Mthobisi Nozulela | 28 February 2025 THE FIRST-ever graduation ceremony of the DLO Skills Initiative Solar Panel Cleaning Programme took place at the De Aar Town Hall this week, marking a major milestone in the empowerment of local youth. Over the past three months, the programme has trained 100 unemployed young people in De Aar, equipping them with essential skills in solar panel cleaning and maintenance. Designed to create opportunities for disadvantaged community members, the comprehensive training included practical sessions, workplace integration, and post-training support to help participants transition into careers in the renewable energy sector. In partnership with Longyuan Power Group, DLO Energy Resource Group launched this initiative to bridge the skills gap and create employment pathways in the growing green energy industry. “China Longyuan has been an exceptional partner in funding this project, placing their trust in us to develop a skills programme that is truly relevant,” said Linda Mabhena-Olagunju, CEO of DLO Energy Group. “Without their support, we would not have been able to achieve the reach we have today.” Investing in South Africa’s Energy Future Longyuan Power Group, a subsidiary of China Energy Investment Corporation - the world’s largest wind power operator - has played a key role in advancing global renewable energy initiatives. South Africa continues to grapple with a persistent load shedding crisis, which has significantly impacted the economy. Transitioning to renewable energy has been identified as a crucial step toward mitigating the crisis, driving demand for skilled professionals in the field. To support this transition, the company has invested approximately R5.18 billion in two wind farms located in the Northern Cape. With a combined installed capacity of 244.5 MW, these wind farms have already begun supplying electricity to the national grid, contributing to the alleviation of South Africa’s energy crisis. The wind farms generate approximately 760 million kWh of clean electricity every year, benefiting around 300,000 local households and supporting South Africa's initiatives to reduce carbon emissions and promote energy stability. Understanding that a skilled workforce is essential for the country’s renewable energy transition, Longyuan has also taken proactive steps to equip young South Africans with industry-relevant skills. Commitment to Skills Development and Community Support Speaking at the graduation ceremony, Ben Sheng, deputy general manager of Longyuan South Africa, commended the skills initiative programme and reaffirmed Longyuan’s dedication to empowering local youth. “This programme is a remarkable step forward, and Longyuan is committed to ensuring that more young people are empowered with the skills and knowledge to contribute meaningfully to South Africa's energy future,” Sheng said. The company has also made a broader impact on communities in the Northern Cape through various social initiatives, investing around R15 million annually in community development projects that focus on health care, education, and youth empowerment. Its scholarship programme has helped 390 university students, while four early education centres and donated classrooms have provided learning opportunities for 469 children. In health care, a mobile medical unit offers free services to over 9,000 community members annually, ensuring better access to essential medical care. Local Leaders Applaud the Initiative The executive mayor of De Aar, Gladwell Lulamile Nkumbi, highlighted the local impact of the new programme. "The programme we have launched today (Tuesday) will contribute to the activities in the area. The solar projects we are implementing will help create more jobs. As the largest area hosting numerous solar and wind energy projects, we are providing opportunities specifically for the people of Emthanjeni, based on the skills they have acquired," Nkumbi stated. The mayor also commended DLO Energy Group and Longyuan for their positive contributions to Emthanjeni Municipality. "Their contributions to economic activities have been significant, even though they operate on a small scale. However, they still have a notable impact on the area. "We see many people moving in and out for work, and the area is faced with lots of young people that are unemployed, so the programmes that are here address some of the challenges that we're facing," Nkumbi concluded. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://dfa.co.za/news/2025-02-27-skills-programme-empowers-northern-cape-youth-for-green-future/

Sipho Tshabalala | 2 March 2025 The banks have had their time to do the right thing. Now, the nation must act to ensure that transformation is no longer a dream but a reality. The fight is on, and failure is not an option, writes Sipho Tshabalala. South Africa’s banking sector stands as one of the last strongholds of apartheid-era economic exclusion. Despite nearly three decades of democracy, financial institutions remain a fortress designed to serve a privileged few while systematically shutting out black entrepreneurs and businesses. The banking industry’s refusal to transform is not just an inconvenience; it is an outright betrayal of South Africa’s economic future. Dr. Mkhacani Joseph Maswanganyi, Chairperson of the Standing Committee on Finance, did not mince his words when addressing the financial sector’s failure to transform. "The status quo is unacceptable," he declared, making it clear that Parliament will no longer tolerate continued defiance. His frustration is justified. The facts speak for themselves — black ownership in the financial sector is declining, black professionals hold fewer than 20% of executive roles in major banks, and critical enterprise and supplier development targets are ignored. To make matters worse, financial