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Zama Ndosi Cele | 10 March 2023 A team discussing business solutions at a meeting. Picture: Unsplash According to ASATA, the business incubator aims to further strengthen and streamline the tourism sector’s B-BBEE transformation agenda in an impactful manner as it recovers from Covid-19 while also offering enterprise and supplier development services to ASATA members. CEO Otto de Vries said the organisation had identified the need for an industry-led business incubator to build and further strengthen South Africa’s travel and eventing industry, particularly in a post-Covid environment, as tourism is a backbone industry and an integral player in our national economic recovery. “By aggregating investment spend,, ASATA can have a much greater impact on the travel industry, while increasing transformation buy-in and reach,” said De Vries. He said that the association’s business incubator will be established as a non-profit arm to enable members to earn enterprise development (ED points) and supplier development (SD points) towards their B-BBEE scorecard in an effort to drive transformation that will have far-reaching benefits across the industry. “We aim for the business incubator to be industry-led, so that staff can be part of the beneficiary selection process and transformation journey led by their employers. ASATA can also nominate beneficiaries on a business’ behalf with some guidance as to the intentions of their transformation spend,” added De Vries. ASATA members will help sponsor up to 60 beneficiaries per financial year at a cost of R95 000 (excluding VAT) and provide custom-made (needs based), programmes suited to each of the beneficiaries and their businesses, for a period of one year (aligned to the financial year -end of the funder). It will allow travel businesses the flexibility to contribute towards the transformation of a number of small-, medium- and micro-enterprises (SMMEs) that are at least 51% black- owned, rather than channelling their transformation funds to a single organisation. ASATA has also revealed that it partnered with Sigma International, a level 1 B-BBEE company, to launch its travel business incubator. Sigma International has already established similar tried-and-tested business incubators for the Department of Tourism and a number of large industry stakeholders across various sectors such as tourism, mining and forestry and paper. According to Sigma International CEO and co-founder Akash Singh, their six other travel incubators have already impacted 258 beneficiaries, big and small, across the entire tourism value-chain nationwide. “We hope that once ASATA’s business incubator gains traction we will be able to welcome even more beneficiaries in the following financial year,” said Singh. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/travel/travel-news/asata-to-launch-business-incubator-to-strengthen-tourism-development-and-drive-transformation-892e2e83-c3cd-426b-8c17-b5178fff920e

SA News | 10 March 2023 Work is underway to tighten the legislation on public procurement to ensure the mandatory procurement of locally produced and manufactured products in some sectors of the economy, as part of government's effort to address unemployment. This comes as the latest regulations on public procurement do not make mandatory provisions for local content but specify that the procuring organs of state should determine their own preferential procurement policies. “Government spends over R500 billion [a year] on procurement of goods, services and works so we want to leverage that expenditure to assist us in mitigating some of the socio economic challenges we are faced with. Government is the biggest buyer and has strong financial muscle. “We believe that if we support the local manufacturing of products in the country, the manufacturing sector has a broad based capacity to absorb people in terms of labour,” Department of Trade, Industry and Competition (the dtic) Director Fleet Procurement, Cathrine Matidza, said on Thursday. Addressing a webinar on Improving the Localisation of Digital Products in South Africa, Matidza said government has identified public procurement as a lever for industrial development. The webinar was hosted by the department, in partnership with Proudly South African, which is set to host the 11th Buy Local Summit and Expo later this month. The revised Preferential Procurement Policy Framework Act (PPPFA) regulations, which came into effect on 7 December 2011, empower the dtic to designate industries, sectors and sub-sectors for local production at a specified level of local content. She said the regulations are about giving preference to products that are manufactured within the borders of South Africa in the public procurement system. However, the 2022 preferential procurement regulations do not make provisions for local content but provide for the procuring organs of state to determine their own preferential procurement policies. They came about due to the judgment by the Constitutional Court, which declared the 2017 regulations to be invalid in their entirety. “In the 2017 preferential procurement regulations, local content was mandatory. The current regulations are silent with regard to local content but that is not to say local content has been scrapped off in the public procurement system. “Local content can be included in the preferential procurement regulations or when organs of state invite tenders which stipulate such requirements. Previously it used to be mandatory but now it is upon the organ of state to stipulate such requirements,” Matidza said. She said the 2022 regulations are for the interim and they are going to be implemented for a limited time whilst government is finalising the Public Procurement Bill. “Local content is going to be mandatory again. The objective of localization, the intention is to reduce import leakage in government spending. We want to leverage public expenditure to support local manufacturing or products. “It is used to protect local industry against imports and in some instances it is aimed at reviving threatened manufacturing capabilities and to scale up utilization of existing capacity. It is all about jobs. South Africa is faced with the challenge of unemployment,” Matidza said. She said all the products are designated at a particular threshold and depending on the capacity and the level of content of the product itself, some are designated at 100% where no imports are allowed at all. Others are designated at below 100%, meaning manufacturers are allowed to source some of the components from somewhere else but the production must happen locally. The designation is informed by the research that is conducted by the dtic. Matidza emphasised that local content is still government policy as organs of state are empowered to continue implementing the designations. “As we are finalizing the Public procurement Bill, designation is going to be part of the new public procurement act. Once it is enacted, it is going be compulsory,” she said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/government-tighten-legislations-procuring-locally-produced-products

