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

Nkateko Joseph Mabasa | 18 June 2025 President Cyril Ramaphosa has defended his administration’s efforts to address the country’s deepening youth unemployment crisis, saying it requires a broad approach, including investing in education and skills development and encouraging entrepreneurship among young people. In his weekly newsletter, which coincided with South Africa observing Youth Day, Ramaphosa singled out the Presidential Employment Stimulus and the Presidential Youth Employment Intervention as two flagship programmes that have helped to cushion the blow of a stagnant labour market. The country’s youth unemployment rate remains among the highest in the world, with more than 60% of people aged 15 to 24 unable to find work, according to Statistics South Africa. Official youth unemployment, for those aged between 15 and 34, increased by 9.2% from the last quarter of 2024 to 46.1% in the first quarter of 2025. “To overcome this challenge we need an approach that includes investing in education and skills development, fostering youth entrepreneurship and implementing targeted employment programmes focusing on young people,” the president wrote. He said the Presidential Employment Stimulus and Presidential Youth Employment Intervention were “providing opportunities to hundreds of thousands of young people at a time when not enough jobs are being created to absorb new entrants into the labour market”. Launched in 2020, the Presidential Employment Stimulus has supported more than two million work and livelihood opportunities. According to the presidency, 72% of the participants were young people and 66% were women. The president also praised the SAYouth.mobi platform, a zero-rated data-free site that connects unemployed young people to training and job opportunities. Ramaphosa said 4.7 million young people have registered on SAYouth.mobi and on the department of employment and labour’s employment services database, collectively accessing more than 1.6 million earning opportunities. Beyond simply creating jobs, Ramaphosa said his government is working to remove systemic barriers that prevent young people from reaching the labour market. In 2019, the requirement for work experience in entry-level public service jobs was abolished, a move he said has opened the door for first-time jobseekers. “Young people have often expressed frustration around the onerous experience requirements from employers that effectively serve as a barrier to entry for them,” Ramaphosa said. Public-private partnerships, such as the Youth Employment Service, have placed thousands of young people in workplaces across a range of economic sectors, offering much-needed experience, said Ramaphosa. But he conceded that formal employment opportunities alone were not enough, stressing the need to bolster skills development and nurture entrepreneurship among the youth.  “The extent and scale of the youth unemployment crisis means that we should not focus solely on placing more young people in formal, existing jobs,” he wrote. Capitec Bank chief executive Gerrie Fourie recently said South Africa’s unemployment rate was closer to 10% instead of the official 32.9% if Stats SA were to include those self-employed in the informal economy. Fourier argued that many people in townships and rural areas have informal steady jobs as hawkers and make a daily turnover of about R1 000.  Stats SA refuted claims that it overlooks informal sector workers, stating it follows International Labour Organisation standards to track unregistered, small-scale employment. It regularly publishes detailed reports, such as the Quarterly Labour Force Survey, to monitor this sector.  Statistician general Risenga Maluleke emphasised that official data should inform policy, not be misrepresented, and urged critics to base their arguments on evidence. According to Stats SA,  the rate of young people not in employment, education or training has increased from 38.3% to 43.2% over the past 10 years. This raises questions about the ability of the informal economy to create alternative employment.   South Africa’s youth are increasingly being left behind by the economy, with rising unemployment, hunger and crime dimming prospects for a generation that makes up a third of the population, according to Stats SA’s latest Social Profile of Youth report, which tracks the well-being of young people from 2014 to 2024. Defined as those aged 15 to 34, the youth cohort accounts for about 21 million people, representing 33.1% of the population.  