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- WHAT ARE THE RULES FOR THE MODIFIED FLOW-THROUGH PRINCIPLE?
Under the element of Ownership, there is an existing principle that allows for the modification of Black Ownership in an Ownership Structure. The rules are as follows under the General Amended B-BBEE Codes of Good Practice: A Measured Entity applying this Modified Flow-Through Principle cannot benefit from the Exclusion Principle. The Modified Flow-Through Principle applies to B-BBEE owned or controlled company in the Ownership of the Measured Entity. In calculating Exercisable Voting Rights under paragraph 2.1.1, and Economic Interest under paragraph 2.2.1 of the Ownership scorecard the following applies: Where in the chain of Ownership, Black people have a flow-through level of participation of at least 51%, and then only once in the entire ownership structure of the Measured Entity, such Black participation may be treated as if it were 100% Black. The Modified Flow-Through Principle may only be applied in the calculation of the indicators in paragraphs 2.1.1 and 2.2.1 of the Ownership scorecard. In all other instances, the Flow-Through Principle applies. Ownership Services are available to help members understand the Modified-Flow Through Principle.
- WHAT IS THE DEFINITION OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT?
As Practitioners in the Industry, we use the term Broad-Based Black Economic Empowerment or B-BBEE quite frequently, but what does it actually mean formally? As per the Broad-Based Black Economic Empowerment Act, Broad-Based Black Economic Empowerment means: The viable economic empowerment of all black people, in particular women, workers, youth, people with disabilities and people living in rural areas, through diverse but integrated socio-economic strategies that include, but are not limited to- (a) increasing the number of black people that manage, own and control enterprises and productive assets; (b) facilitating ownership and management of enterprises and productive assets by communities, workers, co-operatives and other collective enterprises; (c) human resource and skills development; (d) achieving equitable representation in all occupational categories and levels in the workforce; (e) preferential procurement from enterprises that are owned or managed by black people; and (f) investment in enterprises that are owned or managed by black people Technical Services are available to assist Members in understanding the above definition and to create B-BBEE strategies aligned to the above.
- CCBSA STRENGTHENS TRANSFORMATION CREDENTIALS WITH STRONG B-BBEE PERFORMANCE
CCBSA | 24 November 2025 Coca-Cola Beverages South Africa (CCBSA), a proudly local company, has reaffirmed its commitment to transformation by achieving a Level 2 Broad-Based Black Economic Empowerment (B-BBEE) rating, up from Level 3. This improved rating reflects CCBSA’s ongoing efforts to embed transformation across all areas of its business – from workplace representation and skills development to enterprise and supplier development, and strategic partnerships throughout its supply chain. “Following a thorough verification process, we’re proud to have achieved a Level 2 B-BBEE status,” said Basetsana-Bame Modimogale, Public Affairs, Communication and Sustainability Director at CCBSA, a company in the Coca-Cola Beverages Africa group. “We’ve consistently pursued progress across key pillars, with a clear focus on inclusive growth. Our commitment is reflected in how we impact all elements of the B-BBEE scorecard by continuously monitoring our progress and addressing with action where we need to improve. We believe that our growth is linked to the development of our employees and our entire value chain.” One of our most notable improvements was in skills development, where CCBSA gained more than five points year-on-year. This was driven by focused investment in learnerships for people living with disabilities, and training programmes. The company also achieved a 94% learner employment rate, demonstrating a commitment to building a more sustainable pipeline of talent and reinforcing its position as an employer of choice. CCBSA continues to prioritise Preferential Procurement, with over 50% of adjusted spend directed to black-owned suppliers and more than 30% to black women-owned businesses. These figures reflect a continued effort to unlock opportunities for small and medium-sized businesses and support inclusive economic growth. Integrity, transparency, and fairness remain central to CCBSA’s operations, with all decisions guided by ethics and core values. The company adheres strictly to policies, legal requirements, and industry best practices – ensuring integrity while building long-term trust with stakeholders. Strong performance was also maintained in enterprise and supplier development and socio-economic development, extending CCBSA’s impact beyond its direct operations to help drive more inclusive economic participation and uplift communities. This milestone also reinforces CCBSA’s broader purpose to Refresh Africa and Create Shared Value, anchoring business success in meaningful and measurable contributions to economic development, opportunity creation and lasting impact across the communities it serves. “Since our establishment in 2016, transformation has never been a checkbox exercise, but rather a strategic imperative at the core of who we are as CCBSA,” Modimogale added. “Our ongoing transformation journey is a testament to what’s possible when purpose, partnership and perseverance unite. We remain committed to building a future that is more inclusive and prosperous for all South Africans.” ‘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/industry-news/844357/ccbsa-strengthens-transformation-credentials-with-strong-b-bbee-performance/