Nonhlanhla Ndlovu | 10 March 2023 South Africa - Cape Town - 24 August 2022 - Unemployment. SAFTU, COSATU, and various other union groups marched to the Civic Centre and Provincial Legislature over the worsening socio-economic conditions for the working class and the marginalised poor communities. Photographer: Armand Hough. African News Agency (ANA) Johannesburg - Gauteng residents continue to suffer greatly even after South Africa has been greylisted as food and electricity prices rise sharply, as do rolling blackouts and high levels of crime and corruption. For the fourth quarter of 2022, our unemployment rate has slightly risen, and there are 599 000 discouraged job seekers and 599 000 more economically active residents. DA Gauteng Spokesperson for Economic Development, Nicola Du Plessis, said the party would continue to work on exposing criminal acts such as fraud, bribery, and abuse of power that directly impact residents in the province. “Our unemployment rate appears to be rising, and there is no government intervention to improve the situation. “We will keep demanding that all government officials found guilty of corrupt activities face the full might of the law.” She said earlier this year that they raised concerns about corruption in the public sector. “According to the report by Corruption Watch of 2022, the Analysis of Corruption Trends indicated that in the public sector in Gauteng, corruption was reported in the following categories: 27% are bribery or extortion; 21% are abuse of power; 19% are fraud; 18% are dereliction of duty; and 15% are misappropriation of resources. “Given our current greylisting, it will become more difficult for our national and provincial governments to attract investors and secure loans to help grow our economy. “It is clear that the current government is incapable of clamping down on corruption and maladministration, mismanagement of funds. A DA government will ensure that we act immediately on allegations of corruption and bribery in the public sector,” said Du Plessis. Gauteng residents spoke to The Star yesterday, expressing the impact greylisting will have on the economy, especially for the youth. Resident Silindokuhle Mncube, 24, said she had been applying for jobs and internships last year and was supposed to have been called by now, but since the country has been greylisted, she doesn’t have hope anymore. “The internships I applied for last year were supposed to have commenced by now, but no one has been called from those we have applied with. “And now there’s this issue of greylisting, meaning that there is a high possibility that we might not work this year because I believe most companies will be forced to close down, and some will have to retrench as investors have started pulling away from South African companies.” She added that the rolling blackouts also had a great impact on job losses, which will add to the rising number of people who are unemployed. “I really don’t think our country will recover from this; by the look of things, it is only going to get worse. The current government must look for other alternatives to save the country and act fast because Western people will come and claim to save us and then turn on us like they did during apartheid,” said Mncube. Another resident, Moses Mukwevho, 29, said that though he does not really understand the greylisting, he can clearly observe and conclude that SA is falling apart and needs urgent rescue. “Unemployment will continue to affect black societies greatly because we are deprived of opportunities, and the system does not favour us. “The government stated that the requirements for employment were a matric certificate, but when they saw that people were passing matric, they said you needed a tertiary certificate, and when they saw that people were excelling, they said you needed at least two years experience.” He added that this system really doesn’t make sense, and we might think that we are not oppressed, but I truly believe that we still are, and it has to change. “This greylist will have a negative impact on the development of the youth, not just on companies and the economy,” Mukwevho said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/news/gauteng-residents-suffer-in-the-grey-cf3a9415-03ed-4164-8b30-cde3b82a679b

Nokulunga Mkize | 10 March 2023 Durban — KwaZulu-Natal MEC for Social Development Nonhlanhla Khoza said she was concerned about the lack of youth employment and revealed that the department plans to prioritise this issue. Speaking at the Esicabazini Youth Development Academy during a graduation ceremony on Wednesday, she said youth employment, capacity building and uniting young people to talk about life challenges was going to make a significant change in their lives. She called for young people to make the most of every opportunity that they get to improve themselves. “We provide different skills to these young people. We pride ourselves that they are better equipped to play an active role in building the economy of this province,” said Khoza. She said the Department of Social Development remained the first point of contact that offered assistance to the youth through the rolling out of innovative skills development programmes. “Our academies give youth access to the worldwide web so they can get access to knowledge to better their lives. “We have these young people coming from different backgrounds, including child-headed households; diversion programmes; rehabilitation centres; youth with disabilities; youth recruited through Operation Sukuma Sakhe programmes; and in general, vulnerable youth,” said Khoza. She said about 109 graduates, women and men, had been equipped with different skills, including entrepreneurship, plumbing, electrical, community house construction and computers; some have learnt to become assistant chefs. Plus, they all come out with Code 4 driver’s licences. She added that the department had rolled out training programmes to these graduates to the tune of R5 million, which included training, accommodation, meals, uniforms and the purchase of start-up kits. Board Member of the National Youth Development Agency, Thulisa Ndlela, said they were happy these young people had been “rescued and given skills to cushion them from poverty”. Chairperson of Committees, Hlengiwe Mavimbela, said they were pleased that the department had this programme for youth. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/news/plan-to-prioritise-jobs-for-kwazulu-natals-youth-340f54b4-2568-4add-83a9-39d6f78aa451

