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Staff Writer | 27 July 2025 Employment and Labour Minister Nomakhosazana Meth has outlined the top critical skills needed in the country, which the Department of Higher Education and Training (DHET) is trying to funnel students toward. Meth has been advocating and pushing skills development as a key solution to South Africa’s persistently high unemployment rate. South Africa’s unemployment rate is currently 32.9%, meaning one in every three adults in the workforce is without a job. While some have argued that the rate is much lower in reality—as low as 10%, when factoring in untracked work in the informal sector—Stats SA has stood by its reported figure. On top of the high unemployment rate, South Africa also has problems with a skills mismatch, where school leavers aren’t getting training in skills the country actually needs, and low absorption rates. MK Party MP Lehlohonolo Selepe asked the department in a Parliamentary Q&A what critical skills South Africa needs, and whether or not those being trained by government learnership programmes were getting placed in jobs. Meth noted that it is not her department that determines the skills, as it is a competency within the DHET to assess, review, and develop The National List of Occupations in High Demand (OIHD). Similarly, the labour department also does not develop or provide training in these skills, as that remains the mandate of the BHET and various Sector Education and Training Authorities (SETAs). Nevertheless, Meth said her department does have systems that track these factors and is privy to the most-needed skills and occupations on the Employment Services South Africa (ESSA) database. The list of high-demand occupations in South Africa While not a comprehensive list, Meth outlined the highest-demand skills across six critical sectors on the database: Science & Health Medical specialists: Psychiatry, Neurology, Oncology, Paediatrics, Pathology (various branches) Dentistry: Prosthodontics, Oral medicine, Maxillofacial surgery Nursing: Perioperative, Emergency, Mental health, Nurse educators Veterinary roles: Veterinarians, Veterinary nurses Public health professionals ICT & Engineering Software developers & programmers ICT security specialists Network analysts & systems engineers Mechanical, Electrical, Civil, and Mining engineers Mechatronics & Electronics technicians Naval architects & Aeronautical engineers Business & Finance Actuaries Investment analysts & managers Corporate treasurers Internal & external auditors Market research analysts Supply chain & distribution managers Education & Research University lecturers Senior phase and FET schoolteachers (Grades 8–12) Research and development managers Environmental & Planning Urban and regional planners Environmental scientists & managers Climate change scientists Oceanographers & hydrologists Technical & Trade Millwrights Lift mechanics Metal machinists Instrumentation technicians Air-conditioning and refrigeration mechanics The minister said that the fill list of high-demand occupations could be accessed from the DHET. This document was last updated in 2024, and lists 350 occupations that carry a high demand score. The list was determined through an online survey distributed via e-mail and LinkedIn in which employers and recruiters were asked to list occupations they are likely to recruit for over the next three years. The number of times a respondent mentioned an occupation and the average level of certainty that respondents assigned to it were used to estimate survey data demand scores that informed the list. The full list can be found here . When it comes to the absorption of trained workers, Meth said that information on the ESSA system showed that over 26,600 people who received government training had been placed. This includes: Services sector =130 Public Sector = 194 Safety and Security = 5120 Agriculture = 6,733 Manufacturing = 142 Mining = 3 Media and Publishing =871 Local Government = 2,350 Insurance = 109 Information systems = 31 Forestry = 124 Education = 2,731 Construction = 7,982 Banking = 50 Financial = 66 “For those programmes carried out by the DEL Labour Activation Program, all training providers are required to provide employment after training,” she said. However, she could not confirm the different arrangements and conditions for employment after training for those participating in SETA programmes. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/832801/south-africa-desperately-needs-these-skills-2/

Malcolm Libera | 24 July 2025 The newly proposed Fair Pay Bill could change recruitment practices and salary transparency across the country, with significant implications for employers and employees. This is according to legal experts at Cliffe Dekker Hofmeyr (CDH) , Yvonne Mkefa, Director of Employment Law, and associates Sashin Naidoo and Thato Makoaba. The Fair Pay Bill was tabled before the National Assembly in June 2025. It aims to amend the Employment Equity Act of 1998 by prohibiting employers from using a candidate’s past salary history during recruitment processes.  It would also make it mandatory for employers to disclose either a fixed salary or a salary range when advertising a job, classifying or grading positions, or appointing or transferring staff.  According to the legal experts, the legislation is designed to foster fairness, reduce inequality, and promote transparency in the South African labour market. “The aim of the bill is to promote remuneration transparency to help address the pay gap, gender pay disparities, and the issues linked to South Africa’s Gini coefficient status,” said CDH.  “It aligns with global trends in pay transparency and encourages responsible business practices.” One of the Bill’s main provisions is the prohibition against asking for an applicant’s previous salary during recruitment, unless two conditions are met. These conditions are that the employer has already made a job offer, and the candidate voluntarily requests in writing that their previous remuneration be considered.  