By Siseko Maposa | 20 February 2025 The unprecedented postponement of the 2025 budget speech to 12 March has left everyone riveted. The delay is indeed significant, but it would be shortsighted to overlook the broader context and underlying factors that led to this decision.  The warning signs of South Africa’s fiscal health crisis have been flashing for quite some time. At the Kgalema Motlanthe Foundation’s Inclusive Dialogue conference towards the end of last year, Finance Minister Enoch Godongwana painted a stark picture of South Africa’s national accounts being under significant pressure.  The proposed 2% VAT increase is a stark reminder of our fiscal fragility, and its implications are too profound to be ignored. Aside from the troubling socio-economic consequences that this proposal entails, the very fact that it was under consideration reveals a deeper concern: that the government is struggling to balance its books and generate sufficient revenue. The country’s debt-to-GDP ratio is projected to peak at 75.5% in the 2025-26 financial year, higher than the 60% threshold considered sustainable for emerging markets and expenditure will surpass revenue collection. This means there’s a significant shortfall in funds required to support envisioned development projects.  The proposal is also indicative that the government has limited alternatives to swiftly bolster revenue. VAT increases are typically considered a last resort to provide a rapid influx of funds. Unlike other taxes, which are collected periodically and susceptible to evasion, VAT is collected at the point of sale, making it a more efficient means of generating revenue — albeit highly risky from a socio-economic perspective.  A pressing question ahead of the 15 March budget speech demanding our attention and consideration is: where will the necessary funds come from?  A national development mindset for economic recovery  Economic history provides us with an important reminder of the critical role collective effort and fiscal responsibility plays in tackling fiscal crises and advancing national development. During the 1997 Asian financial crisis, South Korean citizens came together in a remarkable display of national unity and sacrifice, donating large amounts of their personal gold to the government through the Gold Collection Campaign.  This effort helped pay off the country’s debt to the International Monetary Fund and stabilise the economy. Through a combination of prudent policy measures, South Korea restored fiscal stability, regained the trust of foreign investors and emerged from its financial crisis.  Key initiatives included providing guarantees for Korean banks’ external liabilities and leveraging its substantial foreign reserves to maintain foreign exchange liquidity. As a result, South Korea transformed into a vibrant and resilient emerging economy, solidifying its position among the world’s leading nations.  I’m not suggesting that South Africa adopt a similar approach, but the underlying message is clear: a national development consciousness coupled with transparent fiscal management are essential ingredients to fiscal redemption.  True progress ultimately hinges on the government’s ability to be honest, transparent and accountable. Over the years, corruption and wasteful expenditure have plagued South Africa, resulting in significant financial losses and exacerbating widespread distrust among citizens.  The empirical evidence of the negative effects of corruption on economic growth is clear — even a modest 3-4% decrease in corruption could lead to a significant 2.8% increase in economic growth. This issue transcends partisan politics and mere convenience. Rather, it is a pivotal determinant of the nation’s fiscal wellbeing and long-term economic prosperity.  As we navigate the complexities of our fiscal landscape, it is imperative that we remain attuned to its subtle rhythms, for only then can we unlock innovative solutions to our most pressing economic problems.  Siseko Maposa is the director of Surgetower Associates management consultancy. He is a regular commentator on the South African political economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/thought-leader/2025-02-20-proposed-2-vat-hike-indicative-of-a-deep-fiscal-health-crisis/

Staff Writer | 20 February 2025 The Department of Labour and Employment (DoL) will finalise consultations over South Africa’s new BEE targets by the end of February 2025 and publish two new employment equity regulations by the end of March. This follows the new Employment Equity Amendment Act (EEAA) coming into effect on 1 January 2025. The EEAA introduced several changes to South Africa’s black economic empowerment laws, including reducing the definition of designated employers to businesses employing more than 50 people and easing the administrative burden on small businesses. However, one of the biggest additions was empowering the minister of employment and labour to set specific sectoral employment targets for designated employers to follow. The DoL has drafted BEE regulations that require businesses in South Africa to employ a workforce that reflects the country’s “economically active population” (EAP), nationally or provincially. These targets would apply across each of the 18 national economic sectors. Broadly, the department wants all companies that employ more than 50 people to rapidly transform over the next five years and have their workforces more demographically representative. This is especially true in top and senior management. The orignal draft targets, published in 2023, set very specific numerical targets for the workforce across unskilled, semi-skilled, skilled and top management. It also made a clear distinction between national and provincial EAP make-ups. The updated draft in 2024 removed targets for the semi-skilled and unskilled levels—though still included a focus on EAP—and removed the distinction between provincial and national targets. It also removed the distinction between specific racial groups, opting for “designated groups” in the targets. Designated groups are defined in the Employment Equity Act as black people (Africans, Coloured, and Indians), women and people with disabilities who are citizens of South Africa by birth or descent. As a practical example: 2024 draft regulations : At least 40% of the top management of a manufacturing company must be from designated groups, while at least 15% must be women. Original 2023 regulations: The top management of a national manufacturing company must be 35% African (22% male, 13% female), 4% coloured (2.5% male, 1.5% female), 1% Indian (0.7% male, 0.4% female) and 8% white (4.5% male, 3.5% female). While the numerical targets appear to be quotas—unlawful in South Africa—the government has argued that the five-year implementation period and ability to apply for exemptions disqualify that definition. Regardless, analysts and experts have noted that the targets are highly problematic for businesses, sometimes requiring designated group representation to more than double. Considering South Africa’s weak economic growth, high levels of unemployment and lack of necessary skills, businesses are unlikely to find success in meeting the targets. Next steps The DoL has been hosting roadshows and consultation sessions, trying to dispel “misconceptions” about the laws. This includes explaining the justifiable reasons and grounds for which business can be exempted. These consultations will be completed