organisation that orchestrated them. While some people may criticise the DA’s planned march to Luthuli House and want to dismiss it as politicking, the truth is that South Africa’s economic woes are solely a result of the ANC’s corruption, bad policies and patronage. The DA has for years called out the ANC’s cadre deployment policy which sits at the heart of the systematic destruction of our SOEs, including Eskom. The DA warned against broad-based black economic empowerment, which continues to enrich a select group of ANC-linked fatcats through inflated government contracts. These red flags were sadly ignored by the kleptocratic ANC-led government, resulting in 15 years of rolling blackouts. The ANCYL does not have to take my word on the horrifying state of our country’s SOEs, all they have to do is look at the Zondo commission of inquiry report on state capture. Here, the ANC’s dirty laundry is laid bare for the world to see. The report narrates countless horrifying accounts of fraud and corruption by ANC cadres at Eskom, including instances where major contracts were organised for the fortuitous benefit of their beloved Gupta family. The ANCYL’s attempt to downplay the simple and clear fact that their party led us all to this point is quite laughable. The comic relief doesn’t end there. They go on to admit that our energy crisis is a “national crisis”. Well, of course, it is a crisis. But not a natural disaster like Covid-19 or major like the Durban floods. It is simply the result of the ANC’s neglect, incompetence, mismanagement and corruption. The country has been dealing with load-shedding for over 15 years now, yet we have never seen the ANCYL standing up against this catastrophe. The DA is offering them an opportunity to fulfil their generational mission by actually doing something that positively impacts the lives and livelihoods of young people across South Africa. Join the march to Luthuli House. However, it seems that the ANCYL is more invested in the ANC’s factional politics than the economic upliftment of young people. Shady old-looking folks who seemingly always fool us into believing that they are under 35 also have their hands firmly in the cookie jar. It’s the only plausible conclusion to come to that can rationalise their deafening silence at what they concede is a “crisis”. One only has to read Rebone Tau’s book, The Rise and Fall of the ANCYL, to see how far the youth league has fallen. How shallow and pedestrian they have become. Tau attributes their fall squarely on the league’s failure to resist the factional mother body’s politics of “it’s my turn to eat”. The DA’s march to Luthuli House is urgent and demands that all South Africans stand together and take back power from a party that stole theirs. It doesn’t matter which political party you belong to and it is not a matter of race, religion or sexual orientation. It’s to raise our clear voices loud enough to move the ANC-led government to some action. At least until the multiparty coalition takes over the country in 2024 and the ANC is relegated to the opposition benches. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/opinion/2023-01-19-if-ancyl-is-serious-about-tackling-sas-energy-crisis-theyll-join-das-march-to-luthuli-house/
- SATION IS THE SOUTH AFRICAN START UP ECOSYSTEM OF THE YEAR
Creamer Media Reporter | 19 January 2023 South African business ecosystem SAtion has won the award for Start-up Ecosystem Builder of the Year 2022 in South Africa. The award was presented at the annual Africa Start-up Ecosystem Builders (ASEB) Summit in Johannesburg. The Start-up Ecosystem Builder of the Year Award is affirmation of the innovative work by the SAtion team and its more than 100 partner organisations to cultivate the digital marketplace and skills South Africa needs for our economy to succeed in the Fourth Industrial Revolution (4IR). The awards saw more than 2700 nominations from over 40 African Countries across 27 categories. After intense deliberation, 175 companies and individuals were selected as finalists. SAtion was established with the support of Business Unity South Africa (BUSA) as a non-profit ecosystem for businesses, government, labour and civil society to drive inclusive growth and opportunity from the 4IR. Working with the recommendations from the Presidential Commission on the Fourth Industrial Revolution (PC4IR), SAtion brings focus to the digitaliSAtion workstream in the President’s Economic Reconstruction and Recovery Plan to ensure rapid implementation, outcomes, and impact. In his speech at the ANC anniversary celebrations in Bloemfontein, President Ramaphosa said he is betting on new technologies for South Africa’s economic development and employment creation, calling for a concerted effort in driving the fourth industrial revolution (4IR). The President highlighted the 4IR as a critical enabler of economic growth and job creation, saying: “Rapid technological change, including the fourth-industrial-revolution, is changing economies and societies.” To date, SAtion has established four Small, Medium and Micro Enterprise (SMME) business hubs and three digital hubs. These hubs have had over 3200 sign-ups in 18-months. SAtion has distributed numerous Thinkubate licenses to SMMEs with 89% black ownership, 22% female ownership and 45% youth ownership across South Africa. Thinkubate is a business lifecycle tool that covers all life stages of a business with bespoke solutions to keep businesses moving forward. SAtion has led pioneering partnerships with global tech giant Microsoft, the Tarsus Technology Group, and the