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When a Measured Entity implements B-BBEE Initiatives , they need to ensure that the initiatives do not constitute a Fronting Practice. As per the B-BBEE Act, the definition of a “ Fronting Practice " means a transaction, arrangement or other act or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of this Act or the implementation of any of the provisions of this Act, including but not limited to practices in connection with a B-BBEE initiative-   (a) in terms of which black persons who are appointed to an enterprise are discouraged or inhibited from substantially participating in the core activities of that enterprise; (b) in terms of which the economic benefits received as a result of the broad-based black economic empowerment status of an enterprise do not flow to black people in the ratio specified in the relevant legal documentation; (c) involving the conclusion of a legal relationship with a black person for the purpose of that enterprise achieving a certain level of broad-based black economic empowerment compliance without granting that black person the economic benefits that would reasonably be expected to be associated with the status or position held by that black person; or (d) involving the conclusion of an agreement with another enterprise in order to achieve or enhance broad-based black economic empowerment status in circumstances in which- (i) there are significant limitations, whether implicit or explicit, on the identity of suppliers, service providers, clients or customers; (ii) the maintenance of business operations is reasonably considered to be improbable, having regard to the resources available; (iii) the terms and conditions were not negotiated at arm’s length and on a fair and reasonable basis;”   Technical Services  are available to assist members in understanding the definition of a Fronting Practice.

Bloomberg | 20 May 2025 South Africa’s government plans to offer Elon Musk a workaround of local Black ownership laws for his Starlink internet service to operate in the country, aiming to ease tensions with both the billionaire and US President Donald Trump. The offer will come at a last-minute meeting planned for Tuesday night between Musk or his representatives and a delegation of South African officials traveling with President Cyril Ramaphosa, according to three people familiar with the discussions. It’s meant to defuse the onslaught of criticism by Musk and Trump — who’ve spread the conspiracy theory that there’s a genocide against White people in Africa’s most-industrialized nation — before Ramaphosa’s visit to the White House on Wednesday, said the people, who asked not to be identified as they’re not authorized to discuss the matter. The alternative to so-called Black Economic Empowerment laws that in some cases require 30% Black ownership is not specific to Starlink and Musk, the people said. It would be applied to all information and communication technology companies, including those from China and the Middle East, the people said.  A so-called Equity Equivalent option would instead involve investments in infrastructure or training, or providing Starlink kits to rural areas in order to help improve Internet access. The auto industry in 2019 signed up for a similar workaround that involved the largest car manufacturers — including BMW AG, Ford Motor Co. and Toyota Motor Corp. — setting up a fund to invest in bring disenfrachised groups into the sector. BEE rules were introduced after the end of apartheid, during which Black people were subjugated and excluded from the formal economy by the ruling White minority. Today, White people earn on average five times what Black people earn, according to official statistics, and own the vast majority of farmland despite making up 7% of the population. The new rules for ICT companies aren’t about “providing access to a single company, but rather part of a broader strategy to create an enabling environment for international investment and expand digital connectivity across South Africa,” South Africa’s Department of Communications and Digital Technologies said in a response to a request for comment. Starlink Talks Stall Talks on launching Starlink in South Africa stalled earlier this year after Musk and Trump ramped up public rhetoric against policies such as BEE laws.  Musk, who was born in Pretoria, claimed that he was not allowed to operate his satellite service in South Africa “because I’m not Black” and accused the government of having “openly racist ownership laws.” Trump has also granted refugee status to White minorities in South Africa and criticized a law that gives the government the power to take land for a public purpose. The act is similar to US eminent domain laws — though the law in South Africa allows for expropriation without compensation in certain cases such as land that’s been abandoned and state-owned property not in use. For now, no land has been seized. Trump twice last week repeated the false claim that White people are subject to a genocide in South Africa. A South African court in February ruled that there was no evidence to support the claim, calling the idea “clearly imagined and not real.” South Africa’s talks with Musk over Starlink won’t necessarily form part of a proposed larger trade deal with the US, though getting Musk on board may assist with more positive engagements between the two countries, said the people familiar with the discussions.  Starlink’s technology, which relies on a constellation of low-Earth orbit satellites, would be a potential game-changer for South African users who’ve historically faced expensive or unreliable internet options. Only 1.7% of rural households have access to the internet, according to a 2023 survey compiled by Statistics South Africa. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/broadband/595467-south-africa-to-offer-starlink-deal.html

