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

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

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

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

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Skills Development as a Priority Element is critical to an organisation’s scorecard. This element aims to up skill Beneficiaries, then provide an employment opportunity whereby the scorecard rewards organisations with Bonus Points for Absorption by design. Whether they spend the target of 6% of the leviable amount or less, it is an investment for most organisations. Hence the money paid out to service providers in this space, for those unethically operating, is considered low hanging fruit. Since the introduction of the Generic Codes of Good Practice in 2007, unethical service providers operating in the Skills Development space have been circling. It goes without saying that working within the Skills Development space, one sees the very best and worst in a transforming South Africa. Taking the latter into account, this article intends to warn organisations of the risks involved when dealing with unethical Skills Development service providers. Those operating ethically in the field will appreciate having the modus operandi revealed of charlatans in this space. Using a scenario, we aim to illustrate how unethical service providers operate, as we delve into the transformation journey of ABC Traders, a Large Enterprise with 1,000 employees. They have a Status Level 6 with an associated 60% Preferential Procurement Recognition. ABC Traders’ Current Situation Investment in ABC Traders’ B-BBEE Strategy includes expanding its operation. In 2019 and 2020, ABC Traders had difficulty gaining and retaining business due to their unfavourable B-BBEE Status Level. Following an executive decision, the ABC Traders Executive Team set a goal to achieve a Status Level 3 at ABC Traders’ next B-BBEE Verification. They employ a Transformation Manager to oversee and implement its B-BBEE Strategy. To prepare the Transformation Manager immediately: Appoints B-BBEE Consultants and legal advisers to overhaul their Ownership Structure. Engages with the Human Resources Department to develop a workable plan to ensure equitable representation within ABC Traders. Re-looks how Beneficiaries are identified and how their Enterprise & Supplier Development Strategy is implemented. Retains the services of a Skills Development service provider to roll out their strategy. Invests in initiatives that create income-generating opportunities for their Socio-Economic Development Beneficiaries. The Transformation Manager is hastily ticking all the to-do boxes, but is falling short in Skills Development. It is one month after ABC Traders’ financial-year end. Before employing the Transformation Manager, ABC Traders was lax in its B-BBEE roll-out, specifically in Skills Development. At this stage, ABC Traders had not registered Learners, although they had allocated the spend necessary to implement it. Furthermore, a successful Skills Development roll-out and Absorption strategy would secure its plan to expand its internal operation. Phase 1 – Engagement Bear in mind that ABC Traders did not make any payments for Skills Development in their last financial year. However, to take the process forward, the Transformation Manager makes an appointment with three Skills Development Service Providers. Two of the three advise that they can only assist ABC Traders in its next financial year, as it did not register Learners in the year ending 2021. However, the third service provider, XYZ Skills, advised that non-registration and payment within ABC Traders’ financial period were merely semantics. They would simply backdate the registration and proof of payment so that ABC Traders could claim their skills spend to align with its financial year. Without red flags registering, the Transformation Manager signs a contract with XYZ Skills and immediately pays over the R21,000.00 for each of the five Learners, totalling R120,750 that includes 15% VAT. Before engaging with XYZ Skills, the Transformation Manager did not: Ascertain whether XYZ Skills would outsource the services to a third party; Conduct a reference check; Ascertain SETA registrations; Establish the method that would confirm the payment of salaries on the agreed date; Ascertain how they source their learners; and Determine if they receive or pay commissions based on ABC Traders’ Skills Development roll-out. The Transformation Manager did not do due diligence out of desperation to meet the mandate. Essentially a decision was made to contract and make a subsequent payment of R120,750.00 based on XYZ Skills’ willingness to backdate the registration and accept payment for ABC Traders’ Learners. Hence, the skills spend could be claimed at its following B-BBEE Verification. Phase 2 – following the payment After receiving the money, XYZ Skills advised the Transformation Manager to relax and that they would provide ABC Traders with evidence that the registration and payment for the Learners would be backdated to align with ABC Traders’ financial year. XYZ Skills then agreed to source the Learners and register them with the necessary