Although youth unemployment remains high, the profile of those most affected has shifted, suggesting that access to basic education is becoming less of a barrier to employment. The share of jobless youth without a matric qualification declined by 10.3 percentage points, while unemployment among matriculants fell by 7.2 percentage points.  But the report also shows that a matric certificate does little to shield young people from joblessness. From 2014 to 2024, the proportion of youth who were employed dropped from 30.5% to 27.7%, while youth unemployment rose sharply from 36.8% to 45.5% over the same period. This upward trend in joblessness was observed in most provinces except the Western Cape. At the same time, more youth are living in households without any employed adults. This figure rose from 21.8% to 23.8% for males and from 24.5% to 25.5% for females. At the household level, the situation remains precarious as income from salaries and wages declined in 2023. In rural areas, reliance on social grants remained high, despite a marginal decline in their overall share of household income. Food insecurity also worsened, with the share of young people living in hungry households rising from 13.5% in 2014 to 15.8% in 2023. “Households with no employed adults are becoming more common, which makes the intergenerational transfer of poverty more likely,” said the report. Youth safety also deteriorated, particularly for young men. Fewer youths reported feeling safe walking alone during the day, while feelings of night-time safety remained unchanged at 34.9%. Young men aged 16 to 34 were more likely to be victims of assault, street robbery and theft than their female peers, according to the report. School attendance increased slightly, from 74.7% in 2014 to 75.2% in 2023, while enrolment in higher education climbed by 1.3 percentage points to 13.2%. Youth with tertiary qualifications were also the least likely to be unemployed. Statistics South Africa said this reinforces the importance of continued education in an exclusionary labour market. Enrolment in technical and vocational education and training colleges dropped slightly, while participation in adult education and training went down from 1% to just 0.04%. Stats SA noted a small uptick in home-schooling and other alternative education options, which signals growing demand for non-traditional learning opportunities. “South Africa’s youth are better educated, but not necessarily better off,” the report concludes. The youth data raises questions about the intersection between skills alignment, the quality of work and the cost of living. Ramaphosa said the government has ramped up funding for technical and vocational education and training colleges, including the establishment of new campuses. The presidential youth programme has also partnered with the National Youth Development Agency and the department of small business development to develop young entrepreneurs. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/news/2025-06-18-ramaphosa-touts-youth-jobs-drive-as-statssa-data-paints-grim-unemployment-picture/

The Socio-Economic Development   element requires an Independent Competent Person to present an Independent Competent Person’s Report to confirm that the requirements of an organisation’s Socio-Economic Development contributions have been met and that a claim is indeed legitimate. As per Schedule 1  of the Amended General B-BBEE Codes of Good Practice, a “Competent Person” means a person who has acquired through training, qualification and experience the knowledge and skills necessary for undertaking any task assigned to them under the codes.” An Independent Competent Person must have no conflict of interest when nominated to sign off on an organisation’s Socio-Economic Development initiative. Such a person must have sufficient training and experience or knowledge, as well as other qualities that allow them to assist an organisation in the capacity of an Independent Competent Person. The competence level depends on the initiative's complexity and the requirements of a particular assessment. An Independent Competent Person must have a duty of care to an organisation’s investors. Socio-Economic Development Services are available to assist organisations that wish to confirm the competence of an Independent Competent Person.

The Ownership element of the B-BBEE Scorecard assesses the proportion of Ownership  held by Black People within an organisation and is one of the Priority elements under B-BBEE Legislation.   As per the Amended General B-BBEE Codes of Good Practice, and using the Verification Manual as a guide, Ownership must be measured on the date of a B-BBEE Verification and not on the date of an Ownership transaction.   Ownership Services are available to Members to assist with understanding requirements for Ownership.

