The core aim of Socio-Economic Project Contributions is to support income generation. Therefore, any contributions must pass the income generation test at the time of an organisation’s B-BBEE Verification.   Schedule 1  of the Amended General Codes of Good Practice defines Socio-Economic Project Contributions, which must be pre-approved by organs of state or a sector as:   “Socio-Economic Project Contributions means monetary or non-monetary contributions carried out for the benefit of any projects approved for this purpose by any organ of state or sectors including without limitation:   o   Projects focusing on environmental conservation, awareness, education and waste management; and o   Projects targeting infrastructural development or reconstruction in underdeveloped areas; rural communities or geographic areas identified in the government’s integrated sustainable rural development or urban renewal programmes; o   New projects promoting beneficiation.”   Socio-Economic Development Services   are available to Members to assist meeting requirements under the element of Socio-Economic Development.

Virtual informal learning, otherwise referred to as distance training, has become the norm over the past few years.  Providing evidence of a training intervention according to the Skills Development requirements, includes an attendance register or certificate of attendance (not limited to). However, virtual learning or distance training sometimes poses a challenge in terms of producing an attendance register.   Some Members have arranged for an attendance register to be shared via email or on a document sharing platform at the end of the training initiative which records the attendees for each session allowing the learners to sign once for all sessions.   There is no official clarity on how an Entity should record attendance for a virtual learning or distance training intervention, but it would be important to provide evidence in some form that indicates that the training initiative has taken place.   Skills Development Services   are available to Members in assisting with collating evidence for virtual learning or distance training.

Intra-group procurement spend is a normal part of spending, especially for groups of vertically connected companies, which in many cases is a sizeable amount. Internal procurement between holding companies and their subsidiaries must be included in an organisation’s Total Measured Procurement Spend as per Statement 400 of the Amended General B-BBEE Codes of Good Practice.   Paragraph 5.1.2 states: Intra-group procurement: all goods and services procured from subsidiaries or holding companies of a Measured Entity (BEE Credentials of the entity supplying goods and/or services must be confirmed in the way of a BEE Certificate).     Requirements for Consolidated B-BBEE Verifications amongst a group of Entities will have an impact on the above.   Enterprise & Supplier Development Services   are available to Members to assist in understanding the Intra-Group Procurement spend.

A successful vendor application is what allows a customer to purchase goods or services and pay their supplier with pre-conditions.  However, to get to the stage where business flows between a supplier and a customer, due diligence is essential to protect the customer and the supplier.   Part and parcel of due diligence of a vendor application is requesting documentation which confirms that the applicant is a good corporate citizen with good financial standing. However, many organisations request documentation that is not relevant or in a prescribed format and which will cost the applicant time and money.    The following is a non-exhaustive list of relevant information that could put an organisation applying to be a supplier into a favourable position. This list, however, excludes additional legislative expectations as set out by institutional bodies such as bargaining councils:   o   Trading name of organisation and registration details; Require - organisation’s registration documents. o   How an organisation was registered, whether as a Close Corporation, Proprietary Limited or Sole Trader; Require - organisation’s registration documents. o   Shareholder information; Require - share certificates, Company Share Register and certified identity documents. o   VAT statement; Require - VAT Registration Certificate. o   Tax Clearance; Require - SARS Tax Clearance Certificate. o   Contact information; In most cases, this information only needs to be provided and not evidenced. Necessary information would include physical and postal addresses, telephone, cell phone and fax numbers, website address and, where possible, two contact email addresses. o   Banking information;  Require - A certified letter from the bank to confirm account details, or a cancelled cheque. o   B-BBEE threshold indicated by annual total revenue; Require - B-BBEE Certificate, CIPC EME Certificate or an Affidavit. o   ‘Black’ Ownership and ‘Black’ Women Ownership Status; Require - B-BBEE Certificate, CIPC B-BBEE EME Certificate, Affidavit, share certificates and identity documents. o   Confirmation of safety and compliance standards, for example, NOSA certification; issued certificate. o   Declaration of any ‘Conflict of Interest’. o   Acceptance of an organisation’s terms and conditions. Enterprise & Supplier Development Services  are available to assist Members with understanding these requirements.

The liquidity of an Enterprise Development Beneficiary matters. A long-term Enterprise & Supplier Development Strategy more often than not incorporates future Bonus Points for elevating a Beneficiary from Enterprise Development status to that of Supplier Development.   However, core to successfully claiming these points is that the Enterprise or Supplier Development Beneficiary remains in business. In other words, claims only qualify if an Enterprise or Supplier Development Beneficiary’s business is liquid and actively trading.   Therefore, organisations must put measures in place to track the performance of their Beneficiaries.   Enterprise & Supplier Development Services  are available to Members to assist with crafting sustainable Enterprise & Supplier Development strategies.