SETA. Once the initial stage was complete, XYZ Skills said they would send confirmation of the registration with Superior Learning, the chosen service provider.Furthermore, XYZ Skills confirmed that they would send evidence for the payment of salaries to the Learners. With so much on the Transformation Manager’s plate and confidence in XYZ Skills’ ability, another tick was added to the transformation to-do list. The Transformation Manager should not have accepted the word of XYZ Skills. Processes should have been in place whereby the Transformation Manager would receive regular progress reports supporting all milestones achieved by XYZ Skills. Phase 3 – The red flags appear About three months later, the Transformation Manager receives a call from one of ABC Traders’ Learners stating that they had not received their salary. In addition, the learning institution chosen by XYZ Skills, Superior Learning, advised the Learner that they could not return the following week due to non-payment for services rendered. In addition, XYZ Skills informed the Learner that the Skills Development service provider was changing to the Level-up Institution from the following week. Horrified, the Transformation Manager realises that there was no communication from XYZ Skills about who the Learners were and how and when they would receive remuneration or registration status. The Transformation Manager should have had a list of Learners and identity numbers, so there would be confirmation that the Learner was just that when the call came through. Further, the Transformation Manager should know what institution the Learners were attending and should have done a site visit to confirm that the facilities met the needs of the ABC Traders Learners. Phase 4 – follow the money Over two weeks, the Transformation Manager could not reach XYZ Skills via email or telephonically. The Transformation Manager contacted the relevant SETA to confirm the registration of Learners. The result was that the SETA did receive the applications. However,they had not been processed. The next step was to contact Superior Learning to as certain the status of the Learners. Superior Learning advised that five Learners were registered three months prior. They had agreed with XYZ Skills that they would receive payments monthly. Unfortunately, XYZ Skills made no payment to the SETAs or towards the training and stipends due to the Learners, which meant they could not financially sustain them.Subsequently, Superior Learning halted the Learners’ registration initially submitted to the SETA by XYZ Skills. The Transformation Manager contacted Level-up who confirmed that five Learners were registered two weeks prior, and they had a contractual agreement with XYZ Skills to pay them monthly. Level-up confirmed that they had received no payment. As ABC Traders made no Learner registrations or payments,it could not claim its Skills Development spend. Another challenge is that two institutions have provided services without receiving payment. Furthermore, there is no way to confirm who the Learners are and their salary payments status. ABC Traders’ Skills Development Strategy is at risk of collapsing. Phase 5 – Paying a Premium Following due diligence, to save ABC Traders’ Skills Development investment, as XYZ Skills is still on the missing list, the Transformation Manager engages the services of Superior Learning directly, thus paying out another R120,750.00.Superior Learning undertakes the challenge. It had to re-recruit Learners and engage with the SETA to apply for an extension. Superior Learning then provides evidence that the Learners were registered and received their salaries. Of concern is that XYZ Skills remains on the missing list. To resuscitate the Skills Development Strategy, ABC Traders had to engage with Superior Learning to take over the mandate. ABC Traders had not even received the basic logs that would have confirmed its engagement with the Learners.The premium paid by ABC Traders extends beyond the co stand time to resuscitate its strategy. Phase 6 – The outcome ABC Traders could not claim any Skills Development spend at their next B-BBEE Verification for the 2019 financial year. Consequently, the Discounting Principle was triggered, which means they lost a Status Level. However, following a successful roll-out with Superior Learning, ABC Traders could claim R120,750.00 for the financial year ending 2020. Unfortunately, ABC Traders’ B-BBEE Rating Agency did not recognise the R120,750.00 paid to XYZ Skills for Skills Development services; thus, the amount was registered as a loss in its financial statements. The Transformation Manager eventually delivered on the Skills Development mandate, albeit a year later and achieved Bonus Points for Absorption. However, ABC Traders could not recover the money paid to XYZ Skills. The outcome was that XYZ Skills, upon receiving the funds,had gone the route of ghosting ABC Traders whilst continuing to solicit new business. Adding insult to injury, XYZ Skills provides ABC Traders as a reference when sourcing new low hanging fruit. XYZ Skills remains operational. The nightmare of Skills Development Service Providers does not end with the scenario outlined in this article. Other typical low hanging