- DURBAN INNOVATORS SHINE AT GLOBAL ENTREPRENEURSHIP FESTIVAL
SA News | 24 November 2025 Durban’s innovators were among the top achievers at the Global Entrepreneurship Festival (GEF) held in Accra, Ghana, from 21–23 November 2025. The festival is recognised as Africa’s largest platform for enterprise and innovation. Hosted during Global Entrepreneurship Week, this year’s event brought together thought leaders, investors, innovators, and entrepreneurs from various sectors across the world, under the theme: “AI-Powered Entrepreneur: Creating a Sustainable Planet.” This year’s edition attracted over 10 000 participants from more than 70 countries and reached millions through digital platforms. Over 100 exhibitors showcased their innovations, including 10 small, medium and micro-sized enterprises (SMMEs) from Durban, whose participation was supported by eThekwini Municipality and Trade and Investment KwaZulu-Natal. The support resulted in increased visibility for Durban’s entrepreneurs, new market access, and strong business leads. For many of the exhibitors, GEF 2025 was a breakthrough moment. Nolwazi Thusi, founder of Green Everything Recycling, which transforms recyclables into functional furniture and art, secured international sales during the festival. She described the event as “a valuable platform to connect with like-minded entrepreneurs committed to impactful change.” Fashion entrepreneur Lusanda Linqe, founder of Mangala Kreationz, highlighted the value of networking and knowledge exchange sessions. “My highlight was the successful sales and new supplier relationships, including access to distinctive Ghanaian fabrics that will further strengthen my brand,” Linqe said. Leading the Durban delegation, eThekwini City Manager Musa Mbhele welcomed the positive feedback and achievements of participating SMMEs. He commended the entrepreneurs for leveraging the global platform effectively and “demonstrating the impact of exposure, collaboration and international engagement.” Mbhele also delivered a keynote address outlining the city’s innovation and business development initiatives, reaffirming that creating global opportunities for local entrepreneurs remains a key priority. He commended GEF for its professionalism, scale and alignment with Africa’s development goals, and expressed Durban’s interest in hosting a future edition of the festival, to enhance African linkages and advance the continent’s collective economic growth. He further emphasised the need for strengthened African collaboration to support and grow the SMME sector. “The diaspora plays a critical role in opening new markets, expanding resources and building networks that drive inclusion and economic resilience,” Mbhele said. “The diaspora plays a critical role in opening new markets, expanding resources and building networks that drive inclusion and economic resilience,” Mbhele said. Its strong focus on artificial intelligence highlighted the technological shifts reshaping entrepreneurship across the continent. The programme featured exhibitions, empowerment workshops, keynote presentations, robotics demonstrations, a trade expo, the Global Leadership Forum and creative showcases, including a fashion runway featuring local designers. As the Durban delegation returns home, they do so armed with new partnerships, market leads and renewed inspiration, reinforcing their readiness to grow within an increasingly interconnected global 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://www.sanews.gov.za/south-africa/durban-innovators-shine-global-entrepreneurship-festival
- SOUTH AFRICA STANDS FIRM ON INVESTMENT RULES
SG Editor | 19 November 2025 South Africa’s digital minister has firmly rejected giving Elon Musk’s Starlink or any foreign tech company special regulatory shortcuts, insisting they must “play by the same rules” as local companies. This stance emphasizes the government’s commitment to its Black Economic Empowerment (BEE) policies, which require corporate Black ownership and investment in companies operating in the country. While acknowledging that the current multilayered licensing system is a bottleneck hindering connectivity, Malatsi believes reform cannot come at the cost of perceived preferential treatment. The minister faces a delicate balancing act: attracting the foreign investment needed to bridge the digital divide for millions of citizens, while upholding the nation’s core economic transformation principles. This decision places South Africa at a critical juncture, as it must compete with other African nations offering more flexible regimes to global tech investors. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://africa.com/south-africa-stands-firm-on-investment-rules/
