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Malcolm Libera | 25 June 2025 Young South Africans are facing a financial crisis which could negatively impact the country’s economic future.  This is according to consumer analytics company Eighty20, which noted young people aged 18 to 24 are being squeezed by high unemployment, rising debt, and limited access to the formal financial system. This age group makes up nearly half the population, with close to 30 million South Africans under the age of 24. However, the reality is bleak for the 6.7 million in the 18 to 24 bracket.  Only about one million of them are credit-active, and of those, nearly half have already defaulted on their loans. Their average monthly income is just R3,400, less than half the national average of R7,000. According to Stats SA, youth unemployment is 62.4%, locking millions out of the economy and any chance of upward financial mobility. Eighty20’s National Segmentation data showed clear signs of the significant pressure young South Africans are under.  The data showed that Most young credit users rely on retail credit, with 85% holding store accounts. A smaller share (17%) have personal loans, and just 9% hold credit cards.  Youth account for around 4% of the country’s total outstanding debt, which amounts to R10 billion.  However, their repayment performance lags behind that of the rest of the population, with R1.1 billion (around 11%) of that debt currently overdue.  “This elevated delinquency rate signals particular financial stress within this age segment,” said Andrew Fulton, Director at Eighty20. A further insight from the MRF’s Marketing All Product Survey (MAPS), which surveyed 20,000 South Africans, revealed that young people are especially private about their debt. They strongly prefer borrowing from formal institutions rather than friends or family, and they are highly concerned about others knowing when they take out a personal loan. However, the most troubling insight is that most young South Africans don’t even make it into the formal credit system at all.  Despite those under 24 accounting for roughly 20% of new credit entrants in recent months, hundreds of thousands remain excluded.  These so-called “thin file” clients have little or no credit history, locking them out of a wide range of opportunities. “A credit score serves as the gateway not only to lending products and favourable terms, but also to essential services across multiple sectors,” Fulton explained.  “A healthy credit profile enables access to cell phone contracts, rental agreements, and can even influence employment opportunities.” Even among those who can access credit, performance is often poor. Around half of young borrowers default early, and many never recover a healthy credit rating.  Eighty20 noted that this limits their future borrowing capacity and ability to participate in key aspects of adult life.  Fulton emphasised the need for better financial education and earlier intervention. “Those in distress need to get into debt counselling early. Education is critical if we want to stop this cycle.” The root of the problem is South Africa’s youth employment crisis. According to Harambee’s Breaking Barriers report, around one million young people enter the labour market annually, but only 40% find work within a reasonable timeframe.  Another 30% cycle in and out of informal or precarious employment. 20% want to work but never find opportunities. And the final 10% stop looking altogether. For those lucky enough to have jobs, one source of relief has been a side hustle.  According to BrandMapp, which surveys South African households earning over R10,000 per month, the proportion of people with no side income has dropped from 55% in 2021 to 49% today.  The side hustle economy has exploded into areas such as freelancing (graphic design, writing, web development), e-commerce, drop shipping, delivery and ride-share services, online tutoring, and content creation.  These ventures have become critical for young South Africans struggling to stay afloat. International trends reflect a similar shift, with about 50% of millennials and 46% of Gen Z globally now reporting having side hustles. ‘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/829255/the-one-group-of-south-africans-facing-financial-disaster/

Nicola Mawson | 26 June 2025 Old Mutual SMEgo yesterday launched its second edition of the SMEGo Pitchathon, for businesses in ICT and financial services, offering a R4.2 million prize − an increase of over R1 million from the 2024 edition. The 2025 initiative will see 14 businesses awarded R300 000 each towards their business needs. The launch was held at an event in Rosebank, attended by various stakeholders. At the event, speakers said for technology to help solve South Africa’s socio-economic challenges − like unemployment, education and housing − the solutions that it enables must be scaled so that even women living in Soshanguve without access to data can find a job. Nobesuthu Ndlovu, director of Old Mutual Corporate’s SME division, told ITWeb that technology can help solve these problems. She noted this is why Old Mutual developed SMEgo, a platform for companies to access business services, which is available on smartphones and as a web portal. Old Mutual aims to support small businesses by being a partner to them through SME go, which provides access to services, such as HR management tools, billing and legal documents, said Ndlovu. Entries for the pitchathon are open until 15 August and applicants need to provide a pitch deck, a valid B-BBEE certificate, proof of a minimum turnover of R500 000, and at least six months of trading history supported by documents like bank statements and contracts. Driving job creation Old Mutual’s support of SMEs through SMEgo and the