From time to time, the South African National Accreditation System (SANAS) publishes a list  of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials .     This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

Journalist | 18 June 2025 Gwede Mantashe’s removal of B-BBEE rules for prospecting rights has ignited criticism from labour and activists, raising fears of a shift in policy. Is the ANC-led government of national unity (GNU) about to sell out on the principle of broad-based black economic empowerment (B-BBEE), the policy which has formed the bedrock of ANC policy and which has been in the crosshairs of its critics recently? That’s the question which arises from the decision of Minerals and Petroleum Resources Minister Gwede Mantashe to remove the requirement for B-BBEE participation in prospecting rights. According to some NGOs involved in the mining sector, Mantashe caved in to pressure from the mining lobby, not only on the prospecting licence rules, but also on the requirement that the minister must approve any change in control of listed companies that own mining rights. The latter means that the government would be unable to track owners and assign responsibility to them for cleaning up mining sites once an ore body has reached the end of its profitable life. That, say Mantashe’s accusers, means potential environmental damage on a huge scale. But it is the amendment to empowerment rules which has angered groups like organised labour, because there seems to be no logical reason for the deviation. The latest development comes after Communications and Digital Technologies Minister Solly Malatsi was pilloried for allegedly trying to soften empowerment law to allow Elon Musk’s Starlink to operate in South Africa. That this was an incorrect reading of both the law and what Malatsi said made no difference to his enemies, who claimed the DA minister was “selling out” B-BBEE. There is also some concern about whether the ANC is feeling the pressure of people like the right-wing lobby and its powerful friend, US President Donald Trump, who view empowerment laws as apartheid in reverse. It seems unlikely the ANC would roll back these laws because it would be punished at the ballot box. Which leaves another question: What is Mantashe up to? ‘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.citizen.co.za/news/opinion/is-the-anc-quietly-rewriting-empowerment/

Nkateko Joseph Mabasa | 17 June 2025 Business Leadership South Africa (BLSA) has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals. It said effective efforts should be anchored in measurable objectives that justified the financial commitment required.  According to a draft released in March, the R100 billion fund aims to promote black economic empowerment and inclusive economic growth by facilitating the increased participation of black people in the mainstream economy.  In a submission to the department of trade, industry and competition, BLSA, an association  representing big businesses, said while it recognised the importance of transformation initiatives, “we have concerns regarding the feasibility, governance and financial sustainability of the proposed fund in its current form”. “The fund should use an outcome-based approach by specifying the expected transformation impact in tangible terms, such as the number of businesses it aims to grow, employment targets, or improvements in SME (small and medium enterprises) survival rates,” it said. “For example, a goal of supporting 5 000 black-owned businesses with a 30% annual growth rate over five years would provide a more practical framework for assessing effectiveness.” Trade and Industry Minister Parks Tau published the fund’s concept document — which envisages raising R20 billion annually for black enterprise development — in March, with a 28 May deadline for comments. Scrutiny of the draft comes amid tension over the government’s black economic empowerment policies. For example, the Democratic Alliance (DA), despite being part of the government of national unity, is challenging the Employment Equity Act in court, arguing that it introduces unfair race quotas that contradict the Constitution. Communications and Digital Technologies Minister Solly Malatsi, a DA cabinet member, recently had to defend his controversial proposed information and communication technology policy adjustments as intended to broadly attract investment in the sector, rather than to simply pave the way for Elon Musk’s Starlink to operate in South Africa, as critics suggested. President Cyril Ramaphosa has defended black economic empowerment as vital for inclusive growth, crediting it for the emergence of black industrialists and support for women-owned businesses. BLSA acknowledged the importance of redressing the structural economic imbalances created by apartheid, and commended the government for establishing the Transformation Fund, but bemoaned the lack of analysis about why previous state-led initiatives such as the National Empowerment Fund and the Small Business Fund had underperformed. “The paper does not provide a comprehensive overview of these existing funding mechanisms, nor does it justify why a new R100 billion structure is necessary instead of enhancing existing models,” it said in its submission. It also expressed concern about institutional inflation, where new entities are created for the same purpose instead of supporting ongoing programmes, adding that access to funding alone would not resolve the systemic challenges and insufficient mentorship capacity had hampered black empowerment initiatives. “Without