- COMPLIANCE CHALLENGES HINDER AFRICAN SMMES FROM ACCESSING GREEN CAPITAL
Ashley Lechman | 20 November 2025 As the global community intensifies its focus on sustainable finance and inclusive growth, small and medium enterprises (SMMEs) in South Africa find themselves struggling to emerge from the shadows of inadequate compliance structures. With the G20 Summit on the horizon, the spotlight is on the need for effective governance that can facilitate access to green and impact investment capital, a crucial lifeline for SMMEs aiming to thrive in an increasingly competitive landscape. Hiten Keshave, CEO of the SME empowerment organisation Unconventional CA (UCA), stresses the importance of governance amid soaring interest in Africa from global investors. “The upcoming G20 Summit presents a pivotal opportunity for South Africa to showcase its commitment to reform, turning investor confidence into tangible economic outcomes,” he states. However, the path to achieving this relies heavily on solid governance and comprehensive compliance strategies. While discussions surrounding environmental (E) and social (S) dimensions of ESG (environmental, social, and governance) garner considerable attention, it is the governance (G) element that appears to be the Achilles' heel for many SMMEs. The complexities involved in compliance, coupled with limited resources and prohibitive costs, place substantial burdens on these enterprises. In fact, research shows that nearly 90% of SMMEs struggle with tax obligations, a significant compliance gap hindering their readiness for funding. “We need a fundamental shift so that compliance is the starting point for SMMEs, rather than an afterthought,” Keshave said. “Only then will our SMMEs move beyond playing catch-up to becoming front-runners in the green and impact investment economy.” This stark reality is underscored by UCA's compliance assessments through their Ember360 monitoring and evaluation platform, revealing a disconnect where 65% of SMMEs believe their compliance is satisfactory, while in-depth evaluations indicate that as many as 75% fall short of the required minimum standards. “This persistent failure of compliance is the major choke point when SMMEs attempt to access funding, scale operations, or meet global reporting expectations. You cannot have sustainable finance without compliance. It is like putting the cart before the horse,” Keshave added. The G20’s report on Strong, Sustainable, Balanced and Inclusive Growth highlights the urgent need for credible data and robust compliance frameworks. As South Africa leads the G20 this year, a focus on inclusive growth, industrialisation, job creation, and reducing inequality aligns seamlessly with this agenda, positioning the nation’s SMMEs at the forefront of Africa's economic development. Despite their critical role, the reality is that many SMMEs are inadequately prepared to meet evolving investor expectations. UCA data shows that numerous enterprises struggle to implement environmental systems or develop social-impact programmes, often hindered by a lack of capital until compliance is established. This results in a frustrating catch-22: no compliance means no access to capital, and without capital, sustainable and social progress remains unattainable. “We’re at a tipping point. Investors are now demanding proof of compliance, transparency, and risk management. Without the G, the E and S in ESG cannot thrive. If Africa’s SMMEs do not get their compliance house in order, they risk missing the biggest wave of inclusive-growth capital in a generation,” Keshave said. Bridging the compliance gap For many African SMMEs, compliance feels more like an insurmountable barrier than a necessary enabler for business growth. The overwhelming complexities associated with navigating regulations, paired with limited resources, create a daunting red tape effect, hindering access to much-needed capital. Solutions must be sought to simplify compliance procedures—including standardised reporting templates and tiered regulatory requirements that scale according to business size. Additionally, providing clearer guidance on ESG expectations and embedding compliance support within enterprise development programmes could significantly enhance SMME resilience. Keshave advocates for innovative monitoring strategies, ensuring that businesses have reliable methods to track and evaluate their compliance performance. “To unlock sustainable finance for Africa’s SMMEs,” he asserts, “we need a practical rethink of ESG readiness. This includes simplifying compliance, embedding support directly into enterprise programmes, and using sustainability reporting as a forward-looking tool that connects verified impacts to business performance and investor confidence.” “African SMMEs have the talent, the drive, and the social impact vision,” Keshave further said. “However, without compliance at the core, they will continue to miss opportunities that could propel their businesses and foster enduring inclusive growth.” ‘Disclaimer - The views and opinions expressed in this article are those of the autho r(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/business-report/entrepreneurs/2025-11-20-compliance-challenges-hinder-african-smmes-from-accessing-green-capital/