pitchathon aims to help create employment and solve SA’s socio-economic challenges, said Ndlovu. “We need a country with people who want to make it work. I want to live in this country forever.” Small companies are the bedrock of SA’s economy, making up 91% of formalised businesses, providing employment to about 60% of the labour force and contributing about 34% of gross domestic product, according to The Banking Association of South Africa. However, Old Mutual says in a statement that SA has one of the highest rates of small business failures across the world, as up to 70% of SMEs fail within the first five years. Speaking at the event, Pali Lehohla, statistician-general of SA, said many small businesses fail because they don’t have access to funding. He said SMEs need scale to help create jobs. “Those who give the [financial] support are friends, families and fools.” SMEgo also provides companies an opportunity to secure funding, said Ndlovu. Old Mutual evaluates their eligibility by considering factors such as their transactional history, invoices submitted and paid, and contracts signed. Lindiwe Shibambo, founder of Maid4U, was one of last year’s 10 pitchathon winners. She explained that the company was in danger of closing following the global pandemic, and is now close to launching an app that enables women to find employment and employees to vet domestic workers. Shibambo said her experience as a domestic worker was the impetus for her business, which also provides training for people who come from, for example, Soshanguve, who don’t know how to use a microwave. Maid4U used its winnings to hire developers to create an app, which is zero-rated, that will be available on Android and iPhone. The app has been designed “like a dating app” as it allows people to search based on specific criteria, noted Shibambo. Ndlovu said Old Mutual wants to help create “an economy where we have a zero unemployment rate”. Statistics South Africa’s latest Quarterly Labour Force Survey, released on Tuesday, showed that 95 000 fewer people had jobs this March than a year ago. Common goals Old Mutual is partnering with other corporates by providing the SMEgo solution as a white-label software-as-a-service to them. Ndlovu explains that other companies, which she could not name, can also add their own offerings to the platform. Lincoln Mali, CEO of Lesaka Technology, also speaking at the pitchathon launch, sees technology as an enabler of solutions that can be scaled to help solve SA’s “intractable problems” – such as the lack of education and housing, among others. Mali said the technology solutions that will enable small companies are those that solve issues. “It’s not the tech per se; it’s trying to understand the pain point and solve that pain point.” ‘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.itweb.co.za/article/old-mutual-pitchathon-offers-r42m-to-ict-fintech-smes/4r1ly7R98revpmda

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.   To achieve the Bonus Points on offer, organisations must ensure that all these sub-elements are claimed in the same Measurement Period.   Technical Compliance Services are available to help members determine how to claim these Bonus Points.

Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , there are allowable exclusions when calculating Total Measured Procurement Spend (TMPS) and one of those items include Imports. However, there are certain rules that need to be considered.   Clause 6.5 under Statement 400 of the Amended General B-BBEE Codes of Good Practice states the following:   6.5        Imports: the following imported goods and services: 6.5.1    imported capital goods or components for value-added production in South Africa provided that:   6.5.1.1 there is no existing local production of such capital goods or components; and 6.5.1.2     importing those capital goods or components promotes further value-added production within South Africa;   6.5.2    imported goods and services other than those listed in paragraph 6.5.1 if there is no local production of those goods or services including, but not limited to, imported goods or services that – 6.5.2.1     carry a brand different to the locally produced goods or services; or 6.5.2.2     have different technical specifications to the locally produced goods or services.   6.5.3    The exclusion of imports listed under 6.5.2 are subject to them having developed and implemented an Enterprise Development and Supplier Development plan for imported goods and services. This plan should include:   6.5.3.1 Clear objectives 6.5.3.2 Priority interventions 6.5.3.3 Key performance indicators; and 6.5.3.4 A concise implementation plan with clearly articulated milestones             6.5.4    The Department of Trade and Industry will from time to time consult with the industry and issue practice notes with regard to the provisions on import exclusion.   Enterprise & Supplier Development Services   are available to assist Members meeting the requirements for Import Exclusions.

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , a “Start-up Enterprise” means a recently formed or incorporated Entity that has been in operation for less than 1 year.  A start-up enterprise does not include any newly constituted enterprise which merely a continuation of a pre-existing enterprise.   Further rules applicable to Start- Up Enterprises include:   Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of Statement 000 of the Amended General B-BBEE Codes of Good Practice. A Start-up Enterprise may be measured in terms of the QSE scorecard, or the Generic scorecard should they choose to. A Start-up Enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.     Technical Services are on hand to assist with the understanding the requirements of Start-Up Enterprises.