Hermann Pretorius | 20 May 2025 South Africans want policies and politics that unlock job creation, reward merit, and safeguard what people own. ANC government policies are out of step with the preferences of notable majorities – 65% to 79% − of self-identified ANC supporters. This is one of the key findings to emerge from the most recent polling by the Institute of Race Relations (IRR). Polling results focusing on what South Africans believe would be the most effective approaches to empowerment, economic growth, and service delivery are contained in the second of three reports on the survey,  Policy Preferences of Registered Voters , published in a webinar today. The findings are drawn from a demographically representative national survey conducted between 27 March and 3 April 2025. Strikingly, among ANC supporters: - 73% favour merit-based appointments to all jobs over race-based targets or quotas; - 65% favour public procurement based on value-for-money considerations over racial targets; - 79% oppose the Expropriation Act – which is higher than the national average; -78% favour a government focus on job creation over expanded welfare support and grants; and - 77% believe tax-funded voucher-based systems for housing, education, and health care would be more effective empowerment policies than current affirmative action and employment equity policies. Key overall findings are: Job creation remains top national priority:  Reinforcing a multi-year pattern in IRR polling, unemployment and job creation rank highest as the preferred national priority; Merit trumps race:  A large majority of 84% support merit-based appointments to all jobs. This figure combines those who favour merit-only appointments (30.5%) and those who favour merit-based appointments with special training for people from previously disadvantaged groups (53.5%); Value-for-money trumps race-based procurement targets:  A large majority of 81.7% want the state to buy from the best-priced supplier. This figure combines those who favour purely value-for-money procurement with no racial considerations (54.1%) and those who support value-for-money procurement with racial considerations acting merely as tiebreakers where two companies offer equal value for money (27.6%); Property rights trump expropriation without compensation:  A substantive majority of 68.1% oppose the Expropriation Act signed into law by President Cyril Ramaphosa in early 2025; Work trumps welfare:  A large majority of 77.8% favour a government focus on job creation over expanded welfare support and grants, and Choice trumps state-controlled empowerment policies:  A large majority of 76.3% believe tax-funded voucher-based systems for housing, education, and health care would be more effective empowerment policies than current affirmative action and employment equity policies. The report notes: “South Africans could hardly speak more clearly: they want policies and politics that unlock job creation, reward merit, hunt for every cent of value, safeguard what people own, and put real choices on such vital issues as education, housing, and health care directly into their hands. Across race, age, income and party lines this consensus is overwhelming. Parties, policymakers, businesses, and citizens now face a straightforward choice: realign around that centre of gravity or persist with projects voters regard as wasteful, unfair, or threatening.” The report adds: “For the ANC the warning lights flash red. Its signature platforms of race-based quotas, procurement, expropriation without compensation, and, increasingly floated over recent years, a permanent Basic Income Grant, are opposed by most South Africans and, more worryingly for the ANC, by roughly three quarters of its own diminished supporters. “Unless the party rewrites its economic script around large-scale job creation, clean and competitive tendering, secure property rights and choice-based citizen-level empowerment, it risks turning a 2024 electoral defeat into a 2026/7 rejection followed by a wholesale 2029 rout.” The report concludes: “South Africa … stands at a hinge moment. A broad electoral mandate is now convincingly in political play for a pro-growth, merit-driven, choice-oriented policy settlement – and its electoral benefit. Parties and policymakers who embrace it are likely to find public goodwill, private-sector buy in, investment, and civil-society partnerships lining up behind them. Those who cling to a command-and-quota paradigm risk not only prolonged economic stagnation but a decisive and calamitous electoral reckoning.” To view today’s webinar – at which author of the report and IRR Head of Strategic Communications Hermann Pretorius presented the findings –  click here. Issued by Hermann Pretorius, IRR Head of Strategic Communications, 19 May 2025 ‘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.politicsweb.co.za/documents/anc-policies-out-of-step-with-what-its-own-support