institutions have failed to submit a transformation report for the 2017/18 fiscal year, a blatant violation of the BBBEE Act. These failures are not accidental. They are the result of a deliberate strategy by banks to maintain the economic status quo. "Banks, in their arrogance, have crafted lending models that deliberately exclude black businesses," Dr. Maswanganyi stated. "Collateral-based lending mechanisms ensure that access to finance remains a privilege reserved for the historically advantaged, while emerging black entrepreneurs are denied the capital they need to compete." The banks know exactly what they are doing. They are preserving their wealth, their networks, and their control by ensuring that transformation remains a distant illusion. For years, Parliament has asked the banking sector a simple question: Why are you resisting transformation? And for years, banks have responded with excuses, tokenism, and corporate jargon designed to pacify rather than address the real issue. Financial inclusion remains a farce when black-owned businesses cannot access funding, cannot scale, and cannot compete on a level playing field. Dr. Maswanganyi is not alone in his outrage. The BBBEE Commission, National Treasury, and other oversight bodies have repeatedly exposed the industry’s deep-seated resistance to transformation. Yet, nothing changes. The Banking Association of South Africa (BASA) and its members continue to treat transformation as an optional exercise rather than a legal and moral obligation. "How do banks justify their perpetual resistance to transformation?" Dr. Maswanganyi asked. "Why, despite existing legislative frameworks, do they refuse to comply with financial sector transformation targets?" These are not rhetorical questions. They are demands for accountability in a sector that has gotten away with exclusionary practices for far too long. Parliament must act decisively. The National Treasury and the Department of Trade, Industry, and Competition must stop issuing warnings and start enforcing compliance. The South African Reserve Bank and the Financial Sector Conduct Authority must explain how their regulatory policies align with national transformation goals. If they cannot, then they too must be held accountable. This is not just about policy — it is about justice. It is about economic redress. And it is about ensuring that the next generation of black entrepreneurs are not strangled by a system built to exclude them. Banks that refuse to transform should face real consequences. Severe regulatory penalties, licensing repercussions, and the revocation of banking privileges must all be on the table. The financial sector must understand that transformation is not up for negotiation. South Africa’s future depends on an inclusive economy. A banking sector that continues to shut out the majority is not just unethical; it is unsustainable. If banks refuse to change voluntarily, then Parliament must make sure they are forced to do so. Transformation is not an option — it is a necessity. The era of empty corporate promises is over. "The continued exclusion of black entrepreneurs and businesses is an indictment of the banking industry’s priorities and a betrayal of South Africa’s economic future," Dr. Maswanganyi declared. "The people of South Africa deserve a financial system that serves all, not just a privileged few." The banks have had their time to do the right thing. Now, the nation must act to ensure that transformation is no longer a dream but a reality. The fight is on, and failure is not an option. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/opinion/banks-killing-black-economic-transformation-4c6733bb-ff19-4bbf-94ed-a2c2558ba7d3

Sanlam | 24 February 2025 The Sanlam Group and South African National Parks (SANParks) have officially expanded the Sanlam SANParks SMME Support Programme into Addo Elephant National Park (AENP) today. Following the successful implementation at Kruger National Park and Garden Route Parks, the fund is scaling to support SANParks’ small business suppliers within a 50km radius of AENP. Now valued at R20 million, the fund provides interest-free, short-term working capital loans to help micro, small, and medium enterprises (MSMEs) successfully deliver services to SANParks. This is particularly critical in a country where SMMEs contribute approximately 40% of total GDP, yet many struggle to access affordable finance. Ray-Ann Sedres, Chief Transformation Officer at Sanlam, highlights the significance of the initiative: “South African National Parks are a vital contributor to the country’s economy, driving eco-tourism, job creation, and biodiversity conservation. By expanding the fund into Addo, we are strengthening the local small business network, ensuring that more SANParks suppliers can access the financial support they need to grow, create jobs, and contribute to sustainable economic development. The programme, implemented by I AM AN ENTREPRENEUR (IAAE), prioritises SANParks-approved SMME suppliers within a 50 km radius of national parks, with some flexibility for special cases further afield as approved by SANParks. The zero-interest loans help these businesses take on and complete projects without the burden of high borrowing costs. Skumsa Ntshanga, Head of Socio-Economic Transformation at SANParks, underscores the importance of providing economic assistance to local SMMEs to ensure equal access to opportunities. "By expanding this programme to another one of our largest parks, we cement our commitment to inclusivity for our local suppliers. The fund allows the suppliers to grow their businesses, contribute meaningfully to the socio-economic upliftment of their communities, and helps ensure the smooth operation of our parks. This aligns with our Vision 2040 of a harmonious co-existence between people and nature, where they both