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  • UNLOCKING ECONOMIC POTENTIAL: THE ROLE OF ENTERPRISE AND SUPPLIER DEVELOPMENT IN GROWING SOUTH AFRICA'S SMALL BUSINESSES

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

  • CLAIMING EARLY PAYMENTS

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

  • WHY DO B-BBEE SECTOR CODE OF GOOD PRACTICE TARGETS MATTER?

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

  • SKILLS FOR LIFE, NOT JUST FOR A YEAR

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

  • ABB INVESTS IN STEM EDUCATION AT LOCAL SCHOOL IN PRETORIA

    Mamsie Nkosi | 12 May 2025 Access to quality STEM (Science, Technology, Engineering and Mathematics) education remains uneven across South Africa, particularly in under-resourced schools. A study by the Equal Education Law Centre reveals that of the country’s 22,511 public schools, 74% lack libraries, 82% have no laboratories, and 4% have no computer centers. At the same time, only 18% of university graduates specialize in science and engineering , underscoring the urgent need to develop future skills. As part of ABB’s commitment to community development through education in underprivileged communities, R1.36 million was invested to transform mobile units into fully equipped learning spaces. These include a scientific laboratory, a robotics lab, a library, and classrooms designated for department heads. ABB , a technology company specializing in electricity and automation, presented a set of reconditioned mobile learning units to Mahlenga Secondary School in Bronkhorstspruit, Pretoria, aiming to bridge the skills gap and equip students for a tech-driven world. This initiative aims to equip learners with hands-on experience in critical STEM fields, fostering skills that are vital for the future of technology and innovation. “Education is not only a social responsibility, it’s a strategic imperative for the future of our society,” said Cynthia Khoali, Corporate Social Responsibility Manager at ABB South Africa. “By investing in STEM learning environments, we are enabling young people to access opportunities that were previously out of reach. Our goal is to create a lasting impact by empowering learners to shape their futures in a rapidly evolving economy.” ABB South Africa’s Country Holding Officer, Natalie Venter, emphasizes the project’s purpose-driven approach, which focuses on equipping people to overcome technical, social, and economic barriers. She believes that inclusive access to opportunity is crucial for real progress and supports STEM education as a key strategy. ‘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.itnewsafrica.com/2025/05/abb-invests-in-stem-education-at-local-school-in-pretoria/

  • GOVERNMENT BUSINESS PARTNERSHIP COMMITS TO ‘INTENSIFIED PHASE’ AMID GROWTH HEADWINDS

    Terence Creamer | 12 May 2025 The Government Business Partnership has agreed to what is being described as an “intensified phase” of delivery on the priority interventions vital to economic growth and job creation following a recent meeting between Cabinet Ministers and senior South African business leaders. The agreement was announced following the launch of Operation Vulindlela Phase II, which incorporates three new reform priorities, including tackling metropolitan council decline, spatial inequality and digital transformation, alongside the four original focus areas of electricity, logistics, water, and visa reform. At the meeting senior business leaders participating in the Government Business Partnership welcomed the launch of Operation Vulindlela Phase II but also reaffirmed that the partnership would continue with the focus areas selected in 2023, which included energy, logistics, crime and corruption, and youth employment. However, Adrian Gore, who is a business co-convenor of the partnership, said that it was also agreed that a step-change in the pace of decision-making and execution was required in light of recent downward revisions to South Africa’s growth outlook. The International Monetary Fund has lowered its 2025 growth forecast for South Africa to only 1% from 1.5%, and it is likely that the National Treasury will moderate the 1.9% growth outlook published in February when making a third attempt on May 21 to pass a Budget for 2025/26. This, even though the downgrades were announced at the peak of the tariff wars that unfolded after US President Donald Trump announced a slew of so-called reciprocal tariffs before pausing them on all countries but China. However, on May 12 the US and China also announced a 90-day pause, which could help avert the big slump in global growth that was being forecast previously. Nevertheless, whatever new growth forecast is announced by the National Treasury, it is certain to remain well below the minimum 3% target that the Government Business Partnership has indicated is required to begin reducing South Africa’s extremely high unemployment rate. “We are entering this accelerated execution ‘sprint’ with a real sense of urgency,” Gore said in a statement, warning that the progress made to date had been insufficient. “We need to redouble our collective efforts to help shift the country onto a sustained upward trajectory and deliver on our shared ambition of a virtuous cycle of growth, jobs, a more positive narrative and increased investment,” he added. In the area of electricity, the partnership would continue to pursue improvements to Eskom’s energy availability factor and unblocking delays to the introduction of new generation to keep loadshedding at bay, including by resolving grid-access and allocation bottlenecks. President Cyril Ramaphosa used the launch of the second phase of Operation Vulindlela to highlight plans to procure more than 1 000 km of grid infrastructure from private Independent Transmission Projects, as well as to recommit to the establishment of an independent Transmission System Operator to create a level playing field for competition. At Transnet, meanwhile, the partnership was focusing on growing volumes, partly through the stabilisation of the State-owned entity and partly by opening the rail and ports systems to private-sector participation. “Important progress has been made to lay the groundwork for sustained accelerated action, including the finalisation of the Transnet Network Statement, the launch of a request for information to attract private investment in port and rail infrastructure, and the National Energy Regulator of South Africa’s approval of electricity wheeling regulations. “These reforms enable broader private-sector participation in energy and transportation and logistics. “Both the crime and corruption and the youth employment focal areas are largely tracking against their plans which have a longer-term time horizon,” a joint statement released by the partnership 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://www.engineeringnews.co.za/article/government-business-partnership-commits-to-intensified-phase-amid-growth-headwinds-2025-05-12