Admire Moyo | 19 May 2025 Video entertainment firm MultiChoice has, to date, invested R407 million in South African tech start-ups through its innovation fund. The MultiChoice Innovation Fund , which was launched in 2012, seeks to drive transformation in South Africa’s economy by supporting black-, women- and youth-owned enterprises in high-growth sectors, such as fintech, healthtech, edutech, broadcast technology and emerging digital media. The fund provides financial backing, business support, supply chain access and mentorship, helping entrepreneurs move from ideation to scale-up. According to the company, to date, 77 black-owned small businesses, with at least 50% female ownership, have benefited, resulting in the creation of more than 1 400 jobs. It tells ITWeb via e-mail that the MultiChoice Innovation Fund has so far disbursed R407 million in loans, grants and business development expenses to assist beneficiaries in acquiring skills and assets. Notable beneficiaries Some of the start-ups MultiChoice has invested in include Wetility – a solar subscription service provider that offers bundled, customisable solar packages and fixed monthly subscriptions that help residential and commercial customers go partially or fully off-grid. Last week, the video entertainment firm announced Wetility is fast emerging as one of South Africa’s most dynamic renewable energy companies. Backed in its early stages by the MultiChoice Innovation Fund, Wetility has fully repaid its loan well ahead of schedule, a rare milestone in the South African start-up landscape, said the company. “That initial proof of concept laid the foundation for Wetility’s R930 million series A raise in 2023,” says Ikenna Oguguo, co-founder and chief product officer of Wetility. “We secured funding from a consortium, including Metier Sustainable Capital II, Sanlam and the Industrial Development Corporation.” MultiChoice has also invested in Bothlali AI – a company that builds speech-based human-computer interaction systems to help people interact with computers using African languages. It also supported Limu Lab – an online platform for children, which provides for the learning of indigenous African languages through entertainment, and learning via storytelling, animation, music and stimulating activities. Another beneficiary of the fund is Seb4Vision , which offers broadcast enhancement solutions, including live on-air graphics, sports television graphics, augmented reality graphics, virtual studios/sets, virtual advertising, player tracking technology, sports analysis, touchscreen solutions, AR drone and second screen experience. The company also invested in Gradesmatch – an educational technology company that provides career guidance, college preparation and student success services to students in Africa. “The MultiChoice Innovation Fund is more than just a funding vehicle – it’s a catalyst for real economic transformation,” says MultiChoice. “By backing diverse, high-potential entrepreneurs, the fund is helping to unlock innovation, create jobs, and build a more inclusive digital economy for South Africa. In a rapidly-evolving digital world, the fund remains committed to ensuring the country’s future is built by local innovators who reflect the diversity and potential of our people – enabling their growth and amplifying their impact.” Early-stage pains MultiChoice says many tech entrepreneurs struggle to secure the early-stage capital needed to build and scale their solutions. “Traditional financiers often view start-ups − especially those led by young, black, or female founders − as high-risk, leaving a major funding gap,” says the firm. Limited market access is another challenge, it adds. “Breaking into established supply chains or reaching mass markets, both locally and globally, can be difficult. Without the right partnerships or visibility, even the most innovative solutions can fail to gain traction.” MultiChoice points out that while there's growing interest in tech, there's still a shortage of highly-skilled developers, engineers and data scientists. Small companies often can’t compete with larger firms for top talent, it notes. According to the company, tech companies often face outdated or unclear regulations, especially in emerging sectors like fintech, healthtech and AI. It explains that navigating compliance can slow down innovation or make scaling difficult. On commercialisation and scale, the firm says turning a prototype into a sustainable business is a major challenge. “Many start-ups need guidance on product-market fit, pricing strategies and operations to grow beyond the early stages.” While incubators and accelerators exist, it adds, there is a need for more coordinated and long-term support – from mentorship to procurement opportunities – that nurture start-ups through the full innovation journey. “As the MultiChoice Innovation Fund, we aim to bridge these gaps by offering not just funding, but also mentorship, market access and supply chain inclusion, especially for black-, women- and youth-owned businesses innovating and creatively solving South Africa’s issues.” The MultiChoice Innovation Fund considers several key criteria before investing in a business. Eligible companies must operate within the information and communication technology sector and be black-owned, with a minimum B-BBEE level two or more than 51% black ownership. “Preference is given to businesses that are youth-, female- or disabled-owned. In addition, the business should have annual revenue and assets valued at less than R50 million and must demonstrate financial soundness based on validated financial projections,” it 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://www.itweb.co.za/article/multichoice-pumps-r407m-into-local-tech-start-ups/Pero3MZ39EgqQb6m