targeted investment in mentorship infrastructure even significant financial allocations may fail to yield desired development outcomes,” it said. Labour union Solidarity and the Free Market Foundation estimate that black empowerment laws have incurred R145 billion to R290 billion in compliance costs since their inception, equivalent to between 2% and 4% of GDP. A report by the two organisations on the cost of broad-based black economic empowerment says the programme has imposed a substantial economic burden on high-intensity sectors such as mining and finance, attributing low employment numbers to racially motivated policies. “While B-BBEE may have contributed to an increase in black ownership and supported some skills and SME development, those gains are overshadowed by elite capture, limited grassroots impact and persistent inequality,” the report said. BLSA said transformation efforts would improve with more private sector participation in the fund’s financial disbursement and oversight. It argued that transformation is already happening in companies’ enterprise and supplier development programmes, which have proved to be commercially viable in integrating small businesses. A joint fund management team between government and the private sector would allow businesses to share and “codify lessons and best practices for the fund’s design”, the organisation added. “We recommend that the Transformation Fund be designed with sufficient flexibility to align with existing industry master plans and accommodate the requirements of the fast-growing priority sectors,” it submitted. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/business/2025-06-17-transformation-fund-draft-document-lacks-clear-outcome-driven-goals-blsa-says/

Midrand Reporter | 16 June 2025 The graduation served as a poignant reminder that when entrepreneurs are equipped with the right tools, support, and confidence, they build with purpose and build to last. The Innovator Trust, established by Vodacom over a decade ago, aims to support the development of small, black-owned, information and communications technology (ICT) enterprises in South Africa. It has successfully assisted black-owned small, medium, and micro enterprises (SMMEs) in the ICT sector, positively impacting thousands of lives through its comprehensive programmes.This proud legacy reflects a commitment to strategic entrepreneurship, job creation, and the empowerment of innovative ideas. As a result, on June 3, the Innovator Trust hosted the 2025 enterprise development graduation ceremony at Vodacom World in Midrand. The event celebrated entrepreneurs from the hatch incubator, IT accelerator programme (ITAP), and youth entrepreneurship programme (YEP). From side hustles, to scalable businesses, the Innovator Trust has supported over 200 entrepreneurs at every growth stage, providing practical tools, experienced mentorship, and strategic guidance that yields tangible results. Tashline Jooste, CEO of Innovator Trust, reflected on the trust’s, over a decade-long, journey. “We have been developing our capacity and enhancing our systems to better support SMMEs,” said Jooste. “Every business requires a supportive ecosystem, which begins with incubation. “What we are witnessing, a decade later, is the rise of industry leaders who are shaping the future of South Africa’s digital economy. While some may view this as just a graduation ceremony, for us, it is a testament to what can be achieved through targeted, relevant support for SMMEs.” Lungile Manzini, executive head of sustainable development at Vodacom South Africa, delivered the keynote address, highlighting the importance of purpose-driven SMMEs, while Siya Sangweni facilitated a dynamic panel discussion on the current state of the SMME landscape in South Africa. Entrepreneurs openly shared their experiences regarding challenges, such as cash flow issues and delays in corporate payments, emphasising the need for support beyond financial aid. The atmosphere shifted from strategy to celebration as beneficiary graduates took to the stage, greeted by thunderous applause. One of the evening’s highlights was the Pinnacle Award, recognising the entrepreneur who excelled across all measures of business success. Michael Cyster was the winner of this prestigious category. “I’ve never chased recognition, but to be acknowledged like this is indescribable,” said Cyster. “I’ve just put my head down and worked, and I’m so grateful to the Innovator Trust for seeing me and acknowledging the effort we put in.” Graduates and runners-up received well-deserved recognition, with several categories awarding up to R50 000 in cash prizes to support their continued business growth. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/midrand-reporter/news-headlines/local-news/2025/06/16/innovator-trust-recognises-top-ict-achievers/