  • CHRISTOPHER RUTLEDGE: DA’S ASSAULT ON EMPLOYMENT EQUITY MASKS THE REAL THREAT

    Christopher Rutledge | 12 May 2025 Claiming that employment equity is the source of economic hardship protects privilege by scapegoating transformation. The DA has gone to court to challenge the Employment Equity Amendment Act, arguing that government-mandated demographic targets are unconstitutional and damaging to the economy. But this legal assault on transformation policies is a cynical distraction, one that obscures the deeper truth — the greatest threat to SA’s democratic promise is not employment equity but the persistence of apartheid’s economic architecture, now managed by a new political elite.  The DA claims that race-based redress fuels unemployment. It is a seductive argument, but a false one. If economic exclusion were the fault of transformation policies, mining-affected communities — sitting atop trillions of rand in extracted mineral wealth — would be thriving. Instead, they are living proof that the economic engine of SA continues to enrich the few at the expense of the many.  In our soon-to-be-released report, “Looted Promises: The Crumbs Economy of Mining and the Myth of the Just Transition, the Mining Affected Communities United in Action and Women Affected by Mining United in Action” movements expose the brutality of exclusion faced by the black majority in mining-affected communities. Drawing on data from 11 social audits across the country, the report paints a sobering picture:  Overall unemployment across the audited mining-affected communities stands at 72%;  Among young people aged 18—35, the rate climbs to an astronomical 83%; and 78% of social & labour plan (SLP) projects audited were either incomplete, nonexistent, or implemented without meaningful community input. These figures are not aberrations. They reflect a structural economy that was never dismantled — only rebranded. Communities are promised jobs, development and inclusion. What they receive instead are ghost projects, exclusion from planning processes and the pollution of their land, air and water. Meanwhile, mining companies continue to post record profits — more than R1-trillion in turnover in 2024 alone — and channel those gains to shareholders and politically connected elites. This is the “crumbs economy” in action: the deliberate containment of redistribution to token gestures and short-term handouts, while the foundations of wealth remain untouched.  The DA’s convenient amnesia The DA wants to erase this context. It argues that the Western Cape — with its relatively lower unemployment rate — proves that employment equity is unnecessary. But this narrative collapses under scrutiny. Stats SA’s latest data shows that the City of Cape Town has an expanded unemployment rate of 32.9%. In non-metro parts of the province, where many black and coloured residents live, discouraged job seekers and youth unemployment are well above the provincial average. The DA may point to macro-level metrics, but on the ground, racialised poverty remains entrenched. To claim that employment equity is the source of economic hardship while ignoring these structural realities is dishonest. It protects privilege by scapegoating transformation.  The ANC’s complicity But let us not pretend that the problem is the DA alone. The ANC must shoulder the blame for gutting the very policies meant to achieve redress. Broad-based BEE could have been a transformative tool. Instead, it became a looting platform — captured by political elites, abused for tenders and patronage, and weaponised to justify wealth accumulation by a few in the name of the many.   In the mining sector the ANC has overseen the collapse of accountability mechanisms. SLPs — legally binding development commitments — are left to wither without enforcement. Communities are excluded from planning and denied ownership stakes in the resources under their feet. This failure has given cynics like the DA the ammunition they now use to attack redress itself.  We must be clear: the failure of BEE does not mean redress is unnecessary. It means we need to rescue redress from the elites who betrayed it.  Don’t throw the baby out with the bathwater   Yes, we demand good governance. Yes, transformation must be transparent, community-led and accountable. But abandoning equity altogether — as the DA proposes — is not a solution. It is a return to the unjust status quo. If anything, the failure of elite-driven BEE proves that we need more grassroots accountability, not less redress.  SA’s future does not lie in court challenges designed to protect privilege. It lies in ensuring that policies like employment equity are strengthened, enforced and reimagined in ways that empower those who have been structurally excluded for generations.  As our Looted Promises report shows, the so-called “just transition” is a myth if it continues to sideline those most affected. It’s time we stopped blaming equity for the failures of greed — and started demanding justice for the communities that were promised the world and given nothing but dust.  • Rutledge is executive director of the Mining Affected Communities United in Action and Women Affected by Mining United in Action advice office. ‘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.businesslive.co.za/bd/opinion/2025-05-12-christopher-rutledge-das-assault-on-employment-equity-masks-the-real-threat/