Sibahle Malinga | 8 March 2023 South African organisations are falling into the continuous trap of recycling ICT skills – an error that is worsening the ICT skills dearth and strangling the country’s digital economy. This is one of the key findings of software giant SAP Africa’s report, titled “Africa’s Tech Skills Scarcity Revealed”, released during a media briefing this morning at SAP’s Johannesburg offices. The study, conducted by research firm Vanson Bourne, unravels the challenges and opportunities for African organisations seeking greater fourth industrial revolution (4IR) skills availability. It is based on a survey of enterprise and mid-market companies across Kenya, Nigeria and South Africa. According to the report, there has been no improvement in SA’s chronic shortage of all types of ICT skills across almost all sectors. In fact, the ICT skills gap continues to widen, hindering the continent's digital transformation efforts, it reveals. The most in-demand skills are those associated with the current set of emerging technologies, cyber security, data analytics, application development, software developer, project management, digital transformation, cloud integration and change management. Revealing the findings, Cathy Smith, MD of SAP Africa, said there is an urgent need for organisations to invest in skills development and training programmes, to ensure Africa can capitalise on job creation. While the contributing factors differ for each region, the key skills gap culprit in SA is the “recycling” of ICT skills, instead of companies investing in skills development initiatives and upskilling employees and youth, she added. The recycling of ICT skills in this context, she explained, refers to the vicious cycle of firms hiring and rehiring when existing staff leave the company – instead of grooming new talent and investing in skills development programmes that seek to retain workers. “African organisations still face some difficulties with attracting, retaining and upskilling suitably skilled tech workers. SA’s biggest problem is retaining skilled workers,” said Smith. “This often results in companies recycling skills – where we see many professionals job-hopping within the same local vendors – and the firm capable of paying the most salary is able to retain the employee. This results in human resources becoming very expensive in SA because of the huge demand, and many ICT professionals start thinking they are the crown jewels.” This has resulted in a fierce war for skills within the country’s tech sector, which is the worst affected, according to Smith. The report notes that only 53% of Kenyan organisations expect to experience a skills gap in the next year, compared to 80% of Nigerian companies and 73% of South African firms. Surveyed South African organisations placed greater emphasis on digital transformation skills, with 70% of South African companies saying these are in-demand skills, compared to only 33% of organisations in Kenya and Nigeria. Change management skills − deemed essential to successful digital transformation − were not highly prioritised among surveyed companies, revealing an opportunity for smarter investment in specific skills to improve the outcomes of these initiatives. Only 18% of companies cited change management as an in-demand skill. "Studies have shown that fewer than a third of digital transformation projects succeed, partly due to the fact that only 34% of change management projects are clear successes," added Smith. "For a continent that is rapidly transforming through the accelerated adoption of digital technologies, ensuring effective change management could greatly improve outcomes and equip organisations with new capabilities to drive growth and innovation." More than half of the world's population growth between now and 2050 will take place in Africa, where 1.3 billion people are expected to be born by mid-century. With the correct investment in skills development, Africa's economy could transition away from its reliance on natural resources, to build the world's future tech workforce, bringing untold economic and social benefit to the continent and its citizens, noted Smith. The report further found the skills shortage crisis has negative consequences for the continent's 4IR efforts, hampering companies’ digital transformation initiatives. Four in five organisations surveyed reported some negative effect from a lack of tech skills, with 41% saying employees are leaving due to the pressures they experience as a result of under-staffing. Other consequences include not being able to meet clients’ needs (reported by 46%), reduced capacity for innovation (53%) and losing customers to competitors (60%). More than two-thirds (69%) of all surveyed organisations expect to experience a tech skill-related challenge in 2023. According to the data, the limited ability to attract skilled new recruits is the top skills challenge for African organisations. However, organisations are taking steps to ensure they have access to the correct tech skills, with 41% saying upskilling of existing employees would be a top priority in 2023 and 40% saying the same about reskilling employees. "Companies are also adopting technology tools and flexible work practices to ensure they can attract, retain and mobilise the correct mix of tech skills," asserted Smith. "Seven in 10 organisations currently use a human capital management or employee experience tool, while nearly half (45%) of companies were open to remote work, although most want employees to be in the office at least some of the time. “This new workplace dynamic will require leaders to co-create new models for work, with constant collaboration with employees to ensure alignment with company objectives and culture." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.itweb.co.za/content/Gb3BwMWagB9v2k6V