prosper. ” Programme Achievements So Far• R12.9million disbursed to 61 approved MSME (micro, small and medium enterprises) applications – across Kruger National park, Garden Route parks (Tsitsikamma, Wilderness and Knysna). • 28% of the funded MSMEs are women-owned, and 41% are youth-owned. • 153 jobs retained , comprising 39 permanent and 114 temporary positions. • R1.5 million saved in total annualised interest by MSMEs. • R5.8 million reinvested into MSME operations. "This initiative deeply aligns with our north star: to empower all Africans to be financially secure and prosperous," adds Sedres. "We cannot achieve this without giving our micro and small business sector the support it needs to thrive. It’s our privilege to play a part in unlocking this potential—particularly for our youth and women-owned businesses, given the inequalities within our society." A Success Story from the Garden Route One of the programme’s early beneficiaries is Sidomela Trading Enterprise, a construction business owned by Cynthia Odwa Majova in Plettenberg Bay. In January 2025 Sidomela Trading received a SANParks purchase order to refurbish three staff houses in the Knysna section of the Garden Route National Park. On the same day, Ms. Majova successfully applied for a zero-interest loan of R119 615.17, which was processed and disbursed within minutes. This financial support enabled her business to take on the R351 495 project, creating 13 jobs in the process. Reflecting on her experience, Ms. Majova shared, "I am very happy with this Sanlam-SANParks partnership. It has really helped my business, and I encourage other SMMEs to apply. When a need arises, I will definitely apply for this fund again." Ntshanga adds, “We are excited to support SMMEs in overcoming challenges, including barriers to entry, by providing them with funding opportunities. The fund is easy to apply for, making it easily accessible to suppliers of our national parks. We want as many local suppliers as possible to take advantage of this valuable opportunity." The expansion into Addo Elephant National Park marks another step in empowering small businesses, creating employment, and ensuring that local suppliers can thrive while supporting South Africa’s conservation efforts. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.fanews.co.za/article/people-and-companies/12/news/1163/sanlam-and-sanparks-expand-zero-interest-smme-support-to-addo-elephant-national-park/41097

Samantha Herbst | 25 February 2025 Thanks to the global tech revolution, support for people with disabilities has expanded exponentially in recent years. Now, more than ever, the potential for a truly equitable society is within reach. Since its establishment in 1986, the Disability Rights Unit (DRU) at Wits University has committed to creating an equal, accessible, and empowering environment for students and staff with disabilities. This includes access to the latest assistive technologies to support those across the disability spectrum. It also ensures that Wits’ students with disabilities are independent and ready for the workplace after graduation. The empowerment and employability of students is one of the primary goals of Dr Leila Abdool Gafoor, who’s been leading the unit since March 2024. “There is nothing more empowering than being able to do something on your own, but if we hold students’ hands too much, and they never learn to be independent, they’ll get used to the help at university but won’t have the same support when they step into the workplace,” she says. “It’s our mission to empower students to do more things on their own, so that they can enter the world of work seamlessly without having to rely on external assistance.” State-of-the-art tech support To ensure that it’s able to empower and enable students with state-of-the-art facilities and best-in-tech devices, the Wits DRU is constantly sourcing the latest technological solutions. Acknowledging that every student has specific and differing needs – even within the same spectrum of disability – adaptive technologist and alumnus Andrew Sam works closely with students, assessing them and making recommendations on which assistive technologies will best support them in their studies. “My role focuses on digital accessibility, and I also offer one-on-one training to make sure that each student is able to utilise the technology we have on offer,” he says. Students with disabilities also need to be able to access online sites such as ulwazi , Wits’ learning management portal, as well as other sites crucial for their area of discipline, for which Sam provides training. Dealing not just with disability, but with equity more broadly, Sam notes that some students approach the DRU having had little to no ICT training at their historically disadvantaged special-needs high schools. This is also something that he helps address with individualised training programmes. Nothing about us without us As a person with disabilities who has straddled both academia and the corporate landscape, diversity and inclusion activist and local writer Terry-Ann Adams (author of Those Who Live in Cages and White Chalk ) says it was much tougher to navigate the world of work without a dedicated disability unit. “You have to be your own advocate while worrying that you aren’t seen as lazy, or a burden,” they say, adding that the stakes are higher when there's money involved. “Disabilities are expensive, and you need the salary and medical aid that you get from work to pay for your life.” Adams is currently pursuing a master’s degree through Wits’ Department of Creative Writing. As someone on the autism spectrum who also lives with albinism, the author advocates for others with disabilities, especially in the field of digital accessibility. “There are some things that non-disabled people don't know are accessibility gamechangers