fruit includes, but is not limited to: Learners who complete a Management NQF 3 only to discover that the said Learnership was registered as a Business Administration NQF 3 with another SETA. The registration of identical Learners over two consecutive Measurement Periods. Registering the identical Learners with two organisations represented by different SETAs, pocketing one portion of the money received. Not paying the full salary over to the Learner, then retaining some funds. There is a deficit between the payslip and the money paid to the Learner. Paying stipends to Learners without any tuition. Both the scenario and the examples provided illustrate that an organisation’s Skills Development spend is low hanging fruit for charlatans operating in the Skills Development space. When choosing a service provider, due diligence will ensure that an organisation does not have to resuscitate a Skills Development Strategy. Core to due diligence is knowing the following: What is a Skills Development training provider? It is an organisation that provides occupational learning as per Section 1 of the Skills Development Act 37 of 2008. What is an Employment and Skills Development Agency? “An Employment and Skills Development Agency (ESDA) is an organisation or company that, through written agreement with an employer, employs learners and manages the placement of the learners with host employers for on-the-job training and assessment and approved training institutions for off-the-job training to complete a regulated training program, a learnership or apprenticeship,” – Skills Development Act. What is a learnership and what does it comprise? The Skills Development Act and Regulations guiding Learnerships require: A structured learning component that includes both practical and work experience; A specified nature and duration of intervention that it leads to a qualification registered by the South African Qualifications Authority and relates to an occupation; and Registration with the Director-General in the prescribed manner. How does an organisation mitigate the risk of Fronting Practice? It is conduct that undermines or frustrates achieving the objectives in the B-BBEE Act. Before engaging with a Skills Development service provider, an organisation must: Assess core and critical skills from the primary SETA. Accessing the incorrect SETA may result in a B-BBEE Rating Agency not allowing Skills Development spend as a claim. Form a Skills, B-BBEE or Steering Committee to assess core and critical skills. Be aware of the specific skills required. Obtain an NQF report from an organisation’s primary SETA’s website. Due diligence before contracting a Skills Development service provider would include establishing the following: How long have they been in business? Did they previously trade under another company name? What are the geographical areas they operate in? Do they have references that support a solid track record? What is the average drop-out rate of Learners? Do they rely on third-party intervention? Are the Learners’ salaries or wages in line with the national minimum wage requirements? Can they furnish evidence that they are an accredited Skills Development service provider? Do they adhere to the standards of the body of their accreditation? Can they provide a financial viability report from their auditors? Do they agree to a site visit to confirm that the facilities will adequately accommodate Learners from both an infrastructural and geographical perspective? Can they confirm that they have the in-house capacity to meet the contract requirements? Do they have a good relationship with the primary SETA aligned with the sector an organisation represents? Due Diligence Red Flag areas Unrealistic Absorption guaranteed; A willingness to circumvent the requirements of the Skills Development Scorecard; Can only operate with the support of third-party service providers; Outsourcing of services; Inability to provide accreditation evidence in the company name under which they operate. What are the risks when engaging withunscrupulous Skills Development trainingproviders? An unscrupulous training provider will only reveal itself once the contract has been signed. Even though an organisation might have the best intentions, there are dire consequences for incorrectly implementing Skills Development, namely: No recognition of the Skills Development Scorecard; Investigation into Fronting Practices; The rejection of future mandatory grant applications from the relevant SETA; Having to repay Skills Development spend to resuscitate a Skills Intervention and the loss of claimable tax as per section 12H of the Income Tax Act; The rejection of a Work Skills Plan by the relevant SETA; A fine; and Reputational damage. Using a reputable Skills Development service provider can be the difference between a Skills Development spend being allowed or disallowed at a B-BBEE Verification. The reason is that an organisation can only make a Skills Development claim after completing the Learnership Programme. Although running a Learnership programme can be tedious,contracting a service provider who provides an ethical and meaningful skills intervention goes far beyond the points of an organisation’s Skills Development Scorecard.

