Monde Ndlovu | 5 June 2025 We are witnessing the different calls to end broad-based black economic empowerment (broad-based BEE) and transformation in general. There seems to be a layer of peddling specific narratives across society about the failures and consequences of broad-based BEE and affirmative action, which are gaining momentum, and thus a response is necessary to remind each other of what transformation is. In the words of former Black Management Forum president Lot Ndlovu, “The new economic dispensation should match the aspiration for economic freedom and the fulfilment of the highest ideals of our democracy.” The political changes in the country in 1994 did not amount to transformation in and of itself, but the new political order created conditions for transformation to take place.  Building a school, sporting facilities or a clinic does not amount to transformation in its fullest extent. These activities are part of economic development of any society in the world and should not be seen and understood as the end result of transformation.  The argument that is tabled by Ndlovu’s words is that our aspirations as a country are embedded and anchored on how we can conduct our economic affairs in a new way, by separating from the past and embracing these noble ideals that democracy has afforded us. Democracy cannot thrive in an environment where the economic order underuses or undermines human freedom and capabilities. Therefore, the economic order that we run must match our aspirations for economic freedom, otherwise our efforts in becoming a world class country will not be achieved. So, the focus after 1994 under new conditions is that we need to unleash the potential of the country by being bold and intentional about our development and uplifting black people and freeing our white compatriots from the past.  We have seen since 1994 the behaviour of both black and white people in the process of transforming the country. On the one hand, we have experienced detractors of transformation coupled with tokenism and silence from some quarters. On the other hand, we have also seen the power of legislation and how it can unlock opportunities through business and the public sector. The prevailing noise in the country today is that the transformation process has not yielded the expected outcomes, which in the main is true, but throwing out the baby with the bath water cannot also be equally true.  The understanding of the Constitution should lead us to view transformation in a variety of different ways. Here is my proposed approach, which I have written about before, that incorporates three facets of transformation. Transformation as a science seeks to measure the progress of black people in terms of their socio-economic prosperity in a democratic dispensation. This centralises research and development as a cornerstone of economic transformation, forcing both government and business to invest in proper research .  Transformation as a craft seeks to create policies and frameworks that will drive the inclusion of black people into the mainstream economy. This is then the legislative framework and the work of government. All policies and pieces of legislation must be driven by eliminating poverty, inequality and unemployment. In business this would take the shape of having transformation as the life blood of business, from top leadership to the last employee. Woven into the life of business should be breathing and thinking about transformation, daily. The power of management would be charged with creating a more equitable working environment from remuneration policies, appointments, recruitment, skills development, ownership and ESD, supply chain to procurement.   Transformation as an art seeks to deal with the mindset of society around creating a new society, which is fundamentally distinct from what was there prior to transformation efforts. Building it from the ground up and focusing on values and principles. This would entail accepting that Apartheid succeeded in developing unethical leaders in both government and business who intentionally abused the majority to build their wealth. Business fulfilled the economic mandate of apartheid. Therefore, a new value system is needed that will create the kind of leaders who will champion this transformation. Every sector of society will need to be clear on their role in this regard, as to how a new value system can be created and maintained. Business would need to denounce its racism and demonstrate that it is on a new path, and not what we are seeing today by crowding out black leadership and black business. It is pleasing to see that through the work of V20 South Africa that values are the heartbeat of its mandate and it is a privilege to be part of this work, driving awareness of values in the country.  So transformation is not just about change, it is a fundamental shift in all areas of society, in how we think and make decisions, in how we develop law and policies, how we do business, with a deep understanding our past and wanting to create a different country based on good social values and giving equal opportunity to all. Economic theory can also assist us here. We know that the factors of production are the following — land, labour, capital and entrepreneurship. In the country today we are well aware that we have acute challenges with all four factors, with heavy concentration of white people owning the means of production and black people swelling the ranks of labour in most cases. This cannot be the future of our country, where the majority are narrowly focused on being labourers and not owners. In most sectors we still have three to four major players that dominate, and this is part of the legacy of the past.    