local Covid-19 Business Rescue Assistance (COBRA) initiative to help SMMEs and develop the township economy. SAtion and partners work to understand grassroots issues and then provide SMMEs with business support and guidance. Drawing on expert experience, COBRA provided business advisory support and services to over 570 businesses during the Covid-19 Pandemic to safeguard livelihoods. Furthermore, SAtion has hosted digital skills and SMME business challenge hackathons, in partnership with incubation hubs, aimed at developing winning ideas into operational, sustainable and successful businesses. SAtion is committed to building a digital nation and will continue striving toward creating a positive social impact to allow South Africa to be a globally competitive economy in the 4IR. The ASEB Summit was created to advance start-up ecosystem building as a new approach to economic development in order to help more people and communities achieve economic independence through entrepreneurial success while awarding ecosystem builders. SAtion is honoured by this continental recognition of its initiatives, and eager to continue driving its mission forward in 2023. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/sation-is-the-south-african-start-up-ecosystem-of-the-year-2023-01-19/rep_id:4136
- BEE Secure the Best BEE level Webinar - Jan 19
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- BEE Score Management Webinar - Jan 17
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- A B-BBEE STRATEGY: MOVING ORGANISATIONS FROM HOMOGENEITY TO HETEROGENEITY
A homogeneous team would include people who are as similar as possible, with similar points of view, learning abilities and life experiences. Heterogeneous teams include a mixture of races, genders, cultures and ages that provides a wider range of life experiences and opinions. Building a solid business strategy is fundamental to the success of an organisation, as it provides direction for harnessing opportunities with foresight. Essentially, those developing a tactical plan for an organisation need to develop the ability to think strategically through analysing the competitive environment, then recommending a firm position and value proposition. The next step is measuring the impact a Business Strategy has on a business. A mechanism used by many organisations is that of SMART+C that measures its implementation based on: The SMART+C evaluation is revered as the epitome of the strategic direction to delivering results. The Codes of Good Practice target every area of a business, beginning with the ownership structure, to how a business is managed, to the skills necessary to run a business, the diversification of the supply chain and how to deliver income-generating activities. Therefore, having a robust B-BBEE Strategy that runs parallel to an organisation’s Business Strategy is paramount to meeting its overall objectives. Essentially a Business Strategy and a B-BBEE Strategy should be read as one document. A B-BBEE Strategy should be developed and measured using the same methodology as a Business one, focusing on growth. Unfortunately, more often than not, the importance of correlating the two strategies is overlooked, as is its intrinsic value. Historically organisations have developed their Business Strategy and B-BBEE Strategy as separate entities. Hence many fail to meet the objective of either. To BEE or not to BEE It is not a legal requirement for an organisation to have a B-BBEE Certificate; however, in choosing to have one, it is a legal requirement that it be credible and accurately depicts the reality of an organisation’s transformation strides. Let’s unpack the DNA of a robust B-BBEE Strategy that can provide leverage over an organisation’s competitors and areas for consideration to mitigate any risks. A B-BBEE Strategy, by design, will drive good governance. It tests finances, spending patterns, employee roles, responsibilities, skills interventions and systems that drive development. It can be the tool for quantifying and testing accuracy through the systematic processing of data, which culminates in delivering shareholder value. A B-BBEE Verification, an evidence-based process, measures strategic performance areas, supporting the financial objectives and convergence of business areas through scorecard indicators and weightings. Although not directly linked to shareholder value, the Management Control and Skills Development Scorecards measure how an organisation recruits, remunerates, trains, develops or performs. Evidence such as employment contracts, confirming an employee’s occupational level and renumeration, all support an organisation’s B-BBEE Verification claims. Employment equity annual submissions and plans support targets and performance milestones in these areas. In effect, Management Control and Skills Development provide Strategic Human Resource Planning. “A Business Strategy and B-BBEE Strategy should be read as one document.” A B-BBEE Strategy must make good business sense. Essentially, shareholders demand a return on their investment. A comprehensive B-BBEE Strategy measures an organisation’s shortfalls and milestones in the overall business performance. How an organisation performs against its B-BBEE Strategy is crucial for the leverage in gaining and retaining business. It is a sense of market-based voluntarism with rules of the game guided by legislation. A robust B-BBEE Strategy is essentially a competitive commodity that demonstrates an organisation’s commitment to the Government’s priority of an inclusive society. Preferential