Skills Development is an intrinsic part of building a transforming economy. It incentivises organisations to use 6% of their payroll annually for Skills Development interventions. The core aim is to facilitate development to create sustainable employment, thus inviting more people to participate in the economy.   Some organisations invest what they can afford, whilst others aim to fund the complete 6% for Skills Development. However, due to a disconnect on where the spend would be most effective and how a meaningful investment in higher education, training or learnerships, internships or apprenticeships could lead to absorption, they only meet the sub-minimum requirements.   It Is encouraged that Members develop and maintain a sustainable Skills Development strategy.   Skills Development Services   are available to assist members in developing Skills Development strategies.

The 2024 Annual Employment Equity Roadshows  will commence on Tuesday, 06 August 2024 whereby the Department of Employment & Labour travel to provinces across the country to share insights on Employment Equity legislation.   This year’s Roadshows would involve many questions from organisations and individuals with regards to the implementation of the Amended Employment Equity Act, Sectoral Targets and the effective date of implementation.    Human Capital Services  are available to assist members in planning for future Employment Equity requirements.

Philippa Larkin | 19 March 2025 The long-awaited controversial R100 billion Draft Transformation Fund concept document to boost black-owned business has finally been published on Wednesday by Minister of Trade, Industry and Competition, Parks Tau. It is open for public comment from March 20 to May 7. The proposed fund was first announced by the Department of Trade, Industry and Competition and Tau in January, while President Cyril Ramaphosa formalised the announcement during his State of the Nation Address on February 6. The proposal comes at a time that South Africa's policies of catalysing economic transformation through BEE is under the global spotlight after the US Trump administration took issue with it. Tau said the proposed fund, targeting R100 billion over the current administration’s term, aims to catalyse economic transformation by aggregating resources to support black-owned enterprises, with a focus on small, medium, and micro enterprises and co-operatives. The initiative, rooted in the Broad-Based Black Economic Empowerment (B-BBEE) Act, seeks to mobilise funds primarily through Enterprise and Supplier Development (ESD) contributions. However, Tau made clear that the requirements of the Fund are no additional requirements for entities over and above what currently exists in the B-BBEE policy. "The B-BBEE policy through the Codes of Good Practice requires that entities must contribute through Enterprise and Supplier Development (ESD) in the 3% of Net Profit After Tax, on development of black suppliers, black industrialists and SMMEs to broaden the industrial and services base of our country," he said. The fund is a collaborative effort between the government and the private sector. The rationale for the fund is explained in the draft document, which notes that there is a need for a "more impactful approach" to economic inclusion. The B-BBEE Commission’s 2022 study revealed only 61% compliance with ESD targets in 2021, which is a continuing trend over the past five years (2017: 44%; 2018: 60%; 2019: 51%; 2020: 61%). "The issue at hand on ESD and its utilisation transcends the compliance imperative as imposed legislatively by all economic actors, it is about unleashing its potency in driving economic inclusion and participation. As matters stand, it is imperative to acknowledge that the funds raised through ESD contributions do not have a positive impact on marginalised groups as envisaged within the B-BBEE legislation, more especially the SMME sector which is underserviced and under-funded," it stated. Tau said, "We firmly are in pursuit to transform the economy as guided by the Vision 2030 of the National Development Plan (NDP), which is to eliminate poverty and reduce inequality. Our Constitutional imperative places a collective burden on all of us to advocate for equality and redress." “This provides an opportunity for the 7th Administration, working with the private sector, to increase the effective economic participation of black-owned and managed enterprises,” he said. With an anticipated annual capitalisation of R20 billion over five years, the Transformation Fund aims to bridge the financing gap that has long hindered black entrepreneurs. South Africa’s SMME sector, a critical driver of job creation, remains underserviced and under-funded, a challenge the fund seeks to tackle head-on. Beyond financial support, it will offer technical assistance and market access, targeting key sectors like manufacturing, agriculture, and tourism. Tau said special attention will be paid to businesses owned by women, youth, and people with disabilities, particularly in rural and township areas, where economic exclusion is most acute. A portion of the Fund distribution will be exclusively for entities who operate within the definition of ‘Black Industrialists’ as per the definition of the Black Industrialist Policy, such as agriculture and agro-processing; mining and minerals beneficiation; manufacturing opportunities and services opportunities as well as infrastructure opportunities. The fund’s objectives include promoting meaningful participation of black people in the economy, improving access to funding, and empowering black-owned firms to integrate into value chains. It builds on existing B-BBEE policies, with no additional burdens on businesses beyond current ESD requirements, but aims for greater impact through coordination. The governance structure is designed to ensure transparency and accountability. A Special Purpose Vehicle (SPV) will manage the fund, overseen by a board and an Oversight Committee comprising government and private sector representatives. “We will be putting in place governance structures that will ensure accountability to both government and private sector, transparency, and efficiency in managing the fund,” Tau said. This framework aims to instil confidence among stakeholders, with the SPV operating as a tax-exempt entity to maximise resource deployment. The fund’s R100 billion target will be achieved through a mix of government seed capital and private sector contributions, including ESD funds and the Equity Equivalent Investment Programme for multinationals. It will deploy a range of instruments - grants, debt, and equity - to support businesses at various stages, from start-ups to distressed entities. A portion will be earmarked for township and rural economies, tapping into opportunities like spaza shops, informal services, and urban farming, which hold untapped potential for job creation and local growth. Black Business Council CEO Kganki Matabane has defended the proposed fund, saying the economic transformation will only end when the ownership and control of the economy reflects the demographics of the country. Others will contend the draft document. Democratic Alliance (DA) representative Mat Cuthbert earlier this week labelled the proposed fund "outrageous".  In a statement he said, "It is important to note that this is in addition to the tens of billions of Rands already allocated exclusively to black-owned businesses through development finance institutions such as the National Empowerment Fund and the Industrial Development Corporation, which have failed to meaningfully empower black South Africans." "To make matters worse, he [Tau] wants businesses to pay 3% of their annual net profit after tax under the auspices of the B-BBEE Codes of Good Practice and further utilise the Competition Commission's public interest participation in order to capitalise the fund. This is frankly outrageous. Considering the significant tax burden that businesses already face and the considerable backlash the Minister's party received from South Africans for presenting a pro-tax and anti-growth budget." Cuthbert also pointed to the failure of the "trickle-down redress" model. A recently released World Bank report entitled "Driving Inclusive Growth in South Africa," highlighted how BEE policies and laws impede investment and economic growth in 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://capetimes.co.za/business-report/entrepreneurs/2025-03-19-public-comment-invited-on-r100bn-draft-transformation-fund-for-black-owned-businesses/