by the end of February 2025. Following the consultation process, the department will publish two more sets of regulations by the end of March 2025: The General Administrative Regulations, which will contain the reporting forms, employment equity plan templates, enforcement tools and the employment equity compliance certificate template; Regulations on the 5-year sector employment equity targets. According to legal experts at Werksmans Attorneys, the department will then move on to conduct internal training for labour inspectors on the new laws and regulations to enforce them. They said that, pending the publishing of the regulations, there is no certainty that the department’s way forward will materialise, but warned businesses to keep a close eye on developments. “Employers…risk substantial financial sanctions and/or not being issued with a compliance certificate” should they be caught by surprise, they said. Legal firm Cliffe Dekker Hofmeyr (CDH) noted that once the regulations are in effect, designated employers will have until 31 August 2025 to conduct a workplace analysis and develop new employment equity plans. The 2025 reporting period will then run from 1 September 2025 to 15 January 2026, CDH said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/813269/noose-tightening-for-businesses-in-south-africa/?fbclid=IwY2xjawIjz6tleHRuA2FlbQIxMQABHYESqL8eWXGgROldhrWspwG7CCBUHNn7kGsleNneLBusCBHz9SuMafe-Bw_aem_11eQSKJxOAdKHLHMN-DJUA

Polity | 19 February 2025 The hotly debated Companies Amendment Bills have now been signed into law by the President and were promulgated on 30 July 2024, with the date of implementation yet to be announced. Certain amendments in the Companies (First) Amendment Act (Act 16 of 2024) introduce groundbreaking changes to corporate pay gap disclosure practices in South Africa . Both listed and state-owned employers will need to prepare to comply with these. Summary of Amendments: Remuneration Policy approval requirements (Section 30A) All public and state-owned companies (Companies) must prepare a remuneration policy. The policy must be approved by shareholders at the annual general meeting (AGM) via ordinary resolution. If the policy is not approved by shareholders, it must be re-submitted for approval at the next AGM or an extraordinary general meeting called for that purpose. Once approved, the policy remains in effect for a period of three years and must be approved every three years thereafter. However, where a material amendment is made to the remuneration policy prior to the end of the three-year period, shareholder approval must be obtained before the amendment can be implemented. Remuneration Report approval requirements and sanctions (Section 30B) To date, Companies have been required to disclose the total remuneration received by each director and prescribed officer in their annual remuneration reports. The remuneration report comprises three sections: (i) a background statement, (ii) the remuneration policy (referenced above), and (iii) an implementation report. Going forward, the total remuneration of the highest and lowest paid employees; the average and median total remuneration of all employees; and the remuneration gap between the top 5% highest paid and lowest paid employees must also be disclosed in the remuneration (implementation) report. If the remuneration (implementation) report is not approved by shareholders, then, at the next AGM, the remuneration committee must explain how shareholder concerns over the report have been considered and the non-executive directors on the remuneration committee must stand for re-election. If the report is still not approved at the following AGM, non-executive directors can remain directors if they are re-elected, but they cannot serve on the remuneration committee for a period of two years. Key Considerations for Companies: Remuneration Policy and Remuneration Report amendments Due to the new shareholder approval requirements, remuneration policies should be amended to articulate the organisation’s overall philosophy on remuneration, based on its business strategy. For example, companies should set out their position on, among others, remuneration and benefits, fixed and variable pay mixes, annual increases, appointments and terminations of executives and prescribed officers, short-term and long-term incentive performance conditions, and pay gap measures. Specific details on these items should, however, only be incorporated into the Company’s remuneration (implementation) report, which is subject to annual approval by shareholders. This will guard against Companies’ having to resubmit their remuneration policies for shareholder approval prior to the end of the three-year period as a consequence of ‘material’ amendments being made to the remuneration policy. Pay gap disclosures To ensure that pay gap disclosures are transparent but also not over- or understated, Companies should carefully consider which ‘employees’ (eg, permanent, contractor , labour broker) and legal entities (eg, subsidiaries, associations, joint ventures) to include for purposes of its disclosures, and what elements of pay constitute ‘total remuneration’. Strategies that address the findings of the pay gap calculations will be a key consideration and a measured approach should be adopted to ensure sustainability. Governance processes Companies will need to adapt their governance documents and processes to achieve compliance. Consideration should be given to whether, and the extent to which, board charters, delegations of authority, terms of reference, and resolutions need to be updated and amended. AGM resolutions will need to be updated to make provision for binding ordinary resolutions for the remuneration policy and remuneration (implementation) report. Employees who are responsible for collating and interpreting pay-gap data should be trained on the amendments and thought should be given to how pay-gap disclosure requirements under the Companies Act may overlap with or duplicate work on pay-gap disclosure requirements under the Employment Equity Act. Finally, contingency measures should be developed to secure stable governance of Companies in circumstances where sanctions have been imposed on remuneration committee members (eg, removal from the remuneration committee and/ or the board, particularly where the company’s remuneration (implementation) report is not approved at two consecutive AGM meetings). Shareholder engagement Companies will need to find ways of proactively engaging shareholders in an effort to seek upfront consensus and alignment on their remuneration policies and practices. Regular updates and clear communication with shareholders will be crucial for the approval of remuneration policies and reports. Understanding and addressing shareholder concerns promptly could prevent the need for re-elections and potential disruption in the board’s composition and company governance. Compliance and guidance Companies will need to comply with the new legal requirements whilst adhering to best market and international practices. Ongoing disclosure in terms of King IV and the JSE Listings Requirements will also be required, as will adhering to best practices in relation to pay for performance. The United Kingdom has had binding remuneration policies for company directors for many years and would provide useful comparative guidance. Conclusion It is important to stay abreast of and be prepared for the impending amendments to the Companies Act. Strategic and considered approaches to remuneration and financial disclosure will be crucial to achieving practical compliance that provides a meaningful outcome for all stakeholders. Written by Lenja Dahms-Jansen, Partner and Norma Mazibuko, Executive Rewards Consultant at Bowmans Law   ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://polity.org.za/article/companies-act-changes-impact-on-remuneration-and-financial-disclosure-2025-02-19