for us. For me, it's Uber and ChatGPT, for instance. I use Uber because of my visual impairment, while ChatGPT has helped when I have brain fog from my lupus,” says Adams. “I also use a liquid reader that helps me when I pour hot water in a cup. And small things, like vegetables that are already peeled and cut, are amazing. I don't have to risk losing a finger when I cook a meal!” Their advice to corporates and academic institutions which are keen better to support people with disabilities, is listening as the first, most crucial step to true allyship. “No two people are the same. My accessibility needs may differ greatly from another person with albinism, or another autistic person. So, listen and consult with people who live this life. Lived experience is the best teacher,” they say. Recognising collaboration opportunities Dr Zintle Ntshongwana joined Wits in 2022 as a Lecturer in the Department of Social Work. With an emerging research interest in disability equity in higher education, she immediately recognised the resources and support offered by the Wits DRU. Ntshongwana became a fellow in Wits’ Female Academic Leaders Fellowship (FALF) programme, which seeks to develop a pipeline of African female academic leaders in tertiary institutions, and which inspired this research focus in 2023. “I decided to conduct a research study on disability units at two historically disadvantaged universities, namely the University of Fort Hare and the University of Zululand,” says the Fort Hare alumna, who completed her PhD there. Acknowledging invisible disabilities Ntshongwana’s research highlighted Wits as a frontrunner among local universities when it comes to equity and accessibility support, with a wealth of resources that could benefit other universities through collaboration. “Collaboration means sharing expertise and best practices. Universities like Fort Hare and Zululand would certainly benefit from Wits’ resources and expertise, but Wits could also benefit from a policy or representation perspective. There is always room for growth and gain,” she says. On establishing workplace equity for people with disabilities, Ntshongwana believes in fostering an organisational culture where every voice is welcomed, respected and recognised equally. She adds that not all disabilities are physical, and that many individuals feel they will be stigmatised if they disclose their disability. Ntshongwana is therefore passionate about mutual respect among individuals. “A positive workplace culture is important. It’s a matter of being a human being and respecting the other person, and supporting diversity and inclusion,’’ she concludes. The latest in disability tech While Wits University is still learning how best to tap into the potential of artificial intelligence (AI) and implement it in the disability space, the DRU strives to offer students the very best in disability support and existing assistive technologies, including: Braille Note Takers: Devices that connect to blind learners’ phones or laptops and provide real-time Braille translation of webpages, as well as Word and PDF documents. ZoomText keyboards: Keyboards that feature large, high-contrast letters, and coloured keys which help visually impaired learners to see the keyboard better, reducing eye strain. Digital recorders: Advanced digital recorders with text-to-speech capability that enable blind students to navigate the device and their recordings. The recorders are also used by hearing- impaired students to record lectures. Loop systems: Devices that pair wirelessly with a hearing-impaired person’s hearing aid or cochlear implant, providing clear, enhanced audio. The Phonak Roger pen is another example of a loop system, offering a discreet pen-shaped solution for someone with a hearing disability. Desktop Magnifiers: The magnifier zooms in on documents with small fonts and/or dense text, enhancing visibility for the visually impaired. Eye-Pal reading device: An easy-to-use scanner that instantly and accurately converts printed text from books or documents into audio. It also produces an electronic text file or MP3 of the audio for quick accessibility. Blind students registered with the DRU receive mobility training to help them move freely around campus, while deaf students have access to two full-time South African Sign Language interpreters who can assist them in class. Moreover, the DRU will liaise with lecturers and provide suggestions on how they can better support students with disabilities in their lectures. This is in addition to the dedicated computer lab for DRU students, and a dedicated extra time test and exam venue for students who use assistive technologies. Samantha Herbst is a freelance writer. This article first appeared in Curiosity ,  a research magazine produced by   Wits Communications and the Research Office.  Read more in the 18th issue, themed #Work, which delves into the evolving nature of work, shaped by societal shifts, technological advances, and equity challenges. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.wits.ac.za/news/latest-news/research-news/2025/2025-02/superpowers-for-disability-access.html

Statistics South Africa is the source used to determine the Net Profit After Tax (NPAT) for calculating the targets for Enterprise Development, Supplier Development and Socio-Economic Development. The latest statistics  were published during December 2023. The statistics in this version will be for the 3rd quarter of 2023.   Any B-BBEE Verification from hereon would most commonly apply the latest Industry Norm published by Statistics South Africa. For example, if a B-BBEE Verification takes place in January 2024, the latest published stats to be used would be those posted during December 2023.    Technical Compliance Services  is available to guide members in calculating their Targets.