Therefore, broad-based BEE is the engine of transformation, and the economy is the engine of reconciliation. We cannot talk of reconciliation without talking about the economy, and we cannot talk about the economy without talking about broad-based BEE as its engine. Ownership is the engine of broad-based BEE, coupled with controlling and managing the economy. The three keys to transformation are therefore ownership, control and management. These ought to be the key focus of every transformational discussion and discourse. They are also supported by other elements and the whole transformation infrastructure in the country.   Business and government have been invited to embrace broad-based BEE and affirmative action as a tool and measure of transformation. Business is central to society, for it produces goods and services that are needed by society. Therefore it must look like the society it operates in, not just in rhetoric but in substance. When people identify with the business they work for, energy and commitment follow effort and drive higher productivity.  The government must protect the transformation process by ensuring that the conditions for business to operate are conducive so that goods and services can be produced.  Therefore we need to create a critical mass through these three key aspects to unleash the potential of the country. A critical mass in simple terms is the minimum size or amount needed to propel a process or system forward, without any further intervention. When we pay attention to the damage caused by both colonialism and apartheid, which succeeded in their mandate to desecrate black people, a critical mass of black people is needed at every sphere of economic activity to unleash the potential of the country. Without reaching critical mass at all levels will harm all efforts to resuscitate the dilapidating economy.  There is also an attempt to separate economic growth and transformation and positioning transformation as a costly exercise that needs to be scrapped, including that only a few black people have benefited. This logic is greatly flawed and disingenuous. We today have the black middle class and upper middle class because of these laws. Second, broad-based BEE ownership transactions have created value for shareholders, communities and employees. While not sufficiently adequate, this can be measured. Affirmative action through employment equity has opened the door to black people moving into management, but at top leadership Africans remain below 20%.  We remain the most unequal society in the world, and if broad-based BEE and affirmative action — which drives ownership, control and management in transformation — is removed, what will drive ownership, control and management control in the country?  As Ndlovu said, our aspirations of economic freedom must match our economic dispensation, we have a right to be ambitious, to be this clear that the economic order in our country must be aligned to our collective aspirations to be economically free, free to move, free to think, free to be, free to create a new country. Monde Ndlovu is the managing director of the Black Management Forum. ‘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/thought-leader/2025-06-05-a-future-without-broad-based-bee-and-affirmative-action-is-not-possible/

BizCommunity | 2 June 2025 Today marks the “first day at school” for around 200,000 young South Africans - not as learners but as working adults – with the launch of the fifth phase of the Basic Education Employment Initiative (BEEI). In his weekly newsletter, President Cyril Ramaphosa celebrated the return of the initiative after a one-year pause. “The initiative returns to townships, villages, inner cities, farms and special needs schools, bringing hope, energy and incomes to places where opportunities are too often out of reach,” he said. The BEEI is a flagship programme under the Presidential Employment Stimulus, established in 2020 to support the delivery of jobs and livelihood opportunities in the country. The initiative is implemented by the Department of Basic Education and by provincial education departments. It is now funded by the UIF Labour Activation Programme and national government. The initiative places youth in over 20,000 schools nationwide, offering real-world work experience while also enhancing school functionality and learning outcomes. Skills development President Ramaphosa emphasised the practical impact of the programme noting that it is designed to develop the work skills that employers say they need, such as time management, task management, teamwork, problem solving, IT, admin and much more. “In the process, participants undertake roles aligned to school priorities to ensure these young people add real value, enhancing the learning environment for learners and strengthening learning outcomes,” the President said. The initiative offers opportunities for young people at all skills levels. Graduates are prioritised for work in the classroom, where their tasks allow teachers to spend more time on teaching and lesson preparation. Curriculum assistants support maths, science and technology; reading champions promote literacy and a culture of reading; lab and workshop assistants support technical subjects, while others support IT and school administration. “They also tackle essential maintenance, such as fixing doors, painting peeling walls, maintaining school vegetable gardens and playgrounds. Care and support assistants work with school support teams to identify and support children at risk. “Still others spark life into sports, art and music, activities that inspire learners, uncover their talents and build pride in communities. Together, these roles provide real work experience to young people and vital support to our education system,” the President said. Advice for success President Ramaphosa highlighted the example of Sibongile Joni who was a curriculum assistant at Emsengeni Primary School in the Eastern Cape in 2023. She is now employed at an NGO called Masinyusane. She offered this advice to the new participants: “Be reliable: your