Procurement feeds into the National Development Plan that targets small businesses as the vehicle to drive future economic growth. The net effect of Preferential Procurement is the diversification of an organisation’s supply chain. It encourages organisations to shift from standard procurement patterns by removing barriers to entry for smaller ‘Black’-owned businesses. Core to a well developed B-BBEE Strategy are the policies that guide it to ensure they do not inadvertently become a barrier to entry. For example, a Business Strategy for an organisation in the manufacturing space historically steers a procurement policy using the matrics quality, cost and delivery as Key Performance Indicators. Subsequently, the historic matric steers an organisation away from meeting the targets necessary to achieve its Preferential Procurement mandate. Consequently, it negates ‘Black’ Ownership, ‘Black Woman-ownership and support for Exempted Micro Enterprises and Qualifying Small Enterprises. Food for thought, there is always a sweet spot for adapting the two metrics to meet an organisation’s strategic objectives without creating a tug of war, which is often the case when breaking down barriers to entry. As a B-BBEE Strategy leads an organisation toward sustainability, it pursues financial benefit for shareholders reasonably without compromise. In setting the targets for a B-BBEE Strategy, then moving to the implementation phase, an organisation must have standard processes that include accountability systems and procedures that align with the desired outcome. Uniformity is crucial to ensure that everyone in the organisation steers towards the end goal, both in their strategic and behavioural approaches to drive the strategic objectives. Mitigate the Risk There is one element that neither Business nor B-BBEE Strategies can predict, that being the human factor. There are many reasons strategies can be taken off course, from powerful coalitions to a surprise resignation. However, part and parcel of both strategies is +C, the challenges, whereby managing the leading risk factor, which is the human factor, is critical to meeting objectives. Organisations often opt for the two-pronged performance measured approach, which measures behaviour against critical goals; this essentially equates measuring an employee’s key performance and development. Unfortunately, this approach, more often than not, yields confusion, thus putting the human factor more at risk than ever. A common differentiator between a Business and a B-BBEE Strategy is the frugal budget allocated for the latter. Organisations expect to achieve a Status Level that provides leverage over their competitors, produces innovation, and harnesses diversity and inclusion without any investment, which amounts to incongruence. Findings in the McKinsey and Company study, Delivering Through Diversity 2018, observed that: “many successful companies regard diversity and Inclusion as a source of competitive advantage, and specifically as a key enabler of growth”. The report supports that Homogeneous workforces perform at 33% compared to Heterogeneous ones and where boards of Heterogeneous are 43% likely to realise more profits. It goes without saying that a robust B-BBEE Strategy, read with a Business Strategy as one document, will go a long way to organisations meeting their overall business strategy. Click on the link below to download the PDF:
- SPAR CEO TO STEP DOWN AS LAW FIRM REPORTS WIDESPREAD FRAUD, BEE LOAN FRONTING
Motheo Khoaripe | 18 January 2023 FILE: Spar was hit with a wave of negative publicity in 2022. Picture: © morris71/123rf.com JOHANNESBURG - Retailer Spar says CEO Brett Botten will step down at the end of January, while former board chair Graham O’Connor will be leaving in February. The leadership change comes after Spar was hit with a wave of negative publicity in 2022, including allegations it had manipulated the value of stores, reported fictitious loans, and discriminated against black franchisors. The more than ten retailers said the group wanted to use their Black Economic Empowerment (BEE) loans to bail out white retailers and dump them. Legal firm Harris Nupen Molebatsi Attorneys was appointed to probe the matter. Its report confirmed widespread fronting and fraud in some franchises. The report also confirmed that BEE loans were used to inflate profit at the retailer. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://ewn.co.za/2023/01/18/spar-ceo-to-step-down-as-law-firm-reports-widespread-fraud-bee-loan-fronting
- ENTREPRENEUR HOPES FOR MEANINGFUL TRANSFORMATION OF POULTRY INDUSTRY
SA News | 17 January 2023 Ofentse Moloko, a 37-year-old entrepreneur from the North West, says the support government gives to Black-owned companies operating in the poultry industry will contribute significantly to transforming the sector and ensuring food security in the country. Moloko, the CEO and Managing Director of Baramakama Poultry, runs a family-owned egg-laying chicken company in Molote City, North West. He believes that the sustainability of businesses depends on Black-owned companies occupying the entire value chain of the industry. Baramakama received support to the tune of R50 million from the Department of Trade, Industry and Competition (the dtic) and its development finance institution, the Industrial Development Corporation (IDC), as part of the Black Industrialists Programme. “We are the perfect example of the success that Black-owned companies can achieve with the support of government in the poultry industry,” says Moloko. The Black Industrialists