Additionally, employers will be expected to establish and share the salary or salary range for each role up front. Candidates can only discuss pay within the stated range. Another major shift proposed by the bill is the removal of confidentiality clauses that prevent employees from discussing their pay with others.  While the right to do so already exists under the Basic Conditions of Employment Act, the bill goes a step further by explicitly outlawing such confidentiality clauses. This ensures employees can freely share their current and past remuneration with colleagues. CDH also said these changes could deliver a host of benefits. “Transparent compensation and upfront remuneration information can attract genuinely interested and qualified candidates, reducing wasted resources on mismatched applications,” the experts said.  “It may also help employers mitigate their exposure to claims of unfair labour practices and discrimination, which can be costly and damaging to their reputation.” “Transparent pay practices can enhance employee engagement and retention by fostering trust in management decisions,” they added. The bill’s challenges and next steps The law firm acknowledged that the bill is not without challenges. CDH cautioned that assessing and determining value for jobs where there are no historical remuneration benchmarks available may be difficult. This is especially relevant in industries with informal or evolving pay structures, such as freelance-heavy sectors or jobs in emerging specialisations.  Small, medium, and micro enterprises (SMMEs) could also struggle with compliance due to limited financial and administrative resources. “To address these challenges, the bill must make provision to cushion or protect small employers and industries with atypical workforces,” CDH advised. Another possible side effect is that competitors will be able to see each other’s salary ranges, potentially impacting market competition.  However, CDH pointed out that the bill allows employers to advertise broad salary bands, and does not set strict calculation guidelines, offering some flexibility. For employees, the bill would represent a substantial gain in bargaining power. Job seekers would no longer be held to their previous earnings unless they choose to disclose them. Additionally, they would have clearer insight into the pay on offer before applying for a role. “Employees gain the explicit right to discuss remuneration openly with others,” CDH noted. With the bill now tabled in the National Assembly, it will undergo several steps before it can be passed into law.  First, Parliament’s legal advisors will review the bill to ensure it complies with legislative standards and is properly categorised. It will then be published in the Government Gazette for public comment.  The Portfolio Committee on Employment and Labour will conduct in-depth scrutiny and debate, after which it will be formally introduced in the National Assembly for further deliberation, potential amendment, and voting. Should it be enacted, employers will face a range of compliance responsibilities. “Employers will need to update their recruitment and pay practices, revise application forms and interview protocols, and adapt internal policies around salary setting,” CDH warned. Training for HR teams and management will also be needed to ensure organisations understand and comply with the new rules.  CDH recommended that businesses make use of compensation planning tools and benchmarking software to access accurate, up-to-date market salary data.  This will help employers move away from reliance on salary histories and make informed, equitable pay decisions. “Employers should conduct audits to assess remuneration structures and identify any unjustifiable pay gaps—comparing pay across roles, races, genders, backgrounds, and addressing unconscious biases,” the CDH experts said. “They should also keep records of valid reasons for differences in pay, such as a person’s skills, tenure, qualifications, experience, or performance.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/832518/major-salary-changes-proposed-for-south-africa/

Partnered Content | 23 July 2025 In a significant boost for South Africa's small business landscape, Samsung, in collaboration with the Department of Trade, Industry and Competition (DTIC), has opened the third call for eligible black-owned ICT and Service Centre small, medium and micro enterprises (SMMEs) to participate in this year’s Equity Equivalent Investment Programme (EEIP) for Enterprise Development (ED). This initiative represents a continued investment of R280 million to empower local businesses and promote socio-economic development. Since its inception in 2019, the EEIP has witnessed notable achievements, cementing its role as a powerful catalyst for the advancement of black entrepreneurs within the ICT sector. As part of Samsung's enduring commitment to harnessing the potential of SMMEs, this year’s third edition of the programme seeks to build upon the success of its predecessors while aligning with the government’s Vision 2030. Nicky Beukes, Samsung EEIP Project Manager said, "This programme has in the last few years seen great success and has also had a positive impact in the lives of entrepreneurs in the ICT space. As part of our transformation objectives, our EEIP programme continues to contribute to the sustainable development goals of the National Development Plan (NDP)." With a keen focus on economic transformation, Samsung’s initiative stands as a testament to the potential of black-owned enterprises within the South African ICT landscape. By inviting local small businesses to join this programme, the EEIP offers a