Search Results

Shaun Smit | 2 July 2025 With South Africa’s skills shortage, the high cost of employee turnover and increasingly mobile skilled professionals, retention of top talent remains a cornerstone of organisational success. This is even more relevant in the context of the recently gazetted Employment Equity Amendment Act, Sectoral Targets and Employment Equity Regulations. To keep their best people, South African businesses must employ multifaceted strategies, including long-term incentives, such as Employee Share Ownership Plans (ESOPs). Retention challenges that businesses encounter include an ageing workforce, the emigration of professionals, and younger employees who increasingly seek purpose-driven work and flexibility. The job market is extremely competitive, especially in finance, IT, and engineering. The Employment Equity Amendment Act, effective from 1 January 2025, introduces five-year sectoral targets for black people, women and people with disabilities, and makes retention more important than ever. Companies with 50 or more employees must comply with these regulations to avoid penalties and ensure business continuity. Non-compliance can result in significant penalties and exclusion from public contracts. This means organisations need to rethink their approach to attraction and retention, and implement a blend of strategies that resonates with their employees' needs and aspirations. Key tools that can help in achieving this goal include: Competitive compensation and benefits - Include retirement benefits, performance bonuses, and wellness programmes. Provide flexible work arrangements to support employees seeking work-life balance. Long-term incentives - Use deferred bonuses and Employee Share Ownership Plans (ESOPs) to align employee interests with the company’s success, building loyalty and motivation. Career development opportunities - Encourage upskilling through leadership programmes, mentorship, and tuition support, allowing employees to invest in their growth. Workplace culture and engagement - Promote inclusivity and recognition to improve employee satisfaction. Use engagement initiatives like regular feedback sessions and diversity strategies to create a sense of belonging. Employee ownership as a retention tool Employee ownership is increasingly recognised as a powerful strategy for businesses seeking to attract and retain skilled professionals and key talent. This approach has gained traction globally, and offers significant benefits for retaining employees. Employee Share Ownership Plans (ESOPs) and Management Share Ownership Plans (MSOPs) are particularly powerful retention tools in the South African context. They allow eligible employees to acquire equity, directly or indirectly, in the company, resulting in several benefits: Alignment of interests: Employees become co-owners, which deepens their commitment to the company’s goals. Financial upside: The potential for financial gain motivates employees to stay longer. Retention through vesting: Ownership benefits that vest over time – common in MSOPs - encourage long-term employment. Structuring ESOPs to support B-BBEE objectives can improve compliance and enhance competitiveness. Retaining Black talent positively impacts the Management Control B-BBEE pillar and supports meeting Employment Equity requirements. Employee ownership doesn’t just aid retention and support B-BBEE compliance though. It also transforms organisational culture. When employees have a stake in outcomes, their goals align with those of the business. This alignment boosts engagement and productivity, with employees being more motivated and committed. Ownership also drives innovation, leading employees to share ideas and collaborate. A culture of shared ownership lowers turnover rates and strengthens the internal knowledge base. By adopting employee ownership strategies, businesses can become more resilient and create a committed workforce that contributes to success. The retention challenge Amid a skills shortage, South African businesses must prioritise talent retention. This pressure is exacerbated by the Employment Equity Amendment Act, which underscores the importance of retaining historically disadvantaged talent as a moral, strategic, and legislative priority. While short-term incentives are valuable, long-term strategies, such as career development and equity participation, provide the greatest returns. Well-structured ESOPs serve as an effective means to retain talent and create shared value. They enhance employee engagement and loyalty while delivering measurable benefits in business performance. Retaining skilled talent won’t come from a single fix, but from a deliberate mix of strategies that reflect the complex, human side of work in the 21st century. ‘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/no-one-stop-solution-to-successful-talent-retention-259077a

Creamer Media | 30 June 2025 South Africa’s rural and peri-urban areas are home to a vibrant informal economy—an enterprising ecosystem of spaza shops, street vendors, barbers, mechanics, and countless micro-enterprises that shape daily life in the townships. It’s a space defined not only by survival, but by creativity and community-rooted resilience. And there’s a name for it: kasinomics. Coined by South African marketer and author GG Alcock, kasinomics speaks to a R1 trillion economy built on grit, trust, hustle, and lived experience. On International Micro-, Small and Medium-sized Enterprises (MSME) Day (27 June), Sappi Southern Africa is proud not just to acknowledge the impact of kasinomics—but to be an active partner in sustaining its momentum and unlocking its true potential. “MSMEs are the oxygen of the South African economy,” notes Lesiba Lamola, Regional ESD Sourcing Manager at Sappi. “They create jobs, they drive innovation, and most importantly, they uplift entire