Organisations are encouraged to achieve Bonus Points by graduating an Enterprise Development Beneficiary to a Supplier Development one. Therefore, an organisation may enter into a Supplier Development Programme directly without first going through the Enterprise Development phase but will not earn the Bonus Points available. Statement 400, clause 3.8 of the Amended General B-BBEE Codes of Good Practice highlights the rationale behind this:   “A Supplier Development Beneficiary is a part of the Measured Entity's supply chain, whereas an Enterprise Development Beneficiary is not.”   Enterprise & Supplier Development Services are available to guide members on Enterprise & Supplier Development Initiatives.

Ann Bernstein | 23 February 2025 When the Department of Small Business Development was formed under Jacob Zuma’s presidency in 2014, it was heralded as a catalyst for economic growth. At the time, it was believed that the state could meaningfully direct all aspects of the economy, and that it had the wisdom and wherewithal to turn small businesses into accelerators of growth and job creation. However, rather than fostering a thriving entrepreneurial ecosystem, the existence of the department has coincided with a decade of stagnation and decline. Even the government admits that small business survival rates are dismal. Between 2010 and 2019, the sector expanded at a meagre annual rate of 1.6%. Despite billions poured into small business support each year, CDE (Centre for Development and Enterprise) has found little if any information on who receives this money from the state, how they are selected and the actual impact of this expenditure. The flawed belief that government can create businesses, that officials can pick winners, and that small firms function in a vacuum from the broader economy must be abandoned. A more effective strategy would be to place small business development firmly in the hands of the private sector. Banks, venture capitalists, and investment funds are far better equipped than government bureaucrats to identify and support promising businesses. CDE is therefore proposing a bold new initiative. Instead of funnelling R6 billion annually through state structures, at least half of this amount should be redirected to private institutions over three years – R9 billion. These institutions must compete by demonstrating how they will go about promoting a more dynamic small business sector. Competitive tenders should ensure transparency, with Parliament holding both public and private initiatives accountable every year for their role in fostering entrepreneurship. Alongside this shift, government must remove the regulatory barriers choking small business growth. South Africa’s labour laws impose costly and rigid compliance burdens that small firms cannot afford. The Minister of Employment and Labour’s authority to extend collective bargaining agreements to small businesses who do not participate in these negotiations must therefore be revoked. To remove all unnecessary regulatory burdens on small business, an “SME test”– ensuring that the impact of regulations on small businesses are taken into account – should be implemented for all regulations. Oversight for this would be housed in the Presidency and achievements and impact debated in Parliament annually. The approach to township development must also be reassessed. The Gauteng Township Economic Development Act, which mandates that 40% of procurement budgets be spent on township businesses, is probably well-intentioned but counterproductive. Rather than encouraging real entrepreneurship, it creates rent-seeking middlemen who drive up costs and lower service quality for residents. Efforts should rather be focused on integrating township businesses into the city (or national) formal economy by improving infrastructure, tackling crime, and enabling genuine market participation. The government has long argued that its interventions are necessary to correct historical injustices and uplift disadvantaged communities. However, while the goal is admirable, the execution has been deeply flawed. When the government dictates who gets contracts and funding, political connections often matter more than business viability. This distorts markets and results in wasted resources that could have been better spent fostering genuine growth and much more sustainable employment. The Department of Small Business Development has not delivered the results the country needs. We propose that it is closed down and its essential functions absorbed into the Department of Trade, Industry, and Competition, allowing for a streamlined and more effective approach to economic development. Small businesses are not inherently superior to larger ones in driving economic growth. While small firms create jobs, it is the transition from small to medium and large enterprises that fuels sustainable development and employment. Policy should not fixate on simply increasing the number of small firms but rather on creating an environment where businesses of all sizes can grow and contribute to the economy. If the state truly wants to support entrepreneurs, it should focus on fixing the basics: reliable electricity, lower crime rates, and reducing the bureaucratic burdens that make it difficult to run a business. The state does not need to intervene more; it needs to step back. The private sector is the real engine of job creation, innovation, and economic growth. If South Africa is serious about reviving its small business sector, it must trust markets to do what government has so consistently failed to achieve. Bernstein is executive director of CDE. This article draws on a new CDE report, ‘Let the private sector drive small business development’, which is the eighth report in CDE’s  Agenda 2024: Priorities for a new government  series. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://cde.org.za/time-to-shut-down-the-dept-of-small-business-development/