consistency builds trust. Be willing to learn, ask questions, accept feedback and grow daily. Take initiative: if something needs to be done, do it without waiting to be told. Treat every task as important, no matter how small, because excellence in the small things builds your reputation. Always be professional: your attitude, respect and conduct matter. Build strong relationships with staff and learners. People open doors for those they trust and enjoy working with. Lastly, make the most of the trainings offered, they equip you with the skills you’ll need for your next step.” She said the journey has taught her that growth does not come overnight. She also reminded participants that progress takes time: “Start strong. Stay consistent. You’re building your future today.” Beyond the programme President Ramaphosa said every participant has their own hopes and dreams for their future beyond this programme. “Whether they pursue a career in education, undertake further studies, search for a job or embrace self-employment, they won’t be starting from scratch. “From this programme, they will carry invaluable skills and experience. Yet, in a tough labour market, they will each need to tackle their next chapter with creativity and initiative,” he said. The President called on society to assist young people in navigating the transition from school into the workplace. “These young people will leave the school environment having shown up, contributed and made a difference. They will have worked in high-pressure environments with limited resources and will understand deadlines and responsibility. “To employers, we say: give them their next opportunity, mentor their enthusiasm, help take their potential to the next level,” he said. Entrepreneurial support needed President Ramaphosa said there was a need to reach young people who want to be entrepreneurs. “We need to find new ways to support those who want to create their own jobs and local value, to connect them to finance, training, markets and networks.” He acknowledged that while the programme benefits hundreds of thousands of people, many more who applied were not selected. “We also need to reach those young people who want to be entrepreneurs. We need to find new ways to support those who want to create their own jobs and local value, to connect them to finance, training, markets and networks,” he said. “Today we celebrate this cohort of young people beginning meaningful work, many for the first time. But let us also not forget those who applied for these posts but who weren’t selected. “Through the Presidential Employment Stimulus, we have demonstrated the government’s capacity to address the youth unemployment problem. Through this programme we have been able to give young people work experience and a pathway to formal employment or even further education,” the President said. While recognising the significant impact of the initiative, President Ramaphosa stressed the need for continued efforts. “We do believe that this will have a much longer-term benefit for the employability of young people. This is but one initiative that seeks to address the youth unemployment challenge. We still have much more to do to address the plight of young people. “These young people are showing us what they are capable of. It is up to all of us in society to give them the opportunities they need to thrive,” President Ramaphosa 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://www.bizcommunity.com/article/beei-participants-head-to-work-at-schools-around-the-country-360698a

Tara Roos | 4 June 2025 More than two decades since its inception, black economic empowerment (BEE) has not delivered on its promise of economic redress for the majority of South Africans.  Recent developments have reignited public debate. The Democratic Alliance (DA) has launched a court challenge against the Employment Equity Amendment Act, specifically targeting section 15A. This section empowers the minister of employment and labour to set numerical targets for equitable representation of designated groups. The DA argues that these targets amount to unconstitutional, rigid racial quotas that harm economic growth and violate individual rights. BEE was introduced to correct the deep economic disparities of apartheid. While it has made some gains, most notably the growth of a black middle class, it has failed to catalyse broad-based economic participation or significantly reduce structural inequality. But this critique is not a rejection of the principle of economic redress. South Africa’s history of dispossession and exclusion demands purposeful intervention to build a more just and inclusive economy. Redress remains essential, particularly in a society where inequality continues to follow racial lines. But the current model of BEE is not the vehicle that will take us there.  To be considered middle class in South Africa, one must earn R15,000 and R50,000 a month. Today, the black middle class numbers about 3.4 million people, or 7%, of the black African population. With a spending power of R400 billion annually, this segment plays a vital role in the consumer economy, driving growth in sectors such as retail, real estate and banking. This progress, however, is far from sufficient. South Africa’s population is about 60 million, and more than half still live in poverty. While the black middle class has grown by more than 30% in the past decade, 33 million South Africans remain impoverished. In contrast, 40% to 50% of the 4.4 million white South Africans are considered middle class, a stark reflection of persistent racial disparities rooted in historical advantage. Youth unemployment at crisis levels. BEE, despite its noble intent, has not significantly altered the economic trajectory of the country’s youth. Youth unemployment in South Africa is the highest in the world. According to Statistics South Africa’s 2024 data, more than 4.9 million young people aged 15 to 34 are not in employment, education or training (NEET).  