communities. Our mission has been to move beyond handouts and into meaningful partnerships.” That mission is reflected in the Abashintshi programme launched in 2018, which introduced 120 young people to Asset-Based Community Development (ABCD) principles, equipping them with the skills and confidence to spot opportunities and ignite enterprise in their own backyards. From that initiative, a wave of local entrepreneurs has emerged—each with a compelling story. In Hlokozi, KwaZulu-Natal, Patrick Gcina Khumalo evolved from a self-taught welder into the owner of a certified carpentry and welding business. With tools, equipment, training, and ongoing mentoring from Sappi’s Enterprise and Supplier Development (ESD) team, Patrick now takes on larger contracts and employs others in his community. “This support has transformed my business, giving me the confidence to take on bigger projects, build a better future, and even create jobs in my community,” he says. Equally inspiring is Nonkululeko Zimba, based in Vimbukhalo near Winterton. A former Abashintshi participant, she used her ABCD training to launch Sehlukaniso (Pty) Ltd, a brickmaking business that helps community members build dignified homes. With funding and technical support from Sappi, her business has expanded its reach—and its purpose. “I still can’t believe my dream has come true,” Nonkululeko shares. “This is how I bring change to my community.” Sappi’s broader ESD strategy, formalised in 2018, continues to catalyse grassroots development with tangible outcomes. In FY2024 alone, the company spent ZAR372 million procuring from SMEs—surpassing its target by ZAR250 million—while sustaining over 1,500 jobs. A further ZAR57 million was spent through subcontracted SMEs, and ZAR900,000 was invested in SME training and development. The results speak volumes. From logistics to construction, lives are changing. Through a strategic partnership with the Ithala Development Finance Corporation, transport entrepreneur Sanele Mkhize took ownership of three new Mercedes-Benz trucks valued at R11.6 million. Meanwhile, Mpume Gumede of Thuba Construction was able to acquire heavy machinery after being awarded a five-year Sappi contract to transport bagasse at the Stanger Mill. “I cried tears of joy when the loan was approved,” she says. “Now I know I’ll meet Sappi’s specs and grow my company.” The company’s renowned Khulisa programme is an anchor of inclusion across the forestry value chain. In 2024, over 4,100 growers delivered 318,116 tons of timber to Sappi operations—resulting in ZAR332.6 million paid to these small-scale suppliers. Over 550 of them completed forestry training during the year, covering everything from safety to silviculture management. Beyond timber, some Khulisa participants—like Baleti Estate in Mpumalanga—have begun to diversify their enterprises. With Sappi’s support, Baleti now produces and sells honey at the Ngodwana Farm Stall, while receiving continuous training and certification assistance. “Our perspective has completely changed,” says Director Mandla Mooko. “Sappi’s guidance helped us expand and see new possibilities.” Back in KwaZulu-Natal, the Inkanyezi Yamahobe Trust in Richmond has grown into a successful community-based enterprise with 468 hectares of timber-producing land. With Sappi’s help, they’ve established market access, improved productivity, and now deliver annual dividends of R40,000 per household—with ambitions to double that figure. “Sappi’s partnership has been a game-changer for us,” says Chairperson Thando Nxele. “It’s enabled us to grow, thrive, and contribute meaningfully to the local economy.” There’s also the story of Nhlanhla “Mhlekazi” Phoswa, who began as a forestry labourer in 1985 and now runs one of the largest silviculture contracting firms in the KZN South region. Awarded a five-year contract with Sappi in 2022, his company, Mhlekazi Forestry, has grown from 50 to 80 employees—all but one from surrounding communities. “Our goal is to upskill and employ even more people,” he explains. Through it all, the unifying thread is opportunity—the kind that’s shared, earned, and scaled. With 942 MSMEs actively participating in Sappi’s supplier value chain, the message is clear: when corporate South Africa builds deliberate, values-led partnerships, transformation takes root. And that’s the spirit of MSME Day—celebrating not just small businesses, but the outsized impact they have in reshaping industries, empowering households, and creating intergenerational legacies. Because kasinomics isn’t just a buzzword—it’s a blueprint for a more inclusive future. And together, brick by brick, hive by hive, tree by tree, that future is already being built. ‘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/sappi-powers-township-enterprise-with-strategic-msme-investment-fuelling-south-africas-kasinomics-transformation-2025-06-30

Hope Ntanzi | 1 July 2025 President Cyril Ramaphosa has reaffirmed South Africa’s commitment to broad-based economic transformation, emphasising that the country’s empowerment laws are practical, effective, and central to fostering inclusive and sustainable growth. In his weekly letter to the nation, Ramaphosa highlighted that the Broad-Based Black Economic Empowerment (B-BBEE) framework and the Equity Equivalent Investment Programme (EEIP) are key to both economic redress and development. “Amongst the most salient features of our country’s empowerment laws are their practicality, feasibility and responsiveness to economic conditions without deviating from the objective of redressing the economic injustices of exclusion of the past,” said Ramaphosa. He explained that South Africa’s transformation agenda is guided by two complementary goals: changing the racial ownership and control of the economy, and ensuring inclusive, long-term economic growth that brings black South Africans, women, and the youth into