Creamer Media | 12 February 2025 Go for Gold continues to make a significant impact in South Africa’s construction and manufacturing sectors by developing technically skilled, work-ready professionals through its innovative four-phase education-to-employment programme. Over 25 leading companies are already benefiting from this partnership in Cape Town and Johannesburg, securing top-tier talent while simultaneously fulfilling their Social Economic Development (SED) and Broad-Based Black Economic Empowerment (BBBEE) requirements. Since 1999, Go for Gold has transformed the lives of countless young South Africans by providing academic support, life skills training, experiential learning, and workplace readiness. The programme equips students with the necessary skills to excel in STEM careers, ensuring a seamless transition into the workforce. In 2024, Go for Gold’s Education Development Programme (EDP) supported 129 Grade 11 and 12 students in Cape Town and Johannesburg, preparing them to be future leaders in the construction industry. In 2025, Go for Gold will support 130 Grade 11 and 12 students. Go for Gold students achieved an impressive 94% Bachelor Pass rate in 2024, demonstrating the effectiveness of the academic support provided. Among the top-performing students were: Musawenkosi Buthelezi – Gauteng’s top student and a Go for Gold participant, achieving 100% in Mathematics and 97% in Physical Sciences. Sisa Sopazi – Scoring 92% in Mathematics and 87% in Physical Sciences in Cape Town. These remarkable results highlight the programme’s commitment to academic excellence and the students' dedication to success. The Four Projects of the Go for Gold Programme 1. Education Development Programme (EDP) Focuses on academic support in Mathematics and Physical Sciences, leadership development, experiential site visits and life skills training for Grade 11 and 12 students. 2. Workplace Learning Internship (WLI) Provides students with real-world industry exposure through workplace learning opportunities during their gap year, including Leadership Development. 3. Tertiary Support Supports students with bursaries and mentoring as they pursue tertiary education in construction, engineering, and related fields. 4. Employment Connects graduates with full-time employment opportunities at partner companies, ensuring a well-prepared and highly skilled workforce. A Win-Win Partnership By partnering with Go for Gold, companies gain access to a pipeline of motivated, high-achieving students who are primed for success in their organizations. This partnership does more than just address industry skills shortages; it creates a sustainable talent pool while strengthening companies’ transformation goals. Employers participating in the programme benefit from well-prepared graduates who are not only technically proficient but also demonstrate leadership, problem-solving abilities, and a strong work ethic. Join the Movement Go for Gold is calling on construction and manufacturing companies to join this initiative and invest in South Africa’s future workforce. Whether your company seeks to enhance its BBBEE scorecard, develop skilled professionals, or drive meaningful change, partnering with Go for Gold offers a holistic solution that meets all stakeholders' needs. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/go-for-gold-developing-the-next-generation-of-industry-leaders-2025-02-12