IRR | 25 February 2025 The Department of Employment & Labour plans to roll out updated race-based regulations that force businesses to comply with new “targets”. In January, the Institute of Race Relations (IRR) questioned the logic of the Department’s “reducing the regulatory burden” for small businesses while retaining race-based requirements for larger employers. The government is yet again raising the hurdle of race-based employment equity policy for larger employers, which will further complicate compliance. A presentation by the Department reads: “[The key objectives of EE amendments are] to promulgate S53 of the EEA for the issuing of the EE Compliance Certificate as a prerequisite for access to state contracts – doing business with any organ of state .” Notably, the Commission on Employment Equity last year failed to answer IRR questions on employment equity targets, and − as there are no longer any legally defined racial categories in post-apartheid South Africa − how the Commission defines race groups. How does the government expect businesses to classify their employees in the absence of any legal definitions? “The South African Government relies on businesses to comply with their illogical race-based requirements that add no value whatsoever − no value to businesses, their supply chains, and their customers, or to the most vulnerable South Africans,” says IRR researcher Chris Patterson. Employment equity has not addressed black unemployment, which remains higher than the national average, according to the latest employment data from Statistics South Africa. The unemployment rate for black people has also remained consistently higher than the rates for other race groups over the last 10 years. According to the IRR’s latest polling, two thirds of South Africans want government to remove the barriers to economic growth and job creation. In addition, South Africans would strongly prefer the government to buy goods and services on a purely value-for-money basis, without regard for skin colour – allowing for fair competition for state contracts, and not excluding companies from government contracts based on race. The IRR’s latest Blueprint for Growth report, Cut VAT and BEE , details the costly divide between value for money and the BEE premiums created by preferential procurement. “The government is endangering its own commitment to economic growth and job creation by doubling down on race-based policies, making it more difficult for businesses to operate and retaining race-based procurement that increases the costs for all taxpayers,” concludes Patterson. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://irr.org.za/media/government-race-based-regulations-a-costly-obstacle-to-growth-2013-irr

Zinhle Mncube and Boitshoko Shoke | 23 February 2025 The postponement of South Africa’s 2025 Budget Speech from February to March has reignited discussions about the country’s economic challenges, particularly its narrow tax base and sluggish growth. From the data pulled from the National Treasury and the South African Revenue Service’s 2024 tax statistics report, an estimated 2.6% of South Africa’s population pay 76.2% of all personal income tax. In terms of company tax, just over 1 000 companies paid 72.3% of all company income tax. This limits the government’s efforts to invest in the country while providing services that encourage growth and job creation. A narrowing tax base leads to difficult discussions and decisions such as the much-maligned 2% increase in VAT. To chart a better economic path to growth for the country, it is clear that increasing the number of tax paying businesses will naturally lead to the creation of new jobs thus expanding the individual income tax base. A key strategy to address these issues lies in strengthening the participation of small and medium-sized enterprises (SMEs) in the formal economy. With unemployment standing at 31.9% as of the fourth quarter of 2024, SMEs offer a realistic pathway to job creation and economic inclusion. Over and above our high unemployment rate, South Africa faces significant socio-economic challenges, including high economic inequality, a slow and stagnant economic growth and a significant number of South Africans living in poverty. A key factor contributing to these challenges is the country’s oligopolistic economic structure, where a few large corporations dominate key industries such as banking, the retail sector, telecommunications, the brewing industry and the fresh produce market – sectors characterised by a domination of a few large players. This limits opportunities for small and medium-sized enterprises (SMEs). This has resulted in a tax base heavily reliant on mostly medium to large businesses, which is unsustainable in the long run. A tax system dependent on a small number of large corporations poses further significant risks such as economic distortions that favour these tax payers, capital flight, fiscal instability and increased tax avoidance. This heightens the urgent need to diversify the tax base by increasing SME participation in the formal economy. Countries like Nigeria, which experienced a fiscal crisis due to an over-reliance on a single revenue source (oil), serve as a cautionary tale. Integrating SMEs into the mainstream of the economy has the ability of promoting economic resilience, job creation, and broader economic participation. A fair tax system ensures that all businesses contribute to national development based on their capacity. SMEs often face disadvantages such as restricted access to financing, regulatory red tape, and skills shortages. The government has responded by implementing progressive tax structures that tax SMEs only once they reach a certain revenue threshold. This shift reduces dependency on large corporations and fosters economic equity. South Africa’s informal sector remains a vast, untapped source of tax revenue. Formalising these businesses could significantly boost tax collections without overburdening entrepreneurs. The International Labour Organisation estimates that bringing informal businesses into the tax system could increase South Africa’s tax revenue by approximately 10% of its GDP. The objective is not to overburden SMEs with excessive taxation but to create an enabling environment