the mainstream. The EEIP, designed for multinational firms whose global structures may not allow equity ownership transfers, enables impactful investments in skills development, enterprise support, and innovation. Addressing misconceptions about the programme, Ramaphosa clarified: “Some in the public space have recently sought to suggest that the EEIP represents a circumvention of B-BBEE laws -and that it is a response to the conditions of a particular company or sector. ''Neither is factually correct. Firstly, the EEIP is not new and has been in existence for a decade.'' He reaffirmed that EEIP is “firmly embedded in our laws” and comes with stringent requirements and government oversight to ensure meaningful, broad-based impact. ''The Broad-Based Black Economic Empowerment legal framework applies to all companies wishing to invest in and do business in our economy, whether they are local or foreign.'' This comes as Elon Musk’ s satellite internet company, Starlink , has expressed interest in entering the South African market, despite Musk's previous criticism of the country’s B-BBEE legislation. Companies like Microsoft, Amazon, IBM, Samsung, and global automakers including Toyota and BMW have successfully used EEIP to fund socio-economic development, support black-owned enterprises, and advance South Africa’s digital and industrial transformation, he said.  ''By way of example, last year IT giant Microsoft announced a R1,32 billion investment over ten years in skills and supplier and 4IR research and development - under the EEIP. ''These firms have leveraged the EEIP to direct investment into local development, to incubate black, youth and women-owned businesses, and to fund skills development. This has in turn assisted government in achieving a number of policy and also infrastructure goals''. “Equity Equivalents have been proven to be a practical B-BBEE compliance tool for multinationals operating in South Africa, and we will continue to leverage them in pursuit of economic growth and job creation.” Ramaphosa further highlighted that B-BBEE compliance should not be seen as a burden, but as an investment in the country’s future.  ''Not only do we have to move away from the perception that we must make a choice between growth and transformation – we also have to shift the mindset that compliance with B-BBEE is punitive or burdensome.  “By supporting firms with compliance they are able to embrace empowerment as a meaningful investment in South African’s long-term economic stability. This is a sound strategy that recognises that a transformed South African economy is one in which their investments are safe and guaranteed.” He also highlighted the need for South Africa to adapt to changing global economic dynamics.  “Just as our economy has evolved since our B-BBEE laws were first conceptualised, so has the playing field.” “The emergence of new industries, whether it is digital technology, advanced manufacturing, AI or renewable energy, means South Africa must actively position itself to attract greater foreign and domestic investment in these sectors or risk being left behind.” As the country works to strengthen competitiveness in emerging sectors, Ramaphosa reiterated that transformation remains non-negotiable. “Our empowerment laws remain central to our goal of economic transformation in South Africa and are here to stay.” Ramaphosa called on all sectors, business, labour, and civil society, to unite in building an inclusive economy: “Our focus going forward must remain creating an enabling policy environment, driving key structural reforms, supporting innovation, and reducing regulatory barriers to harness the potential of emerging industries and support existing ones.” ‘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/politics/2025-07-01-ramaphosa-reaffirms-b-bbee-and-eeip-as-essential-to-economic-redress-and-transformation/

Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , clause 3.7 identifies the requirements for Enterprise and Supplier Development Beneficiaries.   Clause 3.7 states the following:   3.7 Beneficiaries of Supplier Development or Enterprise Development are EMEs, QSEs or Generic Entities which are at least 51% Black Owned or at least 51% Black Women Owned utilizing the flow through principle. However, in terms of Generic Entities, this is based on the provision that at the first instance of receiving assistance from the Measured Entity, it was identified that such suppliers were EMEs or QSEs. This recognition for Generic Entities will only be allowed for 5 years from the first time of receiving assistance from the Measured Entity.   Enterprise & Supplier Development Services  are available to assist Members with understanding these requirements.

Under B-BBEE Legislation the concept of Miliary Veteran Is found under the definition of Designated Group Supplier and linked to the Miliary Veterans Act 18 of 2011  which identifies a Military Veteran as follows:   “military veteran means any South African citizen who--   (a) rendered military service to any of the military organisations, statutory and non-statutory, which were involved on all sides of South Africa's Liberation War from 1960 to 1994;   (b) served in the Union Defence Force before 1961; or   (c) became a member of the new South African National Defence Force after 1994, and has completed his or her military training and no longer performs military service, and has not been dishonourably discharged from that military organisation or force: Provided that this definition does not exclude any person referred to in paragraph (a), (b) or (c) who could not complete his or her military training due to an injury sustained during military training or a disease contracted or associated  with military training;”   B-BBEE Verification Services  are available to Members in order to understand the definition of a Miliary Veteran.