Staff Writer | 18 February 2025 Starlink is a fantastic Internet access technology, perfect for South Africa’s rural areas, but it is blocked locally because SpaceX does not have enough black ownership. Starlink is a satellite Internet constellation operated by Starlink Services – an international telecommunications provider wholly owned by SpaceX. The satellite Internet service covers over 100 countries and territories and aims to provide global mobile broadband. The advanced low-orbit satellites allow users to use the service for activities that have historically been impossible with satellite internet. It is also easy to set up. Subscribers only need to plug it in and point the terminal to the sky. The rest is automatic. All Starlink subscription plans include unlimited high-speed data on land with no long-term contracts or commitments. This means households and businesses in the most rural settings can enjoy streaming, video calls, online gaming, and remote working. Starlink is a game changer and can significantly impact rural development and economic growth in South Africa. However, the Independent Communications Authority of South Africa’s (Icasa) regulations prevent the service from launching in South Africa. To launch in South Africa, Starlink must comply with the Electronic Communications Act, Rica, tax laws, and all other regulations local ISPs are subject to. One set of regulations require licensees operating a national network or selling Internet services nationally to be 30% owned by historically disadvantaged groups. New regulations Icasa published in 2021 include provisions that changed this requirement to 30% black ownership. Simply put, Starlink Services cannot launch its satellite offering in South Africa unless it has 30% black ownership. Many stakeholders, including the Democratic Alliance and the business sector, have slated this requirement. DA member of parliament Natasha Mazzone said South Africa is kept in digital darkness until connected cadres can get their slice of the pie. She explained that the BBBEE requirements demand that 30% of the implementing corporation’s equity be “transferred into their greedy hands”. “They do not care that South Africans are trying to lift themselves out of poverty, access jobs online, teach themselves skills, and educate their children,” she said. Well-known fund manager Piet Viljoen said it is fascinating that so-called Black Empowerment laws are holding back Starlink. “I would have thought that if you wanted to empower black people, access to cheap, fast Internet in rural areas would be quite a powerful tool,” he said. “I guess the ANC regards the enrichment of a few tenderpreneurs as more critical than uplifting its voting base.” South Africans cannot get Starlink until a black partner gets a share Starlink is a fantastic Internet access technology, perfect for South Africa’s rural areas, but it is blocked locally because SpaceX does not have enough black ownership. Starlink is a satellite Internet constellation operated by Starlink Services – an international telecommunications provider wholly owned by SpaceX. The satellite Internet service covers over 100 countries and territories and aims to provide global mobile broadband. The advanced low-orbit satellites allow users to use the service for activities that have historically been impossible with satellite internet. It is also easy to set up. Subscribers only need to plug it in and point the terminal to the sky. The rest is automatic. All Starlink subscription plans include unlimited high-speed data on land with no long-term contracts or commitments. This means households and businesses in the most rural settings can enjoy streaming, video calls, online gaming, and remote working. Starlink is a game changer and can significantly impact rural development and economic growth in South Africa. However, the Independent Communications Authority of South Africa’s (Icasa) regulations prevent the service from launching in South Africa. To launch in South Africa, Starlink must comply with the Electronic Communications Act, Rica, tax laws, and all other regulations local ISPs are subject to. One set of regulations require licensees operating a national network or selling Internet services nationally to be 30% owned by historically disadvantaged groups. New regulations Icasa published in 2021 include provisions that changed this requirement to 30% black ownership. Simply put, Starlink Services cannot launch its satellite offering in South Africa unless it has 30% black ownership. Many stakeholders, including the Democratic Alliance and the business sector, have slated this requirement. DA member of parliament Natasha Mazzone said South Africa is kept in digital darkness until connected cadres can get their slice of the pie. She explained that the BBBEE requirements demand that 30% of the implementing corporation’s equity be “transferred into their greedy hands”. “They do not care that South Africans are trying to lift themselves out of poverty, access jobs online, teach themselves skills, and educate their children,” she said. Well-known fund manager Piet Viljoen said it is fascinating that so-called Black Empowerment laws are holding back Starlink. “I would have thought that if you wanted to empower black people, access to cheap, fast Internet in rural areas would be quite a powerful tool,” he said. “I guess the ANC regards the enrichment of a few tenderpreneurs as more critical than uplifting its voting base.” Bad news about Starlink in South Africa Many stakeholders hoped that the government and Starlink could come to a compromise, launching the service in South Africa. People called on the regulator to relax its black ownership requirement on Starlink as it is misplaced for an international company. However, SpaceX withdrew from the recent regulatory hearings on a new licensing framework for satellite services in South Africa, which ICASA organised. SpaceX said in its written submission that the requirement of 30% shareholding by historically disadvantaged groups is impossible. It explained that foreign satellite operators, like Starlink, with direct-to-consumer business models, have global policies that prevent local shareholding. This means that foreign satellite operators are prevented from operating in South Africa, even if they invest in initiatives that directly benefit the target communities. It advised that the regulator align licensing and ownership regulations to recognise equity equivalent programmes as an alternative to local shareholding. Such a change to the ICT sector code would remove a significant barrier to foreign satellite operators. It would increase foreign investment in South Africa and create broader industry benefits, supporting innovation, competition and long-term growth. Economists and the business sectors agree that Starlink’s proposal is reasonable and would benefit the country. However, South Africa’s Presidency lashed out at Elon Musk, who controls SpaceX, for harbouring “unprogressive, racist