unique platform for entrepreneurs to elevate their operations and drive innovation. Beukes elaborated on the partnership with the DTIC, saying, “Together with the DTIC, we have in the last few years re-affirmed our commitment to ICT development and economic transformation which are aligned to South Africa’s Vision 2030. This third edition of EEIP and its success to date, is a clear indication that Samsung's significant investment in SMME development is yielding tangible results.” The call for applications is open to all black-owned SMMEs in the ICT and Service Centre sectors across South Africa, reflecting Samsung's unwavering dedication to driving growth and fostering an inclusive entrepreneurial ecosystem. This initiative not only serves to uplift SMMEs but also plays a pivotal role in job creation and sustainable development across the region. For those interested in seizing this opportunity to propel their businesses into new horizons, additional information on how to apply can be found at  www.samsung.com/za/local-programme/ed-programme/ . ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/news/partnered/samsung-opens-third-call-for-black-owned-ict-and-service-centre-businesses-in-south-africa/

Nicola Mawson | 22 July 2025 South Africa’s newly gazetted sectoral employment equity targets could place the country in breach of several international trade agreements – including the World Trade Organization’s General Agreement on Trade in Services (GATS), as well as regional protocols under the African Continental Free Trade Area (AfCFTA). This is according to Clive Vinti, Head of Research at XA Global Trade Advisors, who says the targets – set to come into effect from September 1 – appear to impose discriminatory limitations on who can be employed in specific sectors, without taking account of the realities of those sectors or the international obligations South Africa has signed up to. The potential trade implications formed part of the legal challenge launched by the National Employers’ Association of South Africa (NEASA) and Sakeliga NPC against the Minister of Employment and Labour. The challenge, announced on July 9, was aimed at halting the implementation of the “2025 Targets” and the underlying regulations. Vinti argued that numerical quotas based on national race and gender demographics, if enforced without sector-specific capacity considerations, risk breaching international agreements that explicitly prohibit employment caps in service sectors. Under GATS, for example, member states are barred from placing quantitative limits on the number of people that can be employed in any given service sector. The same provisions are mirrored in AfCFTA and Southern African Development Community protocols, where the focus is on promoting access and non-discrimination in trade in services. In South Africa’s case, these equity targets apply to both local and foreign-owned firms operating in the domestic economy. If implemented without regard for the availability of suitably qualified individuals in designated groups, they could act as a barrier to market access, especially for foreign service providers and investors, potentially triggering trade disputes or retaliatory measures. At the heart of the court application filed by NEASA and Sakeliga is the argument that the 2025 targets, which flow from the insertion of section 15A into the Employment Equity Act (EEA), were adopted in breach of procedural and constitutional requirements. The amendment, which came into effect on 1 January 2025, grants the Minister of Employment and Labour, Nomakhosazana Meth, the power to set sector-specific numerical employment targets in order to ensure equitable representation at all occupational levels. But the law also requires that such targets be preceded by a public consultation process and that affected sectors be properly identified and engaged. According to the applicants, this did not occur. They allege that instead of the minimum 30-day comment period stipulated in the Act, they were given just over a week to respond. Furthermore, while draft targets had been published for public input in 2023 and 2024, this step was skipped entirely for the 2025 targets. NEASA and Sakeliga also argued that the consultation process was neither meaningful nor inclusive. Some sessions were limited to 1 000 virtual attendees and held with little to no advance notice. Employers were allegedly only given access to the proposed targets during or shortly before these meetings. Compounding the procedural issues, the applicants say the Minister used a “one-size-fits-all” approach in determining the targets – applying blanket increases of 6% to 9% across occupational levels, without regard for each sector’s structure, skills availability, growth trajectory, or economic context. This, they argue, rendered the targets arbitrary, irrational and potentially unachievable. The challenge also raised concerns around the impact on women. While women are themselves a designated group under the EEA, the structure of the targets could, paradoxically, disadvantage them by failing to account for intra-group disparities. Crucially, the plaintiffs said that no socio-economic impact assessment had been conducted before gazetting the targets. In their view, this omission made the regulations irrational and placed the policy in conflict with section 9 of the Constitution, which deals with the right to equality and non-discrimination. Beyond constitutional and procedural issues, the applicants highlighted the direct risk to businesses. Companies that fail to meet the new equity targets face penalties of up to R1.5 million or 2% of annual turnover on first offence. Section 53 of the EEA, which is not yet in force, could eventually see non-compliant firms excluded from government procurement processes entirely, with existing state contracts cancelled. “Since the government is the largest procurer of goods and services in the market, being blocked from trading with it could be fatal to a business,” said Vinti. The equity targets could also affect access to key trade instruments. Duty rebate, increase and reduction applications, often used to support or protect domestic industries, require compliance with labour legislation. Non-compliance may disqualify firms from benefiting from these instruments, weakening their competitiveness both locally and abroad. According to Vinti, these developments have the potential to upend South Africa’s trade credibility. The matter is now before the courts, with NEASA and Sakeliga seeking an urgent interim interdict to halt the targets’ implementation while the High Court considers the lawfulness and constitutionality of the regulations. “The ball is now in the court of the Minister,” said Vinti. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/business/economy/2025-07-22-will-south-africas-2025-employment-equity-targets-disrupt-international-trade/

Cape Chamber | 22 July 2025 The removal of Nobuhle Nkabane as Higher Education and Training Minister sends a positive signal that government is serious about tackling leadership challenges within its ranks.  The Cape Chamber commends President Cyril Ramaphosa for a bold move that we hope will translate into much-needed improvements in skills development.    We are hopeful that the new Minister will urgently address the pressing need for private sector involvement in the management of both Sector Education and Training Authorities (SETAs) and Technical and Vocational Education and Training colleges (TVETs). The SETAs and TVETs are central to government’s plan to create jobs and resuscitate the economy; without the necessary skills we will struggle to accelerate growth in key economic sectors.   In our view, private sector stakeholders with the necessary experience and insight should take the lead role in getting skills development back on track.Playing politics with state institutions is a recipe for underperformance, as we have seen with most of our parastatals. What we need is effective public-private partnership to effect the kind of reform slowly gaining traction in other key economic areas, such as energy and logistics.  We are also heartened by news that Ramaphosa’s decision to remove Nkabane may enable agreement on the national budget, which has been in limbo for much of the year.We hope these positive steps are a precursor to other encouraging steps on the journey to efficient governance and a more robust economy. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://capechamber.co.za/latest-news/cape-chamber-commends-cyril-ramaphosas-bold-move-skills-development

Vanessa Mpatlanyane | 22 July 2025 If we are to have a crime-free, reconciled and democratic SA, we must have an employable and employed citizenry. That was the sentiment expressed in former president Nelson Mandela’s 1998 statement on the Jobs Summit. As we approach what would have been Madiba’s 107th birthday, one cannot help but reflect on our democracy as he envisioned it. In the 1998 state of the nation address, Mandela drew attention to what was already a national crisis of unemployment. That this remains a crisis is not the democracy he imagined. Few will dispute that the Mandela's words are as true now as they were then. If you were to ask any job-seeking graduate in 2025, what is left out is the need for not just jobs, but jobs that offer liveable and dignifying pay especially at entry-level. For thousands of graduates, having a democracy without having a job feels like a contradiction. However, the common entry-level jobs (internships), though a small step up from unemployment, require transport, time and full-day availability for what amounts to glorified pocket money. Meanwhile, in the background of these offers is the deafening silence about student debt, familial responsibilities and the real costs of being a young adult in SA today. For many graduates and people starting in their careers, securing work is imagined as the beginning of regaining a sense of value and hope because it often comes on the back of months, sometimes years, of not hearing back from companies. It is no wonder that when a positive response is received, all hope is reignited and progress becomes within reach. At least that is the sentiment and reality every graduate hopes for, but as things stand, that is far from the common experience. Barriers to entry remain high and firm. Employers require driver’s licences, some demonstrable experience, polished skill sets and everything but what a fresh graduate fully possesses out of tertiary. What are advertised as entry-level jobs turn out to be an exercise in realising that somehow the market existing in some parallel universe where socioeconomic inequality isn’t carried in language, the body, educational attainment or resourcefulness. The reasons to doubt, to be discouraged and disillusioned are endless. But maybe not all is lost. I recently came across a job post aimed at graduates. A public entity in SA’s skills and training development sector put out an ad for an administrative data-capturing position. The advert was deliberate and dignified in tone. It didn’t refer to the position as an internship. It didn’t mention stipends or allowances. It used the word “remuneration” – a small but powerful green flag in a country where too many graduates are asked to work for “experience”. What caught my attention was not only that the job exists – but more so the pay it offers. At a little over R23,000 per month, this role offers a semblance of dignity and that makes me feel unexpected relief. Too many similar roles demand the same qualifications and commitment while offering far less. This job, on the other hand, does not seem tone-deaf. It shows awareness. It recognises that for many graduates, especially black