In the first quarter of 2025, the unemployment rate among youth aged 15 to 24 was 59.6%, for youth aged 15 to 34, the overall unemployment rate stood at 45.5%, nearly 1.9 million young people were classified as discouraged work-seekers, about 58.7% of unemployed youth had no previous work experience and the North West and Eastern Cape provinces recorded youth unemployment rates of 58.8% and 54.3%, respectively. The structural barriers that prevent young people from economic opportunities remain largely unaddressed. Poor-quality schooling, lack of access to capital and networks, delayed entry into the labour market and limited exposure to work experience continue to lock young people out of the economy. Although BEE includes youth-oriented components such as skills development and enterprise support, these efforts have been superficial and fragmented. They have not created sustainable pathways into employment or reshaped the labour market to enable long-term inclusion. Too often, the private sector’s BEE initiatives are limited to box-ticking, offering bursaries or internships for compliance points rather than as part of a genuine strategy for transformation. These initiatives tend to be short-term, urban-centred and disconnected from labour market demands. The result is a cycle of unfulfilled promises. Skills programmes churn out graduates with little to no employment prospects. Enterprise development schemes favour established players with political ties, while young entrepreneurs, particularly those in rural or informal sectors struggle to access supply chains, funding and regulatory support. After three decades, BEE has not dismantled structural barriers to economic participation. What is needed is not the abandonment of redress, but a fundamental reimagining of how it is pursued, one that is rooted in equity, participation and structural transformation, rather than symbolic compliance and patronage. The broad-based BEE commission has reported a rise in fronting practices, where companies misrepresent ownership or employment statistics to qualify for empowerment status. This not only undermines the policy’s credibility but also further excludes youth from opportunity. In practice, the system is designed to reward those already in the room, not those trying to get in. The 2022 National Human Development Report paints an even starker picture: the face of unemployment in South Africa is young, black and female. During the third quarter of 2021, the unemployment rate among black South Africans was 39%, nine percentage points higher than coloured South Africans and 30 percentage points higher than white people.  Educational attainment also plays a role: 40% of unemployed youth had not completed matric, while only 13% of unemployed youth held a tertiary qualification. Despite frequent references to “emerging enterprises,” the system does little to support genuine youth entrepreneurship. Without serious efforts to reduce red tape, promote youth-led innovation and align procurement with inclusive growth, economic empowerment through entrepreneurship will remain a hollow promise. BEE in its current form will not solve the youth unemployment crisis. It will not level the playing field for future generations. And it will not deliver the economic justice that has long been promised to South Africans. What is needed is a fundamental reimagining of economic inclusion. This requires moving beyond elite redistribution and towards broad-based economic renewal. South Africa must invest in quality basic education, expand public works and guaranteed jobs programmes for youth, radically reform procurement to favour township and rural businesses, and consider progressive policies such as a universal basic income. Most importantly, young people must be placed at the centre of policy design, not as passive recipients of aid, but as co-creators of the economic future. What is needed is real opportunity, rooted in justice, driven by equity, and delivered with urgency. Tara Roos is a policy writer, researcher and political analyst. ‘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/thought-leader/2025-06-04-we-need-to-change-not-reject-black-economic-empowerment/

Schalk Burger | 3 June 2025 Regulator the Quality Council for Trades and Occupations (QCTO) has formally approved three new National Qualifications Framework (NQF) Level 4 green hydrogen skills programmes, namely green hydrogen production, green hydrogen storage and transfer and green hydrogen technology, says Chemical Industries Education and Training Authority (CHIETA). These programmes will equip learners with critical technical and operational skills needed in the green hydrogen value chain, from production and storage to transportation and technology innovation, and will help to build the country’s capacity for a sustainable and inclusive energy future, says CHIETA CEO Yershen Pillay. These programmes were developed in close collaboration with industry leaders, training providers, technical experts and government stakeholders. The three nationally recognised qualifications have thus been designed to meet the real demands of a fast-evolving green hydrogen sector, he notes. “We are building the technical pipeline needed to support a green economy, while opening up career opportunities for youth, artisans and operators across multiple industries.” Specifically, the three QCTO-approved qualifications will prepare learners for a range of roles in green hydrogen production, storage, transport and technology. Among others, learners will be equipped to operate and maintain hydrogen production and storage equipment and coordinate technical activities and logistics. They will also be able to monitor environmental impacts and performance of hydrogen technologies and understand safety, regulatory and industry standards. Graduates will be ready for