Lindsey Schutters | 24 June 2025 The satellite operator has dangled a deal: free high-speed connections for 5,000 isolated schools in South Africa. In a letter to Trade, Industry and Competition Minister Parks Tau, Starlink’s senior director of market access, Ryan Goodnight, made a simple case: let us in under the Equity Equivalent Investment Programmes (EEIPs) instead of the traditional 30% local ownership requirement, and we’ll transform rural education connectivity. “Today, millions of children are being denied access to education resources because South African broadband networks do not extend to the most rural parts of the country,” Goodnight wrote. The deal? Fully funded Starlink kits and service for more than 5,000 rural schools, complete with installation and maintenance support through local South African companies. But the Starlink letter also reveals the company’s growing impatience. Despite being “interested in providing high-speed internet to South Africa since we first deployed our constellation”, efforts remain grounded by what it calls outdated ownership regulations – a requirement that Starlink says it cannot meet while maintaining operational control across its global network. But you know this already. Opening Malatsi’s box At the centre of the situation sits Minister of Communications and Digital Technologies Solly Malatsi, who has tried to thread the needle between transformation imperatives and technological pragmatism. During a parliamentary portfolio committee meeting on 27 May, Malatsi defended his policy directive allowing the Independent Communications Authority of South Africa (Icasa) to recognise EEIPs, arguing that the work “predates the events of last week [President Cyril Ramaphosa’s fateful visit to Washington]” and represents continuity rather than capitulation. “The intention is to ensure a whole and consistent application of the B-BBEE Act and the ICT sector codes,” Malatsi told the committee, explaining that the directive aims to bring telecommunications regulation in line with what already exists in other sectors. Microsoft, IBM and Amazon already use EEIPs successfully in South Africa – why not satellite internet providers too? Malatsi’s reasoning rests on section 3 of the Electronic Communications Act, which allows ministerial policy directives consistent with national policies. He argues that Icasa’s regulations have created a gap, failing to wholly consider the ICT sector code’s provisions for alternative pathways to transformation compliance. Defending the empowerment dream But if Malatsi thought his careful legal reasoning would satisfy critics, he was mistaken. The portfolio committee meeting descended into accusations of undermining South Africa’s transformation agenda. Committee member Oscar Mathafa argued that the directives “dilute or undermine those particular hopes” of voters for social justice and equity, and Colleen Makhubele described the approach as “a denial of a constitutional right of a historically disadvantaged group to own the economy”. Committee members also accused Malatsi of “trying to amend legislation using a ministerial policy directive”. Perhaps most damaging was an observation that “we are altering our legislation for Starlink whereas where it goes to operate in other countries it did not utilise this coercion”. An industry body, the Association of Communications and Technology, has tried to stake out middle ground, supporting the minister’s effort to resolve regulatory ambiguity while insisting on “regulatory parity” for all players. Its chief executive, Nomvuyiso Batyi, who was critical of Malatsi in her last conversation with Daily Maverick, sent a careful statement: “We’ve supported the roll-out of satellite technology in South Africa, within the same rules that everyone else follows.” The association’s support for EEIPs comes with a crucial caveat – implementation must be “transparent, consistent, and with an equal application of the law”. Network operator ground offensive Faced with potential satellite competition, South Africa’s network operators have been aggressive in demonstrating their commitment to reducing data costs and expanding connectivity. The numbers they presented to Parliament are impressive. MTN claims a 46% price reduction on 1GB bundles since 2019, whereas Vodacom reports that effective rates have decreased by 50% over two years. Telkom says that per-gigabyte costs have dropped from about R99 in 2010 to R79 today, and Cell C has reduced data rates by more than 28% since 2023. These operators are also making substantial infrastructure investments, spending more than R143-billion in the past five years alone – which means jobs, not just internet from the sky. MTN invests about R9-billion a year in capital expenditure, achieving 99% 2G coverage, 98.9% 3G coverage and 97.8% LTE coverage. Its 5G now covers nearly 45% of the population. Vodacom has pledged R60-billion over the next five years for network development, expanding 5G population coverage from 20.6% in 2022 to 51.7%. Telkom says its mobile network covers 85% of the population directly, extending to 99% through roaming agreements. Rural connectivity A focus on rural connectivity is particularly relevant in view of Starlink’s school promise. Vodacom’s rural coverage has risen from 89.63% in 2023 to 95.4%, with a target of 97%. Rain, despite being the smallest operator, covers 61 million people with 4G and 21 million (35% of the population) with 5G. Universal service obligation (USO) achievements also provide context. MTN claims a 100% USO scorecard achievement, having invested R380-million over the past decade. It has connected 1,360 mainstream schools and 140 special needs schools, also providing laptops, printers and projectors. Vodacom has connected 3,000 schools, 1,500 beyond its obligations, and 934 of the 4,000 institutions required by new spectrum-allocation obligations. Telkom works with the government on SA Connect to connect 40,000 government institutions, and Rain has connected 2,166 public service institutions. But there are problems that satellite providers like Starlink would largely avoid. MTN spent more than R4-billion