Ashley Lechman | 18 May 2025 This past week Statistics South Africa (StatsSA) released unemployment figures that showed the level had reached 32.9%.  StatsSA's  figures showed that job losses were driven by the formal sector, with industries such as trade and construction driving the job loss trend. On the flip side, transport and finance saw net job gains. The official unemployment rate moved upwards because 291 000 people lost their jobs quarter-on-quarter, dropping the employed workforce to 16.8 million as of March this year, Statistics South Africa said on Tuesday. North West University (NWU) Business School economist Professor Raymond Parsons said the rise in unemployment raised another red flag.  Parsons said, "The 1% rise in the 1Q 2025 unemployment level again raises another red flag about SA’s weak  growth performance. With GDP growth forecasts for 2025 having been progressively reduced  by various institutions and economists to about 1.5% and below, it is not unexpected that this should now be reflected in higher unemployment levels." "The overall total unemployment level is now where it was a year ago and youth unemployment in particular remains at an unacceptable magnitude. The latest rise in unemployment again confirms that economic  growth in SA has been too low for too long," Parsons further added. South Africa's growth forecast is expected to be revised downwards next week as Finance Minister Enoch Godongwana, is set to deliver his third Budget speech, following the Value Added Tax (VAT) controversy that plagued him all year.  With no VAT increase, the minister has been forced to rearrange his budget, with an expected downward revised growth projections for the country, including expenditure.   Parsons further said that there is no magic wand to create jobs overnight. "As the disappointing unemployment picture is, the cumulative outcome of seasonal, cyclical and structural factors. But the deteriorating  employment outlook nonetheless again reinforces the fact that the third Budget on 21 May must be a growth-driven one. It needs to create a policy environment which promotes  economic expansion and boosts investor confidence. The Budget must be dedicated to policies  and projects that demonstrably support the GNU’s commitment to at least 3% GDP job-rich  growth in the medium term," Parsons said.  Casey Sprake, Economist, Anchor Capital, told Business Report that it is clear that SA continues to grapple with a relentless rise in unemployment, casting a shadow over the country’s recovery efforts.  Sprake said, "While recent key reform measures point to a more positive trajectory, this progress has not yet trickled down to many South Africans in the form of job opportunities. Structural challenges, such as a skills gap, labour market rigidities, and the lingering impact of the COVID-19 pandemic, have exacerbated unemployment rates, especially among the youth. As the economy expands, the persistent lack of jobs threatens to widen the inequality gap, undermining social stability and eroding the gains of recent economic advancements," "A combination of structural deficiencies, such as a lack of skills, limited access to quality education and training, and inadequate job creation, has resulted in a large portion of the population being unable to find gainful employment. SA’s unemployment problem remains particularly acute among the youth, where high levels of unemployment hinder their prospects and exacerbate social inequalities," Sprake further said.  The youth (age 15-24) unemployment rate has risen again to 62.8%.  "The unemployment rate, according to the expanded definition (which includes those discouraged from seeking work and thus more reflective of the actual number of unemployed South Africans), rose further to 43.1% - concerningly high. This points to longer-term, structural issues within the local economy as it is difficult to reincorporate and entice discouraged work seekers back into the labour force," Sprake added. "Moreover, in the domestic economy, material job creation has only occurred when GDP growth approaches 3% p.a. Thus, the economy is simply not growing at an adequate rate to sustainably boost long-term employment prospects for South Africans. At the end of the day, SA’s unemployment problem is a complex and multifaceted issue that requires sustained and coordinated efforts from all sectors of society to create inclusive and sustainable employment opportunities for all South Africans," Sprake further said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayindependent.co.za/business-report/economy/2025-05-18-understanding-the-surge-in-south-africas-unemployment/

Nicola Mawson | 15 May 2025 Some 10 million South Africans – the younger generation of between 15 and 24 years of age – face the “highest barriers to entering the workforce, with unemployment figures significantly outpacing that of older youth,” with dire consequences for South Africa’s economic growth. “For many young South Africans, landing a job is more than just a milestone, it is a crucial step toward economic independence and inclusion. Yet for millions, this first step remains out of reach,” Statistics South Africa said in a data print released this week. Veteran business commentator, Adrian Schofield, told IOL that the “growth in the proportion of unemployed young people is a direct obstacle to growth in the country’s economy”. He added that this sort of situation led to more crime, which would also dissuade investment. Recent research by Statistics South Africa, which further breaks down its Quarterly Labour Force Survey released on Tuesday, showed that half of all those between 15 and 24 were unemployed in 2015. Ten years later, and this number has jumped to 62.4%. South Africans can legally start working at 15 years of age. For all youngsters aged 25 to 34, the rate increased from 31.4% to 40.4% over the same period, the agency said. In 2015, the unemployment rate for youth aged 15 to 34 was 36.9%. A decade later, it had jumped 9.2 percentage