- SOUTH AFRICA’S ECONOMY COULD BE R4.5 TRILLION LARGER
Staff Writer | 18 November 2025 Investec chief executive Fani Titi says it is time for South Africa to prioritise contribution over compliance and productivity over patronage. He added that the country’s moral and social commitment to empowerment must remain as steadfast as ever. However, the mechanism should change to reward those who build, teach, employ and create, and to measure what matters. Titi argued that if empowerment focuses on pragmatism instead of ideology, it would transform empowerment from a brake on growth into a flywheel for it. These suggestions formed part of a post that Titi published on LinkedIn about the current debate surrounding Broad-Based Black Economic Empowerment (B-BBEE). There is a growing narrative that BEE is a failed social experiment, which places a tax on investment that South Africa cannot afford. It also opened the door to rent-seeking and corruption, as well as the appointment of unqualified cadres to key public positions. However, he argued that these problems are not a reason enough to abandon the principle of economic inclusion. “This would be a profound mistake,” he said. “We need a more innovative approach, premised on effectiveness, integrity, accountability and a foundational commitment to rapid economic growth.” The guiding principle of such a policy framework should be to reach the largest number of economically excluded citizens in the shortest possible time. Titi said a new policy framework should focus on four key areas: Value for money in public procurement: Taxpayers’ money should be used to maximise the reach and quality of essential services. An end to cronyism: The appointment of well-connected but unqualified people to public positions has done untold damage to state capacity. Employee participation: The broad involvement of employees in company ownership is preferable to highly concentrated equity deals. Equity equivalence: Public benefit programmes can deliver a broad and durable impact which benefits the country. “Transformation efforts ought ultimately to be directed at poverty and capability rather than focusing solely on race and gender,” he said. South Africa’s economy could be much bigger As part of his post on LinkedIn, Titi stated that there is ample evidence that economic inclusion and growth are not mutually exclusive. “One need only think back to the years between 2002 and 2008, following the initial enactment of BEE in our law,” he said. This era witnessed a significant increase in the representation of black and female individuals in management and control roles. There was also broader access to skills development and expanded opportunities for black- and female-owned businesses. It was a period in which economic growth averaged 4% per year, business confidence reached historical highs, and unemployment fell from 28% to 21%. “Had this trajectory continued, today’s South Africa would look markedly different,” Titi highlighted. According to Investec’s research, the South African economy would now be worth approximately R12 trillion, rather than R7.5 trillion . This would have resulted in higher levels of employment, a broader tax base, and more funds to allocate to education, healthcare, policing, and social security. “Consider the opportunities that such conditions would present for young professionals, or the prospects of startup enterprises,” he said. “Most of those professionals and businesses would be black, and a good proportion female, simply based on South Africa’s demographics.” Titi said this is not merely an indulgent counterfactual. It is a picture of what is possible if South Africa can return to a path of inclusive economic growth. ‘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/finance/843337/south-africas-economy-could-be-r4-5-trillion-larger/
- ABSA, HEINEKEN LAUNCH MAJOR R1.2BN FUND FOR BLACK-OWNED SMES
Bizcommunity | 18 November 2025 Absa and Heineken Beverages have announced a joint R1.2bn funding initiative aimed at transforming the landscape for Black-owned small and medium-sized enterprises (SMEs) in South Africa. The programme seeks to strengthen access to capital, governance support, and scalable business growth, addressing the challenges facing SMEs in a difficult economic climate. The SME sector contributes approximately 34% to South Africa’s GDP and provides 60% of national employment. Recent reports indicate mounting financial pressure, with over 620 business closures recorded in 2025 and GDP growth revised to below 1%. Court-enforced liquidations have highlighted the growing distress among SMEs, making targeted interventions increasingly urgent. The R1.2bn initiative comprises R600m in Enterprise and Supplier Development (ESD) funding from Heineken, administered by Absa, and an additional R600m in co-lending for qualifying SMEs from Absa. The programme is expected to support more than 100 Black-owned SMEs, particularly those facing persistent barriers to mainstream finance. Heineken’s broader Ukukhula Fund, which includes the Supplier Development (SD) Fund and the Growth and Localisation (G&L) Fund, underpins this initiative. The SD Fund allocates R400m over five years to historically disadvantaged suppliers, including Black-owned and Black women-owned