Bizcommunity | 1 March 2023 Image source: Yan Krukau from Pexels The Unemployment Insurance Fund (UIF) has paid out R22.6m to 4,942 former teaching and general assistants, who were employed under Harry Gwala and iLembe District Municipalities in KwaZulu-Natal. The payments were processed between 20 and 23 February 2023, when the UIF took services to clients via its mobile buses. The campaign started in November 2022 under Amajuba District Municipality, where the Fund disbursed R7.7m to 1,746 former educator assistants and general assistants. It proceeded to eThekwini and Pinetown in December 2022, where R28.8m was paid out to 6,204 beneficiaries. It subsequently moved to Zululand, uMgungundlovu, uThukela, Ugu, iLembe and Harry Gwala Districts. “To date, a cumulative R98.4m has been paid out to 22,037 beneficiaries, who were employed in the aforementioned districts. From 6 March 2023, the Fund will continue with processing and paying out claims in areas around the uMkhanyakude and uMzinyathi District Municipalities,” the Department of Employment and Labour said on Monday, 27 February. The pay-out claims at uMkhanyakude District, will be processed on 6 March at Manguzi Education Centre; 7 March at Sisizakele Special School in Ngwavuma; 8 March at Sinethezekile Secondary School in Jozini, and from 9-10 March at Inkosi Mzondeni Hall in Mtubatuba near kwaMsane Clinic. At uMzinyathi District, the pay-outs will be processed from 6-7 March at Spring Lake High School (Endumeni/ Nquthu); 8-9 March at Ukukhanya komsinga Special School in Msinga; and 10 March at Greytown High School. The department has urged clients who wish to lodge their benefit claims to bring along a valid identity or passport document, a fully charged smartphone with data, a black pen, and proof of valid banking details. “To increase the employment prospects of former teaching and general assistants, the Department of Employment and Labour’s Public Employment Services (PES) branch will be present on-site to register the CVs of the unemployed clients on the Employment Services of South Africa (ESSA) system. This service has been a standard feature of the campaign since it started,” the department said. ESSA is a system where work seekers can register their CVs for possible jobs and also search and apply for new job opportunities. The system can be accessed on https://essa.labour.gov.za/EssaOnline/WebBeans/. The former teaching and general assistants were employed as part of the Presidential Youth Employment Initiative (PYEI), which was implemented as part of the Basic Education Employment Initiative (BEEI) - across all nine provinces - to reduce youth unemployment in the country. When their contracts ended, the former employees qualified to claim unemployment insurance benefits from the UIF. The dates and venues for the final District, King Cetshwayo will be announced in due course on the Fund’s social media platforms and through the media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/863/236433.html

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SA News | 28 February 2023 Unemployment and expanded unemployment rates have decreased marginally during Quarter 4 (Q4). This is according to the Quarterly Labour Force Survey (QLFS) results released by Statistics South Africa (Stats SA) on Tuesday. “The… changes in employment and unemployment resulted in the official unemployment rate decreasing by 0.2 of a percentage point from 32.9% in the third quarter of 2022 to 32.7% in the fourth quarter of 2022. “The unemployment rate according to the expanded definition of unemployment also decreased by 0.5 of a percentage point to 42.6% in Q4:2022 [the fourth quarter] compared to Q3:2022 [the third quarter],” Stats SA said. The institution explained there were employment gains for youth (those aged between 15 and 34 years old) during the period under review, this group remains “vulnerable in the labour market” with an unemployment rate of some 45.3%. “The total number of unemployed youth increased by 46 000 to 4.6 million in Q4:2022. There was an increase of 86 000 in the number of employed youth during the same period. The increase in employment and the decrease in unemployment among the youth resulted in a decrease in the youth unemployment rate by 0.2 of a percentage point,” Stats SA said. Stats SA indicated that despite difficult economic conditions, South Africans who gained employment, outstripped those who became unemployed. “The results indicate that 169 000 jobs were gained between the third quarter of 2022 and the fourth quarter of 2022. The total number of persons employed was 15.9 million in the fourth quarter of 2022. The number of unemployed persons increased by 28 000 to 7.8 million in the fourth quarter of 2022. “The number of people who were not economically active for reasons other than discouragement increased by 95 000 to 13.4 million and the discouraged work-seekers decreased by 151 000 in the fourth quarter of 2022 compared to the previous quarter resulting in a net decrease of 57 000 in the not economically active population,” Stats SA said. Sectors leading employment gains were those in finance, private households, trade and transport while jobs were lost in community and social services, agriculture and construction. “The formal sector recorded an increase in employment of 143 000 and the Informal sector recorded a loss in employment of 15 000 between the third quarter and fourth quarter of 2022,” the institution said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/marginal-decrease-unemployment-rate