  • FURTHER DETAILS FOR COMPLIANCE WITH EMPLOYMENT EQUITY PLAN IN SOUTH AFRICA

    Talita Laubscher and Melissa Cogger | 9 May 2025 An important step for designated employers to ensure compliance with their affirmative action obligations under the Employment Equity Act, 1998 (as amended) (EEA) and the newly enacted Employment Equity Regulations, 2025 (General Administrative EE Regulations) is the preparation and implementation of their employment equity plan (EE Plan). Period of the EE Plan and timing In terms of section 20(1) of the EEA, all designated employers must prepare and implement an EE Plan which will achieve reasonable progress towards employment equity in all occupational levels in the employer’s workforce. While section 20(2)(e) of the EEA provides that the duration of a designated employer’s EE Plan may not be shorter than one year or longer than five years, the General Administrative EE Regulations state that the EE Plan’s duration must be five years, from 1 September 2025 to 31 August 2030 (there is some debate as to whether this requirement for the EE Plan to be a five-year plan is indeed so). As indicated, in terms of section 20(2)(e) of the EEA, the EE Plan may be shorter than five years, and this section has not been amended. Our considered view is that it remains open to designated employers to have an EE Plan that is shorter than five years, but we caution that there will then need to be careful alignment with the five-year sectoral targets in the employer’s subsequent plan/s. Further, if an employer becomes a designated employer after 1 April 2025, its EE Plan may be shorter, as the employer must prepare an EE Plan for the remainder of the period until 31 August 2030. The prescribed commencement date of the EE Plan must be 1 September 2025. Designated employers will therefore need to work timeously to ensure that a draft EE Plan is prepared well in advance, to allow sufficient time for the analysis to be conducted in accordance with the EEA12 form (which informs the contents of the EE plan) and for consultation on the EE Plan with employee representatives, as required by section 16 of the EEA.  Our suggestion is that EEA1 forms (used to collect the information necessary for the workforce profile) should be collected during May and that employers prepare the draft barrier analysis by early June 2025. Designated employers would then use June to consult with employee representatives on the contents of the analysis and aim to finalise the analysis at the end of June 2025. The new draft EE Plan should be prepared in parallel with this and designated employers should aim to have a draft EE Plan ready for consultation by early July. Consultations with employee representatives on the EE Plan would then take place during July and August 2025, so that a finalised plan is in place by the end of August 2025. Contents of the plan The EE Plan must incorporate all of the elements contained in the EEA13 form (annexed to the General Administrative EE Regulations), including the following: the objectives for each year of the plan; the affirmative action measures to be implemented as required by section 15(2) of the EEA; where there is under-representation, the numerical goals to achieve equitable representation of suitably qualified people from designated groups within each occupational level, the timetable to do so and strategies to achieve these goals; a timetable for each year of the plan on both numerical and non-numerical goals; the duration of the plan; the procedures to monitor and evaluate implementation of the plan, including procedures to monitor reasonable progress towards employment equity; the internal procedures to resolve disputes regarding the implementation of the plan; the senior manager and other persons responsible for the monitoring and implementation of the plan; and any other measure that is consistent with the purposes of the EEA. Objectives for the EE Plan must be SMART – specific, measurable, attainable, relevant and time-bound. When it comes to the affirmative action measures, these will be informed by the barrier analysis and must include: measures to identify and eliminate employment barriers, including unfair discrimination that adversely affects people from designated groups; measures designed to further diversity in the workplace based on equal dignity and respect of all people; making reasonable accommodation for people from designated groups in order to ensure that they enjoy equal opportunities and are equitably represented; measures to ensure equitable representation of suitably-qualified people from designated groups; and measures to ensure that people from designated groups are retained and developed, and to implement appropriate training measures, including