in 18 months to secure its network against load shedding. Telkom reported more than 2,000 vandalised sites costing more than R300-million to repair. Starlink’s infrastructure in space is immune to load shedding and vandalism, potentially offering more reliable service to rural areas. But this advantage comes at a cost – about R900 a month, based on pricing in Botswana, plus equipment costs of R3,200 to R6,700. Operators want regulatory reform, fast-tracked spectrum access and infrastructure sharing. And they want OTT players (read: WhatsApp and Netflix) to finally pay up for riding their pipes. For now, Starlink remains in orbit. Whether it lands with a bang or a crash depends less on tech and more on who controls the regulatory runway. And if you’re in rural Limpopo waiting for decent download speeds, you probably don’t care if it’s a billionaire’s satellite or a homegrown telco – you just want it to work. ‘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.dailymaverick.co.za/article/2025-06-24-starlink-promises-internet-for-rural-sa-schools-if-bee-rules-bend/

Siyabonga Sithole | 24 June 2025 Besides some of the most progressive laws aimed at advancing the interests of the people living with disabilities, South Africa is still lagging when it comes to implementing some of these legislative frameworks. According to Statistics South Africa, persons with severe disabilities experience difficulty in accessing education and employment opportunities, while households headed by persons with disabilities were found to have less access to basic services compared to households headed by persons without disabilities. The statistics also reveal that there are disparities in terms of access to assistive devices across population groups and geography. At the recent C20 South Africa Launch, which has mobilised 14 working groups to generate actionable policy considerations ahead of the G20 Summit, Sikelelwa Alex Msitshana, founder of the Deaf Empowerment Firm and chairperson of the National Council for Persons with Disabilities (NCPD), highlighted ongoing challenges. "We have come together to try and make sure the voice of people with disabilities is heard. People living with disabilities are still lacking in many respects, even though South Africa is a signatory to the Convention on the Rights of Persons with Disabilities. We have wonderful policies that are aimed at protecting the rights of persons with disabilities, but implementation is still lacking. "In all of that, there is a need to address issues faced by people living with disabilities. We are looking at inclusive education. We are saying early childhood development for people with disabilities should be prioritised early enough so that they can receive the care they need and be able to go to school and learn from an early age," she said. Msitshana, speaking on the sidelines of the three-day C20 South Africa launch on Monday, also stressed the importance of establishing Early Child Development (ECD) structures for people living with disability, saying this will help bring about an early start to young children with various disabilities, who are sometimes not catered for within the existing education system. "There are issues of employment that are affecting our young people. We are advocating for inclusive employment practices. Far too often, employers are still afraid to employ people living with disabilities and take in young people living with disabilities. This is more a factor of fear than anything. The programmes that we are driving are aimed at sensitising employers that there should not be a problem in employing someone living with a disability," she stated. Her outcry comes just hours after Deputy Minister of Women, Youth and Persons with Disabilities, Mmapaseka Steve Letsike, called on civil society organisations represented at the C20 South Africa launch in Sandton to make sure their voices are heard. Letsike, who delivered her message virtually directed at women, children, and persons with disability, said no one should be left behind in ensuring that South Africa's hosting of the G20 Summit later this year is a success. "The disability inclusion stream and all these working streams are not intended to be for a box-ticking exercise as we believe that those closest to the pain must be the closest to power, and the C20 South Africa must bring solutions that bring an integrated response to these communities," the deputy minister said on Tuesday. The Soweto-born activist Msitshana is the founder and managing director of the DEF, a social enterprise which aims to transform the lives of members of the deaf community. This comes after Msitshana lost her hearing in 2015, resulting in her making it her mission to help the deaf community and other minorities access jobs and opportunities. In 2023, the National Assembly amended Section 6 of the Constitution and approved the South African Sign Language (SASL) as the 12th official language. Msitshana celebrated, believing that soon the deaf community would experience a shift. However, she believes this policy has not been fully implemented to ensure sign language is taught in South African schools alongside other official languages. "After years of fighting and lobbying, we welcomed the recognition of sign language as an official language, but there has not been any full implementation of this policy to ensure that sign language is taught at schools like all the other official languages. On paper, this is good, but we have not seen its full implementation," she stated. ‘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/south-africa/2025-06-24-are-south-africas-disability-laws-truly-making-a-difference/