businesses, across the alcoholic beverages value chain. The G&L Fund contributes R200m to develop local enterprises within Heineken’s supply chain, encourage import replacement, and strengthen national economic resilience. Beyond funding, participating SMEs will receive business development services, financial literacy training, and integration into national markets via Absa’s ESD platforms and agri-sector networks. Absa will contribute R1.5m annually to Heineken’s business development initiatives, and R100,000 to financial education programmes. Stephen Seaka, managing executive, Public Sector and Growth Capital Solutions at Absa CIB, emphasised the broader objectives: “This transaction reflects our commitment to embedding governance, transparency, and measurable outcomes into transformation finance. Through this funding deal, we are enabling scalable social impact by driving supply chain access, localisation, and financial inclusion.” Vignesh Subramani, managing executive (interim): SME Business at Absa Business Banking, added: “Small businesses are the heartbeat of our economy. This partnership not only unlocks capital for Black-owned SMEs but also provides an ecosystem of support to help them scale and compete sustainably. Transformation is most effective when it is practical and measurable, and this initiative is a step in that direction.” The collaboration between Absa and Heineken signals a strategic effort to promote inclusive economic growth, financial inclusion, and long-term resilience for Black-owned businesses in South Africa. ‘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.bizcommunity.com/article/absa-heineken-launch-major-r12bn-fund-for-black-owned-smes-285147a
- WINDS OF CHANGE SURROUNDING BEE IN SOUTH AFRICA
Staff Writer | 19 November 2025 Political and economic expert Dr Frans Cronje says the black economic empowerment experiment has failed and that it is time for South Africa to move on. Cronje shared his views about South Africa’s economic policies during a discussion with Mike Sham on the State of the Nation podcast . He said that, although South Africa is on a good economic trajectory, there are a handful of policies that are hampering growth. “South Africa’s economy is growing at 1%. It should be growing at 5%. The reason it is not happening is because of government policies,” Cronje said. The key policies preventing growth in South Africa are black economic empowerment (BEE) and the Expropriation Act. The new Expropriation Act allows the state to take property without compensation or at a price below market value. “This act has nothing to do with land reform and everything to do with putting politicians in a position to extract wealth from money committed to the country,” he said. Commenting on BEE, Cronje said it is a tax on capital on arrival, as companies have to give away a portion of their business to invest in South Africa. “If you want to enter the South African economy, you have to pay a steep fee because of the empowerment policies,” he said. “The consequence is that many projects which would have been viable become unviable and investors go to other countries.” He highlighted ANC spokesperson Mahlengi Bhengu-Motsiri’s comments, where she said companies can take their money elsewhere if they don’t like BEE. She said that if investors don’t like South Africa’s policies, they can go elsewhere. “They can invest in India or somewhere else,” Bhengu-Motsiri said. Changing perception around BEE Cronje stated that there were significant changes in how people perceive black empowerment, and it was time to reconsider this policy. He cited President Cyril Ramaphosa’s comments regarding BEE following the Democratic Alliance’s (DA’s) proposal to significantly alter B-BBEE policies. Ramaphosa stated that Parliament is the correct and only venue for discussing amendments to the BEE legislation. Cronje said this was an astonishing show of how far the country has moved, considering that black economic empowerment was a foundational policy of the ANC. He added that it is now commonplace for people close to the ANC to concede that BEE policies are counterproductive to economic growth. “Ten years ago, you could not even talk about it. However, it is now the case that people don’t view BEE favourably,” he said. Cronje cited a poll, where 80% of South Africans said businesses that employ people and pay tax should not have to comply with further BEE requirements. “If the ANC does not read the signs well enough, it will increasingly find itself in a position where the balance of public opinion overtakes it,” he said. This creates a situation where the party’s leadership and ideology fail to align with what their voter base wants. Cronje highlighted that investor confidence has halved over the last two decades, which illustrates the devastating effect of poor government policies. The solution is to remove obstacles to investment, which include black empowerment requirements and the Expropriation Act. This will encourage local companies to start investing, which, in turn, will spark more interest from their international counterparts to follow. ‘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/843566/winds-of-change-surrounding-bee-in-south-africa/
- WHAT IS THE DEFINITION OF “BLACK PEOPLE”?