Statistics South Africa is the source used to determine the Net Profit After Tax (NPAT) for calculating the targets for Enterprise Development, Supplier Development and Socio-Economic Development. The latest statistics were published during June 2025. The statistics in this version will be for the 1st quarter of 2025. Any B-BBEE Verification from hereon would most commonly apply the latest Industry Norm published by Statistics South Africa. For example, if a B-BBEE Verification takes place in July 2025, the latest published stats to be used would be those posted during June 2025.   Technical Compliance Services  is available to guide members in calculating their Targets.

Adriaan Kruger | 30 June 2025 The unemployment rate depends on your definition of employment … It happens from time to time that someone questions the integrity of the survey methods and accuracy of the figures produced by Statistics SA. The result is always the same – the head of Stats SA comes out all guns blazing to prove the statistical validity of his team’s work. The most recent debate around Stats SA’s figures erupted when Capitec CEO Gerrie Fourie remarked that the unemployment rate in South Africa could be as low as 10%. Stats SA sticks to its estimate of an official unemployment rate of nearly 32.9% – and the expanded unemployment rate of 43.1%. Fourie argues that Stats SA does not count everyone who is working in the informal sector. His view is probably influenced by the fact that Capitec has 24 million clients. He noted that nearly three million of Capitec’s clients earn an income without formal employment, and more than one million use their bank accounts to operate a small business. Fourie says the data suggests that some four million people are earning an income in the informal sector. In addition, the latest figures from the different banks in SA show that Standard Bank has around 12 million local clients, Absa has 12.7 million, FNB has 8.6 million, and Nedbank has 7.6 million. TymeBank states that it has 10 million clients. The total comes to nearly 75 million. It raises the question of why anybody would need a bank account – and apparently multiple accounts at more than one bank – if they don’t have money or don’t earn money somehow. Perhaps these figures support Fourie’s argument. Not so, says Stats SA head But the Capitec CEO received more criticism than support. Statistician-General Risenga Maluleke issued a statement saying that Stats SA does measure the informal sector. “The informal economy is not ignored,” says Maluleke. “Stats SA produces several statistical products that measure this sector, including the Quarterly Labour Force Survey (QLFS) and the Survey of Employers and the Self-Employed. The informal sector is measured, tracked and reported on consistently. Stats SA follows the guidelines set by the International Labour Organisation (ILO) for defining the informal sector, which is characterised primarily by the registration status and size of enterprises or businesses. “Our methods stand open to rigorous examination, inviting scrutiny to ensure integrity and trustworthiness. “The data we produce is publicly accessible, fostering a culture of openness,” he adds. “Our concepts, definitions and classifications are meticulously crafted, guided by the highest global standards and best practices. We take pride in our commitment to transparency, clearly articulating what we measure, and the methods employed to derive our insights.” Maluleke appeared on national television to assure people that the statistics are accurate. He took Fourie on: “If he says unemployment is sitting at 10%, it means 10% of 25 million, we’d have 2.5 million people who are unemployed in South Africa and then it means that we have 22.5 million people who are employed. The Sars [South African Revenue Service], from personal income tax doesn’t even have such numbers for starters." He says it is incorrect and misleading to suggest that Stats SA somehow “misses” those who are employed in the informal sector. The latest QLFS for the first quarter of 2025 estimates the working age population at 41.7 million of which slightly more than 25 million are considered to be in the labour force. The rest of the people are not working and not looking for work, including those still at school or studying, in jail or those who have a (wealthy and generous) spouse or family to provide for them. Around 16.8 million are classified as employed, including 3.3 million in the informal sector and more than one million in private households (domestic workers and gardeners). That leaves 8.3 million unemployed and looking for work. There are another nearly 3.5 million people who are classified as discouraged workseekers. The Stats SA report defines a discouraged workseeker as “a person who was not employed during the reference period, wanted to work, was available to work or to start a business, but did not take active steps to find work during the last four weeks” preceding the date of the survey. The employed, by gender and hours of work Source: StatsSA How Stats SA gets its data Stats SA says its sampling method is statistically correct and representative. The QLFS surveys households directly and collects information from approximately 30 000 dwelling units. It collects data on the labour market activities of all individuals aged 15 years and above in the selected dwellings. Desiree Manamela, chief director of labour statistics at Stats SA, says data collectors visit the selected dwelling units once every three months and interview all the people residing in the dwelling. “There can be multiple households within a dwelling unit. Everybody in those households will be interviewed,” she says. “The survey is structured in such a way that we don’t simply ask people whether they are employed or unemployed. There is a series of questions that we ask people within households and then we analyse the answers based on international standards to classify them according to different labour force statuses – meaning individuals are classified into three mutually exclusive and exhaustive categories following ILO hierarchy. “We have employed persons, we have unemployed persons, and we have people that we call inactive. These three labour market statuses are supposed to sum up to the working age population,” she says. “Employment takes