Malcolm Libera | 22 June 2025 South Africa’s recently approved National Labour Migration Policy (NLMP) White Paper and Employment Services Amendment Bill (ESAB) have raised concerns that the country may be shooting itself in the foot. Experts have warned that the legislation,  designed to limit the employment of foreign nationals, may not only harm foreign workers but also undermine South Africa’s economic interests. At the end of May 2025, Cabinet announced that it had approved the National Labour Migration Policy (NLMP) 2025 White Paper and the Employment Services Amendment Bill, 2021 (ESAB) for implementation and submission to Parliament.  “The NLMP and ESAB have been under consideration for several years now and introduce significant changes to the employment of foreign nationals in South Africa,” Cliffe Dekker Hofmeyr (CDH) explained .  The firm noted that these changes aim to balance the need for economic growth and skills development while prioritising employment opportunities for South African citizens, permanent residents, and refugees. The policy introduces strict controls on the employment of foreign nationals. Among the most notable changes are the introduction of quotas in key economic sectors such as agriculture, hospitality, tourism, and construction.  These quotas will determine the maximum number of foreign nationals that employers can hire and will be set by the Minister of Employment and Labour following consultations and public input.  Employers may only exceed the quotas if the job requires critical skills or if they receive a special exemption from the Minister. CDH cautioned employers to start preparing now. “Employers operating in the identified sectors should prepare for the introduction of sectoral quotas by reviewing their current workforce composition and recruitment practices,” the firm said.  The requirements are extensive. Employers must verify that no South African citizen can do the job before hiring a foreign worker. Non-compliance could lead to fines of up to R100,000 and other penalties. Speaking with Newzroom Afrika , Professor Loren Landau, an expert in migration and development at the University of Oxford, believes these restrictions could have serious unintended consequences.  “There would definitely be risks for immigrants if they’re made even more illegal, let’s say, or driven further underground,” he said. “Those are risks about being attacked by the police or by their neighbours if they’re seen as working.” The legislation could hurt the economy Beyond these social tensions, Landau is worried about broader labour market implications. He said the policy could unintentionally fuel the informal economy and erode working conditions for everyone.  “It will probably drive the hiring of people illegally or outside of the legal sector, which might hurt the rights of all workers. This could result in further erosion of labour conditions not just for migrants but for South Africans as well.” While the policy is politically popular, addressing frustration over high unemployment and perceptions that migrants take jobs from locals, Landau said it risks alienating the very investors South Africa needs.  “Large companies, like BMW and Mercedes, have said they won’t invest further in South Africa, creating more South African jobs,” he said. “This is because it’s too difficult for them to get the engineers or the highly skilled people they need.”  He added that even when foreign professionals are approved, they face severe delays and inefficiencies at the Department of Home Affairs. “If that’s the case, this definitely is an own goal, one that is working against South Africa’s interests.” Landau added that it contradicts the African Union’s long-term vision of regional integration, including free movement and a continent-wide passport.  “It is out of step to some degree with the African Union’s goals, but it is an important nod to some of the politics in the country, which are anti-immigration.” CDH warned employers to monitor the legislative process and begin reviewing their employment policies and practices in anticipation of the new requirements in the employment of foreign nationals. Whether the policy delivers the promised benefits will depend heavily on how it is implemented. Landau stressed that implementation, especially the regulatory framework and permitting systems, will determine whether the policy is effective or damaging.  “The truth and how it works out will be in the regulations and permitting processes,” he said. Landau believes the country may benefit more in the long term by embracing its neighbours.  ‘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/828380/south-africa-shooting-itself-in-the-foot-2/

Parks Tau  | 23 June 2025 In 1994, South Africa inherited an economy that was structurally designed to exclude the vast majority of South Africans. Apartheid’s distorted policies had created a dual economy: one of wealth and privilege and another of poverty and exclusion. This calculated economic strategy, structured along racial lines, created white-owned mines, farms, and factories while many black South Africans languished on the fringes of the economy in an underdeveloped informal sector. Their meaningful participation in our nation's wealth was further eroded by discriminatory laws that restricted Black South Africans from owning land, accessing quality education, and entering skilled professions. These economic distortions which were implemented over hundreds of years continue to plague our nation today as we grapple with one of the highest levels of economic inequality in the world, worsened by alarmingly high unemployment, especially among Black youth. The country’s Gini coefficient of 0.63 shows that our nation’s income remains unevenly distributed, with the top 10 percent of the population holding more than 85 percent of household wealth. This persistent disparity undermines the development of an inclusive economy where all citizens participate and benefit. The transformation we seek is about positive change and is the only logical path to long-term growth and the reduction of inequality. In deracialising ownership across our economy, we open more opportunities for black people, in particular women and the youth. While the Constitution guides our work in creating a society with equal opportunities, we require a deliberate removal of structural obstacles to draw more people into the economy and mechanisms that advance our constitutional commitment to economic redress and transformation. In this regard, government plans to introduce the Transformation Fund to help level the economic playing