views”. “If Elon Musk harbours the kind of unprogressive, racist views that we’ve witnessed, we’re not going to pursue having his investments,” Presidency spokesman Vincent Magwenya said. Bloomberg reported that this stalled talks between South Africa and SpaceX to launch the Starlink internet service in the country. There is a glimmer of hope that Communications Minister Solly Malatsi will be able to change regulations regarding foreign companies. Malatsi is in discussions with Icasa about introducing equity equivalents as an alternative to existing black ownership requirements. The minister said he would also consider instruments other than a policy directive to address the issue if a policy directive isn’t appropriate. Unless the regulatory red tape is cleared, South Africans will be the only people in Southern Africa without legal access to Starlink in 2025. The reality is that South Africa can benefit far more from Starlink than the company, and Elon Musk, can benefit from South Africa. Therefore, it is in the interest of South Africans to allow Starlink to launch in the country to offer affordable Internet access for all. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/telecommunications/812222/south-africans-cannot-get-starlink-until-a-black-partner-gets-a-share/

Media Statement | 18 February 2025 The GOOD Party is appalled by the tragic mismanagement of higher education students in South Africa . The recent protests occurring at University of Cape Town ( UCT ), Wits, the University of Western Cape (UWC) and Nelson Mandela University (NMU), reeks of poor administration and a direct result of a failed response to address the student issues encapsulated in the Fees Must Fall protest held years ago.  The start of the university year is supposed to be a time where students experience education, new cultures and an overall opportunity for growth. The South African experience is a stark contrast, littered with financial , accommodation and administrative failure. Higher education in South Africa is still barred in red tape, financial mismanagement and inadequate accommodation. The failure of NSFAS to digitise holds a large amount of responsibility for these failures which impact students annually.  Student bodies have consistently raised these concerns to university governing bodies, who have a responsibility to act on these concerns with the department of Higher Education and Training . Instead of reform, these institutions remain the same. Students now have to rely on a clunkier digitised payment system which in itself is a barrier to education for non-digitised communities.  In addition, accommodation is still a critical issue with thousands of students nationwide at the mercy of their university as they are outsourced to private accommodation. GOOD condemns the recent reports of exploitation (both financial and sexual) by landlords which is a direct result of this housing failure.  As an organisation, we demand that the reality of our higher education system be reformed through these first steps. A national dialogue held between the Department of Higher Education and Training , student representatives and representatives from the various higher education institutions The creation of a regulation ruleset regarding private accommodation that must be legally protected and enforced to ensure that should accommodation outsourcing occur; student exploitation is not a result.  Release all data related to the NSFAS digitised system , including the costs, total breakdowns and buglist. Youth face a grim reality once they graduate from higher education as a shrinking job pool and high unemployment is a South African youth reality. Our higher education institutions are one of the critical areas where reform is needed to reverse this reality.  Students challenging this reality should be met with aid and concise communication, not rubber bullets and academic exclusions.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/nsfas-student-accommodation-the-shackles-that-bind-higher-education-2025-02-18

Anton Visser | 18 February 2025 If your business has an annual payroll exceeding R500,000 or 50+ employees, you should be in full swing preparing your workplace skills plan (WSP) and annual training report (ATR). These must be submitted to your Sector Education and Training Authority (Seta) by 30 April 2025 – no exceptions, no extensions! Why Your WSP-ATR matters Your WSP is more than just paperwork - it’s your roadmap for employee skills development and a key to unlocking the skills development component of the BBBEE Scorecard. A well-prepared WSP not only boosts business performance but also helps close the skills gap among historically disadvantaged groups, driving inclusive economic growth. Your WSP-ATR isn’t just a formality - it’s vital to your business’s sustainability and competitiveness. Neglect it at your peril. Who needs to submit a WSP & ATR? If your company’s payroll exceeds R500k per annum, you must be registered to pay skills development levies (SDL). Submitting a WSP and ATR allows you to claim back 20% of the SDL via a grant from your Seta and, critically, secure 20 points on your BBBEE scorecard. What is the WSP & ATR? WSP (workplace skills plan): Identifies the skills your workforce needs and outlines your training strategy for the coming financial year. ATR (annual training report): A record of all skills development initiatives completed in the current financial year, crucial for claiming BBBEE points. Your ATR measures your training progress against the previous year’s WSP, making it a key indicator of skills development within your company. Your WSP-ATR checklist: Get it right To ensure a smooth submission, your WSP-ATR must include: Current employee list Employee list for previous training period Total payroll figure Comprehensive training completed summary Proof of training completed Comprehensive training plan Proof of bank details Registered SDF (skills development facilitator) SDF appointment letter Signed authorisation form Hard-to-fill vacancies & reasons Training committee members & ID numbers The cost of not submitting Miss the deadline, and your business takes a massive hit. Here’s what’s at stake: BBBEE level downgrade: Your business can earn up to 20 points for the skills development element on the B-BBEE scorecard – that’s two levels. The loss of the 20 skills development points by not submitting your WSP-ATR on time will see your BBBEE level drop by two levels – your level 2 gets demoted to level 4 – with serious repercussions for your current and future business opportunities especially in the government, corporate and public sectors. No submission, no points. And any grant linked to the WSP will then also be suspended for the following year until the submission window opens again. In essence you’re losing the benefits of two years of L&D investment, not just one. Lost grants: You’ll forfeit your mandatory grant which is 20% of your SDL spend to SARS - as well as any discretionary grants. This means losing invaluable opportunities to improve the skills of your own employees and your business competitiveness suffers as a result. Tender rejections: Many tenders require a WSP submission as a pre-qualifying criterion. No WSP? No chance of winning tenders. No retrospective claims: Any financial benefits of the training undertaken are permanently lost to you, as you cannot account for them retroactively or recoup any of the levies in the following financial