priority over unemployment, and unemployment takes priority over inactivity. The first status that we derive is employment. “We first want to know, of the people who are in the working age population, how many are employed. Then, once you have classified the people that are employed, we move on to the next status, which is unemployment. Now we ask people questions where we are going to classify them into the unemployed or the inactive. Unemployment will take priority over inactivity.” Odd jobs regarded as employment It is quite a lengthy questionnaire that collects a lot of data. One should keep in mind, though, that the questionnaire has been designed to ensure that, based on individual responses, respondents are only asked questions that are relevant to them. Questions are arranged in six sections totalling approximately 30 pages. The questionnaire starts by identifying the respondents and covers basic aspects such as age, population group, sex, marital status, and education. The questions on employment details are asked of all persons aged 15 years and above who indicated that they did work for pay or profit – even if a person worked only for an hour during the week preceding the interview – or if they were temporarily absent. Odd jobs for payment and even unpaid work in a household business is regarded as employment. Stats SA asks about the type of work, main tasks at work, working hours, type of business, type of products produced, income, and participation in public work programmes. Time-related underemployment The QLFS collects data on how many people worked and for how many hours. A single hour of paid work during the past week classifies a person as employed. Some employed persons may report that they would like to work additional hours if the extra hours are paid. This information assists in deriving persons in time-related underemployment. The QLFS report for the first quarter of 2025 discloses that of the 16.8 million employed persons, only 9.4 million work a standard work week of 40 to 45 hours. Approximately 518 000 “employed” persons worked less than 15 hours a week. Stats SA measures this time-related underemployment by the more than 781 000 workers who said that they would like to work more hours for additional pay. We asked Manamela for a simple explanation of these statistics to confirm the information. “We don’t say a person who is working 40 hours a week is employed and somebody who is working only 20 hours is half-employed. You are either employed, unemployed or inactive; and for those employed, if they work less than 35 hours a week and are available and want to work more hours, then they are regarded as underemployed,” she says. These statistics prove Fourie wrong. If anything, most people may actually think that Stats SA is underestimating unemployment. People lie or leave out information There is also the possibility that the respondents in the survey are lying to the data collectors when asked whether they are employed. There are many reasons to lie, including those among the 18 million social grant beneficiaries who also work a day or two per week. Evading income tax is another reason to lie. And criminals wouldn’t be honest. Robbery, hijacking, drug dealing, cigarette smuggling, rhino poaching, investment scams, and prostitution generate an income, but these ‘self-employed workers’ won’t reveal their employment status. They simply bank the cash quietly. ‘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.moneyweb.co.za/news/south-africa/debate-around-unemployment-rate-grinds-on/

Cyril Ramaphosa | 30 June 2025 Among the most salient features of South Africa’s empowerment laws are their practicality, feasibility and responsiveness to economic conditions without deviating from the objective of redressing the economic injustices of exclusion of the past. This stems from the need to meet two separate but interdependent objectives. The first is to achieve substantial change in the racial composition of ownership, control and management of the economy to overcome a history of exclusion. The second is to achieve growth that is not only inclusive but sustainable in the long-term, by broadening the economic participation of enterprises owned by black South Africans, women and young people. The broad-based black economic empowerment legal framework applies to all companies wishing to invest in and do business in our economy, whether they are local or foreign. Empowerment laws are not unique to South Africa. These laws are often referred to as indigenisation or localisation measures. They exist in various forms in other emerging market economies with similar histories of race-based economic exclusion such as India, Zambia, Indonesia, Nigeria, Malaysia and Brazil. A number of these jurisdictions compel foreign investors or multinationals who wish to invest in the economies of those countries or in certain sectors of their economy to fully set aside equity stakes in their companies to local entities as a prerequisite for operating in the country. Barrier to entry This can serve be seen as a barrier to entry for investment in certain environments. However, we have found that many would-be investors do embrace these measures as they enhance inclusiveness, lead to broad acceptance of their companies and tend to grow market share. South Africa’s empowerment laws are distinct in that our empowerment or indigenisation measures are practical and innovative. In addition to having a pure equity participation measure, we have introduced the Equity Equivalent Investment Programme (EEIP). It was created to accommodate multinationals whose global practices or policies prevent them from complying with the B-BBEE ownership element through the “traditional” sale of equity or shares. It allows multinationals to invest in socioeconomic, skills and enterprise development in South Africa without selling equity in their local subsidiaries. Some in the public space have recently sought to suggest that the EEIP represents a circumvention of B-BBEE laws – and that it is a response to the conditions of a particular company or sector. Neither are factually correct. Firstly, the EEIP is not new and has been in existence for a decade. It is firmly embedded in our laws and is not an attempt to “water down” B-BBEE. Secondly, there are stringent requirements for