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Glenneis Kriel | 28 February 2023 Alicia Alves started working at Kleine Zalze eight years ago as a stock controller. She worked her way up and now plays an instrumental role in the logistics behind the millions of bottles of wine produced on the estate every year. Photo: Glenneis Kriel As part of an empowerment project, farmworkers at Kleine Zalze wine estate have released the first wines produced from grapes grown in their own vineyards. They spoke to Glenneis Kriel about their achievement. The workers on Kleine Zalze wine estate near Stellenbosch in the Western Cape had often heard stories of other farmworkers across South Africa who had benefitted from empowerment initiatives over the past two decades. However, they never thought such an opportunity would ever come their way. Gerald Snyman, vineyard manager at Kleine Zalze, says that while he dreamt about it, he didn’t think it was possible; and Alicia Alves, general manager of stock control on the farm, says the thought never crossed her mind. But in 2017, Kobus Basson, then owner of Kleine Zalze, made his employees’ dream a reality when he negotiated a long-term lease agreement for 20ha of municipal land bordering the farm, and entered into a partnership with his staff. A year later, the Kleine Zalze Empowerment Trust was established and, through its collaboration with the estate, the black-owned Visio Vintners company was formed that same year. According to Alves, Basson initiated the project because “he wanted to give something back to his workers for their contribution to his success”. The model As it is with many other broad-based black economic empowerment (B-BBEE) projects in the agriculture sector, the empowerment trust owns a 51% stake in Visio Vintners, while the estate owns the remaining 49%. The beneficiaries of the trust don’t hold direct shares in Visio Vintners, which eliminates the problem of what happens to the shares when people wish to sell them, or they leave their jobs at Kleine Zalze or pass away. Alves explains that all of Kleine Zalze’s permanent workers, whether they joined the labour force before or after the initiative was launched, will share in Visio Vintners’ profits for as long as they work for the estate. The benefit is lost when somebody leaves the company, unless that person has retired or become disabled, in which case he or she continues to receive the benefit for another five years. At the time of writing, Kleine Zalze had about 80 permanent employees. On the same page Brandon Uitlander, who is in charge of general maintenance at Kleine Zalze, says everybody knew from the start that the initiative wasn’t a “get-rich-quick [scheme]”. “Everybody understands that it takes up to four years from planting before vineyards bear commercial yields, and that the winemaking process can add another two years to that. “We knew it wasn’t going to be an easy ride and that it wasn’t a way to simply make [Kleine Zalze] look good by ticking B-BBEE boxes. The future of Visio Vintners lies in our hands,” he explains. Before any profit-sharing can take place, the empowerment trust has to repay a R3,5 million loan, which formed its contribution to the establishment and maintenance of the vineyards, as well as the winemaking, bottling, logistics and marketing costs. “Basson lent us this money, interest-free. Having to repay the loan is actually empowering in itself, as you realise that you don’t work for instant material compensation, but that as business owners we have to be patient and ride out the early cycles of costs and effort before we can move into the black and show a profit,” says Uitlander. While there haven’t been any major conflicts as yet, the project has seen a few “changes”, with the biggest being the sale of Kleine Zalze to the French wine group AdVini in September this year. “Good communication with the beneficiaries and the transparency in how things are done are ensuring a smooth transition during these times,” he adds. AdVini has also been very supportive of the Visio Vintners initiative. “I’ve had wonderful discussions with Antoine Leccia, AdVini’s president, and he is following the project with great interest because of its uniqueness; you won’t find anything like it anywhere else in the world. “I think AdVini would like to replicate the initiative on some of its other farms once the model has proved itself,” explains Uitlander. Planting and management With 15ha reserved for planting, Basson kicked off the project by planting its first vineyards in 2017. “When I saw the land that had been set aside for us, I knew this was a serious project, as the site had become renowned for producing high-quality red wines from the vines that were planted there before,” says Snyman. Thus, their primary focus is the red varietals Cabernet Sauvignon, Cabernet Franc and Shiraz. The remainder of the 15ha were planted this year. The first vineyards were planted on a vertical-shoot trellis system, while those planted this year were done so via a vine-by-post system, which essentially involves trellising a bush vine onto a single pole. The latter vineyards are also unique in that they were planted to a field blend of Syrah. Their choice of trellis system is determined by the style of wine they want to make, says Snyman. The vineyard rows are planted in a north-south orientation, which means the entire canopy receives more light than it would if the rows were planted in an east-west direction. This, in turn, helps to evenly ripen the grapes and leads to more uniform fruit. Cover crops