roles such as operators, artisans, maintenance technicians and logistics professionals across the energy, transport, manufacturing and chemical sectors, Pillay says. Further, with QCTO approval secured, skills development providers (SDPs) can now apply for programme accreditation. Once accredited, SDPs can begin offering the programmes, with CHIETA providing strategic guidance and support. CHIETA is also embarking on a national awareness campaign to promote uptake, build training infrastructure, and ensure access across provinces, he adds. South Africa’s rich renewable-energy resources and strong chemical industry base place it in a unique position to lead the continent’s green hydrogen revolution. However, without the right skills in place, this opportunity could be lost. “Green hydrogen has the potential to power inclusive industrial growth, support decarbonisation, and promote sustainability. This is about future-proofing our workforce and ensuring no one is left behind in the energy transition. “Green hydrogen is a pathway to economic renewal and climate resilience and, with the right skills, South Africa will lead the way,” he says. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/qcto-approves-three-green-hydrogen-skills-qualifications-programmes-2025-06-03

Siyabonga Sithole | 3 June 2025 Skills development and an inclusive and youth-oriented economy were some of the big talking points at the launch of this year's Youth Month programme in Soweto. The Minister in the Presidency responsible for women, youth and people with disabilities, Sindisiwe Chikunga, her deputy, Mmapaseka "Steve" Letsike, and City of Joburg Mayor, Dada Morero, led a multi-pronged programme to kick-off Youth Month during a ceremony held at the Hector Peterson Memorial and Uncle Tom's Hall in Orlando West, Soweto. Reflecting on the historical significance of the uprisings, renowned activist Seth Mazibuko, who is one of the few remaining faces of the uprising,  announced plans from his foundation to commemorate the pivotal moment in South Africa's Struggle for freedom. Activities will include a significant march involving eight schools that participated in the uprising, as well as the unveiling of "50 untold stories of June 16". "Indeed, there will be a march that will celebrate the 50th anniversary of the June 16 uprising, which will involve eight schools that took part in the uprisings. There is also a plan to launch the 50 untold stories of June 16, which will be stories told by some of the unsung heroes of the June 16 massacre. These include people who are not necessarily from Soweto but other parts of the province and country," Mazibuko said. Speaking to the media ahead of the launch programme, Chikunga said preparations for the celebration, developing a skilled South African youth, is an important aspect of ensuring that young people feel included in the skills and economic endeavours to ensure they are well-prepared for the future. "What we are going to be doing, from June this year to June next year, is to look at skills development for the future because some of the current skills may become redundant. We need to revitalise some of the skills so that young people with skills that are no longer in demand in terms of the market need, something can be done for those individuals. We have all these companies that are here who are displaying and exhibiting what they can do for young people," she stated. The minister's sentiments were echoed by Morero, who stressed the importance of improving the city's economy in order to create jobs and business opportunities for young people. "The generation of 1976 fought so that you and I can be free, so that we can celebrate free education in our lifetime, and we must ensure that education is free in the true sense of the word so that we can empower future generations and ensure that we have the necessary skills for young people to contribute to economic growth and generate economic growth for South Africa," Morero 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/2025-06-03-how-south-africas-youth-month-aims-to-empower-young-people-through-skills-development/

Sunday World | 2 June 2025 Second to the outcome of the life-changing 2024 elections, South Africans are once again confronted by one of the biggest challenges to their dream of an egalitarian post-apartheid: continuing racial disparities and finding a solution to the quagmire. A major cause for the prevailing situation is the recent release for public comment of the Draft Transformation Fund by Minister for Trade, Industry and Competition Parks Tau. The fund is about aggregating various empowerment initiatives under a unified framework, thereby enhancing efficiency and reducing fragmentation. Through its centralised approach, the fund seeks to foster coherence across government and private sector programmes to ensure that resources are deployed effectively to maximise impact and accelerate B-BBEE compliance. Then there is ActionSA’s announcement about a plan to replace the country’s current means of achieving social and economic justice—the B-BBEE driving policies. A key proposal in this plan includes establishing an Opportunity Fund, which the party suggests could be financed by a 5% levy on company profits. This fund is supposed to replace the B-BBEE framework and focus on investments in education, entrepreneurship and infrastructure in disadvantaged communities. This is an opportunity for South Africans to develop solutions that can address the legacies of poverty, unemployment and racial inequalities. They can do so by unpacking the two interventions concerning their ability to address the challenges they continue to face. A key question to ask in that regard is how each of these announced interventions has the potential to deliver them from the shackles of poverty, unemployment and racial inequality. This they could achieve by, for example, interrogating the