field for emerging Black businesses, particularly those in key economic sectors such as manufacturing, agriculture and tourism who struggle to secure funding due to stringent lending requirements. The fund will provide financial support, infrastructure and capacity-building to Black-owned businesses – in particular Small, Medium and Micro Enterprises, women and youth entrepreneurs, and people living with disabilities - who are often locked out of meaningful economic participation due to their lack of access to capital. In fostering greater access to capital, business owners can invest in equipment, hire skilled staff, expand into new markets and ultimately quicken the pace of transformation in South Africa's economy. It is also expected to stimulate meaningful economic activities across all regions of our country. A similar transformation initiative took place in South Korea, whose government actively worked with companies in the country to address market failures. Local businesses known as Chaebol were guaranteed loans from the banking sector, backed by the government. In the late 1980s, this led to rapid industrialisation with Chaebol businesses dominating the industrial sector in manufacturing, trading and heavy industries. There was also great success in Malaysia’s empowerment initiative, demonstrating what can be achieved through transformation. The country in 1970 found itself in a similar position we face today and began to transform its society and economy through economic empowerment. Its empowerment plan, the National Economic Policy, assisted with the redistribution of the country’s wealth to the indigenous Malays known as Bumiputeras. Today Malaysia is among the richest countries in Southeast Asia by GDP per capita.   The Transformation Fund we are proposing will operate through a transparent application process, where qualifying businesses as well as partnerships, can apply for funding based on the project's potential for social impact, sustainability, and alignment with national development goals.The fund will be anchored in contributions already made to the Enterprise Supplier Development and Equity Equivalent Investment Programme as part of our nation’s B-BBEE policy.  While no additional contributions are required over and above those made under our B-BBEE commitments, the voluntary co-funding by government and business of our transformation efforts can quicken the change we want in our economy. In supporting the Transformation Fund, both the public and private sectors stand to benefit from the investment in future suppliers, customers, and innovators who will, in turn build resilience and relevance in a fast-changing society. In advancing the establishment of the fund, it is proposed that the fund will be managed by a dedicated governance structure to ensure transparency. A Special Purpose Vehicle will be established to ensure accountability to an Oversight Committee and a board that possesses the required skills and capacity. The fund's draft concept document was released for public comment on 19 March 2025 and the comment period concluded on 28 May 2025. South Africans are encouraged to continue to actively engage on the fund, and more details can be found on the website www.dtic.gov.za . Government plans to have the fund operational by the end of the year and capacitated with R100 billion. Once operational, it will assist in helping to bring real change in our economy and the lives of people. Let us turn transformation from a concept into practice as we make a real difference in others' lives and create a fairer society. *Parks Tau is the Minister of Trade, Industry and Competition ‘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/proposed-transformation-fund-levels-economic-playing-field-emerging-black-businesses

Editor | 19 June 2025 With youth unemployment rising to 46,1% in the first quarter of 2025 – a 9,2 percentage increase over the past decade – South Africa faces a critical challenge. Traditional employment avenues are failing to absorb the country’s young jobseekers. While policy solutions remain important, small and medium-sized enterprises (SMEs) are playing an increasingly vital role in bridging the gap. SMEs, often described as the lifeblood of the economy, account for over 60% of employment in South Africa’s private sector. But beyond their economic footprint, these businesses are stepping up to shape the next generation of South African entrepreneurs – creating jobs, transferring skills, offering mentorship, and enabling access to funding and markets. This is according to Lawrance Ramotala, Area Manager at Business Partners Limited, who believes the contribution of small businesses to youth development is not only practical but deeply transformational. “In many cases, SMEs are the first to take a chance on young people, whether by hiring them as first-time employees, helping them launch their first business, or partnering with them as suppliers. What we’re seeing is a groundswell of youth entrepreneurship that’s rooted in community enterprise,” says Ramotala. This is particularly evident in township settings, where formal employment is often out of reach. In these areas, youth-led micro and small businesses are not only becoming viable alternatives to traditional work but also creating employment for others in their communities. The ripple effect is significant: one young entrepreneur launching a business can result in multiple new jobs, greater local economic activity, and inspiration for others to follow suit. Ramotala adds that the dynamic is about more than making ends meet. “For many young people, entrepreneurship offers something they struggle to find in the formal economy: purpose. We’re seeing a clear shift toward businesses that are mission-driven – whether it’s tackling environmental issues, promoting mental health, or improving access to education and services in underserved areas. SMEs are giving young people a platform to pursue work that is both meaningful and sustainable.” This interplay between purpose and profit is redefining the traditional notion of work, especially for a generation that values autonomy and impact as much