measures for skills development. These measures exclude quotas and absolute barriers and must include both numerical and non-numerical measures. As an example, some non-numerical measures that could be taken to improve the representivity of the pool of potential candidates from designated groups could include bursaries, vacation programmes, or graduate programmes, training programmes as well as programmes aimed at the development of women or special measures to facilitate the appointment of people with disabilities. It is advisable to include sufficient details of these non-numerical affirmative action measures in the EE Plan. Ultimately, these measures are aimed at improving the pool of suitably qualified candidates and can go a long way in ensuring sustainable and genuine transformation of the workforce. The affirmative action measures that are referred to in the EE Plan must be aligned to those indicated in the analysis undertaken in line with the EEA12 form. The new EEA13 form requires designated employers to specify in their EE Plan any applicable SETA classification and bargaining council, and business type, which was previously only required for the report. Numerical goals and incorporation of the sector targets The numerical goals set by an employer in its EE Plan must now comply with the newly published final sectoral targets. When setting goals, the employer must also take into account its workforce profile and the applicable economically active population (EAP). The EEA13 form requires employers to specify, upfront on the EEA13 template, whether the national or provincial EAP has been referred to when setting numerical goals and targets. It should be noted that the sector targets have been set broadly for males and females, respectively, from designated groups. Designated employers will need to conduct a mathematical exercise to extrapolate these targets into the various race groups, in proportion to the applicable EAP, to set their targets.  The sector targets have only been set for the top four occupational levels in the workplace, and the employer will need to set its own goals for the remaining occupational levels (ie semi-skilled and unskilled) with reference to the applicable EAP and any other appropriate factors. Employers can be guided by the EEA9 form when it comes differentiating among the various occupational levels. In addition to the workforce profile, sector targets and EAP, employers may also take into account the following factors when setting targets: the inherent requirements of a particular job; the pool of suitably qualified persons; the formal qualifications, prior learning, relevant experience or capacity to acquire within a reasonable time, the ability to do the job; the rate of turnover and natural attrition within the workplace; and recruitment and promotional trends within the workplace. If any of these factors is taken into account in setting targets for specific occupational levels, it is advisable to include sufficient detail regarding this in the EE Plan, and to retain supporting documents evidencing these factors. In addition, in light of the decision of the Constitutional Court in Correctional Services , it is advisable to include a provision in the EE Plan to the effect that the goals and targets in the EE Plan are not quotas and that they do not amount to absolute barriers to the advancement of over-represented groups; also, that the employer is permitted to take race and gender into account in making appointment and promotion decisions, but that it is not obliged to do, and hence that it may, in appropriate circumstances, make decisions that have the effect that over-representation of certain groups is not addressed immediately. Detailed records of the circumstances resulting in maintaining over-representation for the time being must be kept. Such circumstances would need to tie in with the justifiable reasons that the Department of Employment and Labour (DoEL) would take into consideration where the sectoral targets are not met.   Publication and retention The EE Plan does not need to be submitted to the DoEL, and it is not a public document. However, it must be made available to a designated employer’s employees for copying and consultation and may need to be produced upon review by the Director-General or labour inspectorate. A copy of the EE Plan must be retained for at least five years after its expiry. What must be submitted to the DoEL is the employment equity report. Written by Talita Laubscher and Melissa Cogger, Partners and Chloë Loubser, Knowledge and Learning Lawyer, Bowmans South Africa   ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/further-details-for-compliance-with-employment-equity-plan-in-south-africa-2025-05-09