first-generation graduates, employment is not just about starting a career – it is about relieving a household, uplifting siblings and becoming the long-awaited source of stability. Sure, R23,000 isn’t near enough to sustain an entire family in today’s economy. But compared to the R4,000 internship trap that so many find themselves in, it’s a lifeline. It’s the difference between barely scraping by and finally stepping forward. It’s the first real sign of a future worth persevering for. This type of compensation renews hope for youth hit hardest by application fatigue, rejection and the trauma of repeated disappointment. For many, job-seeking is not just demoralising – it’s expensive, isolating and triggering. Offers like these create a new emotional pattern: one where work might symbolise and enable dignity. So much can be said about the failures of the democratic dream that Madiba had. More than 30 years on, admittedly, there is so much to cry over, complain about and fairly criticise. So many disappointments, so much distrust in public entities and so much hopelessness. But there is also opportunity to be so much more, do so much better and redirect the train. That is why when we see glimpses of that, even small ones, we should name them, affirm them and push for them. Young graduates are often treated as political pawns, featured in speeches, hashtags, and manifestos, but forgotten in budgets and hiring practices. So, when public institutions and private companies act differently, when they lead instead of follow, they deserve to be acknowledged and we can only hope that it’s contagious. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/2025-07-22-opinion-poverty-wages-is-not-the-democracy-madiba-envisioned-for-the-youth-of-this-country/

Edwin Naidu | 22 July 2025 Removing Dr Nobuhle Nkabane, just before National Women’s Month, was poor timing. Her predecessor, Dr Blade Nzimande, whose hapless legacy on tertiary education is unfolding horribly, was undeservedly in the role for more than 15 years. Nkabane was dealt a poor hand.  One must question the bona fides of President Cyril Ramaphosa’s commitment to gender parity and combating corruption. However, many will agree that the former deputy to Gwede Mantashe at the Ministry of Minerals and Energy was out of her depth in the tertiary education portfolio.  But thrusting her into the higher education cesspool without considering the extent of the challenges was unfair. She had no chance of success and was destined to fail.   This emerged especially after her botched list of appointees for Sector Education and Training Authorities (Seta). Earmarked for one of the Seta chair roles was Gwede’s son, Buyambo Mantashe, resulting in controversy that led to the rescinding of all the appointments.  When the row commenced, predictably, Ramaphosa did nothing. Ahead of National Women’s Month, Nkabane is gone, and the crucial Higher Education and Training portfolio has returned to a male. It is someone we know well, too.  The question is, will the affable Buti Manamela, a well-liked and respected leader from the South African Communist Party, put South Africa first? Or will he stick with the faltering party to which he is not entirely beholden? Or will he be beholden to his friends? That’s some of the murmur doing the rounds.  Manamela has been Deputy Minister since 2014, so he understands the changing ANC and higher education landscape better than most. He performs well, to the extent that his former boss, Nzimande, once criticised him for gaining more publicity. To his credit, Manamela stayed silent and continued with his work.   One feels that Ramaphosa erred in not giving the Young Communist League and the African National Congress leader the job last year. At least he managed to rectify one error.  Much depends on the broad shoulders of Manamela. He has a wide smile and oozes confidence. But what South Africa needs is for Manamela to break ranks with the ANC to ensure that the country gets a quality tertiary system.  The higher education system continues to survive, but it is broken. Universities face a variety of challenges, including funding and governance. Setas are in a mess. The National Skills Fund has not delivered on its mandate.  Ironically, despite the negative publicity, Nkabane managed to strengthen the National Student Financial Aid Scheme significantly. Under the new chairperson, Karin Stander, and acting chief executive, Waseem Carrim, efforts are in progress to address the issues of the past.  Although she had been silent, many believed that Nkabane was strongly trying to get to grips with the corruption among the Setas. Her nemesis, Sihle Ngubane, the former Chairperson of the Insurance Sector Education and Training Authority, is now an MP, serving on the Portfolio Committee on Higher Education and Training. According to reports, under his watch, INSETA allegedly sanctioned dodgy tenders, and was the subject of various investigations. INSETA CEO Gugu Mkhize presided over three qualified audits. In any other organisation, she would have been fired. When the respected industry player, the Graduate Institute of Financial Services, raised a red flag over her conduct, she promptly de-accredited the organisation. GIFS has taken INSETA to court for R240 million. Nkabane was working to settle.  As the political principal, she was aware that the Seta CEO’s belligerence would be an indictment of her leadership. And she was prepared to act. Sources say that she was going to push for a settlement of at least half that amount.  The first task facing Manamela is to read his friend the riot act. As Deputy Minister, Manamela has graced several INSETA events and is prominently featured on their social media pages. His predecessor was attempting to clean up the poor-performing Setas, dealing with errant performers, such as Gugu Mkhize, and the rudderless Construction Education and Training Authority, whose CEO is said to be like a dictator.  