as income. It’s also influencing the way SMEs operate. Many small business owners are themselves under 35 and are are harnessing both their entrepreneurial ventures and personal influence to empower peers in similar stages of growth. Byusing their platforms to share resources, mentorship and visibility, they are fostering a unique ecosystem of peer-to-peer driven support that is difficult to replicate in larger corporate environments. “We’ve supported countless young entrepreneurs who, within just a few years, have gone from first-time business owners to employers and mentors themselves. What makes the SME sector unique is that it allows young people to scale not only their ideas but also their influence,” says Ramotala. “Key to unlocking  this potential are mentorship, access to finance, and targeted business support – three crucial levers for  youth entrepreneurship that Business Partners Limited delivers through our  Technical Assistance Programme  and diverse range of business finance solutions.” “It’s not enough to encourage youth to start businesses. They need support to stay the course, particularly in the early stages when failures can be discouraging and resources are limited,” Ramotala notes. Government and private sector initiatives aimed at job creation must therefore include targeted support for youth-led SMEs. Equally important is the cultivation of an entrepreneurial mindset at school level as we are starting to see in policy discussions in the basic education sector. Exposure to business concepts, mentorship from successful entrepreneurs, and practical training can help shift perceptions around what is possible, especially in areas where employment is no longer a realistic goal. As Youth Month shines a necessary spotlight on the challenges and opportunities facing South Africa’s young people, Ramotala believes the SME sector offers a powerful reminder of what is possible when local businesses are empowered and supported to contribute to the country’s economic development. “If we want to build a more inclusive, sustainable economy, we must invest in our youth – not just as jobseekers but as job creators. SMEs are already leading the way, but they need an ecosystem that supports long-term growth,” says Ramotala. “By backing youth entrepreneurship, we’re not only building businesses, we’re building futures,” he concludes. ‘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/the-sme-solution-to-youth-unemployment/

Suran Moodley and Boudine Henningse | 19 June 2025 2025 feels like a watershed year for Broad-based Black Economic Empowerment (B-BBEE) in South Africa. No longer is the discussion around “if” B-BBEE will change, but rather “when”. Sensational news headlines such as: “Less than half of South Africans think govt should keep BEE going” are adding to robust debate around the recently announced Transformation Fund and the amendments to the legal sector codes by some of the top law firms in the country. In our own business, we are seeing an increasing number of our clients questioning the ongoing investment and frictional costs involved in these investments. As an advisory business, this gives us pause for thought. Yes, transformation is critical, but is B-BBEE redundant? Or can it be reinvented? Perhaps to answer this, we need to look at the so-called “priority elements” as individual contributors to understand the specific challenges. Ownership Done right, the ownership element can be transformative for many stakeholders, but many of the banks, insurers, asset managers and industrial businesses have concluded their deals with mixed results. In 2024, the Department of Trade, Industry and Competition (DTIC) threw its weight behind employee share ownership programmes (ESOPs). The effectiveness of these initiatives remains to be seen in the face of a limited secondary market for these shares and lack of transparency around dividend flows. Whether you are introducing a consortium of investors or hundreds of employees being given a minority stake, businesses now seek partners who bring capital and opportunities rather than simply seeking compliance. If the narrative persists that entrepreneurs and business owners are “giving up equity” – rather than introducing strategic partners – they will be disinclined to support these deals. Management control Recently enacted Employment Equity (EE) legislation seeks to transform the demographic composition of businesses with more than 50 staff members. These amendments are onerous and raise obvious questions around how businesses attempting to comply will navigate other legislation. While government has guided that a business cannot retrench to meet the proposed targets, how will they explain non-compliance with the Department of Labour? We feel the questions not being asked is whether there is a master plan to drastically improve Basic Education to provide universities with an abundance of talent? Are tertiary institutions going to ensure that graduates are going to be available to effectively contribute to the workforce with functional skills? Are companies going to be incentivised to create leadership academies to flood the market with incredible talent or will there be a war for talent resulting in inflated salaries? Skills development Currently companies need to spend 2% and 6% of their annual payroll on the skills development element, but despite billions of rands invested annually, businesses continue to struggle for skilled people. Where is the disconnect? Without going into the challenges faced by the Setas, consider being a retailer with a skills development budget. If you deploy your budget and train staff to achieve a shelf-packing or cashier certification approved by the QCTO, you get more recognition on your scorecard than if the same person did a certification from the likes of Google or Microsoft around artificial intelligence (AI). We are incentivising and rewarding the wrong things if we want a knowledge-based economy. Rather the model appears to create professional youth on learnership programmes who earn a living from stipends and progress from one learnership to another with little to no prospect of