  • WHY ESKOM CHASED AWAY SKILLED WORKERS

    Daily Investor | 10 May 2025 For years, Eskom prioritised race targets over retaining and developing valuable technical skills. The power utility is now paying the price for this strategy. For years, Eskom prioritised race targets over retaining and developing valuable technical skills. The power utility is now paying the price for this strategy. During Eskom’s 2025 Winter Outlook briefing, chairman Mteto Nyati said the power utility did not meet expectations. “We have not been proud of how we have performed. A few metrics showed that things did not align with what we were capable of doing,” he said. The problems included power plant reliability, a delay in returning generation units to service, and issues with its coal supply. He said the Eskom board and executive team discussed the problems. “We spend a lot of time establishing the root causes of the problems,” he said. They have learned that Eskom does not have equipment issues. Instead, the problems centre around its employees. “It is mainly leadership-related. We have to make sure they follow standard operating procedures and we hold people accountable,” he said. “We need to have tough conversations when we need to. We also need to recognise them when they do things well.” “All of the problems are leadership and management-related issues. That will be our focus when we move forward.” Nyati’s comments about employee problems are no surprise. In 2023, energy analyst Professor Sampson Mamphweli said Eskom experienced a skills crisis. “When you look at the skills required to run Eskom, the utility no longer has them,” Mamphweli said. “The fact that maintenance runs overtime and over budget, while also being of poor quality, reflects the lack of skills at Eskom.” He said the exodus of skilled employees began over a decade ago when the utility underwent an aggressive transformation process. As part of this agenda, Eskom trained black engineers and pushed them into high-ranking positions within the organisation. “In that process, Eskom lost good white engineers who chose to work overseas or in the private sector due to the increased political interference at the utility,” he said. Even black engineers trained at Eksom have begun to leave the utility because of the deteriorating working environment, heightened political pressure, and low employee morale. He added that it affects Eskom in the immediate term and will have an even greater impact over the coming decades. He said the power utility has lost the ability to train engineers and has lost employees with operational experience. Many other experts have also warned that only a small percentage of Eskom employees have the needed skills to perform their duties, especially in technical and engineering departments. Former Eskom COO Jan Oberholzer, for example, blamed load-shedding on “pure negligence” by Eskom staff. He said employees did not perform their duties, which included ignoring alarms at power stations. Eskom focused on transformation at the expense of retaining skills Eskom’s struggle with skills should not come as a surprise. For three decades, it has strongly focused on transformation, which has caused it to lose valuable skills. Battles between Eskom and trade unions date back over two decades. For example, in 2001, the former Mineworkers Union (MWU) sued Eskom over racial discrimination. At the time, Eskom said it had strict racial and gender targets and would not compromise on meeting them. “We are committed to achieving that target to make sure that our workforce reflects the demographics of our country,” it said. In 2015, trade union Solidarity warned that it was playing with fire by alienating white employees. This was after news emerged that Eskom wanted to decrease its white employees by up to 3,400 to meet strict race targets. By then, Eskom had already shed more than 10,000 white staff, including many experienced and skilled technical personnel. Eskom was on an aggressive drive to reach its target of reflecting the national racial demographics by 2020. While Eskom denied that it would retrench white employees to meet its racial quotas, Solidarity said the power utility created an environment which encouraged white staff to leave. Solidarity said that Eskom’s decline, which caused load-shedding, was linked to its aggressive affirmative action policy through which it lost thousands of skilled employees. “The problem is not that those who left the utility were white but that they were people who possessed managerial and technical skills,” Solidarity CEO Dirk Hermann said. The trade union added that Eskom lost many skilled employees and the institutional memory needed to create a stable company. The same thing happened in 2023, when Solidarity published a strategy within Eskom to get rid of white men. “The current number of white men at Eskom totals 1,873. According to Eskom’s targets, it wants to reduce this number to 1,379. Eskom therefore wants to get rid of 494 white men,” it said. “This group was mainly responsible for maintenance work at Eskom. Those employees have skills that must be protected and preserved at all costs.” The trade union warned that plans to get rid of more white people were to the detriment of the individuals, Eskom and of South Africa. Despite these warnings, Eskom continued its aggressive transformation agenda, which resulted in the widespread skills loss. Therefore, Eskom’s current skills problems resulted from decades of focusing on employment equity targets instead of retaining and building skills. The power utility continues to track and report on its transformation, focusing heavily on the demographic breakdown by race and gender. This article was first published by Daily Investor and is reproduced with permission. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/energy/594204-why-eskom-chased-away-skilled-workers.html