Programme is part of government’s efforts to accelerate the quantitative and qualitative increase and participation of Black Industrialists in the South African economy, selected industrial sectors and value chains. Moloko recalls how his father, who “started from nothing back in 2016”, used his savings to invest back into the community of Molote City. “We decided to establish a poultry business, specifically in the layers as they showed the greatest opportunity for employment creation ,as well as massive room for economic and ownership transformation. “For almost three years, we persistently and continuously knocked on the doors of all the private banks in this country, but the doors were all slammed on us after months of completing their processes, mainly due to the land belonging to the community. “When the dtic and IDC decided to fund our business after a thorough due diligence process, it was like music to our ears.” The financial support from the dtic and IDC enabled Baramakama to expand its operations by adding five new automated chicken houses and a modern, state-of-the-art pack station. The family business has also managed to increase the premise’s carrying capacity from 100 000 hens to 280 000. In addition, the company has now added 40 new jobs, while the number of permanent employees jumped from 80 to 112. Of these, almost 80% of the employees are young people, while 44% are women. “Today, our operation runs 24 hours per day and on average, we produce 225 000 eggs per day at full capacity. The support we received from government has made us a recognisable and important player in the industry,” Moloko says. Although he appreciates the importance and recognises the value of the support that government provides to Black Industrialists, Moloko strongly believes that government should consider extending its backing across the value chain of the poultry industry to achieve sustainability and ensure success. “Government support needs to cut across the value chain if we want meaningful transformation of the industry, and if we want the Black industrialists to play an important and discernible role in food security in the country.” This includes feed production, hatcheries, abattoirs, chick rearing, processing and market access. “Although we regard ourselves as a success after obtaining the support, we are left at the mercy of our key competitors from whom we source feed and hens. That makes us vulnerable as the supply tabs can and are regularly switched on and off, depending on how they want to control and benefit from the market conditions,” Moloko says. He does not pin all his hopes on the Poultry Sector Master Plan -- which was developed in close partnership between government and several stakeholders in the industry -- to increase the level of Black participation, particularly ownership across the value chain, employment creation and worker share-ownership in the sector. Moloko is of the opinion that the decisions taken within the Poultry Master Plan depend on the existing big players in the industry, who, through their actions, do not easily allow Black players into the more profitable value chain channels. However, he remains resolute and hopeful that with more Black players in the value chain, the industry will not only transform but also allow healthy competition to the benefit of all participants. – SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/entrepreneur-hopes-meaningful-transformation-poultry-industry
- WIND INTERNSHIP PROGRAMME TO DOUBLE 2023 INTAKE
Staff Writer | 17 January 2023 Niveshen Govender, SAWEA CEO. The second Wind Industry Internship Programme (WIIP) has announced that it will double its placements for 2023 and offer supplementary work readiness training for the first time. In a statement, industry body, the South African Wind Energy Association (SAWEA) says the programme supports the development of specialist skills needed to facilitate the exponential growth of the industry, to support the country’s growth. Funded primarily by the Energy and Water Sector Education Training Authority, in partnership with SAWEA, the programme is expected to place 35 interns, selected from over 90 applications this year. According to SAWEA, these interns are being placed across approximately 30 renewable energy companies – illustrating a growth of over 100% in just one year. “We are encouraged by the uptake of this programme and huge increase of placements, knowing that young professionals are being absorbed by our sector and are receiving the mentorship and practical experience that they need,” says Niveshen Govender, CEO of SAWEA. SAWEA explains that the WIIP provides young professionals who have recently completed a degree or those undertaking graduate programmes, with the opportunity to gain practical work experience in line with their studies or interests, whilst exposing them to works related to sustainable energy solutions. It notes that this year, for the first time, the programme will include a 10-day work readiness training segment facilitated by an external service provider that will coach the graduates in the soft skills necessary to enter the workplace, for example, e-mail etiquette, communication, working as a team etc. While the WIIP provides capacity building for the students, it equally benefits the commercial wind power industry seeking to source qualified students specialised in various professional fields, the industry body adds. “Equally important, the programme is recognised as a major contributor to social, environmental and economic security in the country,” explains Govender. The demand for qualified and skilled talent is growing and the South African industry, like its international counterparts, needs a rising pool of qualified candidates to draw from, the association says. SAWEA anticipates jobs in manufacturing, logistics, finance, construction, and operational phases becoming available as Bid Window 5 and Bid Window 6 projects come online. It points out that these comprise of professional services, business services and sales. Requirements include, engineering, project management, project development, and skills in environmental authorisations, among others. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/raYAyqorYbVMJ38N