meaningful long-term employment. Enterprise and supplier development (ESD) With Minister Parks Tau inviting public comment on his proposed Transformation Fund, this element has been in the news a lot recently. In a recent article for Daily Maverick , our colleague Raindren highlighted that despite companies having to invest between 1% and 2% of net profit after tax (NPAT) into the development of black-owned SMEs, there are fewer VAT registered businesses than in 2009. We cannot keep doing the same thing over and over again and expect a different result, but similarly, we need to recognise that there are a variety of government institutions already established to support SMEs including the IDC, SEFA / SEDA, the National Empowerment Fund, Technology Innovation Agency (TIA) and the National Youth Development Agency. Why will the outcome be different under the Transformation Fund structure? Is B-BBEE an outcome or a set of rules? As an advisory business, we give a lot of thought to the future of B-BBEE. The future direction of this policy and the associated codes will impact how we strategically advise our clients. According to research from the B-BBEE commission, over R100bn in B-BBEE ownership deals were done in the past five years and in the pre-Covid years, the three preceding years were averaging over R100bn annually. Over R15bn is spent annually on skills development while R26bn goes to ESD. There is plenty of work to go around. What is clear is that the frictional cost of doing business in South Africa is becoming increasingly difficult to justify. Policymakers are driving a compliance mindset rather than one that is aimed at broad-based economic growth. Growth and employment statistics don’t lie – the current policies are not achieving the desired outcomes and instead we are sitting in an environment where you get a better return leaving your money in the bank, than pursuing entrepreneurial ventures. In its current form, B-BBEE has become less about genuine transformation and more about ticking compliance boxes to avoid penalties and unlock procurement opportunities. Instead of fostering meaningful participation in the economy, it often incentivises short-term structural adjustments that lack substance. If we are serious about inclusive growth and sustainable empowerment, we must move beyond rigid scorecards and start measuring real outcomes - such as job creation, skills transfer, and entrepreneurial success - rather than just the optics of transformation. Social engineering through policy can only go so far; economic inclusion must be built on merit, opportunity, and long-term investment in people by getting the basics, like education, right. ‘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/beyond-the-b-bbee-scorecard-employment-equity-requires-real-change-not-just-compliance-926464a

Bizcommunity | 18 June 2025 South Africa’s youth unemployment rate remains a critical challenge at 62.4%, but the logistics industry is emerging as a key driver of job creation. Fueled by the growth of e-commerce, digital transformation, and expanding global trade links, logistics is evolving into a dynamic sector that offers diverse opportunities beyond traditional roles, particularly in tech and compliance. Digital growth drives youth jobs in logistics "From supply chain analytics and IT systems integration to customer experience and compliance, logistics is evolving into a dynamic, tech-enabled industry that offers diverse professional avenues for South Africa’s youth," says Gregory Saffy, managing director for sub-Saharan African operations at FedEx. While roles such as drivers, packers and sorters remain essential, new technology-driven processes are reshaping the industry and opening doors to careers in data analytics, systems thinking and automation. "Logistics isn’t what it used to be,” Saffy explains. "The real competitive advantage now lies in digital capability, especially in areas like data analytics and systems thinking. We’re seeing more engineers and analysts in the business than ever before, guiding operations and enabling automation at scale." Compliance and customs drive growth Compliance and customs clearance are also becoming major areas of employment growth. Saffy highlighted the progress towards formalising customs qualifications as a critical industry milestone. "We’re seeing progress in the creation of a national customs clearance certification that will give individuals a recognised qualification, including those with practical experience but no matric pass," he says. "This will create a clear career path and raise the overall standard of compliance across the industry." Additionally, FedEx has begun enrolling customs clerks into courses covering freight forwarding and customs compliance. These programmes not only build technical knowledge but also focus on skills for the future such as digital literacy, data analysis and critical thinking. Learnerships bridge skills gap For youth without formal education, FedEx offers the Yes Learnerships, a 12-month programme combining training, mentoring and hands-on work experience. "Since 2019, we’ve onboarded more than 150 unemployed youth through YES, with more than 60 going on to become permanent employees," says Saffy. "It’s a powerful model for bridging the gap between education and employment." The company also offers a learnership for youth with disabilities, awarding an NQF Level 4 certificate in Business Administration. This includes blended learning, coaching and real-world operational exposure, supporting inclusivity and building work-ready skills. Private sector backing youth jobs FedEx’s initiatives, for example, underscore the vital role of private sector skills development in unlocking opportunities for South Africa’s youth. “Logistics is a gateway to global trade,” Saffy says. “It’s no longer just about moving parcels; it’s about managing complexity in a fast-paced, tech-driven environment. With the right support and training, South Africa’s youth can thrive in this space." ‘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/logistics-sector-opens-new-tech-driven-career-paths-for-south-africas-youth-037955a