  • TOURISM KEY TO YOUTH JOBS AND ECONOMIC GROWTH

    SA News | 7 may 2025 Tourism isn't just about breath-taking landscapes and unforgettable experiences -- it's also a powerful engine for job creation and economic growth.  This was the message from Tourism Minister Patricia de Lille at the opening of the Middle East Africa (MEA) Future Leaders Challenge South Africa, held this week in Johannesburg. “Tourism plays a significant role in our economy and has the potential to create many more jobs,” de Lille told attendees, which comprised tourism entrepreneurs, students, and industry experts.  “But to truly unlock that potential, we need a skilled, adaptable workforce, especially among our youth,” the Minister said. De Lille believes a big part of the solution to youth unemployment lies in bridging the skills gap through targeted education and innovation. “We must develop and harness critical skills like digital literacy, AI-driven customer service, digital marketing, data analytics, and sustainability. These are no longer optional; they are essential,” she said. The event, which brought together rising stars from 18 tourism and hospitality schools, is part of the G20 Tourism Hackathon, aimed at finding creative, tech-forward solutions for the tourism industry. According to De Lille, initiatives like these are vital to preparing the next generation of tourism leaders. “We must empower our youth not just with skills, but with mentorship and real leadership opportunities. Let’s transform our young people into the job creators of tomorrow.” The Department of Tourism is currently reviewing training and development strategies in line with the National Tourism Sector Strategy and other national growth frameworks. A key focus is ensuring that education aligns with industry needs, particularly in a post-pandemic world where digital nomadism and remote work are reshaping global travel trends. “South Africa must learn from countries like the UAE, Brazil, Ethiopia, and India, who are embracing Digital Nomad Tourism. We need reliable infrastructure—think seamless mobility, fast internet, and remote work hubs. These are deal-breakers for modern travellers,” De Lille explained. She emphasized that this transformation cannot happen in isolation. “Public-private partnerships are vital. We need businesses, universities, and government to collaborate, invest in skills training, and create jobs. This isn’t just about tourism; it’s about our future.” With the rise of experiential travel and the global shift toward working while exploring, South Africa has a golden opportunity to position itself as a top destination for digital nomads and skilled young professionals alike. “The world is changing. Let’s ensure our youth are ready to lead that change,” said De Lille. ‘Disclaimer - The views and opinions expressed in thi s article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/tourism-key-youth-jobs-and-economic-growth

  • HERMAN MASHABA UNVEILS PLAN TO DEAL BBEEE A BLOW

    Boitumelo Kgobotlo | 8 May 2025 ActionSA leader Herman Mashaba has announced that his party will table a draft resolution in the National Assembly to scrap the broad-based black economic empowerment policy. Mashaba was speaking at the Apartheid Museum on Tuesday, alongside Michael Beaumont, Lerato Ngobeni, Nasiphi Moya and Kgosi Letlape. He said this resolution, in terms of Rule 119, will call for the creation of an ad hoc committee to look into economic transformation laws and suggest urgent reforms. “We embark on this effort to bridge partisan divides and build genuine consensus, establishing a dedicated and constitutionally empowered platform that will not merely culminate in rhetoric but in real legislative reforms that advance economic justice in South Africa,” said Mashaba. He touched on five key proposals to guide transformation, which he referred to as essential policy levers to bring real, measurable change. These are inclusive economic empowerment, social investment grants, housing and spatial justice, gender justice, and social cohesion. Mashaba is calling for “inclusive economic empowerment legislation, which he said will introduce an opportunity fund. This fund would be financed by a 5% levy on company profits and will replace the BBBEE framework, and invest in education, entrepreneurship, and infrastructure in disadvantaged communities. He explained that small businesses will be exempt from this levy, and the fund will be time-limited to 30 days. “ActionSA is not opposed to Black Economic Empowerment. On the contrary, we believe that economic justice is a historic imperative. But we are opposed to the narrow, corrupt, and politically manipulated fashion in which it has been implemented – an approach that has entrenched inequality rather than dismantled it,” said Mashaba. On social grants, he said ActionSA wants to protect people’s dignity while reducing dependency. The party plans to support youth development, mental health services, and safer communities to help people become active members of society. He also addressed immigration, emphasising that South Africa cannot fix its problems while dealing with those of other countries. He blamed corrupt border officials for allowing undocumented immigrants to compete with South Africans for jobs and services. He highlighted that even after apartheid ended, marginalisation continued through poor education, failed economic policies, corruption, and weak immigration control. Mashaba said that without proper reforms to replace apartheid-era laws, the goals of the Constitution would remain out of reach. He mentioned several apartheid laws, including the 1913 Natives Land Act, to the 1985 Coloured Persons Education Act, as evidence of the damage that still needs to be repaired. “Now, I’m citing these always not to spite or, as many like to claim, for the pleasure of dwelling in the past. I do so to remind you of the pervasiveness of the apartheid legacy that was meant to inform the work that post-apartheid administration had to do to undo the socio-economic ravages of many decades of apartheid, as envisaged in the Constitution,” said Mashaba. “What we have seen instead are successive ANC administrations that were expected to constitute ‘a government for the people by the people’ becoming one after another, ‘governments for the politically connected by their comrades’,” Mashaba added. He said that while laws such as the Employment Equity and Broad-Based Black Economic Empowerment (BBBEE) were introduced with good intentions, they ended up helping only the small, connected elite. ‘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/politics/8amherman-mashaba-unveils-plan-to-deal-bbeee-a-blow/