multinationals to participate. All EEIP initiatives must be aligned to government’s economic policies and strategic goals. There is firm government-backed oversight over EEIP programmes that must be broad-based in terms of impact. Since its inception, the EEIP has encompassed a broad range of sectors and onboarded some of the world’s leading multinational firms such as Hewlett-Packard, Samsung Electronics, JPMorgan, Amazon and IBM as well as automotive firms such as BMW, Volkswagen, Nissan and Toyota. By way of example, last year IT giant Microsoft announced a R1.3-billion investment over 10 years in skills, supplier development and research & development – under the EEIP. These firms have leveraged the EEIP to direct investment into local development, to incubate black, youth and women-owned businesses, and to fund skills development. This has in turn assisted government in achieving several policy and infrastructure goals. Equity equivalents have been proven to be a practical B-BBEE compliance tool for multinationals operating in South Africa, and we will continue to leverage them in pursuit of economic growth and job creation. Shift the mindset Not only do we have to move away from the perception that we must make a choice between growth and transformation – we also must shift the mindset that compliance with B-BBEE is punitive or burdensome. By supporting firms with compliance, they can embrace empowerment as a meaningful investment in South Africa’s long-term economic stability. This is a sound strategy that recognises that a transformed South African economy is one in which their investments are safe and guaranteed. Just as our economy has evolved since our B-BBEE laws were first conceptualised, so has the playing field. The emergence of new industries, whether it is digital technology, advanced manufacturing, AI or renewable energy, means South Africa must actively position itself to attract greater foreign and domestic investment in these sectors or risk being left behind. As a country we have had to adapt and evolve in response to these economic trends, and continue to do so. We are clear that our empowerment laws remain central to our goal of economic transformation in South Africa and are here to stay. Our focus going forward must remain creating an enabling policy environment, driving key structural reforms, supporting innovation and reducing regulatory barriers to harness the potential of emerging industries and support existing ones. Beyond the spirited and often heated debates currently under way around B-BBEE and the EEIP, the pursuit of inclusive economic growth that creates jobs and improves people’s lives remains our overriding goal. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://techcentral.co.za/ramaphosa-defends-equity-alternatives-bee/265977/

Sinazo Konongo | 26 June 2025 Solly Malatsi wants South Africa to send a clear message to the world that the country is open for investment, serious about transformation, and committed to connecting more people to opportunity. If we want to connect more South Africans to opportunities, jobs, education, health, and business, we need serious investment in digital infrastructure. To get that investment, we must create a regulatory environment that is not only fair and consistent but also aligned with all national laws on transformation. This is the purpose of the draft policy direction I issued recently. It aims to encourage the Independent Communications Authority of South Africa (ICASA) to ensure that all legitimate forms of transformation, as recognised in national legislation, are fully taken into account when it comes to licensing in the ICT sector. It’s a straightforward step to fix a regulatory misalignment that’s been holding us back for far too long. The policy direction is not a special exemption for anyone. It is about recognising the full scope of empowerment options set out in the ICT Sector Code, which was issued under the Broad-Based Black Economic Empowerment (B-BBEE) Act. That law makes provision not only for ownership but also for a range of other transformation elements, from skills development and enterprise support to socio-economic contributions and infrastructure investment. Yet despite this legal framework, ICASA’s current regulations focus narrowly on a single metric, which is 30% ownership by historically disadvantaged persons. This misalignment is not just a legal technicality. It’s a real barrier to investment and, ultimately, to the goal of giving every South African a fair shot at digital inclusion. While ownership is important, it is not the only valid or impactful route to transformation. By ignoring other contributions, such as those allowed under Equity Equivalent Investment Programmes (EEIPs), we are shutting the door on billions of rands in potential investment as well as the immense benefits these investments can create for citizens. EEIPs have been part of South Africa’s empowerment toolkit since 2016. They allow 100% foreign-owned multinationals to meet transformation obligations without selling equity. This is often not feasible due to global shareholder structures. Instead, companies invest directly in initiatives that benefit black South Africans. These may include funding for digital skills training, infrastructure projects in under-served areas, or the development of black-owned SMMEs. These are not theoretical ideas. EEIPs have already delivered real results. For example, IBM committed R700 million over 10 years to ICT training and supplier development. Microsoft’s APP Factory and enterprise development programmes have supported black-owned businesses across the country. Amazon launched a R365 million initiative focused on building 100% black-owned tech SMMEs. These are transformative contributions, and they are compliant with the law. There is no reason why the ICT sector should be treated differently. My responsibility, as Minister, is to ensure that the law is applied consistently and that ICASA’s regulations do not inadvertently create unnecessary barriers to entry or investment. That is precisely what the policy direction seeks to achieve. In fact, this issue goes back to 2014, when Parliament amended the Electronic Communications Act (ECA) to shift the focus from individual ownership by historically disadvantaged persons to include the broader