that allows them to grow, formalise, and contribute meaningfully to economic development. Vietnam, for instance, simplified tax compliance and provided targeted incentives to SMEs, leading to increased business formalisation and higher tax revenues over time. Research further indicates that SMEs contribute up to 60% of new jobs in emerging economies emphasising their potential to drive employment and economic inclusion. International examples, such as Singapore and South Korea, illustrate the importance of focused government efforts in SME development. Singapore, through agencies like Enterprise Singapore and SPRING Singapore, has provided targeted support to SMEs via grants, tax incentives, financing schemes, and mentorship programmes. In Singapore, the government has allocated significant resources, with over SGD 1 billion (R13.6 billion) in grants and support for SMEs in recent years, emphasising the importance of targeted financial assistance and mentorship programmes. This structured support has led to a notable increase in the number of SMEs, which contributed to about 70% of total employment in Singapore. Similarly, South Korea's approach to SME development has evolved significantly since the establishment of the Ministry of SMEs and Startups (MSS) in 2017. The MSS has implemented various policies aimed at reducing regulatory barriers, exemplified by the "One-Stop Service" platform that simplifies administrative processes for entrepreneurs. Financial support mechanisms, including low-interest loans and grants, have been crucial in providing the necessary capital for start-ups. For instance, the MSS reported that in 2020 alone, it facilitated over KRW 2 trillion (R33.2 trl) in funding for SMEs. Furthermore, the MSS has promoted innovation through initiatives like the "SME Innovation Programme," which has allocated significant resources towards R&D in priority sectors, including green technology and digital transformation. The impact of these government-led initiatives on job creation and economic stability cannot be overstated. In South Korea, SMEs are responsible for approximately 88% of total employment, highlighting their critical role in the labour market. These initiatives were led by each of their respective governments. This does tell us that the government and its respective agencies are central in creating a framework and environment that directly and indirectly contributes to the success of SMEs. The success of countries such as Singapore and South Korea demonstrates the effectiveness of strategic support mechanisms in integrating SMEs into the broader economy. Research emphasises that successful SME ecosystems thrive on collaboration between government, private sector stakeholders and civil society. For South Africa, fostering such an environment would require coordinated efforts from multiple sectors to drive structural economic transformation and ensure the sustainable growth of SMEs. It must be apparent to us all that building SMEs is part and parcel of the nation-building work that was first charted in 1994. It is through strategically supporting them that we enable society to move from consumption to productivity. From tax beneficiary to tax contributor. Zinhle Mncube is the head of Business and Partnerships and Boitshoko Shoke is the research and impact manager at 22 On Sloane, Africa’s largest entrepreneurship campus. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/beyond-big-business-smes-as-south-africas-tax-base-solution-63f1d07e-f103-471e-b41e-4e0e9073cb9b

Town Press | 21 February 2025 The Eastern Cape Provincial Government has unveiled a R70 million historical debt relief program aimed at tackling youth unemployment and overcoming financial barriers preventing economic participation. This pioneering initiative, introduced this week in partnership with the Manufacturing, Engineering and Related Services Sector Education and Training Authority (MerSETA), is focused on eliminating historical student debt for young graduates. The program targets individuals aged 18 to 35 who have completed undergraduate studies in fields related to MerSETA. Khuselwa Rantjie, spokesperson for the Eastern Cape Provincial Government, emphasized that this initiative forms part of a broader government commitment to empower youth and enhance skills development, especially among unemployed young people in the province. “Between 2019 and 2024, the Eastern Cape Provincial Government made significant efforts to support education, clearing over R100 million in historical debt from its own funds. This assistance benefited nearly 5,000 graduates across the province’s four universities,” said Rantjie. This new program builds on substantial progress made in recent years, during which 13 SETAs trained over 29,000 youth in critical skills areas, such as automotive assembly, renewable energy, digital forensics, and cloud computing. Additionally, more than 8,000 young people, including those with disabilities, have been trained in fields like animal and vegetable production, cellphone repairs, beauty services, and early childhood development through various partnerships. Rantjie also highlighted the launch of the MerSETA Mega Skills Project, which provided essential skills to over 10,000 additional young individuals. Eligible graduates from Nelson Mandela University, Rhodes University, the University of Fort Hare, and eight Technical Vocational Education and Training (TVET) colleges across the province can apply for this R70 million debt relief program. The participating TVET colleges are Ingwe, Ikhala, Buffalo City College, East Cape Midlands College, King Hintsa, King Sabata Dalindyebo, PE College, and Lovedale. Rantjie added that MerSETA has also dedicated funds specifically to address historical student debt at Walter Sisulu University, managed directly by the university. Eligibility Criteria Funding is available to graduates who have completed undergraduate qualifications in Operations Management, Financial Accounting, Electrical Engineering, Mechanical Engineering, Computer Sciences, Electronic Engineering, Industrial