  • IS IT TIME TO SCRAP EQUITY TARGETS?

    ENCA | 7 May 2025 JOHANNESBURG - The debate on whether to scrap or keep the Employment Equity Amendment Act rages on. The Act was introduced to address historical disparities and promote equitable representation in the workplace. This has been a contentious issue for years. In 1998, South Africa signed the Employment Equity Act into law and was later amended to the Employment Equity Amendment Act (EEAA) on 12 April 2023. Despite its intended purpose, many have questioned the implementation of the EEAA, with some accusing the governing party of prioritising a certain population group. This time, eNCA's social media platforms are buzzing following our viewers' question on the Democratic Alliance taking the EE Amendment Act to the High Court.  "Why are black-dominated government sectors failing? President Ramaphosa, in his SONA speech, said municipalities are failing because of a lack of technical skills. The ANC needs to fix the real skills problem, which is a skills deficit among the country’s black people. In many cities and towns across the country, roads are not maintained, water and electricity supply are often disrupted, refuse is not collected, and sewage runs in the streets. In part, this is because many municipalities lack the technical skills and resources required to meet people’s needs," says @ish18_e on X. @FireyFastFreddy believes the DA has done the right thing by challenging the Act in court. "It's legitimate. I think employing certain groups to make up the numbers is a dangerous ploy". Glynis Salzer on Facebook says, " Unemployment figures prove it hasn't worked, as does the lack of monetary growth, investment, etc". "The act is also useless because even if you are qualified, without connections, you won’t be employed. They are just bluffing us with the nice useless acts," says Bra Charlie on Facebook . However @Gabojust on X slammed the DA saying, "Race remains a highly charged topic in our country three decades after the end of white minority rule. The DA’s leadership and the party have a reputation for defending the interests of the white minority, which it denies.” @luckymaake4 on X says "A lot of things that the DA wants to achieve will come at the expense of the previously disadvantaged. Because of our history, whatever is implemented will disappoint the previously disadvantaged or the previously advantaged. It is difficult to satisfy everyone". Explaining his understading of the Act , Manix Sanga Muyala  on Facebook said , " To my own understanding, employment equity is a mechanism to try and bring a balance between those who were oppressed and the oppressors . Can anyone tell me what other system is in place to uplift those who were oppressed?" The DA is challenging the constitutionality of the new draft employment equity targets. The amendments are proposed in the recently gazetted Employment Equity Amendment Act. The party argues that the previous version of the EE Act struck an appropriate balance between fostering transformation and protecting the rights of undesignated groups. It says the previous EE Act was flexible, prohibited quotas, and empowered employers to set targets based on their specific circumstances. The DA says the draft law is tagged incorrectly and should be declared invalid. The Employment and Labour Department will present the State’s case defending the changes. ‘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.enca.com/top-stories/it-time-scrap-equity-targets

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