points, which Statistics South Africa said is an “increase that highlights deteriorating prospects for millions”. Schofield added that the “ gross lack of attention to technical, engineering and maths skills in the education pipeline condemns the majority of matriculants to low-skilled or service occupations (with low incomes), if they can find any employment”. Where youth do have jobs, these are generally in areas such as retail, wholesale, and hospitality, which accounts for a quarter of those with jobs, said Statistics South Africa. “These numbers paint a clear picture: many young workers are clustered in low-skilled, or service-based occupations,” it said. Of those who were unemployed, almost 60% have no previous work experience, said Statistics South Africa. “That means nearly six in ten unemployed young people are still waiting for their first opportunity to enter the job market. Without experience, youth struggle to get hired – yet without being hired, they cannot gain experience,” said Statistics South Africa. It added that “this cycle of exclusion continues to fuel long-term unemployment and stalls skills development at a critical stage of life”. The unemployment rate also reflects entrenched gender inequalities, with women continuing to face greater barriers to employment, particularly among the youth. Some 37.5% of women between 15 and 24 are in the category Statistics South Africa calls Not in Employment, Education or Training. This disparity is worse in the 15 to 34 age group, at 45.1% overall – women at 48.1% compared with 42.2% of men. This, Statistics South Africa said, highlights “a persistent gender gap in access to work and skills development”. The agency said: “The challenges facing young South Africans in the employment space are not new, but they are trending negatively in many cases. Over the past ten years, youth unemployment has remained persistently high,” said Statistics South Africa. By comparison, the overall unemployment rate is 32.9%, up from the last three months of 2024 when it was 31.9%. Including discouraged job seekers, a more accurate measure of the job situation, the rate went from 41.9% to 43.1% over the same quarter-on-quarter analysis, Statistics South Africa said on Tuesday. The plight of the youth is more dire in the North West and the Eastern Cape provinces, where it deepens into economic exclusion. The first quarter of 2025 saw North West record a youth unemployment rate of 58.8%. “In the Eastern Cape, the picture is similarly serious. With an unemployment rate of 54.3% and the lowest youth labour force participation rate nationally at 39.8%, fewer than four in ten young people are either employed or looking for work,” said Statistics South Africa. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/business/2025-05-15-youth-unemployment-is-an-economic-timebomb-sa-cant-ignore/

Staff Writer | 13 May 2025 South Africa’s official unemployment rate has increased to 32.9% in the first quarter of 2025, jumping a full percentage point from the last quarter. This exceeded economists’ expectations, who anticpated a smaller climb of just 0.2 percentage points. The first quarter of the year historically shows a drop-off in employment as businesses shed the seasonal hires of the festive season and thousands of fresh matriculants and graduates enter the job market. At 32.9%, the unemployment rate is at the exact same level as it was in Q1 2024. According to the results of Stats SA’s Quarterly Labor Force Survey (QLFS), the first quarter of the year saw a drop of 291,000 employed people to 16.8 million from 17.1 million in Q4 2024. Meanwhile there was an increase of 237,000 in the number of unemployed persons to 8.2 million, it said. This resulted in a decrease of 54,000 (down by 0.2%) in the labour force during the same period. Discouraged work-seekers increased by 7,000 (up by 0.2%), and the number of persons who were not economically active for reasons other than discouragement increased by 177,000 (up by 1.4%. This led to an increase of 184,000 in the number of the not economically active population, to 16.7 million. The above changes in employment and unemployment resulted in the official unemployment rate increasing by 1.0 percentage point from 31.9% in the fourth quarter of 2024 to 32.9% in the first quarter of 2025. The expanded unemployment rate in the first quarter of 2025 increased by 1.2 percentage points to 43.1% when compared with the fourth quarter of 2024, which was 41.9%. Stats SA noted that the largest industry increases in employment were recorded in Transport (67,000) Finance (60,000) and Utilities (35,000). Decreases in employment were recorded in Trade (194,000), Construction (119,000), Private households (68,000), Community and Social services (45,000), and Mining (35,000). The results also indicate that increases in employment were observed in Western Cape (49,000), Gauteng (9,000) and Free State (4,000). Decreases were observed in KwaZulu-Natal (104,000), Eastern Cape (83,000), North West (57,000), Limpopo (55,000), Mpumalanga (43,000) and Northern Cape (12,000). Youth unemployment remains a huge issue in the country, with those aged 15–34 years being exceptionally vulnerable in the labour market. The results for the first quarter of 2025 show that the total number of unemployed youth increased by151,000 to 4.8 million, while employed youth recorded a decrease of 153,000 to 5.7 million. As a result, the youth unemployment rate increased from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of 2025. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/823898/unemployment-jumps-in-south-africa/