genesis of each intervention and if that genesis is in sync with their aspirations of a qualitative life in a democratic, non-racial South Africa. For example, as Tau points out that the Draft Transformation Fund is committed to redress driven by the B-BEE framework. This is important because B-BBEE is explicitly designed to redress the economic injustices caused by apartheid. To this end, it uses mechanisms such as black ownership, management control and preferential procurement to ensure that black South Africans gain meaningful participation in the economy. On the other hand, their identification of the BEE genesis and their affinity with it should not blind South Africans to some of the shortcomings experienced in the implementation of B-BBEE, such as corruption, as well as the continuing domination of the township economy by giant retailers in the form of shopping malls. They should, therefore, ask questions about how the fund is geared towards addressing these challenges. The most important factor in the whole assessment process is that they should not fall into the trap of conflating the need for B-BBEE as a tool to drive redress and economic transformation, and how it has so far been implemented. What is needed is an understanding that while B-BBEE has faced challenges, these are issues of implementation rather than principle. In assessing the ActionSA suggestion for the replacement of B-BBEE with an Opportunity Fund, it is important to ask how such an intervention would achieve social and economic justice. Simply investing in education, entrepreneurship, and infrastructure does not guarantee that black South Africans will have greater control over economic assets or decision-making power in the economy. Without mechanisms for ownership and management control, existing power structures and inequalities may persist.B-BBEE’s pillars of ownership, management, skills development and preferential procurement are designed to ensure that black South Africans are not just beneficiaries, but active participants and leaders in the economy. An opportunity fund that lacks these targeted measures risks becoming a generic development initiative, rather than a tool for justice and transformation. By efficiently supporting black-owned SMMEs through interventions such as preferential procurement and enterprise development, B-BBEE can help stimulate employment and innovation, thereby improving production and market expansion. This is the dream that all South Africans can make possible through their input to the Draft Transformation Fund. Such inputs should be about ensuring that the fund becomes an instrument that will contribute towards economic growth, the acceleration of equal economic participation by the historically disadvantaged, as well as maintaining and creating jobs that will alleviate poverty. • Ido Lekota is a veteran journalist ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/generic-development-plans-a-waste-of-time/

The Preferential Procurement element measures the way a Measured Entity procures goods and services from Suppliers. Another key point Indicator under the General Amended B-BBEE Codes of Good Practice is the spend on Suppliers that are at least 30% Black Women Owned based on the applicable B-BBEE Procurement Recognition Level. As per Schedule 1   of the General Amended B-BBEE Codes of Good Practice, 30% Black Women Owned is defined as: An Entity in which: (a)     Black Women hold at least 30% of the exercisable voting rights as determined under Code series 100; (b)    Black Women hold at least 30% of the economic interest as determined under Code series 100; and (c)     has earned all the points for Net Value under statement 100;   Enterprise & Supplier Development Services  are available to assist Members with analysing their Supply Chain from a B-BBEE perspective.

Youth Employment Service (Y.E.S) B-BBEE legislation   and the subsequent Practice Note 1 of 2018  are clear that expenditure for the initiative and Skills Development must remain independent of one another, which extends to administration costs. Clause 7 of the legislation references Informal Spend for Category F & G training initiatives featuring in the Skills Development Matrix which states:   “7.1 Informal Skills Development expenditure for Y.E.S employees will be recognised during the Verification Process of the Skills Development element under Amended Code Series 300, Statement 300. Y.E.S Measured Entities will be able to claim up to 50% of their Skills Development Spend as Informal Training (Category F and G of the Skills Development Matrix) against the Skills Development Scorecard”.   Further reference appears in clause 1.11 of the Practice Note:    “1.11 Y.E.S Measured Entities will be able to claim up to 50% of their Skills Development Spend as Informal Training (Category F and G of the Skills Development Matrix) against the Skills Development Scorecard for Y.E.S Eligible Employees only”.   Therefore, administration costs for Y.E.S Employees would fall under Preferential Procurement Spend and not Skills Development.   Y.E.S Management Services are available to assist members in understanding requirements under the Y.E.S Initiative.

Ethics, Skills, and Competence are at the top of the due diligence list when choosing a B-BBEE Rating Agency. Firstly, an organisation must ensure that they engage the services of a B-BBEE Rating Agency in line with the SANAS R47-03 document that does not allow B-BBEE Rating Agencies to provide B-BBEE Consulting Services. Secondly, organisations must ensure that their chosen B-BBEE Rating Agency allocates a team with the technical expertise to ensure the B-BBEE Verification process is smooth. Remember, an organisation is within their rights to request CVs & Profiles about the team undertaking their B-BBEE Verification. Members are welcome to engage The BEE Chamber to discuss how to go about selecting a B-BBEE Rating Agency .