Motor News Reporter | 8 March 2023 Dealer group chair says racial transformation is moving at a slow pace at SA dealerships. Picture: SUPPLIED The pace of transformation within vehicle dealerships remains woefully slow, and urgent action is needed if the automotive industry is to achieve true transformation, warns Mpho Dipela, chair and shareholder of the Legacy Motor Group (LMG). “A lack of diversity and representation in dealerships has become an increasingly pressing issue within the automotive industry. There are still only a few major black dealer principals within this space rather than achieving broad-based transformation and empowerment, and there is a particular lack of black and female employees at the middle to senior management level,” he says. “Given the importance of the sector as an economic driver and job creator, industry stakeholders and particularly manufacturers urgently need to increase focus on skills development, job creation and ownership throughout supply chains,” continues Dipela. Demonstrating the significance of the sector, the National Association of Automobile Manufacturers of SA (Naamsa) notes the automotive industry currently accounts for about 4.3% of SA’s GDP, 17.3% of the country’s total manufacturing output and represents the fifth-largest export sector. Dipela argues, however, that original equipment manufacturers’ (OEM) social investment efforts have largely focused on manufacturing, rather than taking a holistic approach to supply chains. “The barriers to entry for smaller black businessmen to secure partnership agreements with OEMs, and take ownership of dealerships is extremely high, and OEMs have also tended to favour a few larger players rather than consider smaller players,” he notes. “Likewise, while the investments made by OEMs in skills and development programs has yielded numerous benefits for employees entering the industry and working within manufacturing, there has not been a sufficient level of change at the management tier within the dealer network,” he emphasises. To address this imbalance, OEMs must re-examine programmes supporting the development and promotion of black individuals within middle to senior management levels at dealership level. This will not only promote diversity and inclusion in the workplace, but also strengthen the industry by bringing in new perspectives and ideas, and stimulating broad-based empowerment, notes Dipela. “By investing in these programmes, and supporting small players seeking to own successful dealerships, OEMs can help to create a more inclusive and diverse supply chain, while also contributing to the overall growth and economic impact of the industry.” He adds that OEM dealer principal programmes provide valuable opportunities for individuals to expand their knowledge, skills, and networks. “It is important that we continue to see and support initiatives like these in order to promote greater equality, and maximise the socioeconomic impact of the industry. Majority black-owned companies have already proven themselves as economic powerhouses, producing and selling high-quality vehicles to the local and international markets, and demonstrating their acumen within the industry, according to Dipela. “At LMG, we have seen the impact that empowerment and creating new income opportunities can have on communities and households, which is why we hold the values of diversity and inclusion in the highest regard. “We are dedicated to creating an inclusive and equitable environment for all of our employees, customers, and partners. And we hope to see more industry stakeholders and OEMs invest in the same, so that we can be a truly progressive industry in every way.” Asked for comment on Dipela's concerns, chairperson of the National Automotive Dealer’s Association (Nada) Mark Dommisse says: “As an association, Nada is unable to enforce and implement transformation, diversity and inclusion processes with its membership, as each business has its own objectives and strategy it follows. “Having said that, we are committed to assisting members in their transformation endeavours and have a transformation, diversity and inclusion subcommittee in place to do this.” “It may not always look like it’s developing as fast as it should, but it is thriving in the pipeline of sales managers, workshop and parts managers, accountants and back-office staff who are future shareholders of listed entities, owners of non-listed groups, and already displaying an inherent shift in the industry towards a bright and equitable future,” said Dommisse. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/life/motoring/2023-03-08-lack-of-transformation-needs-urgent-action-at-car-dealerships/

Katie Mohamed | 8 March 2023 Women empowerment platforms like W-Suite drive key dialogues around gender inequality and how equal opportunities engender empowerment. However, this is not entirely accurate. Equal opportunities are not enough. We all start from different places, so true inclusion and belonging require equitable action. A focus on gender equity, with the goal of equality, needs to be part of every society’s DNA. Ultimately, one size does not fit all, so how do we shift the gender conversation from one of “equality” or “equal rights” to one of “equity”? This year’s theme for International Women’s Day is “Embrace Equity”. Whereby equality means providing the same to all, equity recognises that each person has different circumstances, allocating tailored resources and opportunity to individuals in order to achieve an equal outcome. If equality is the goal, then equity is our means of getting there. So how far are we from an equitable culture? In theory, many countries would consider themselves to have cultures of equality - whereby opportunities are both legally and societally indiscriminate on the basis of gender. The South African Constitution has been globally praised for championing equality in all matters of potential discrimination. However, while the outcome intended may be one of equality, the implementation of “equal rights” legislature is misleading in presuming that such (albeit good-intentioned) doctrine would manifest such an outcome. Equity, however, is far more intricate than a piece of legislation. It requires independent and individual action in order to progress forward. Which is why, this International Women’s Day, it is important to engage in impactful conversations around equity. It is vital that we, regardless of gender, open ourselves up to having these dialogues and understand that most often equality is an outcome and not an action. We need to raise awareness around what constitutes equity in the professional space, and particularly in position of power. For example, if there is a 50/50 gender split on the board of a powerful international corporate, can that corporate claim that it practises gender equity? Gender equality definitely, but can this hypothetical company attest that each of its board members had the same path towards their position? Are they all equally talented? Are