- DOMAIN NAME AUTHORITY BOOSTS TRAINING FOR ICT SMES, YOUTH
Staff Writer | 17 January 2023 As of April 2022,the .ZA Domain Name Authority (ZADNA) says it has empowered 330 individuals from disadvantaged communities with business development skills through its Registrar-Reseller programme. This, says the authority, is to empower communities and increase opportunities for new entrants in the South African Internet ecosystem. “These training and capacity-building interventions have had several positive and meaningful impact,” explains Molehe Wesi, CEO of ZADNA. “In the 2021/22 financial year, ZADNA delivered 24 Registrar-Reseller training sessions. From these sessions, 18 participants became resellers, and one became an accredited registrar.” ZADNA’s mandate is to regulate the .za namespace and ensure its efficient use, management and administration. In addition to the Registrar-Reseller programme, the authority reveals that it re-launched other skills development programmes in February 2022. These were the introductory Domain Name Systems (DNS) technical training and advanced technical DNS training, which were re-launched through a partnership with the .za commercial registry operator. In the past, the ZA Central Registry decried DNS abuse, saying it was emerging as an existential threat to the continued stability of SA’s domain name ecosystem. ZACR stated that domain name hijacking, cyber-squatting, spam, phishing, botnets and malware are all forms of DNS abuse perpetrated primarily by global fraud syndicates. According to ZADNA, the DNS training aimed to advance small business owners and young entrepreneurs in the ICT industry, to ensure they acquired the necessary technical skills to lower the barrier to entry into the DNS industry. “The reintroduction of the technical DNS training attests to our commitment to capacitating key DNS players with the requisite and specialised technical skills to ensure that the .za namespace remains secure and reliable,” notes Wesi. The upcoming advanced DNS training is set to take place in Johannesburg for four days, beginning 20 February, and in Cape Town on 27 February. Prospective participants can submit their application here. For the virtual Registrar-Reseller training programme, interested SMMEs and technopreneurs can submit their interest by emailing info@zadna.org.za. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/4r1ly7R9dgxvpmda
- TRADE, INDUSTRY AND COMPETITION ON TRANSFORMATION OF POULTRY INDUSTRY
Department of Trade, Industry and Competition | 16 January 2023 The support that government provides to black-owned companies operating in the poultry industry will contribute significantly in transforming the industry and ensuring that there is food security in the country. However, it is imperative for government to realise that the sustainability of these businesses depends on black companies occupying the entire value chain of the industry. This is the view of the 37-year-old North West industrialist, Mr Ofentse Moloko. Moloko is the Chief Executive Officer and Managing Director of Baramakama Poultry, a family owned egg-laying chickens company situated in Molote City, North West. Baramakama received support to the tune of R50 million from the Department of Trade, Industry and Competition (the dtic) and its development finance institution, the Industrial Development Corporation (IDC), as part of the Black Industrialists Programme. The programme is part of government’s efforts to accelerate the quantitative and qualitative increase and participation of Black Industrialists in the South African economy, selected industrial sectors and value chains. “We are a perfect example of the success that black-owned companies can achieve with the support of government in the poultry industry. We started from nowhere in 2016 when my father decided to use his savings to invest back into the community of Molote City. We decided to establish a poultry business, specifically in the layers as they showed the greatest opportunity for employment creation as well as massive room for economical and ownership transformation. For almost three years we persistently and continuously knocked on the doors of all the private banks in this country, but the doors were all slammed on us after months of completing their processes, mainly due to the land belonging to the community. When the dtic and IDC decided to fund our business after a thorough due diligence process, it was like music to our ears,” says Moloko. The financial support from the dtic and IDC enabled Baramakama to expand its operations by adding five new automated chicken houses and a modern, state-of-the-art pack station. The support was noticeably impactful as the company managed to increase the premises’ carrying capacity from 100 000 hens before the support to 280 000 after the infrastructural expansion. In addition, forty new jobs were created as the number of permanent