are planted between the vineyard rows, and alternate between triticale and oats, and barley and lupines. “The cover crops help to improve the soil, create a favourable ecosystem, and buffer soil temperatures against extreme cold and heat,” explains Snyman. Contract workers are employed to do the big tasks in the vineyards, such as pruning and harvesting. Snyman, however, says he would prefer if the empowerment trust beneficiaries could do more of the work in their vineyards themselves, as this would help to reduce costs. “I guess this isn’t a practical solution, though, as the beneficiaries are employed in different areas of the Kleine Zalze business, so most of them don’t know how to work the vineyards.” Alves adds that putting in extra time and effort to make the Visio Vintners brand successful, be it in the vineyard, the winemaking process, logistics or marketing, doesn’t feel like work at all, because it is something they are doing for their own benefit: “This is our baby, so we are willing to go out of our way to ‘raise’ it to become a legacy.” Nonetheless, while owning your own vineyard and wine brand is rewarding, it also comes with a certain amount of worry, Snyman says. “I sometimes have sleepless nights because of the vineyard. And now, since the rain has been untimely and we have received so little of it, the risk of poor fruit set is high,” he explains. The wine The first wines under the Visio Vintners label were released earlier this year. The range comprises a Sauvignon Blanc, a Pinotage, a Cinsault rosé, a premium red blend called Alliance, and a perlé sparkling wine. Cellar manager Norman Paulse, who works alongside cellarmaster RJ Botha, says that while the true art of winemaking starts in the cellar, it does require food-quality grapes: “You cannot make something brilliant from inferior raw materials.” So far this year, says Alves, Visio Vintners has produced roughly 40 000 bottles of wine, which have been sold locally and internationally, and 55 000, 200mℓ cans of the sparkling wine, most of which were exported to Scandinavia. Their first export order was from Norway for a container of Sauvignon Blanc. Visio is also set to supply Hatch Mansfield, a UK premium wine specialist, which is planning to place its first order for shipment in early January 2023. The aim is to establish the brand in restaurants and independent retail stores in the UK from March next year. Alves says that while Visio doesn’t want to compete with Kleine Zalze directly, it helps to tap into the latter’s network of distributors, which includes Hatch. “In South Africa, Vinimark will sell and distribute Visio Vintners from March, too, and AdVini’s distribution network promises to open up new markets for us.” Main aim She says their biggest goal now is to perfect the quality of Visio’s wine. And they seem to be doing just that, considering that their Alliance 2020, a blend of Cabernet Sauvignon, Cabernet Franc, Shiraz and Pinotage, scored a commendable 92 out of 100 points in UK wine writer and Master of Wine Tim Atkin’s South Africa 2022 Special Report. What’s more, their 2020 Pinotage won gold at the Michelangelo International Wine & Spirits Awards. “Owing to the millions of other brands around the world that we have to compete with, we know that wine quality will be the biggest driver of our project’s success. That’s why we trust Botha to advise us and lead our winemaking,” says Alves. They are also working on building and marketing the Visio brand, which they started doing at the CapeWine 2022 exhibition in October. Once they have established distribution networks in core markets, demand for their product will grow and the trust will be able to repay its debt to Basson. They are also considering appointing a dedicated winemaker to take the brand to a next level. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.farmersweekly.co.za/agri-business/agribusinesses/empowerment-through-winemaking-farmworkers-make-top-quality-wines/

The following rules apply when calculating Mandated Investments for Statement 100, Ownership : "Mandated Investments means any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds, pursuant to a mandate given by the owner to a third party, which mandate is governed by that legislation. Some examples of domestic mandated investments and the portions of those investments subject to the Exclusion Principle are contained in Annexe 100A attached to statement 100." Furthermore, as per clause 3.7 of Statement 100 of the Amended Codes of Good Practice, the following is stated: "3.7 Mandated Investments 3.7.1 When determining Ownership in a Measured Entity, Rights of Ownership of Mandated Investments may be excluded. 3.7.2 The maximum percentage of the Ownership of any Measured Entity that may be so excluded is 40%. 3.7.3 A Measured Entity electing not to exclude Mandated Investments when it is entitled to do so may either treat all of that Ownership as non-Black or obtain a competent person's report estimating the extent of Black rights of Ownership measurable in the Measured Entity and originating from that Mandated Investments. 3.7.4 A Measured Entity cannot selectively include or exclude Mandated Investments and therefore an election to exclude one Mandated Investment is an election to exclude all Mandated Investments and vice versa. 3.7.5 A Measured Entity applying the Exclusion Principle to Mandated Investments cannot benefit from the Modified Flow-Through Principle." Ownership Services are available to assist Members in calculating Black Shareholding which includes Mandated Investments.