Organisation Undoing Tax Abuse (OUTA), which has raised alarm over the extent of corruption at Setas, is aware of the alleged friendship between Manamela and Mkhize. It’s all over Facebook. The organisation says it will ask for a meeting to discuss the brazen Mkhize.  Manamela’s first test should be how he deals with the errant Mkhize and the shenanigans at INSETA. What about the damaging lawsuit? Nkabane has passed the baton. And he has inherited a new yet old drama from the Construction Set.  Another priority is addressing the funding challenges facing tertiary institutions. There are others, but let’s not inundate the new broom. I’d rather focus on what he loves talking about most. When it comes to Technical and Vocational Education and Training (TVET), for Manamela, no subject arouses as much enthusiasm as the prospect of TVET colleges transforming the workplace and addressing the country’s youth unemployment. Manamela passionately describes the potential for shifting the dial for South African youth through these skills-based learning institutions, which are geared towards contributing to the economy. He believes that graduates from TVET are more employable than those from universities. If it is going to make a dent in the country’s unemployment figures, Manamela’s optimism must translate into positive results. As a product of Mamelodi TVET College, Manamela knows what he’s talking about. His youthful face, not masked by the distinguished beard he sometimes sports, lights up when TVET is discussed, particularly its impact on the future. Manamela completed matric at Phagameng High School in Modimolle. he studied towards his N-Certificate in Electronics at Mamelodi College until 2001, completing his Post-Graduate Diploma (2014) and Master of Management in Public Policy at the University of the Witwatersrand (2017). Manamela says TVET colleges throughout the country should offer coding, programming and robotics to broaden the skills for the 21st century. Youthful Manamela is experienced and certainly has reasonable solutions. Nobody doubts the hard road ahead. But let’s give him a chance to show his mettle and see whether he is up to the task of putting South Africa first: serving the people, the party or his friends.  Buti Manamela: Your mission, now that you have accepted, is possible! * Edwin Naidu is the head of education start-up Higher Education Media Services (HEMS). ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://theafrican.co.za/tvbox/2025-07-22-fixing-higher-education-rot-tough-road-ahead-for-buti-manamela/

Safiyya Patel | 21 July 2025 The current media debate around Broad-Based Black Economic Empowerment (B-BBEE) has brought fresh attention to the policy’s impact on the economy – raising important questions about its effectiveness, costs and outcomes. As this conversation grows louder, it's worth taking a closer look at some of the arguments being made. This article engages critically with aspects of the debate, not to dismiss concerns, but to consider them alongside broader economic realities, the policy’s longer-term contributions and the context in which B-BBEE was designed to operate. An example from the debate is a recent study released by Solidarity and the Free Market Foundation (FMF), which arguably overlooks certain key economic implications of B-BBEE. Titled “The Costs of B-BBEE Compliance,” the report estimates that B-BBEE may reduce South Africa ’s gross domestic product (GDP) growth by as much as 1.5 to 3% annually, potentially resulting in 96 000 to 192 000 fewer jobs each year. It further contends that the policy disproportionately benefits a narrow elite while imposing undue compliance costs on the broader economy. While such figures demand scrutiny, they also warrant a critical examination of the underlying assumptions, methodology, and, crucially, the broader socio-economic context in which B-BBEE operates. Causality and complexity: What the report overlooks One of the most significant concerns with the FMF/Solidarity report is its presentation of correlation as causation. The paper attributes specific percentages of GDP loss and job losses directly to B-BBEE but does not demonstrate how these impacts were isolated from South Africa ’s myriad economic challenges. South Africa ’s macroeconomic environment remains deeply constrained by structural impediments such as: chronic electricity and water shortages, including load shedding; global economic headwinds; endemic corruption; and policy uncertainty and governance deficits. Attributing complex macroeconomic trends solely to B-BBEE risks simplifies a nuanced reality and underestimates the multifactorial nature of South Africa ’s growth constraints. The neglected side of the ledger: B-BBEE’s economic contributions Equally important is the report’s limited treatment of the potential benefits of B-BBEE. Many of which manifest over the medium to long term and are difficult to quantify through conventional compliance cost frameworks alone. Equity equivalent programmes (EEPs) EEPs enable multinational corporations, constrained by global ownership structures, to achieve ownership points through local investments in enterprise development, skills transfer, and innovation . Far from being passive mechanisms, EEPs represent substantial, targeted injections into the domestic economy. IBM, for example, committed ZAR 700-million over ten years to enterprise development, research, and education. This included support for 74 black-owned businesses and fully funded bursaries for dozens of students from disadvantaged backgrounds in critical ICT fields. Samsung also made a substantial commitment, launching a ZAR 280-million EEIP in May 2019, projected to contribute nearly ZAR 1-billion to the South African economy over its ten-year duration. This programme aimed for a