employees increased from 80 to 112 as all aspects of the business expanded. Almost 80% of the employees are young people, while 44% are women. “Today our operation runs 24 hours per day and on average we produce 225 000 eggs per day at full capacity. The support we received from government has made us a recognisable and important player in the industry,” says Moloko. Although he appreciates the importance and recognises the value of the support that the government provides to the Black Industrialists, Moloko strongly believes that government should consider extending its support across the value chain of the poultry industry to achieve sustainability and ensure success. “The government support needs to cut across the value chain if we want meaningful transformation of the industry, and if we want the Black Industrialists to play an important and discernible role in food security in the country. This includes feed production, hatcheries, abattoirs, chick rearing, processing, as well as market access. Although we regard ourselves as a success after obtaining the support, we are left at the mercy of our key competitors from whom we source feed and hens. That makes us vulnerable as the supply tabs can and are regularly switched on and off depending on how they want to control and benefit from the market conditions,” adds Moloko. Moloko does not pin all his hopes on the Poultry Sector Master Plan, which was developed in close partnership between government and several stakeholders in the industry, including poultry producers, processors, exporters, importers and organised labour. One of the objectives of the plan is to increase the level of black participation and particularly ownership across the value chain and increase employment and worker share-ownership in the sector. Moloko believes that most strategic decisions taken within the Poultry Master Plan depend much on the existing large players in the industry, who through their actions do not easily allow black players into the more profitable value chain channels. But he remains resolute and hopeful that with more black players in the value chain, the industry will not only transform, but allow healthy competition to the benefit of all participants. Enquiries: Bongani Lukhele Tel: 012 394 1643 Cell: 079 5083 457 WhatsApp: 074 2998 512 E-mail: BLukhele@thedtic.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/government-support-will-help-transform-poultry-industry-ensure-food-security-16-jan-2023
- LETTER: SIMPLISTIC ‘TRANSFORMATION’ NARRATIVE CONTINUES TO DISTRACT
Ben Cockram | 16 January 2023 Picture: 123RF/MOOV STOCK Jeffrey Mothuloe’s response to Jesse Naidoo's article cannot go unchallenged (“SA’s economy will be in the hands of white people for many more decades”, January 11). The narrative that black poverty is maintained/ensured by white control of the economy is one we know and understand. It is a legacy of SA's history, especially the apartheid policies that were in place until 1994. However, in 2023 it is a narrative that continues to dangerously confuse the issue and prevent any real progress. The policies adopted by government since 1994 around the notion of “transformation”, are simply based on how we share the pie more equally to benefit black people. It is an emotional political rallying point. This is understandable — the worst crime of apartheid was arguably the deplorable humiliation of black people. It is a narrative that would normally be challenged in any democracy as part of the normal contestation of ideas. In SA with our poverty, race, inequality and education there is no meaningful challenge. This simplistic “transformation” narrative continues to distract long after it has any practical merit in improving the lives of black people. Simply put, any growth in the economy is going to directly benefit all people in the country, and those with the most to gain will experience the greatest relative improvement in their lives. If the economy grows at 5% or 7% per annum the greatest beneficiaries will be black people. The new opportunities created will be largely taken up by black people. White people in SA are largely well off, but a small percentage of the whole and important contributors to the fiscus. The transformation narrative is therefore very much a case of cutting off the nose to spite the face. Don’t look to corporate SA to solve these problems, it doesn't work that way. Allow new businesses, both local and via foreign investment, get on their feet. Allow independent businesses to thrive and all people whose talents currently lie idle will find opportunity. If we are looking for what really takes power out of the hands of poor people in this country the answer will be found in traditional tribal power, which prevents individual private asset development in tribal areas (and relies on patronage for liquidity), and the damaging ideological direction offered by government. SA relies on foreign direct investment to thrive and investors who would gladly invest in SA are simply waiting for us to sort ourselves out. As soon as SA shows an intention to affirm the constitution and rule of law, dismantle the transformation agenda and guarantee no impediment for foreign investment, SA will assert itself as the best choice for investors looking to establish themselves in Africa. It will take a brave black politician to end any talk of transformation in SA, but this is exactly what we need. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/letters/2023-01-16-letter-simplistic-transformation-narrative-continues-to-distract/