framework of B-BBEE. The amendment was clear that ICASA was empowered to develop regulations that reflect broad-based empowerment, not just equity stakes. Importantly, the amended law included the phrase “or such other conditions” in section 9(2)(b)—deliberately creating space for empowerment mechanisms beyond shareholding. The law foresaw the need for multiple approaches to transformation and empowered ICASA to make regulations accordingly. Unfortunately, that hasn’t happened. ICASA’s 2021 regulations stick rigidly to the 30% equity rule and does not include other valid empowerment options under the ICT Sector Code and the B-BBEE Act. This not only limits investor participation, especially from global firms that may want to bring new technology and competition into the market, but also undermines the principle of inclusive growth. It also disrupts alignment across government. While the DTIC formally recognises and administers EEIPs through the B-BBEE Codes of Good Practice, ICASA’s regulations don’t fully reflect this. The result is a fragmented, inconsistent framework that discourages innovation and creates unnecessary regulatory risk. The policy direction is not amending legislation as some have expediently sought to portray it. It is an instrument already available at our disposal to drive inclusive growth and investment now. The ECA already gives the Minister the power to issue a policy direction, after consultation with ICASA, to ensure the effective application of the law. That’s exactly what I’ve done. I also want to stress that transformation is not negotiable. This policy direction does not lower the bar. It insists on meaningful, measurable contributions to empowerment, just not in a one-size-fits-all manner. It recognises that different business models require different, but equally impactful, ways of advancing transformation. Critics who suggest this policy direction creates a loophole are wrong. EEIPs are not exceptions, they are formally endorsed by government, underpinned by law, and subject to strict criteria and oversight. They represent an alternative route to full compliance, not an escape from it. The bigger picture here is not only about regulatory technicalities. It’s about what this means for ordinary South Africans. When we remove unnecessary obstacles to investment, we enable the rollout of more networks, lower the cost to communicate, and expand access to the internet. When transformation is broad-based, those benefits extend to SMMEs, youth in digital training programmes, and rural communities getting connected for the first time. Empowerment should not be confined to a tick-box approach. If a company invests R500 million into broadband rollout in deep rural areas, creates 1 000 new ICT jobs, or incubates 20 black-owned tech enterprises. That is transformation and it is the kind of progress we should welcome. That’s why this policy direction matters. It’s about bringing our laws, our regulator, and our national development goals into alignment. It’s about sending a clear message to the world that South Africa is open for investment, serious about transformation, and committed to connecting more people to opportunity. This isn’t a shortcut. It’s a step forward, for the benefit of all. Solly Malatsi is the Minister of Communications and Digital Technologies. This article originally appeared in the Sunday Times and is published with permission. ‘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.leadershiponline.co.za/recognising-all-forms-of-transformation-to-unlock-investment-and-opportunity/

Setumo Stone | 29 June 2025 Petroleum industry upstart Nako Energy has blown the lid off what it describe as “war-like tactics” and “monopolistic practices” by major oil and gas companies and implicated state-owned PetroSA in the alleged sabotage of black-owned businesses and the manipulation of critical industry contracts.  In a complaint to the Department of Mineral Resources and Energy, which recently surfaced due to lack of intervention since the letter landed on the desk of director-general Jacob Mbele in August last year, Nako Energy’s co-founder, Nkosinathi Ngwenya, paints a harrowing portrait of a sector under siege – not by foreign interests but by a small cabal of multinational giants and their local enablers within state organs.   The allegations strike at the heart of transformation in South Africa’s energy sector.  The letter details a pattern of exclusion, obfuscation, and outright sabotage.   Far from being given a fair chance to compete, Nako Energy alleges it has been subjected to scrutiny and contract manipulation designed to keep newcomers, and especially black entrepreneurs, out of the lucrative petroleum value chain.  “Every vessel we have imported has been met with what can only be described as war-like tactics, severely impacting our ability to function, turn a profit, and establish ourselves as a significant player in the industry,” Ngwenya wrote.  In defiant terms, Ngwenya rejected any insinuations of political favouritism. “Nako Energy has never received any preferential treatment in the oil and gas industry. The barriers to entry have not only hindered us but have also prevented many others from entering this highly competitive sector.   “We formally lodge a protest and complaint against the ongoing attacks, sustained investigations, and insinuations that we may be receiving preferential treatment or undue attention.”   The company’s founders, who pride themselves on their black ownership and industry experience, describe how their attempts to form partnerships and invest in infrastructure met resistance at every turn, especially when dealing with PetroSA, the state oil company. This, Ngwenya said, is a betrayal of the very “codes of good practices” that were supposed to open the sector to black entrepreneurs.  The most explosive allegations relate to the involvement of PetroSA insiders who Ngwenya claims leaked his entity’s confidential business information and contracts to competitors and law enforcement agencies, leading to “unfounded accusations” and reputational damage.   As a result, the company’s business case – allegedly worth over R1-billion to PetroSA – was “dissected and undermined, with critical elements being stripped away”.  