they all from the same backgrounds? Are they all equally resourced? How many of them are in their position due to wealth, privilege or nepotism? When we provoke conversation around equity, it gives us the insight to review such situations and dig into what we can do to change the existing gender paradigms in businesses, many of which are unknowingly running under the guise of being enterprises of equality. And of course, the concept of equity is not limited to business, but is executable in all facets of society. If you truly believe in an inclusive world, then you will truly believe in the need for society to understand the difference between equity and equality. Who we are today is a completion of all the unique experiences we have encountered throughout our lives. To be authentic women leaders, we need to enthusiastically embrace these experiences and how they have defined us. And in doing so, we need to realise that every other woman we meet has had different, unique experiences that have defined their journey. Perhaps embracing equity starts with embracing something else - the concept of “sonder” - defined as the profound feeling that everyone, whether you know them or not, is living a life as complex as your own. Once we understand that the fundamental uniqueness of everyone’s life journey nullifies any concept of equality, then only can we begin to embrace equity. “Equality is giving everyone a shoe; equity is giving everyone a shoe that fits.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/820/236673.html

Creamer Media Reporter | 8 March 2023 Africa Automation and Technology Fair and Infosecurity Africa celebrate International Women’s Month The month of March marks International Women’s Month, with International Women’s Day celebrated on 8 March. Adopted by the United Nations[1], this year’s theme of ‘DigitALL: Innovation and technology for gender equality’ recognises the gap in technology access for women across the globe and seeks to celebrate progress while highlighting fairness for women in all facets of life. There are more women in South Africa than men[2], yet men still largely dominate certain fields such as working in manufacturing and infosecurity. Fortunately, many women are breaking through gender roles and old perceptions, leading the way and inspiring other women to do the same. South Africa’s B-BBEE laws promote the inclusion of women[3] and while there is still more work to be done to see better results across the country, it is positive that South African laws support better inclusion. An estimated 98% of businesses in South Africa are SMMEs, but according to Stats SA, 47% of women living here are economically inactive.[4] To improve this misaligned narrative, women need to be empowered and given access to information and upliftment, such as networking opportunities that can help to encourage professional growth. Upcoming events that seek to offer these opportunities are the 12th Africa Automation Technology Fair (AATF), co-located with the inaugural Infosecurity Africa, held at the Gallagher Convention Centre in Midrand, Gauteng, running from 9-11 May 2023. Infosecurity Africa, the African edition under leading global cybersecurity and information security events group, will cover the latest trends, threats, and cybercrime prevention tactics. The AATF’s theme this year is ‘For Africa from Africa’ and will comprise all things automation and technology. The exhibitions will drive industry development and bring together the leading entrepreneurs, small businesses and public and private stakeholders in automation, technology, infosecurity and manufacturing to one venue. “It’s an opportunity to get inspired and to see an array of individuals and businesses working in these industries. Supporting women who are doing great work among them is very important to us,” says Carol Weaving, Managing Director at RX Africa, the award-winning organisers behind these exhibitions. “Women have been underrepresented in the workforce generally, but that trend is shifting and in exciting ways as women make strides in fields like automation and cybersecurity. At RX Africa, we believe in creating dedicated event spaces that make it easy to discover the latest trends and growth opportunities, and to meet the right suppliers or new business partners in these featured industries.” Visitors can look forward to hearing from the Women Economic Assembly (WECONA) at a networking breakfast on 11 May during the AATF[5]. WECONA has united industry associations and companies in industry-wide support towards reaching gender transformation targets. “Tackling inequality in the key sectors of our economy through the WECONA initiative has encouraged many women to strive towards professional growth, which inspires other women to do the same. We want to keep building on this progress and our vision to bolster the participation of women-owned enterprises in our economy,” says Futhi Mtoba Co-Chair of the Women Economic Assembly. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/empowering-south-africas-women-working-in-automation-manufacturing-and-infosecurity-2023-03-08/rep_id:4136

Terence Corrigan | 7 March 2023 Comments made en passant – which is a pretentious way of saying ‘in passing’ or ‘as an aside’ – can sometimes be very revealing. This occurred to me while looking up an episode of SAFM Sunrise from early November last year. Discussing race-based empowerment policy – Black Economic Empowerment, BEE – prominent journalist said that he couldn’t see an alternative to current policy, unless the country ‘magically’ achieved a 5% growth rate. By implication, he thought BEE would be necessary to distribute the very scarce economic rewards in South Africa’s economy in the absence of the rapid expansion of those rewards: apportioning for a few when there’s not enough for all. Expanding the pool of those rewards would be a feat of ‘magic’. It’s an interesting choice of words. Magic suggests the manipulation of reality to the will of arcane forces. It is the intrusion of powers from realms and planes not bound by the laws of nature and in defiance of science. It’s the stuff of fable, mythology and the supernatural. Probably more than anything else, magic is an avatar for the unattainable. To the extent that we may even acknowledge its existence – and I’d be willing to presume that Grootes does not – we see it as something beyond ordinary observation and control. Unknown and unknowable, it is the province of witches and warlocks and superannuated sages standing apart from the pedestrian existence in which most of us move. Economic growth So, what does this imply about the very this-worldly-significant matter of economic growth? To apply Grootes’s metaphor, it is unattainable. More than that, achieving it would demand an esoteric cognition denied to ordinary mortals. And if growth is the stuff of magic, it would follow that South Africa’s current trajectory – its miserly GDP growth rate of 1% or 2% a year (the optical illusion of post-Covid recovery aside) – would be the natural order of things. It is a matter to be accepted and accommodated, inter alia, through policies like BEE. Getting growth going would not in fact require magic. It should not even be especially difficult. That’s at least a start. Last year, Rashad Cassim of the South African Reserve Bank put it to reporters thus: ‘Going from a 1% economy to 3% isn’t rocket science.’ That’s correct. Provided (very) basic conditions are in place. From the point of view of the state, we need something colloquially termed ‘good enough governance’, that is, enough competence to guard against the state becoming a hindrance, and to provide a couple of enablers. A stable (enough) supply of water and power would be one. Keeping crime to a manageable level. Businesses will find a way to do their thing. No incantations necessary. Getting beyond that 3% mark is the tough part, and the necessary one. To quote Cassim again: ‘Unfortunately, 3% gets the economy going, but it will not bring the unemployment down. To get unemployment down, we really need systematic 5% growth every year and that’s a different debate.’ But a growth rate of 5% would not in fact be a feat of magic; indeed, it is a necessity to make inroads into South Africa’s unemployment crisis. Between 2004 and 2007, growth went from 4.6% to 5.4%, a short but illustrative burst of success. Of course, this was spurred in no small measure by a demand for commodities, but the principle holds: where opportunities exist, and where a robust business community is in a position to seize them – both points raising questions about the role of the state to mediate those opportunities and support business – economic activities can expand, with corresponding growth in the demand for labour. Incidentally, it was the National Development Plan, not the Grand Grimoire, that envisaged 5.4% growth over a sustained period. Nevertheless, the failure to get anywhere near this goal might well make it seem unattainable. This is effectively what Grootes was saying. And it should be said that he is no outlier in holding this perspective. With South Africa having experienced well over a decade of lousy economic performance, the idea of ramping up economic expansion must seem like something magical. It’s also more or less the assumption underlying how the ruling party and the government (the greater part of the country’s political elite in other words) approach South Africa’s political economy. Divvying up the rewards Unable to encourage growth, and probably increasingly uninterested in doing so, the government’s focus has become firmly set on divvying up the rewards. What has developed is an apparatus of extraction – intermediaries, fixers, sinecured appointees, 30-percenters, and the like. They represent a common feature of politicised economies, those who have turned political power into pecuniary advantage. This has attached itself to the productive economy, the activities that produce, sell, and distribute things. It is in the latter, the productive economy, that economic growth should be generated; but that is subject to the limits imposed by the former, the extractive system. This is a large part of the reason the country is now faced with the catastrophic failure of its electricity supply, why swathes of local government are governance basket cases, why South African English gifted the language the word ‘tenderpreneur’. South Africa is not an attractive place to do business; that the business community endures is a testimony to its resilience. But resilience is a virtue that ideally should not be required. It’s in this context that the more important question about BEE should be asked. Not whether there is an ‘alternative’, but whether we can afford the system we have. If growth of the order of 5% is an objective, a more productive line of inquiry is whether BEE furthers that goal. If not, it is difficult to justify its existence. BEE is typically described as a means of economic inclusivity, for bringing black people into the economy – which will have the direct and intended effect of expanding the economy as a whole. It’s a policy that seeks to be judged by its intention, and this is often how it is judged. It is interesting that its record is seldom scrutinised. Multiplicity of crises This may partly be because it’s not an easy thing to study. South Africa’s economy is labouring under a multiplicity of crises, of which racial ‘empowerment’ policy may be a factor. With or without such a policy, we’d probably still be in trouble. But the very fact that the country’s economy has signally failed to approach its growth objectives would be reason enough to reflect on those policies intended to help it on its way. Yet it seems indisputable that the policy has imposed costs on the economy. Where premiums are paid to ensure the appropriate racial provenance of goods and services, this is inherent in the policy. From time to time, this problem is voiced by prominent people within the state. In widely-reported comments at an event in 2012, Minister Gwede Mantashe called on ‘BEE firms’ to quit seeing the state as their cash cows and to stop demanding inflated prices and providing substandard products. (There’s probably some irony in this…) A more serious problem has been the use of BEE as a tool for extraction. BEE has been a great justification for passing resources to those with appropriate political pedigrees. This has come to be an effective tax on the country and a malign influence on its institutions. Warnings about this were issued back in 2007. As one study – by Daron Acemoglu, Stephen Gelb, and James Robinson – commented: ‘In discussing the benefits of BEE we included the social benefit of the avoidance of populism and noted that individual firms could not benefit from the whole extent to which they helped to provide a social benefit. In addition to social benefits however, there may be social costs of BEE. A clear one is that [Narrowly-Based] BEE via the forging of links between firms and politically connected people may lead to rent-seeking and the introduction of regulations and policies that favour existing incumbents. This can reduce market competition and innovation and it can also distort government policy. This may appear as benefits on firms’ balance sheets because it increases profits, but it is obviously a cost for society and likely reduces economic growth.’ These themes were revisited at the Zondo Commission, which pointed to the manner in which the policy has been used and abused to undermine the common interests of the country. It was clear: ‘Ultimately in the view of the Commission the primary national interest is best served when the government derives the maximum value-for-money in the procurement process and procurement officials should be so advised.’ This brings to mind another remark by Grootes in his broadcast, that the ‘vast majority’ of people benefit from BEE. It’s not apparent how this could be supported, though it certainly contradicts to a substantial degree polling evidence. In fact, IRR polling in 2015 and 2016 asked respondents directly whether they had personally benefited from a BEE deal. Some 14% said they had benefited from an ownership deal, and no more than 12% from a BEE-influenced tender deal. Hardly a majority by any definition. Business think tank SBP found in its enquiries around small business growth that very few small entrepreneurs – this included black people – felt that they had gained much from the policy. It was in fact an encumbrance on their businesses. Rhetoric aside, it offered very little to small businesses. William Gumede, Associate Professor in the Public and Development Management Department at the Graduate School of Business Administration at Wits University, has argued that BEE deals had transferred some R1 trillion. But this, he said, had been to the benefit of ‘a handful of politically connected politicians, trade unionists, and public servants.’ Far from expanding the economy, this ‘had crowded out genuine black entrepreneurs and killed the development of a mass entrepreneurial spirit in black society.’ In this view, the policy is not only failing to help, but is positively damaging to the country, its people and its prospects. It contributes to putting that 5% growth rate out of reach. There is nothing magical about this, merely the logical outcome of policy choices and their implementation. Perhaps the only magic being cast around this issue is the dogged faith that BEE is sacrosanct and cannot be abandoned or even substantively reformed. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.politicsweb.co.za/opinion/blinded-by-bee

Bizcommunity | 7 March 2023 Talent management, technology, Environment, Social and Governance (ESG), Enterprise Supplier Development (ESD) and Broad-based Black Economic Empowerment (B-BBEE) are some of the important procurement topics that will be under the spotlight at the third Women in Procurement (WIP) Conference, which takes place on 23 March 2023 at Times Square in Pretoria. The procurement industry is in a transition phase, presenting both challenges and exciting opportunities. "Skilled procurement personnel are vital to ensuring that procurement is efficient and optimised – and there are many opportunities for women to grow and thrive in this industry," says the WIP conference convenor and organiser Masego Khutsoane. "The WIP conference is a necessity: not just for women, but for society as a whole. Gender parity in the workplace is crucial to ensuring that the imbalances of society and positions of influence are addressed. This event is a step towards addressing this." Procurement is a key driver of development and an enabler of service delivery. The government is the single largest buyer in the country, spending more than R500bn on goods, services and construction works a year through more than 1,000 procuring entities. The one-day WIP conference will address how women in the procurement space can accelerate their journey to value, by better-harnessing networks, intelligence and the experience of those at the forefront. "Our speakers’ journeys, thoughts and learnings will deploy delegates towards success, understanding and intentionality in their careers," she explains. Khutsoane is also the founder and CEO of Procurementor, a company that equips institutions and individuals with the knowledge, skills, and tools necessary to increase organisational effectiveness. The WIP conference aims to: • Introduce a targeted mentorship and coaching programme for procurement professionals; • Increase awareness of opportunities for women empowerment and funding; • Expand networks to enable collaboration with other experts; and, • Provide a platform for women in procurement to network and collaborate on various business opportunities. The draft programme includes: • Keynote address: Mpho Matsitse - Head of industry and value advisory: SAP Africa • Fireside Chat: MJ Schoemaker (Sapics president) and Allison Anthony (senior lecturer of public procurement law: Unisa) • Master Class: Dawn Smith – head of training: Caliba Group • Pressures in procurement: Mmatshepo Rasebopye - director for supply chain management; Gauteng Provincial Government "The WIP Conference is committed to pursuing gender quality and promoting women’s voices, access to opportunities and leadership in procurement," concludes Khutsoane. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/389/235890.html

Pamela Stein & Jamie Jacobs | 7 March 2023 Image source: lightfieldstudios – 123RF.com The term "gender empowerment" was developed to describe the process of increasing the power and influence of women in society, while recognising the importance of including men and non-binary individuals in the process. People from marginalised genders, including women, non-binary individuals, and members of the LGBTQ+ community often face significant challenges in their professional lives. Women make up a large portion of the working-age population - exceeding that of the male population. Despite this, women and people from marginalised genders remain underrepresented in positions of authority and power. This disparity continues to be of great concern as women and non-binary individuals have a significant contribution to make to the economy. A report published in October 2022 by Statistics South Africa titled Gender Series Volume IX: Women Empowerment, 2017–2022, highlights the fact that women in South Africa still face big challenges, and empowerment remains a critical issue across all sectors in South Africa. Challenges The various challenges that women and non-binary individuals face in the workplace include discrimination based on their gender identity, which can take the form of prejudice, harassment, or unequal treatment. Pay disparity has also recently been highlighted as a major concern in this regard and it is compounded by unequal opportunities in the workplace. People