Thabi Shomolekae | 28 May 2025 The Centre for Development and Enterprise (CDE) on Wednesday called for the proposed R100-billion Transformation Fund to be scrapped, saying it is “riddled with gaps, flawed assumptions, and implausible funding mechanisms”. Ahead of Wednesday’s deadline on submissions to the Department of Trade, Industry and Competition on government’s proposed R100-billion Transformation Fund, the CDE warns in its submissions that the fund is “a lose-lose proposition” that will fail to achieve its objectives. Government believes the fund will help improve the effectiveness of broad-based black economic empowerment (BBBEE) spending as it seeks to aggregate the funding that JSE-listed groups, State-owned enterprises and unlisted private companies spend collectively on enterprise and supplier development, as well as some of the funding multinationals direct towards equity equivalent schemes to secure their BBBEE compliance, without selling shares in their companies. CDE executive director Ann Bernstein believes that the implementation of the fund will undermine existing efforts to promote economic inclusion and actually harm black-owned firms involved in current supplier development value chains. She argues that the fund’s proposition is based on an inaccurate assessment of what transformation requires, and “an equally misguided belief in the State’s capacity to deliver it”. Bernstein highlights that the fund relies on “unsupported assumptions that access to finance is the key barrier for black-owned businesses, and that a centralised, State-managed mega-fund can somehow distribute vast sums effectively and offer mentorship, skills and other support to small enterprises”. She points instead to market access, poor infrastructure, a lack of demand for their goods and services, and lack of managerial capacity, saying these are the real obstacles that struggling black-owned businesses face. CDE’s submission against the fund also highlights governance risks associated with establishing a centralised fund to undertake a wide range of complex and high-risk activities. Bernstein says it is “inconceivable” that a single organisation can deliver grants, loans, technical support, training, and market access across all industries, cities, townships and rural areas effectively and efficiently. She says she finds the proposal surprisingly “vague and lacking” in the most basic information needed to assess its viability, noting that it is unclear what kind of fund this is, what it is meant to do, or how it will be structured. “There is no detail on whether this is a capital endowment or a spend-down fund, how success will be measured, how many businesses it aims to support and what kind of support is envisaged,” she notes. Bernstein warns that if the fund fails to attract sufficient voluntary contributions, government may resort to making these contributions compulsory, as suggested in the draft document. “This would be equivalent to imposing a new tax on corporate profits. This would lead to lower levels of investment, fewer jobs, and ultimately less support for black-owned businesses – the very opposite of what transformation should achieve,” Bernstein cautions. She highlights that instead of pushing ahead with an “ill-conceived mega-fund”, CDE is urging a major rethink of transformation policy, noting that South Africa needs accelerated growth that is far more inclusive. CDE recommends that an independent panel of economists, legal experts, business leaders, and civil society representatives lead a comprehensive review of BBBEE policy and its outcomes.  “If we are serious about building a fast-growing, inclusive economy with a massive expansion of opportunities for all those millions of people who are excluded, we need effective approaches to transformation that build on the country’s strengths and do not double down on failure,” she says. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/cde-warns-transformation-fund-is-flawed-calls-for-its-scrapping-2025-05-28

Armand Bam | 29 May 2025 Elon Musk, the world’s wealthiest African-born man and, arguably, its most confident beneficiary of generational advantage, recently called South Africa’s broad-based black economic empowerment (broad-based BEE) policy “racist” — a sentiment increasingly echoed by some local South Africans who view redress through the distorted lens of personal grievance rather than historical responsibility. It’s a statement so steeped in irony that even the ghosts of apartheid must be laughing — if not weeping. That is, the architects of apartheid — men like Hendrik Verwoerd, BJ Vorster and PW Botha who designed a nation around racial exclusion, the systems they built that still shape land ownership, education and capital, and the moral stain they left on South Africa’s collective conscience, might themselves find it darkly amusing that a billionaire born into their system now claims to be a victim of the modest policies intended to redress their legacy. For context, broad-based BEE is a constitutional corrective measure aimed at broadening economic participation in a country where, until 1994, economic exclusion was state policy, not an unfortunate oversight. In contrast, apartheid’s architecture was unapologetically and systematically racist: the Population Registration Act, Group Areas Act, Bantu Education Act and job reservation laws didn’t merely discriminate; they surgically engineered white economic dominance. That dominance is precisely what broad-based BEE seeks to rebalance. Musk’s claim is not only historically tone deaf, it is philosophically disingenuous. To cry “racism” in response to redress is to mistake rebalancing for reversal. And it reveals a more unsettling truth — when you’ve been standing on a platform your whole life, equality can feel like a step down. One wonders whether Musk, who is never short on opinions or ambition, has ever considered the ancient logic of Aristotle or, more pointedly, whether he and others are inclined to understand it. Writing in Nicomachean Ethics , Aristotle argued that “equals should be treated equally, and unequals unequally in proportion to their inequality”. In South Africa, we are not grappling with parity, but with the structural residue of engineered inequality. Redress, then, is not discrimination, it is moral logic. Put simply, treating equals equally means giving everyone the same treatment when they are in the same position. But when people have been treated unequally for generations, justice requires a different approach — one that corrects the imbalance. That’s why fairness doesn’t always mean treating everyone the same, it means helping those who’ve been disadvantaged to reach the same starting line. And what of those South Africans comfortably situated, well-educated and often beneficiaries of generational advantage who argue that “it wasn’t our generation” who created apartheid, so why should “they” be burdened with its legacy? To them, the question must be returned — if you did not build the house, but you live in it, benefit from it and defend it against renovation, are you not still responsible for its condition?  