On 23 July 2024, Gazette 50967, the Public Procurement Act of 2024  was gazetted.   The Act seeks:   To regulate Public Procurement; and To prescribe a Framework within which Preferential Procurement must be implemented.   Furthermore, the Act will focus on:   A high standard of Professional Ethics; Efficient, Economic and Effective use of resources; and Development-oriented, Accountability and Transparency.   We look forward to the implementation of the New Public Procurement Act of 2024   Preferential Procurement Services  are available to assist with the understanding of the Public Procurement Act of 2024

IT - Online | 18 March 2025 The rise of generative AI (GenAI) is shaking up workplaces around the world, and South Africa is no exception. As businesses adapt to new ways of working, job seekers are rethinking their careers, upskilling and negotiating better opportunities. A Pnet white paper, “Navigating South Africa’s Shifting Work Preferences in the GenAI Era”, explores how AI is reshaping job opportunities, skill demands and workplace expectations for both employees and employers. Backed by insights from the Decoding Global Talent series – one of the world’s largest workforce studies with over 150 000 participants worldwide, including 7 000+ South Africans – the whitepaper highlights key trends that will define the future of work.   What’s changing in SA’s job market? South Africa is experiencing a talent paradox. Despite high unemployment rates, many businesses still struggle to find candidates with the right skills, particularly in industries like Technology, Engineering and Healthcare. This disconnect is further complicated by gaps in digital access, limiting many job seekers’ ability to upskill and meet market demands. At the same time, professionals with in-demand skills are recognising their value. A remarkable 66% of South African workers say they feel confident negotiating job offers, particularly in fields such as IT, Finance and Healthcare, where competition for skilled talent is fierce. Meanwhile, AI-driven tools are becoming part of everyday work. Already, 38% of South African professionals are using GenAI regularly to assist with tasks like coding, data analysis and content creation, signalling a growing integration of AI across industries. While only a small percentage (6%) believe AI will completely replace their jobs, nearly half (43% of workers) anticipate upskilling in order to stay competitive in a progressive job market. This means that adaptability and continuous learning are becoming just as important as traditional qualifications. Employers, too, are feeling the pressure to adapt. Attracting and retaining top talent in an AI-driven workplace requires more than just competitive salaries. It’s also about job security, career growth opportunities and a strong workplace culture. Businesses that fail to evolve risk losing valuable employees to companies that are actively investing in training, technology and employee well-being.   What this means for employers? South African businesses can’t afford to sit back as AI reshapes the workplace, according to the white paper. To stay competitive, companies need to invest in skills development, embrace AI-driven efficiencies and ensure their workplace culture aligns with new employee expectations. The future of work isn’t just about technology, but also about how businesses and employees navigate these changes together. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2025/03/18/businesses-under-pressure-as-genai-shakes-up-the-job-market/

Q | Is the Workplace Skills Plan or Annual Training Report mandatory at a B-BBEE Verification for QSEs?   A |  It is mandatory for B-BBEE purposes when a QSE reports in line with the Skills Development Act or Skills Development Levies Act. Skills Development Services  are available to assist members with assembling a Workplace Skills Plan and Annual Training Report.

Q |  Can a B-BBEE Sworn Affidavit be commissioned by a Commissioner of Oaths connected to the deponent that is an EME or QSE with more than 51% Black Ownership?   A |  Commissioner of Oaths must be independent as per the Justices of the Peace and Commissioners of Oath Act.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid Sworn Affidavits.