Solly Phetoe | 16 June 2025 Broad-Based Black Economic Empowerment (BBBEE) remains an important tool to address our deeply ingrained levels of inequality.   It would be strange for any democratic government of a nation emerging from three hundred and fifty years of the most brutal and institutionalised forms of discrimination that left over 90% of society consigned to the most poorly paid form of manual labour, not to embrace state supported economic empowerment programme.   It would have been tantamount to endorsing South Africa’s status as the world’s most unequal society, something clearly the fringe right wing extremists wish for. BBBEE is merely one tool, among many, to address the legacies of the past and the inequalities of today.  This is a key prescript of the Constitution and an obligation of the state to society. BBBEE in short seeks to give a fair opportunity to millions historically denied such due to their race, gender or disability.  People, in particular the race baiting fringe right wing, ignore its inclusivity.  BBBEE includes Africans, Coloureds, Indians, plus women, workers and persons with disabilities of all races.  In short it covers about 97% of society! BBBEE is not just the 30% shareholding option but also equity equivalents where investors can offer similar investments supporting local companies, creating jobs and investing in communities.  All equally important.  It includes Employee Shareholder or Worker Ownership Programmes (ESOPs).  This has been an initiative COSATU and many unions have championed.  In the recent past few years, it has seen over 550 000 workers become shareholders in their companies.  This has given them a stake in the companies’ well-being and growth, but also crucially put money in their pockets.  Some critics lament that BBBEE has failed and must be scrapped.  Yet they are silent on its role in creating a growing Black middle class.  They deride efforts to create Black industrialists yet miss the point of their role in opening factories and companies, and the jobs these create in local communities.   Is BBBEE perfect?  Of course not.  Does it need to be adjusted, lessons learned, mistakes corrected?  Without a doubt.  Cosatu does have many concerns with the implementation of BBBEE, notwithstanding appreciating its successes in many instances.  BBBEE does need to be adjusted to learn from challenges experienced, to avoid repeating them and to ensure its progressive objectives reach those most in need of empowerment, the millions of working class residents living in townships, informal areas, rural towns and villages across the nation. A discussion needs to be had about the once empowered, always empowered notion.  Do we want BBBEE to continue to benefit those already empowered? Or can it be adjusted to prioritise those still in need of empowerment?  How can this be practically done?  An elegant solution is needed lest BBBEE be dismissed as benefiting only the wealthy. How can SMMEs, especially emerging ones, and particularly those in townships and rural areas, be elevated?  We should not continue to normalise township and rural economies to be composed of taxis, petrol stations, hawkers and taverns alone.  An inclusive targeted approach to these communities where the overwhelming majority of South Africans live, is needed. Can more be done to eliminate fronting where White South Africans merely add the name of a Black employee or partner to their ownership papers or where a Black owned company simply imports goods from Asia?  BBBEE is not about names on a letter head.  It is meant to reach those in need of empowerment.  It cannot be about enriching importers when we need to elevate local procurement and give support to local businesses, Black and White, and not sacrifice them in pursuit of cheap imports. Public procurement with an annual budget of over R1 trillion, from departments to municipalities, entities and State-Owned Enterprises, has a key role to play in supporting BBBEE and more critically making sure it reaches those who need it, not the nouveau riche. The recently assented to Public Procurement Act elevating this important objective across the state will be an important boost in this regard.  Public representatives across the three spheres of government need to hold the executives accountable in this regard. The private sector too, in particular large mining, manufacturing, financial and other well-resourced sectors with large procurement budgets, need to provide more solidarity and support to local companies, in particular BBBEE compliant ones.  This is key not only to transformation and empowerment, but also to boosting localisation and stimulating badly needed economic growth and tackling unemployment. Whilst Cosatu supports the thrust of BBBEE, the heart of our support and in fact our passion, lays in ramping up ESOPS or Worker Ownership Programmes.  We want workers to live a better life, to boost their earnings, to have more money to pay their debts, to feed their families and to buy the goods local companies produce and thus spur economic growth and sustain and create more jobs. We want workers to become co-owners of their companies as this gives them a stake in their success and a direct motive to boost productivity and again spur economic growth and sustain and create jobs. We want to end the still painfully prevalent apartheid scars that are the feature of almost every township, village and community.  We want workers, African, Coloured, Indian, White, women and with disabilities, to be co-owners in this economy, including on the JSE. We want this better life now, not in some indeterminate future promised on a Jpeg by irrelevant populists.  Workers are the backbone of the economy. They have made South Africa the industrial hub of the economy.  Many have grown wealthy off of their sweat and blood, it is time that this wealth is shared with the working class.  ESOPs are a critical path to doing that. BBBEE is not perfect, but its objectives remain as valid today as they were in 1994.  Adjustments are needed, in particular to make sure the SMMEs in our townships, local manufacturers, and most importantly workers are elevated and prioritised at all times. ‘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-report/opinion/2025-06-16-cosatu-the-importance-of-bbbee-in-addressing-inequality-in-sa/