Historical accountability is not about guilt, it is about participation in repair. Justice is not a backward-looking punishment, it is a forward-looking commitment to shared dignity — our collective dignity. To be clear, the failure of broad-based BEE to deliver broad-based empowerment lies not in its intention, but in its execution. The ANC-led government bears responsibility for allowing elite capture, fronting and narrow enrichment to undermine what was meant to be a structural rebalancing. Instead of building inclusive economic capacity, it too often reinforced patronage networks.  But if the ANC eroded trust through dysfunction, the Democratic Alliance is deepening public suspicion by challenging the constitutionality of the broad-based BEE Act in court. Rather than proposing viable alternatives for redress, the party’s actions risk signalling that any attempt to correct historical injustice is, by default, unjust to those who benefited from it. Yet, in typical Musk fashion, his intervention in South African discourse lacks nuance and arrives via tweet. One moment, he decries broad-based BEE, the next, he tweets an old video of Economic Freedom Fighters leader Julius Malema, as if to say: “ S ee? This is the real threat.” It’s a lazy pivot, to be honest. Shifting the conversation from the facts of structural injustice to the spectacle of populist provocation.  Malema’s often incendiary “kill the boer” rhetoric is indeed unhelpful, especially in a country still healing from generational trauma. It risks reinforcing fear and feeding narratives that sidestep the real work of transformation. But, to conflate Malema’s performance politics with the foundational purpose of broad-based BEE is to mistake smoke for fire. It’s not justice Musk is afraid of, it’s the rebalancing of power. And all of this plays out while Starlink, Musk’s satellite internet venture, is reportedly making renewed efforts to gain access to the South African market. But, instead of partnering with black-owned enterprises, as required under broad-based BEE regulations, the strategy seems to favour proxy arrangements and regulatory pressure.  It’s the familiar formula — enter the economy, but avoid transformation. Musk’s approach to broad-based BEE appears to mirror his business logic — reach the underserved, but on his terms, not the country’s. The irony is staggering — decrying exclusion while resisting the very instruments designed to ensure inclusive access. broad-based BEE does not criminalise whiteness. It does not confiscate. It does not exclude based on race, it includes based on disadvantage. It offers no favours, only a fairer footing in a race some were never allowed to enter. To call that “racist” is to eat at the table apartheid set for you and complain when someone else is finally offered a chair. Yes, broad-based BEE is imperfect. Its implementation has suffered under the weight of bureaucracy, political opportunism and elite capture. But, its necessity remains unquestionable unless, of course, one believes that justice should come without cost or inconvenience to those who benefited from injustice. Ultimately, this moment calls for a different kind of leadership; one that is not afraid of complexity, discomfort or delayed gratification. South Africa does not need leaders who weaponise redress for political capital, nor those who reduce structural injustice to soundbites.  We need leaders who are historically literate, morally grounded and publicly accountable. We need leaders who understand that economic transformation is not a populist slogan nor a corporate box-tick, but a long-term act of national repair. In the face of inherited inequality, true leadership demands not defensiveness but responsibility. Elon Musk’s wealth may well fund the future. But his view on broad-based BEE reminds us that history has a peculiar way of repeating itself, especially when the powerful feel discomforted by equality. Justice in South Africa was never going to be comfortable. But if the price of transformation is that a few billionaires feel momentarily uneasy, it is a price well worth paying. ‘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/thought-leader/2025-05-29-elon-musk-and-the-irony-of-calling-black-economic-empowerment-racist/

Babalo Ndenze | 29 May 2025 The party made the call in Parliament on Thursday, while presenting its alternatives to the Transformation Fund, which is being championed by Trade, Industry and Competition Minister Parks Tau. CAPE TOWN - The Democratic Alliance (DA) wants an independent review of the country’s broad-based black economic empowerment (BBBEE) legislation with the view to scrapping the law. The party said that the legislation merely recycled and enriched the same "tycoons" and people that weren’t disadvantaged, and could not stay in its current form. The party made the call in Parliament on Thursday, while presenting its alternatives to the Transformation Fund, which is being championed by Trade, Industry and Competition Minister Parks Tau. The DA said it rejected the Transformation Fund as another failed BBBEE scheme that enriched the elite and not workers. The party released its submission to the Department of Trade, Industry and Competition’s Transformation Fund on Thursday, offering its alternatives. DA trade spokesperson, Toby Chance, said the fund blocked growth by focusing on race instead of investment or jobs. He also recommended changes to BBBEE legislation and a new approach to transformation. "So, in specific terms, we are recommending an independent review of the BBBEE legislation and regulations with a focus on impact on economic growth and job creation." He said that two recent surveys showed how South Africans were moving away from BEE and don’t believe the government should continue pushing the policy. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/2025/05/29/da-wants-independent-review-of-bbbee-legislation-with-view-to-scrapping-law