from marginalised genders are at a higher risk of violence and abuse, including sexual violence, domestic violence, and hate crimes. This can have significant physical, psychological, and emotional effects, and impacts on their ability to perform in the workplace. According to the StatsSA report, women are more likely to be unemployed than men and are less likely to participate in the labour market. This data confirms that, despite the Employment Equity Act 55 of 1998 (EEA) being in operation for more than 20 years, its primary objective of gender (and racial) equality in the workplace has a long way to go. Employment equity legislation The EEA imposes affirmative action obligations on employers which are aimed at promoting gender equality and eliminating gender-based discrimination in the workplace. Designated employers have a legal obligation to set employment equity targets, which include proportionate representation of women at all levels of the workplace. Job requirements must be continually assessed and elements that may discriminate against women and non-binary individuals must be removed. Employment policies or practices cannot discriminate against marginalised gender groups. Given the historical background and socioeconomic landscape of South Africa today, it is not surprising that gender discrimination is often coupled with racial discrimination. To address this, employers should implement affirmative action measures that are based on multiple intersecting grounds, so that people from marginalised genders who are the least represented in the workplace, and who face both gender and racial discrimination, can participate meaningfully in the workplace. Ensuring safe working environment Goal 5 of the United Nation’s Sustainable Development Goals promotes the attainment of gender equality in all spheres of life, including the workplace. Goal 8 calls for sustainable and inclusive economic growth through the provision of decent work to all individuals. In general, work is considered decent when: it pays a fair wage and it guarantees a secure form of employment and safe working conditions. Employers have a responsibility to address gender-based violence and sexual harassment in the workplace in terms of the Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace, 2022. This involves creating a workplace culture that promotes respect and dignity for all employees and providing training and resources to help employees understand what constitutes gender-based harassment and sexual harassment. Employers should also have clear policies and procedures in place for reporting incidents where such harassment occurs and should take prompt and appropriate action to address any incidents that are reported. This code of good practice also touches on the role employers can play in assisting employees dealing with domestic violence (a social ill that disproportionately affects women and non-binary individuals) through referrals to counselling networks and the possible provision of additional unpaid leave, among other measures. This demonstrates the drive towards promoting workplaces in which employers are alive to the obstacles people from marginalised genders face in society and the impact these have on their performance in the workplace. Financial equality Employers must promote an inclusive and supportive working environment to advance gender empowerment in the workplace. This can be done through policies which are effective in prohibiting gender-based harassment and sexual harassment, and through the promotion of equal pay for equal work. Differentiation in pay on the basis of gender is prohibited under section 6(1) of the EEA and employers are obliged to ensure at all times that they remunerate employees equally where such employees work is the same or substantially the same, or equal value is performed. The provisions of the Code of Good Practice on Equal Pay/ Remuneration for Work of Equal Value, 2015 defines work of equal value as work that is the same, similar, or comparable in terms of skill, effort, responsibility, and working conditions. It requires employers to conduct a job evaluation to determine the relative worth of different jobs, and to ensure that employees are paid fairly based on the results of that evaluation. The code also sets out specific steps that employers should take to address any disparities in pay that are identified, including providing training and education to employees, negotiating with unions, and adjusting pay levels as necessary. Flexible working arrangements such as work-from-home policies, hybrid working arrangements, and part-time work can help women and non-binary individuals to balance their work and home responsibilities. Employers should promote gender equality by creating a workplace culture that values and respects differences. This can be achieved through initiatives such as diversity and inclusion training and mentorship programmes. Consequences Employers should take heed of the need to empower women not only because it is morally the right thing to do, but also because should an employer fall foul of any of the provisions of the EEA, they may be subject to fines and/or imprisonment depending on the infringement. Reputational damages arising from non-compliance is also a considerable risk. In January 2023, the chief director for statutory and advocacy services of the Department of Employment and Labour announced that JSE-listed companies would be inspected during the first quarter of this year to monitor their compliance with the EEA, with this year marking the five-year anniversary for the approval of their affirmative action plans. The chief director warned that the minimum penalty that could be imposed on a non-compliant company is an amount which is the greater of R1.5m or 2% of the employer's turnover. This announcement is timely given the effective date of the Employment Equity Amendment Bill being September 2023. The Bill introduces measures to accelerate transformation in the workplace. Gender empowerment in the workplace is a critical issue in South Africa, and employers play a crucial role in its advancement. By taking steps to comply with the affirmative action imperatives set out in the EEA and the codes of good practice, creating an inclusive and supportive working environment, promoting equal pay, providing opportunities for professional development, and addressing gender-based and sexual harassment, employers can help to break down the barriers that prevent women and non-binary individuals from achieving socio-economic empowerment and advancement. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/820/236597.html