year. The doors are closed in terms of the BBBEE scorecard points you could have claimed. The price of poor planning – a costly mistake Picture this: A company spends over R900k on training and development during the year and starts with their BBBEE verification just a few weeks ahead of the WSP submission deadline. However, the business has no WSP in place for the coming year, no skills audits were done, nor is there any documented ATR for their training spend. This means that not only is all their L&D investment for the current year lost in terms of their BBBEE points, but they will have to wait another year to submit their WSP. The business then decides to register a rushed learnership programme rollout before their financial year-end to make up for the error in terms of their lost skills development spend - however this provides no benefit for the current year as the learnerships will not be implemented and completed before the Feb financial year-end – which means none of the spend will fall within the current financial year. Two levels on their BBBEE scorecard are wiped out with the loss of 20 points. There’s another big opportunity cost. By not planning ahead and having their WSP in place, the business also loses the opportunity to implement learnerships for their own employees, which would have meant their employees could improve their skills and productivity, while the business could have allocated the spend on their learnership training AND the salaries of their employed learners towards their skills development spend! Overall, the lack of planning and knee-jerk reaction to rectify it will cost the business three times more in L&D spend than necessary. The HR and financial directors will find themselves in a tough spot accounting to their board for the gross oversight and lack of planning. WSP-ATR: More than compliance – it’s a competitive edge A WSP-ATR submission isn’t just about ticking boxes for BBBEE compliance. When done right, it’s a powerful strategic tool that helps businesses build a skilled workforce, gain competitive advantage, and drive economic transformation. It’s time to ditch the last-minute scramble and start using WSPs to fuel business growth, create jobs, and develop real, in-demand skills. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/dont-forget-to-submit-your-workplace-skills-plan-your-bee-score-depends-on-it-143086a

Modiegi Mashamaite | 13 February 2025 More than 1.5-million jobs have been created through the presidential youth employment initiative (PYEI) since its launch, deputy minister in the Presidency Nonceba Mhlauli said this week. The initiative launched by President Cyril Ramaphosa in 2020 was designed to address the high levels of youth unemployment by providing young people with opportunities to transition from education to the workforce. Mhlauli said more than 53,379 earning opportunities were secured through the national pathway management network, which brought the total number of opportunities created to 1.57-million. More than 38,864 young people accessed earning opportunities through the SA Youth platform, while an additional 14,515 opportunities were secured via the Employment Services of SA. Mhlauli said the youth employment service initiative successfully placed 10,337 young people in workplace experiences across different sectors. Additionally, the National Youth Development Agency and department of small business development supported more than 14,600 young entrepreneurs by offering financial and non-financial opportunities. The revitalised national youth service phase 3 was launched successfully, recruiting 13,568 new participants, which contributed to 82,378 youth placed in service opportunities. The progress of the PYEI is specially significant given the 32.1% unemployment rate. “The PYEI remains a cornerstone of our national efforts to address the persistent challenge of youth unemployment, ensuring young South Africans have access to meaningful economic opportunities,” said Mhlauli. The PYEI was created in response to the challenge faced by many young South Africans  who struggle to transition from learning to earning. Mhlauli said the initiative sets out priority actions that aim to stimulate demand and create a seamless mechanism for young people to connect with available opportunities while receiving support that suits their unique circumstances. A recent addition to the PYEI portfolio is the jobs boost outcomes fund, a R300m initiative launched in November 2023. The fund focuses on creating employment opportunities in areas such as digital inclusion, enterprise development and work-integrated learning. “Unlike traditional approaches to job creation, which focus on inputs and activities such as training and mentorship, the jobs boost outcomes fund ensures funds are allocated to implementing organisations on the successful placement and sustained employment of excluded young people in quality jobs,” said Mhlauli To date 3,347 young people have been enrolled in training programmes, 1,603 have been placed in jobs, and 1,247 have sustained employment for at least three months. Mhlauli reaffirmed the initiative’s commitment to the youth. “To our young people, I reaffirm that this initiative exists for you — your ambitions, growth and future. Let us continue working together to ensure every young person has access to the opportunities they need to thrive.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/politics/2025-02-13-presidential-youth-employment-initiative-has-created-15-million-jobs/

BR Reporter | 15 February 2025 Cosatu warned on Friday that US President Donald Trump’s announcement of impending tariffs on South African and other nations’ exports poses a threat to thousands of South African jobs. This could affect jobs across sectors including agriculture, mining, jewellery, chemicals, automotive, clothing, and manufacturing. With an unemployment rate of 41.9%, the country cannot afford further job losses, the union said in a statement on Friday. “We are seeking clarity from the US government on the impact of this executive order on the African Growth and Opportunity Act (Agoa), which has granted tariff-free access to the US market for much of the African continent, including South Africa. It is crucial that the US government engages with South Africa’s government to ensure that the upcoming review of country eligibility and tariffs is based on facts and takes into account the severe socio-economic and developmental challenges facing both South Africa and the broader continent. Agoa and its renewal should be leveraged to support our economic development and regional integration,” Cosatu stated. Agoa benefits South Africa is one of currently 35 Sub- Saharan African countries that benefit from preferential access to the United States market under the Agoa, which grants roughly 7 000 products duty-free status. The agriculture sector is a major benefaciary of trade between the two countries through the Agoa. According to trade map data, South Africa's agricultural exports to the US accounted for at least 4% of the country's $13.2bn (R244bn) total agricultural exports in 2023. As a result of the Agoa, South Africa’s automotive-related exports to the US have surged from $151 million (R2.8 billion) in 2000 to $1.6bn in 2022. Parts and accessories alone accounted for $62m in 2022, IOL reported. The US was South Africa’s sixth biggest export destination for fully built up vehicles in 2023, with 19 590 vehicles