Although the Definition of Black People has been in existence for some time now, we often find that it is still not clear for many. There is often a confusion around certain race groups or the way the person has obtained South African citizenship. The definition of “Black People” as per the B-BBEE Act is as follows: “Black People” is a generic term which means Africans, Coloureds and Indians- (a) who are citizens of the Republic of South Africa by birth or descent; or (b) who became citizens of the Republic of South Africa by naturalisation- (i) before 27 April 1994; or (ii) on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date; Technical Services are available to assist Members in understanding the above definition.
- BONUS POINTS BASED ON TIMING AND CREATING AN ECOSYSTEM
Enterprise Development and Supplier Development were designed to complement one another. Under the General Amended B-BBEE Codes of Good Practice, the aim is for an organisation to develop a Beneficiary through Enterprise Development, then procure a good or service from them, and then elevate them to a Supplier Development Beneficiary. Bonus Points are available for such a successful elevation and creates an ecosystem of sustainable impact. To achieve the Bonus Points on offer, organisations must ensure that all these sub-elements are claimed in the same Measurement Period . Enterprise and Supplier Development Services are available to help members determine how to claim these Bonus Points sustainably.
- ESKOM RESPONDS TO QUESTIONS ABOUT EXCLUDING WHITE MALES FROM SENIOR MANAGEMENT SHORTLIST
Jan Vermeulen | 13 November 2025 Eskom has denied that it excludes any race or gender in its recruitment process, despite fighting in the Labour Appeal Court to be allowed to reject white male applicants from being shortlisted for an appointment. The state-owned power utility recently won its appeal against a Labour Court decision, which found that Eskom’s practice of not shortlisting white males for an advertised post was unlawful. The matter dates back to 2017, when Eskom advertised a post for a “Senior Manager: Outage Execution at Peaking Power Station”. Alwyn Erasmus, who worked at Eskom for 30 years, applied for the position, along with numerous other employees. On his application form, Erasmus indicated that he is an African. He and other candidates who met the minimum requirements were shortlisted. Numerous staff from Eskom’s Human Resources Department interviewed the candidates, and Erasmus was recommended for the post but not appointed. The Presiding Officer found that Erasmus’ appointment would not have caused a decline in the employment equity. However, white males were overrepresented by 16% in the Group Technology Division (GTD). Eskom saw this as a missed opportunity to improve the employment equity at the GTD. Eskom’s Human Resources division confirmed that Erasmus would not have been shortlisted if he had indicated that he was white instead of African. Erasmus requested details about the decision under the Promotion of Access to Information Act, but Eskom refused. Trade union Solidarity then brought the issue to the Commission for Conciliation, Mediation and Arbitration (CCMA) as an unfair discrimination dispute on Erasmus’s behalf. In August 2018, the CCMA issued a certificate of outcome indicating that the matter remained unresolved. Solidarity then approached the Labour Court. In 2024, Judge Hilary Rabkin-Naicker ruled that Eskom’s approach was an unfair form of discrimination that violated the Employment Equity Act. Rabkin-Naicker held that rejecting applicants from non-designated groups at the shortlisting stage created an absolute barrier to prospective employment and advancement, contravening the Act. The Labour Appeal Court overturned this ruling, reasoning that Eskom’s policy of pipelining and giving preference to African males and females was rational. Pipelining involves promoting designated groups, in this case, women and black men, from middle management to reach the desired race and gender balance at the top. “This was a rational way to target a particular class of persons who have been susceptible to unfair discrimination at that level,” the panel of three judges ruled. “It was conceived to protect and advance them, and it promotes equality.” Eskom disputes media reports Eskom was critical of media reports stating that its Labour Appeal Court victory allowed it to exclude white males from senior management positions. To better understand its position, MyBroadband contacted the power utility with five questions, asking it to answer each one separately. 