Kopano Gumbi | 13 May 2025 South Africa's unemployment rate rose in the first quarter of this year, with statisticians fretting that increasing numbers of people appear to have given up looking for work. South Africa's unemployment rate rose in the first quarter of this year, with statisticians fretting that increasing numbers of people appear to have given up looking for work. The country's official unemployment rate — one of the highest in the world — rose to 32.9% from 31.9% in the final quarter of last year. An expanded definition of unemployment, which includes those discouraged from looking for work, rose to 43.1% from 41.9%. Desiree Manamela, chief director of labour statistics at Stats SA, said there were signs that more people of working age were losing hope that work would materialise. “That increase in discouraged work-seekers, it's a worry because we want to see people active in the labour market by looking for employment or participating,” Manamela told a press conference. Five of the 10 industries tracked by the statistics agency recorded employment increases while five saw decreases. The largest number of jobs lost were in the trade and construction sectors, while the transport and finance sectors added the greatest number of hires. Black women and young people remained especially vulnerable to joblessness in the first quarter, with unemployment rates of 39.8% and 46.1%, respectively. Reducing unemployment is a priority for the government of national unity formed last year after the ANC lost its parliamentary majority for the first time since apartheid ended in 1994. Unemployment has been on the rise since 2016 and has been stuck above 30% for the past five years. President Cyril Ramaphosa last week announced a new set of reforms aimed at boosting economic growth and job creation, extending a programme launched in 2020. Operation Vulindlela, meaning “open the path” in isiZulu, has achieved some successes such as curbing electricity blackouts, but it is yet to make a meaningful dent in the jobless rate. ‘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.timeslive.co.za/news/south-africa/2025-05-13-south-african-jobless-rate-rises-more-give-up-looking-for-work/

In the evolving landscape of South Africa’s economic transformation, the twin pillars of Enterprise Development (ED) and Supplier Development (SD)  have emerged as key catalysts for change. Embedded within the Broad-Based Black Economic Empowerment (B-BBEE) framework, these initiatives are more than compliance checkboxes, they are strategic tools for inclusive growth, empowerment, and the sustainable development of the country’s small, micro, and medium enterprises (SMMEs). Given the structural inequalities inherited from apartheid, South Africa continues to face deep socio-economic divides. Poverty, unemployment, and inequality remain entrenched challenges. Yet, our country’s small business sector holds vast potential to shift the tide. With targeted support through ED and SD initiatives, SMMEs can not only thrive but also become the engine of job creation and innovation South Africa so desperately needs. Access to Market Opportunities One of the biggest hurdles facing small businesses is market access. Many startups and informal businesses struggle to break into formal supply chains dominated by large, established players. ED and SD bridges this gap. By integrating emerging enterprises into supply chains, large companies provide consistent demand and long-term contracts, which allow small businesses to plan, expand, and invest with confidence. This stability is crucial in transforming “survivalist” businesses into scalable, competitive firms. Capacity Building and Skills Development Another major benefit of ED and SD is the transfer of skills and knowledge. Many small businesses lack the management, operational, or financial acumen required for sustainability. Through structured support, entity’s offer training in: Financial management Marketing and branding Compliance and governance Logistics and distribution Quality control and standards These interventions not only improve the capacity of the business but also prepare them to operate at a higher level of competitiveness. Over time, this contributes to the professionalisation of the SMME sector and enhances the quality of goods and services in the market. Transformation Beyond Compliance While ED and SD are B-BBEE scorecard components, their strategic value extends far beyond compliance. Forward-thinking companies are using these initiatives to build future-fit supply chains, deepen brand loyalty, and demonstrate their commitment to economic justice. A well-structured ED and SD strategy  is not a cost centre, it is an investment. It enhances reputation, builds social capital, and aligns business interests with national development goals. In a country where economic transformation is non-negotiable, companies that lead on ED and SD are often rewarded with community trust and government goodwill. ED and SD are not just tools for Black Empowerment or compliance, they are foundational to the future of South Africa’s economy. In a society marred by inequality, the promotion of small business growth is a moral, economic, and strategic necessity. SMMEs  have the potential to unlock inclusive economic growth, reduce unemployment, and foster innovation. Through targeted ED and SD initiatives, the private sector has a unique opportunity to be both profitable and purposeful. As South Africa navigates its developmental journey, the role of small businesses and the mechanisms that support them must remain central. ED and SD offer a roadmap not only for economic recovery but also for long-term transformation and shared prosperity.