shipped abroad, accounting for 5% of automotive exports. HIV/AIDS funding Cosatu also expressed concern over the freeze on aid to South Africa and other countries by the US government, highlighting the potential negative effects on South Africans living with HIV/AIDS. “It is vital that the South African government ensures these programmes continue, and that alternative funding sources are found, including the insourcing of all community health workers as per a recent court ruling secured by our affiliate, Nehawu (National Education, Health and Allied Workers' Union),” the union said. Protecting constitutional democracy and sovereignty Cosatu further voiced worries about the recent tensions between the US government and South Africa due to South Africa’s high unemployment rate, sluggish economic growth, and the need to attract investment. US investments and South African exports to the US support 500 000 South African jobs and account for 10% of the country’s exports. "We have full confidence in government led by President Cyril Ramaphosa’s steady and sober leadership during these turbulent geo-political tensions. Whilst South Africa must aggressively seek to attract investment and boost trade, we must simultaneously safeguard our constitutional democracy and sovereignty,“ it said while reiterating its unwavering support for Ramaphosa and the government in defending South Africa’s values and transformation goals. “No country can dictate the path of the South African people. We are a robust and vocal democracy, and we will not tolerate any attempts to intimidate us. South Africa’s values, which are reflected in our foreign policy, are based on principles of peace and justice, solidarity and development, non-alignment, and African unity. Having suffered the painful scars of apartheid, colonialism, and genocide, we stand in solidarity with all nations facing such oppression, including the Palestinian people.” The labour union also said it continued to support the government’s efforts to build strong relationships with nations globally, coupled with an increased focus on boosting exports and diversifying trade, particularly within Southern Africa and the broader African continent, where South Africa’s future lies. Over the past three years, Cosatu said it has worked closely with the government and organised business to navigate the complexities of relations with the US. This has included engaging with the AFL-CIO, as well as with both Republican and Democrat lawmakers in the US Congress and the business community. “We will continue to play our part in supporting the government’s efforts in this regard,” it said. The labour union welcomed the sense of unity displayed by the overwhelming majority of South Africans across the political spectrum during this challenging period. It condemned fringe right-wing elements peddling shameful lies for publicity and fundraising purposes, stressing that history would judge them harshly. Cosatu also called for action against those spreading hate speech on social media, in accordance with the Prevention and Combating of Hate Speech and Crimes Act. Cosatu welcomed the President’s call for a National Dialogue in his 2024 State of the Nation Address, recognising the crucial role such a dialogue must play in addressing the lingering scars and divisions within South African society. “It is clear that the wounds of the past have not healed, and will not heal, until the injustices of the past and the inequalities of today are addressed,” the statement said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/cosatu-warns-us-tariffs-threaten-thousands-of-sa-jobs-eb909014-0a71-4748-a0ff-247727ef61d4

Myles Illidge | 16 February 2025 Reviewing South Africa’s regulations that all national telecommunications providers be 30% black-owned is not a special dispensation for Elon Musk’s Starlink, says communications minister Solly Malatsi. The minister is currently in discussions with the Independent Communications Authority of South Africa (Icasa) about introducing equity equivalents as an alternative to existing black ownership requirements. The Department of Trade, Industry, and Competition introduced equity equivalents to enable multinationals to invest in areas like skills training, small business development, and research and development without having to sell equity. Companies like Microsoft, HP, and IBM have invested billions in these equity equivalents to enter and expand in the South African market. Malatsi wants to know whether equity equivalents apply to the ICT sector where “it should be applicable”. “That is not a pursuit for advancing one company or another. I just want it to be clarified and that can be done through engagement with Icasa,” the Sunday Times quoted Malatsi as saying. He is currently analysing the watchdog’s response to his proposal, after which he can issue a policy directive to amend the Electronic Communications Act. The minister said he would also consider instruments other than a policy directive to address the issue if a policy directive isn’t appropriate. Malatsi announced his equity equivalent plan in October 2024, with the minister saying he would issue a policy directive urging Icasa to implement such a programme . He was careful not to mention SpaceX’s Starlink satellite broadband service, despite it dominating headlines about the topic. South Africa was once in line to be one of the first countries in the world where Starlink would launch, and now looks set to be one of the last. Unless the regulatory red tape is cleared, South Africans will be the only people in Southern Africa without legal access to Starlink in 2025. “This is part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country,” Malatsi said of his equity equivalents plan. Bad regulations holding South Africa back Large numbers of businesses and households in underserviced areas in South Africa are already using Starlink despite it technically being illegal to operate in the country. They do this using Starlink’s roaming service. However, it is becoming increasingly difficult for these users to use the service as a permanent Internet connection, with SpaceX cracking down on roaming users by increasing prices and adding a surcharge to activate kits outside of their home country. It also started enforcing its terms and conditions, one of which specifies that kits may only roam for 60 days continuously before they must return to their home country. Local Starlink community groups have said the kits must return to their home country for several hours once every two months to reset them. When Starlink first began accepting pre-orders launched in February 2021, it targeted a 2022 launch for South Africa. However, Icasa issued new regulations in March 2021, changing equity laws for telecommunications companies. The new regulations specified that it would no longer be sufficient for national network operators and service providers to be 30% owned by historically disadvantaged groups (HDG), including black people, youth, women, and people with disabilities. Instead, the regulations stipulated that telecommunications providers with a national footprint must be 30% black-owned. At the time, even the HDG ownership requirement had not been enforced. Prior to finalising its new black ownership regulations, Icasa received feedback from concerned industry stakeholders that enforcing equity laws on Internet providers would damage the industry. One area of concern is that there are many small and micro enterprises that are also national Internet service providers. There are currently no small business exemptions for these companies. If they have a licence to operate a national network or service providers, they will have to be 30% black-owned. Icasa ultimately decided not to put the 30% black ownership regulations into operation. However, they remain the officially published regulations, which it could choose to enact at any moment. This uncertainty of regulations that could change at any moment has hung over the industry for years and is another obstacle to foreign investment in South Africa’s telecommunications sector. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/telecoms/582621-fixing-bee-rules-is-not-just-about-starlink.html