But it is the company’s assertion of internal sabotage that will be most damning for those tasked with safeguarding South Africa’s transformation agenda.   “What is even more troubling is the infiltration of state organs by the majors, particularly within PetroSA, where their interests are now protected by gatekeepers. For example, Nako has had its samples handed over to the industry without proper consultation or adherence to established policies and procedures.   “This allowed the majors to conduct analyses on our product and request information that seriously infringes on our intellectual property,” the complaint claims.  Despite the government’s much-publicised transformation goals, Ngwenya charges PetroSA’s legal leadership dismissed them as “untrusted”, not for any operational failing, but for their “youth, inexperience and lack of trustworthiness”.   This, he contends, flies in the face of both their credentials and successful deliveries. “It is unclear on what basis these judgements were made, particularly when Nako has been the only BEE and indigenous company to deliver successfully, time after time,” the complaint concludes.  Ngwenya said the company faced a financial onslaught comparable to the decimation wrought by state capture’s most powerful architects. He says it is buckling under the weight of “credit exposure of R600-million to our funders, $15-million to our component suppliers, and $10 million to our shareholders”.   “The finance charges alone are enough to sink any corporate entity, but thanks to the strategic intent and vision cultivated through our economic activism… we have managed to stay afloat.”  Nako Energy claims it is being starved of liquidity and opportunity by a system that appears to serve only the entrenched multinationals. “Our outstanding invoices now exceed R950-million, and our demurrage invoices have accumulated to over $12-million. This financial burden has severely impacted our ability to commission our refinery, build necessary storage facilities, and enter the retail market, which remains dominated by multinationals.  “It is rather disheartening that when other multinationals and international traders supply PetroSA, there are never any disputes over demurrage, and their invoices are settled promptly. In stark contrast, Nako has had our demurrage invoices outstanding for over 11 months.   “This disparity highlights the unequal treatment we have received within the industry.”   The company made an urgent plea to the government, demanding a fair hearing. “We need to officially present our case and seek support that will enable us to continue our mission of establishing a locally driven oil and gas enterprise.”  PetroSA declined to comment, and Mbele’s office failed to respond to questions.  ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/black-owned-nako-accuses-petrosa-and-industry-giants-of-sabotage/

Babalo Ndenze | 26 June 2025 CAPE TOWN - President Cyril Ramaphosa has again defended the country’s transformation laws, saying it was not the only country that requires international companies to transfer ownership to local investors. Ramaphosa also said new regulations that won’t require global companies like Starlink to hand over 30% ownership were well within the law and should be welcomed. Ramaphosa was responding to questions in the National Council of Provinces (NCOP) on Wednesday on transformation and its impact on foreign investment. The president said that new regulations on equity equivalence, which is investment without handing over ownership, should be welcomed. This is despite opposition by his own party in the communications committee, which insists on 30% ownership for disadvantaged groups. President Ramaphosa said the regulations, introduced by Communications Minister Solly Malatsi, were about finding new ways to trigger investment without doing away with transformation. But Ramaphosa said that the transfer of shares to local investors was not unique to South Africa. "And let me immediately say that we are not the only country in the world that requires that there should be local ownership." He said that South Africa was probably the only country that promoted transformation through "equity equivalence". "If you’re not able to have joint ownership, we want equity equivalence that will help to address the injustices of the past." On the regulations on equity equivalence, Ramaphosa said that South Africans would have an opportunity to make public submissions before they’re finalised. ‘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.ewn.co.za/2025/06/26/ramaphosa-defends-transformation-laws-says-sa-not-the-only-country-that-requires-local-ownership

Sashnee Moodley | 25 June 2025 President Cyril Ramaphosa said on Wednesday that the Department of Trade, Industry and Competition (dtic) is considering a review of broad-based black economic empowerment (BBBEE) measures to improve across a range of areas. As he responded to questions in the National Council of Provinces, Ramaphosa admitted that more can be done around the policy, stating that government must constantly monitor goals achieved and where improvements can be made. “The Broad-Based Black Economic Empowerment Act remains a fundamental lever for transformation, as part of our broader strategy to achieve more rapid, inclusive and sustainable economic growth in the country. As I have said before, we must dispense with the false notion that we must make a choice between growth and transformation. Black economic empowerment is not only compatible with investment and growth, but is essential to achieve broad-based growth and prosperity,” Ramaphosa asserted. The dtic review aims to align with government’s priorities of industrialisation, inclusive growth, localisation and access to finance for emerging enterprises.   Ramaphosa said the review would help improve the effectiveness of BBBEE implementation and close any gaps in this area, while setting deadlines and links between BBBEE and industrial policies. “We need to ensure that our BBBEE policies support inclusive growth, just as we need to ensure that growth supports transformation. Our task is to strengthen BBBEE and ensure that it works effectively in promoting the participation of black people in our economy, not to abandon it,” said Ramaphosa.  ‘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/dtic-to-review-bbbee-measures-to-strengthen-efficacy-2025-06-25