Engineering, Mechatronics, Process Engineering, Metallurgy, Human Resources, Supply Chain Management, Information Technology, or Marketing. Applicants must be South African citizens from the Eastern Cape, aged 18 to 35, who have completed a relevant MerSETA-related qualification and hold outstanding debt at any participating institution. “Eligible graduates should contact their respective institutions directly to formally request funding. In 2023 alone, historical debt at the University of Fort Hare reached R151 million, impacting around 2,383 students. This has driven the provincial government to seek strategic partnerships to assist these youth,” Rantjie explained. “This debt relief initiative underscores the Eastern Cape Provincial Government’s dedication to equipping young people with the necessary tools to thrive in today’s economy. By resolving student debt and providing critical skills training, the province is creating avenues for meaningful employment and sustained economic growth,” concluded Rantjie. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://townpress.co.za/eastern-cape-launches-r70-million-student-debt-relief-for-youth/

Neelam Rahim | 23 February 2025 The unprecedented delay in tabling South Africa’s budget has sparked calls for a fundamental reassessment of fiscal priorities, with the Institute of Race Relations (IRR) leading the charge. The IRR has submitted its “Cut VAT and BEE Premiums” blueprint to Parliament’s finance committees, advocating for significant cuts to Broad-Based Black Economic Empowerment (BEE) premiums in public procurement. Gabriel Crouse from the IRR estimates that eliminating BEE premiums could save the government up to R150 billion annually. “Public procurement accounts for R1.1 to R1.2 trillion each year. Direct BEE premiums add an estimated R17 billion to this, but the real cost—through inefficiencies and corruption—could be closer to R150 billion,” Crouse explained. The IRR’s proposal argues that cutting BEE premiums could reduce the Value-Added Tax (VAT) from 15% to 11.5%, injecting R100 billion back into the economy. “This would directly benefit the poorest South Africans, potentially increasing the social grant from R370 to R430 without increasing national debt,” Crouse noted. However, the issue has highlighted troubling gaps in government transparency. When asked about the actual cost of BEE premiums, Treasury officials, including Acting Chief Procurement Officer Vilimatibula, admitted they couldn’t provide precise figures. “It’s shocking that Treasury, which oversees R1.2 trillion in spending, doesn’t know how much is going to BEE premiums,” said Crouse. ANC Secretary General Fikile Mbalula, when questioned about the lack of transparency, responded dismissively: “Let’s wait.” Crouse criticized this stance, saying, “South Africans deserve to know how their taxes are spent. We need a debate grounded in facts, not abstractions.” As the country awaits the rescheduled budget announcement, the IRR’s call for reform raises pressing questions about fiscal responsibility, transparency, and the true cost of empowerment policies in South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://radioislam.org.za/a/irr-calls-for-rethink-on-bee-premiums-amid-budget-delays/

SA News | 23 February 2025 Government is committed to preserving local industries and safeguarding employment opportunities, the Department of Trade, Industry and Competition said. This as government acknowledged the concerns raised by the National Union of Metalworkers of South Africa (NUMSA) on the impact of ArcelorMittal South Africa’s (AMSA) decision to wind down its long steel business. “We recognise the significance of this matter for workers, the broader steel industry, and the economy,” said the department in a statement on Saturday.This as NUMSA staged a picket outside the Industrial Development Corporation (IDC) to voice their demands on Friday.“The Minister is awaiting the memorandum to be presented by the board regarding these demands. Once received, the Minister will consider the issues raised and respond appropriately.  “The Department of Trade, Industry, and Competition (the dtic) remains committed to engaging all stakeholders, including AMSA, organised labour, and industry partners, to find sustainable solutions. We continue to explore all possible avenues to avert job losses, support affected workers and ensure the resilience of South Africa’s steel sector,” said the department.The dtic urged all parties to engage constructively “as we work towards interventions that protect industrial capacity while securing long-term economic stability.” “The government remains steadfast in its commitment to preserving local industries and safeguarding employment opportunities,” said the department. In January, the dtic said the steel industry is critical in the reconstruction and recovery plan for the South African economy, particularly the manufacturing, mining, construction, engineering, and transportation sectors.This as AMSA announced that it was winding down its longs steel business at its Newcastle plant. “The department notes with serious concern the announcement by ArcelorMittal South Africa to wind down its longs steel business at its Newcastle plant. In fulfilment of its mandate to work with the private sector in growing the local economy the dtic remains committed to working with AMSA to find a workable and lasting situation,” the department said in a statement at the time. During the course of 2024, AMSA had reached out to various government departments and state-owned entities with requests for different concessions for their business. Having taken heed of these requests, the Minister of the dtic took the decision to form a comprehensive and coordinated approach to resolving the issues raised by AMSA. The Minister set up a technical working group made up of the relevant stakeholders including the dtic and AMSA, the Departments of Electricity and Energy, Transport, as well as Eskom, Transnet and private sector stakeholders. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/government-remains-committed-preserving-local-industries