Terri-Ann Brouwers | 15 February 2025 Donations will benefit three youth empowerment programmes. A collaboration between Mr Price Foundation and digital payment platform Zapper aims to combat South Africa’s pressing youth unemployment crisis. The partnership will drive donations and awareness for the Hope4Youth campaign, which equips young people with skills and economic opportunities. The initiative leverages Zapper’s digital payment technology, making it easier for individuals and businesses to contribute. Users can scan a QR code to donate directly to Mr Price Foundation, a non-profit founded by the Mr Price Group two decades ago. The group noted that since its inception, Mr Price Foundation has focused on empowering South African youth, particularly those aged 15-34, with an unemployment rate of 45.5%. A shortage of quality education, limited skills development, and sluggish economic growth continue to fuel this crisis. Expanding initiatives like Hope4Youth have become increasingly urgent. “Through our partnership with Zapper, we have the chance to accelerate our programmes and rapidly extend our reach to more young people,” said Mr Price Foundation executive director Octavius Phukubye. “If every Zapper user and merchant contribute a small donation, we can drive a monumental shift for youth economic inclusion and economic growth aspirations,” he added. How donations support youth development Funds will support three key youth empowerment programmes: JumpStart, UpLift, and EduRise. These initiatives focus on equipping young South Africans with critical skills and work opportunities. Established in 2015, JumpStart has trained more than 57 500 young people, with more than 33 000 securing employment. In the past year alone, 7 252 unemployed youth were trained, and 90% found jobs in sectors such as retail, manufacturing, and tourism. UpLift, which fosters entrepreneurship, assisted 154 young business owners last year. The programme helps small businesses scale across retail, recycling, and technology industries. EduRise focuses on improving literacy, numeracy, and entrepreneurial skills. In 2024, it benefited over 25 000 learners across 40 underprivileged primary schools, addressing foundational education challenges. How is technology driving change? “At Zapper, we’re on a mission to use our technology not only to facilitate transactions but to drive meaningful social change. By creating a platform where donations can flow effortlessly into the Foundation’s proven youth development programmes, we’re making it easier than ever for our community to support South Africa’s youth,” said Zapper CEO Mike Bryer. Since launching in 2014, Zapper has grown to serve more than a million customers and has access to an additional 15 million users through partner apps. The company aims to raise R500 000 for Hope4Youth by the end of 2025. The app will promote the campaign through push notifications and geo-targeted messaging, encouraging national participation. “This is the power of partnership,” said Phukubye. “Every donation unlocks opportunities for a brighter future. Through skills development, we can ensure that every young person, regardless of background, has the opportunity to thrive.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/mr-price-foundation-and-zapper-team-up-to-tackle-youth-unemployment/

Mpho Sibanyoni | 9 February 2025 The Black Management Forum (BMF) expressed disappointment over PresidentCyril Ramaphosa’s 2025 state of the nation address (Sona), describing it as uninspiring. The BMF’s view came after Ramaphosa used his first State of the Nation address as a president of a coalition government to unveil ambitious economic programmes that have the potential to turn the country into a large construction site. “The Sona did not delve deep enough into the myriad socio-economic challenges facing the country or how these would be tangibly resolved to bring about transformation,” said BMF president Mpho Motsei. “The president appeared to avoid the topic of broad-based black economic empowerment and merely referenced the government’s commitment to a non-racial, non-sexist South African society,” “This watered-down approach is likely the negotiated outcome of the government of national unity. “The Sona did not delve deep enough into the myriad socio-economic challenges facing the country or how these would be tangibly resolved to bring about transformation,” said BMF president Mpho Motsei. “The president appeared to avoid the topic of broad-based black economic empowerment and merely referenced the government’s commitment to a non-racial, non-sexist South African society,” “This watered-down approach is likely the negotiated outcome of the government of national unity. “The BMF is of the view that this approach overlooks the massive levels of inequality in South Africa, which disproportionately impact black women and youth and cannot be ignored.” He said Ramaphosa appeared to give the private sector a “get out of jail free card” and did not pass any of the burden for the country’s economic woes onto the private sector. An independent economist said Ramaphosa’s Sona’s promises were more than those that “Father Christmas” would make. Though impressed by Ramaphosa’s bold speech, Mandla Maleka was not convinced the president’s plans would be implemented. “Since the dawn in the history of Sona, never before has the speech been rich on economic stimulus measures. Literally the president has outshone even ‘Father Christmas with promises,’” said Maleka. When delivering his Sona, Ramaphosa unveiled an over 3% economic growth target to attract investment and create jobs. He announced a R940-billion infrastructure project budget, which includes R375-billion in spending by state-owned companies over the next three years. Ramaphosa also unveiled plans to source R100-billion in infrastructure financing. He also gave an update on the construction of Eastern Cape’s Mtentu Bridges, which upon completion is set to be the tallest in Africa, and the Polihlali Dam, which will feed 490-million cubic metres of water a year from the Lesotho Highlands into the Vaal River System, securing water supply to several provinces for years to come. Maleka added that projects announced by Ramaphosa would trigger corruption. “With so many billions of rands mentioned, one hopes that there won’t be temptation to rear the proverbial corruption head up,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/business/black-managers-disappointed-by-ramaphosas-sona/