Changes to B-BBEE Legislation in 2013 closed a loophole that allowed early payment terms for Black Owned businesses in exchange for Enterprise Development points. The amendments meant that an organisation may only claim early payment terms from Supplier Development Beneficiaries. Therefore, the following applies to an invoice on which a claim for early payment is going to be made: 1.    The invoice payable for goods or services must appear in an organisation’s TMPS; 2.    Only the amount for early payment terms must reflect. Enterprise & Supplier Development Services   are available to assist with claiming early payments.

Daily, during the procurement process, organisations are purchasing across sectors, whether they are paying for hotel accommodation, professional fees or other goods and services that support the delivery of their business offering. Similarly, an organisation measured on a specific B-BBEE Sector Code of Good Practice may make purchases from suppliers measured on other B-BBEE Sector Codes of Good Practice. In choosing a supplier that is measured outside the B-BBEE Sector Code of Good Practice on which an organisation is measured, one must be aware of each B-BBEE Sector Code of Good Practice’s targets and expectations. An example is that qualification criteria for EMEs & QSEs differ under Sectors such as Construction and Media, Advertising & Communication. Without being aware of each criterion of each B-BBEE Code of Good Practice, this could, at the time of a B-BBEE Verification , impact an organisation’s Preferential Procurement Scorecard. Certificate Collection Services are available to assist Members with validating B-BBEE Statuses.

Tarryn Mason | 13 May 2025 Many learners are caught in a cycle of short-term training with no long-term prospects. It's time to rethink learnerships and invest in sustainable skills development and real career pathways. Learnerships are an essential tool in addressing unemployment in South Africa and equipping young people with skills to enter the workforce. However, most employers still view learnerships as a short-term compliance exercise, often placing learners on one-year programmes with little intention of offering long-term support or employment. This approach, while ticking a box, does little to create meaningful career prospects for the learners involved. The issue with short-term learnerships is that they often leave participants right back where they started - unemployed, under-skilled and disheartened. These programmes may provide temporary exposure to the workplace, but without progression or absorption, learners are not afforded the opportunity to build the kind of experience or qualifications that make them truly employable. Encouragingly, there are some companies that believe that true empowerment comes from long-term investment in people. Cookie Naidoo, Human Capital Executive at Italtile, explains their approach, “Our skills development policy is rooted in the belief that training learners for just one year and then leaving them unemployed does little to support their growth. That’s why we are committed to multi-year learnership programmes that take individuals all the way to Diploma level - equipping them with meaningful qualifications and real workplace experience that truly makes them marketable and employable in the long run.” This perspective offers a practical and empowering solution to an ongoing challenge. By committing to training learners over a number of years, companies can play a transformative role in bridging the gap between education and sustainable employment. The above mindset also addresses the growing trend of employers placing strict age limits on learnership candidates - often excluding anyone over 29, and in some cases, even over 25. Such restrictions further exacerbate the problem - learners who complete a one-year programme but are not absorbed or advanced remain in the system, aging out of eligibility for future opportunities and ultimately becoming part of the growing pool of unemployed youth. A more sustainable alternative is to employ learners after their first year of training and continue their skills development journey through further learnerships as employed learners. This not only improves their qualifications but also builds valuable work experience while contributing to the company’s growth and transformation objectives. Ultimately, the goal of learnerships should be long-term impact, not short-term compliance. Companies that recognise the value of investing in learners over multiple years are not just meeting legislative requirements - they are actively shaping a more inclusive, skilled and employable workforce. ‘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/skills-for-life-not-just-for-a-year-140606a