1. Does Eskom view excluding a specific race or gender from being shortlisted as discrimination? No answer. 2. If not, can you explain why you don’t view this as discrimination? No answer. 3. Do you anticipate that you will, in future, exclude people based on race or gender from being shortlisted to meet your employment equity targets? No answer. 4. In 2022, Eskom chair Mteto Nyati said that to save the company, empowerment rules should be changed. He specifically mentioned employment equity targets. Does he stand by those remarks? No answer. 5. Can you explain where in the ruling it says that excluding someone at the shortlisting stage based on race or gender is not an absolute barrier? No answer. Eskom provides an official statement Instead of answering MyBroadband’s questions, Eskom provided a statement regarding the court ruling and its Employment Equity statement. “While MyBroadband’s questions follow its own public interpretation of the court order, Eskom’s position remains consistent: we follow the rule of law,” an Eskom spokesperson said. “We do not exclude any race, gender or people living with disabilities, as stated in our response to your recent article.” Eskom stated that its HR strategy is grounded in building a high-performance, ethical organisation, powered by an inclusive culture that values diversity. “Our recruitment processes uphold the principles of fairness, representation, and inclusion, in line with South Africa’s Employment Equity Act and constitutional framework,” it said. “Eskom does not practise or support unfair discrimination of any kind.” The power utility maintained that the Labour Appeal Court confirmed that its employment equity plans and practices are lawful, inclusive, and do not exclude any group. “The Court affirmed that equity and representivity considerations may legitimately be applied during recruitment, provided they are not rigid quotas or absolute barriers,” it said. “Our approach to transformation is one of inclusion and redress, not exclusion.” Eskom said employment equity targets guide long-term transformation, while each appointment remains grounded in fairness, competence, and performance. “Transformation and performance are not competing goals; they are mutually reinforcing,” it said. “Eskom’s strength lies in attracting and developing diverse talent to build a more representative, capable, and ethical organisation that delivers sustainable energy for South Africa.” Solidarity responds to Labour Appeal Court judgment and Eskom MyBroadband also contacted trade union Solidarity for comment on the case and Eskom’s remarks on Twitter. Anton van der Bijl, the deputy CEO and head of legal services, directly addressed our questions. 1. Do you agree with the Labour Appeal Court’s judgment? Whilst we are obviously disappointed with the judgment, we are obtaining legal advice as to whether there are grounds for a further referral of the matter. 2. In its response to our report about the ruling, Eskom made several statements, including “Eskom does not exclude any race group from employment.” Is that true? I think they are disingenuous. Obviously, Eskom’s workforce consists of many races. But they have a strict race-based policy inherent in all employment decisions made. If that were not true, obviously, there would not have been the necessity for us to financially invest heavily in this Court case to ensure that justice prevails. 3. Eskom said: “The Labour Appeal Court affirmed that Eskom’s employment equity measures are lawful, rational, and do not constitute an absolute barrier to any group.” Is this accurate? If that is Eskom’s deduction from this court case, it’s a bit of a stretch of the imagination. The court declared this specific matter, and the specific non-appointment of Mr Erasmus, as not discriminatory. Nothing more, nothing less. 4. Eskom said: “Eskom believes that transformation is about redress, not exclusion.” Do you agree with this statement? Quite logically, if it were about redress, a designated person would have been appointed. Yet Mr Erasmus was “excluded” without someone being “redressed”. How this can be touted as any sort of win, in any way, is beyond imagination. Yet again, we as taxpayers must foot the bill for work not being done due to someone not being appointed based on the colour of their skin. 5. Will you be challenging the Labour Appeal Court’s judgment? If so, where would a further appeal be heard? See my answer to question 1. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/energy/618158-eskom-responds-to-questions-about-excluding-white-males-from-senior-management-shortlist.html