Samantha Herbst | 13 February 2025 Although SA still faces severe headwinds regarding workplace equity, there seems to be a broader societal shift. Here’s what Wits is doing. The progressive 1954 Women’s Charter understood workplace equity as more than just a policy statement; it defined it as a commitment to fairness, inclusivity, and support for people across gender, race, ability, and identity. Now, some 70 years after it was first drafted, how far have we come in meeting its basic demands Equality vs equity Senior Lecturer at Wits’ Margo Steele School of Accountancy, Jane Ndlovu, whose current research focuses on the role of tax policy in securing gender equity, believes it’s necessary to acknowledge the differences between equity and equality. “Equality assumes uniform treatment, where everyone receives the same opportunities. But this overlooks the unique needs and challenges that individuals face,” she says. Ndlovu defines an equitable workplace as one that recognises differences, distributes resources proportionately, and seeks to support individuals in the ways that they need. However, to foster an environment in which everyone can thrive, she stresses the need simultaneously to pursue justice. This means directly addressing the causes of inequity and working to dismantle systemic barriers that have historically disadvantaged certain groups of people. Supporting families – and the economy As part of her research, Ndlovu has been exploring the powerful role of tax policies and incentives, and how they can help engender a more equitable environment. “Tax incentives that encourage companies to implement family-friendly policies – like childcare support, flexible work arrangements, and remote work options – could potentially reduce the financial barriers currently facing women in the workplace,” she says. This would also address the disproportionate impact of caregiving responsibilities that fall largely on women, especially those of colour. Without support from family, government and employers, these women typically take a step back from their studies or careers, reduce their working hours, or even resign from employment to stay at home to care for their children. Accounting for invisible labour Under the direction of the late Dr Prishani Naidoo, the work of Wits’ Society, Work and Politics Institute (SWOP) looks at the issue of equity beyond the traditional framework of the workplace. Rather, it takes into consideration forms of unpaid, invisible labour – such as childcare and household management – which typically falls on women, especially those from disadvantaged communities. These women often forgo employment to have children and take care of them, Naidoo points out. “These kinds of labour are crucial for the continuation of any kind of work that is given value in the form of a wage. And yet the calculation of a wage neglects the invisible, unpaid work of women,” she says. Naidoo adds that universities hold a central place in society, which is why Wits is perfectly positioned to start reproducing new ways of thinking about these issues. Breastfeeding: A peek into inclusivity Applied researcher Dr Sara Jewett, who coordinates the Social and Behaviour Change Communication (SBCC) field of study in Wits’ School of Public Health, co-led a qualitative study over five years to explore how Wits staff and students experienced breastfeeding. Using their insights and learnings from study participants, Jewett and her team engaged with senior management and organised labour, identifying solutions within the University. The all-women research team framed institutional breastfeeding support as a feature of an inclusive and transformed environment. The team advocates using the study to promote realistic and cost-effective ways to initiate small changes in the short term, and greater transformation in the long term. Recognising blue-collar workers Like Ndlovu, Jewett believes that equity is about acknowledging employees in their diversity and embracing policies and practices that enable everyone to flourish. “There should be different growth paths for different people in an institution. What an academic might need is different from what a member of cleaning staff might need, for instance,” she says. Naidoo agrees, noting that where representation is concerned, disadvantaged blue-collar workers are often overlooked, even though they are an essential part of Wits’ ecosystem, and so they were included in the study. “It was very easy to send out an email to staff and registered students encouraging them to join the study, but we had to make a conscious effort to access people who weren’t on email. Blue-collar workers have become an invisible part of our workplace environment,” says Jewett. Sensitivity and flexibility In the interest of flexibility in the workplace and how it relates to equity, Jewett’s study acknowledged that the needs of a breastfeeding employee have a time limit. During that period, if the employer does not acknowledge her specific needs, it could be detrimental to her productivity, performance, and general wellbeing. “An equitable workplace recognises the very specific needs of individuals at a particular time, be it a breastfeeding mother, someone living with a disability, or someone on the gender spectrum who identifies in a certain way,” says Jewett. Jewett highlights Wits’ Disability Rights Unit and the Transformation Office as positive examples of ways in which equity rights are being upheld practically at Wits. She adds that the University initiated and funded her co-led study. “This research project was a direct response from Wits to students and staff who are breastfeeding and not getting the support that they need. We found that most women and managers were unclear about their rights and responsibilities, to which the University responded immediately,” says Jewett. “And while we’re not yet there with a clear policy for staff or students, it’s on the agenda. This is a tribute to Wits’ commitment to seek avenues of redress. Tax policies for the economic empowerment of women Jane Ndlovu is part of the Female Academic Leadership Fellowship (FALF), a Wits-led initiative that focuses on bridging the gap for African and mixed ancestry women in senior academic roles. As a 2023 FALF fellow, she was inspired to continue her research on South African tax policies, the impact of the current system on women and how it intersects with gender issues. Her findings show, among other realities, that our Income Tax Act is blind to socioeconomic gender disparities, even though it was designed to be neutral and progressive. Ndlovu defines the gender pay gap as the percentage difference in average hourly earnings between men and women, which is distinct from equal pay. According to the 2022 Global Gender Gap Report, women earn between 23% and 35% less than men do for the same job. “And Stats SA shows that women, on average, earn about 30% less than men. This disparity is not just a matter of unequal pay for the same role. It highlights a systemic issue and reflects broader structural barriers, where women are overrepresented in lower-paying positions and underrepresented in senior roles. The reality is, because of income disparities reflected through gendered barriers in the workforce, women’s earning potential is affected and, in turn, so are their tax contributions.” Ndlovu aims to challenge this narrative and wants to explore how South Africa’s tax system could better support gender equity with policies that acknowledge structural inequities facing women and give them greater economic empowerment. ‘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/enabling-equity-for-all-employees.html