measurable impact on job creation, specifically targeting the creation of 262 direct jobs and supporting 13 black-owned and women-owned businesses. A notable focus of Samsung's EEIP is on Black Industrialisation through e- Waste recycling and beneficiation research and development, including the establishment of the first black-owned and operated e- waste beneficiation plant in Africa . These company-specific statistics, alongside broader programme impacts such as J.P. Morgan's Abadali EEIP, which aims for an additional 1 000 permanent jobs and ZAR 2-billion in financing transactions, underscore the crucial role of EEPs in boosting Small and Medium Enterprises (SMEs), particularly black-owned businesses, by providing essential funding, business support, and mentorship. Furthermore, these programmes significantly advance skills development, with more than 2 500 beneficiaries receiving critical skills training , and facilitating technology transfer, aligning with South Africa 's national development goals and fostering a more inclusive and skilled workforce. Such initiatives illustrate how EEPs catalyse skills development, promote black industrialisation, and build competitive black-owned enterprises that contribute to both GDP growth and employment. Youth employment service (YES) The YES programme directly targets South Africa ’s intractable youth unemployment crisis. Since its inception in 2018, YES has facilitated over 186 000 quality work experiences for young people, injecting nearly ZAR 11-billion in salaries into the economy. Approximately 45% of participants secure permanent employment after placement, and 17% establish their own businesses, multiplying the long-term economic benefit. The initiative also incentivises private sector participation by offering measurable B-BBEE recognition for companies that create these opportunities. Enterprise and supplier development (ESD) ESD remains a cornerstone of the B-BBEE framework, driving significant investment into the SMME sector. South African corporates reportedly channel ZAR 20 to ZAR 30-billion annually into ESD programmes, helping integrate black-owned businesses into supply chains and enabling sustainable growth. For instance, the Shoprite Group’s CredX programme has provided ZAR 10-billion in working capital to suppliers, while its Next Capital initiative has invested ZAR 20-million to support new black-owned enterprises. Collectively, such interventions empower black entrepreneurs, expand the tax base, and generate employment in communities historically excluded from meaningful economic participation. The enduring shadow of apartheid: Why B-BBEE still matters Perhaps the most profound omission in the Solidarity and FMF report is its decontextualised approach to B-BBEE’s rationale. Apartheid was not merely a political system ; it was an economic design that systematically dispossessed black South Africans of land, capital, skills, and opportunities. This entrenched economic disenfranchisement cannot be dismantled simply by repealing discriminatory laws. B-BBEE emerged as a policy instrument to facilitate redress, promote equitable economic participation, and mitigate the persistent structural inequality that threatens social cohesion and long-term stability. Any analysis that fails to account for this historical imperative and the potential socio-economic cost of neglecting it, is incomplete. Towards a more constructive conversation There is little doubt that B-BBEE can and should be improved. Calls for greater transparency, genuine empowerment outcomes, and tighter controls to prevent fronting and inefficiency are well-founded. However, presenting a one-sided narrative that focuses exclusively on compliance costs while disregarding significant economic and social returns undermines the opportunity for a more balanced, evidence-based debate. Balancing costs, benefits, and context As South Africa grapples with the challenges of inclusive growth, any meaningful conversation about the future of B-BBEE must extend beyond a narrow cost-benefit calculus. It must weigh the policy’s role in addressing historical injustices, its measurable and often intangible benefits, and the opportunity costs of not transforming the economy. A policy of this nature should not be romanticised or demonised without context. Instead, it demands honest, nuanced engagement, one that prioritises national development, social cohesion, and sustainable , broad-based participation in the economy. Moving forward, the question should not be whether B-BBEE has costs but rather whether we are collectively doing enough to ensure that its benefits are fully realised and that it continues to evolve to serve the South Africa we aspire to build. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/beyond-the-balance-sheet-contextualising-the-costs-and-benefits-of-b-bbee-2025-07-21

Core to the Net Value calculation is the Graduation Factor formula that awards 8 points on the Ownership scorecard . The time-based graduation factor reduces, over time, the level of debt attributable to the economic interest held by Black Participants.   Q |  To earn the points available, when is the first-year repayment of the 10% target to claim Ownership by using the Graduation Factor formula payable?   A |  A `year’ is not defined in Schedule 1; therefore, it takes on the ordinary meaning of 12 months commencing on the first day of the first month and ending on the last day of the 12th month. As such, the 10% target for the first year commences on the first day that all rights and obligations in Ownership become enforceable. The intent is to ensure that there is always value in the hands of Black Participants, from day one, before awarding Net Value points. It is for this reason that entities offer Black shareholding at a discount. Ownership Services are available to assist with an analysis of Ownership transactions.

Q |  Can a B-BBEE Sworn Affidavit be commissioned by a Commissioner of Oaths connected to the deponent that is an EME or QSE with more than 51% Black Ownership?   A |  Commissioner of Oaths must be independent as per the Justices of the Peace and Commissioners of Oath Act.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid Sworn Affidavits.

Under the element Socio-Economic Development , there is an emphasis on the concept of the objective of facilitating income generating activities for targeted beneficiaries.  As per Statement 500 of the Amended General Codes of Good Practice, the following is stated under Clause 3.2: 3.2  Socio- Economic Development Contributions: 3.2.1          Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating income generating activities for targeted beneficiaries.   Furthermore, the definition of Socio-Economic Development Contributions  is stated under Schedule 1 of the Amended General Codes of Good Practice as follows:   “Socio-Economic Development Contributions means monetary or non-monetary contribution implemented for communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are Black people. The objective of Socio-Economic Development Contributions is the promotion of sustainable access for the beneficiaries to the economy. Socio-Economic Development Contributions commonly take the following forms:   (a)     development programmes for women, youth, people with disabilities, people living in rural areas; (b)    support of healthcare and HIV/AIDS programmes; (c)     support for education programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships; (d)    community training; skills development for unemployed people and adult basic education and training; or (e)     support of arts, cultural or sporting development programmes;”   Technical Compliance Services  are available to guide members in understanding the concept of Socio-Economic Development.

Creamer Media | 17 July 2025 The plastics manufacturing industry expresses deep concern over the continued absence of a duly appointed Accounting Authority at the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA), which raises serious questions around governance, accountability, and ethical leadership within the post-school education and training system. The term of the previous merSETA board expired in March 2025. Since then, despite the reopening of the nominations process in May 2025, the Department of Higher Education and Training (DHET) has not demonstrated a visible commitment to finalising the appointment of a new Accounting Authority. This prolonged leadership vacuum is undermining confidence in the integrity and credibility of one of the country’s most significant and most strategically essential SETAs. In a deviation from established governance principles, DHET has instructed the SETA Chief Executive Officers to act as governance structures in the interim. This presents an apparent conflict of roles and accountability, as executives are now expected to both implement and oversee decisions, compromising the checks and balances essential to good governance. At the merSETA, this situation is even more problematic. The CEO position is currently held in an acting capacity due to unresolved internal governance issues. This means that the SETA is now operating without both an Accounting Authority and a permanent executive head, creating a leadership vacuum that threatens the integrity of decision-making and fiduciary oversight. The plastics sector, alongside other manufacturing industries, relies on merSETA to implement skills development programmes in an ethical, transparent, and accountable manner. The current arrangement, however, raises serious concerns regarding ethical leadership, governance compliance, and public trust. The plastics industry calls on DHET to urgently prioritise the appointment of a competent, representative, and independent Accounting Authority at the merSETA. This is essential to restore governance stability, reinforce public accountability, and uphold the principles of ethical leadership required by the Skills Development Act and King IV governance standards. Skills development is a national imperative. It must be stewarded by governance structures that are fully functional, transparent, and capable of making decisions in the public interest. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/governance-concerns-deepen-as-merseta-remains-without-an-accounting-authority-2025-07-17