Partner Regent Business School | 12 February 2025 In an ever-evolving global economy, education remains a key driver of progress, economic growth, and personal development. In South Africa, where the demand for highly skilled professionals continues to rise, postgraduate studies offer a unique opportunity to bridge the skills gap, enhance employability, and contribute to national and global competitiveness. This article explores the importance of postgraduate education and how it shapes individual careers, industry advancements, and socio-economic transformation. Economic and Employment Advantages Postgraduate qualifications significantly enhance employability and earning potential. According to research conducted by the South African Department of Higher Education and Training (DHET), individuals with postgraduate degrees have a higher likelihood of employment and command higher salaries than those with undergraduate qualifications. Employers in industries such as finance, engineering, healthcare, and supply chain management increasingly seek candidates with specialised expertise that postgraduate education provides. Moreover, South Africa faces a skills shortage in key sectors, limiting economic growth and innovation. Fields such as data science, artificial intelligence, logistics, and advanced manufacturing require deep analytical and strategic skills, often acquired through postgraduate study. By equipping professionals with advanced knowledge, South Africa can transition towards a knowledge-based economy, reducing reliance on commodity-driven industries and fostering sustainable growth. Industry-Specific Relevance Postgraduate education is not only about academic achievement but also about industry relevance and practical application. Advanced research in fields such as science, technology, healthcare, and finance is critical in addressing national challenges. For example, the healthcare sector benefits immensely from postgraduate research in epidemiology, pharmacology, and medical sciences, helping South Africa tackle diseases such as HIV/AIDS and tuberculosis. In finance and business, professionals with master’s degrees in business administration (MBA) or economics bring data-driven insights that enhance decision-making and policy formulation. In supply chain management, postgraduate studies provide expertise in lean operations, global logistics, and procurement strategies, which are vital for business efficiency and international trade competitiveness. Global and Local Competitiveness In an increasingly interconnected world, postgraduate education enhances South Africa’s position in the global knowledge economy. Countries that invest heavily in higher education and research—such as the United States, Germany, and China—consistently lead in technological and industrial innovation. By prioritising postgraduate education, South Africa can develop homegrown solutions to global challenges, strengthening its standing in international markets. Furthermore, postgraduate research often leads to technological advancements that drive industrial development. Innovations in renewable energy, artificial intelligence, and biotechnology—spearheaded by postgraduate students and researchers—contribute to a self-sufficient and competitive economy. Entrepreneurship and Innovation One of the most compelling reasons to pursue postgraduate studies is the role it plays in entrepreneurship and economic development. Many successful South African entrepreneurs have leveraged advanced research to create businesses that drive job creation and social change. For instance, Dr. Siyabulela Xuza, a South African entrepreneur and scientist, used his research in energy solutions to develop groundbreaking fuel alternatives. His postgraduate studies provided the foundation for his innovation, positioning him as a leader in clean energy technology. Additionally, business incubators and research grants available to postgraduate students enable them to transform academic research into viable enterprises. This fosters a culture of innovation-led economic growth, reducing unemployment and dependency on traditional industries. Transformation and Social Impact Postgraduate education is also a key instrument in addressing social and economic inequalities. Historically, access to higher education in South Africa has been limited due to financial constraints and systemic barriers. However, government and institutional initiatives, such as the National Research Foundation (NRF) grants, bursaries, and corporate sponsorships, are making postgraduate education more accessible to underprivileged students. Additionally, postgraduate studies equip individuals with the knowledge and skills to drive social change. Research in public policy, education reform, and economic development directly contributes to nation-building efforts, ensuring a more inclusive and equitable society. Challenges and Solutions Despite its numerous benefits, postgraduate education comes with challenges, including high costs, limited funding opportunities, and the risk of brain drain. The financial burden associated with tuition fees often deters students from pursuing further studies. However, scholarships, research grants, and employer-sponsored programs offer viable solutions. The brain drain phenomenon, where highly skilled graduates leave South Africa for better opportunities abroad, is another pressing issue. To counter this, institutions and the government must invest in research and development infrastructure, competitive salaries, and career growth opportunities to retain top talent. Postgraduate education is more than just an academic pursuit—it is a mechanism for economic growth, industry innovation, and social transformation. As South Africa continues to navigate the complexities of a rapidly changing global landscape, the need for advanced education becomes increasingly critical. For university graduates considering further studies, professionals seeking career advancement, and employers looking to build a highly skilled workforce, postgraduate education remains a valuable investment. REGENT Business School provides comprehensive postgraduate programs designed to equip students with the knowledge and skills necessary to thrive in today’s dynamic economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/industrynews/582038-the-importance-of-postgraduate-studies-in-south-africa-a-catalyst-for-growth-and-innovation.html

Africa.com | 12 February 2025 South Africa is exploring a potential workaround to its Black economic empowerment rules to attract investments from Elon Musk’s companies. Under current regulations, firms that wish to operate in the country must allocate at least 30% of their operations to Black locals. However, government officials are considering an “equity equivalent” option—potentially in the form of social investments like free internet for government schools and police stations—to meet these requirements and pave the way for Musk’s companies to operate in the country. This proposal comes amid heightened tensions with the US over South Africa’s land expropriation policies. It will almost certainly be criticized by the radical leftist party, the Economic Freedom Fighters, which recently accused Musk of being an imperialist who seeks to undermine South Africa’s sovereignty. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.africa.com/south-africa-considering-exempting-musk-from-black-ownership-rules/

Jonisayi Maromo | 12 February 2025 Commissioner of the Broad-Based Black Economic Empowerment (B-BBEE) Commission Commission, Tshediso Matona said the current onslaught against South Africa by the United States is a ploy to reverse the gains made following the death of apartheid. In January, IOL reported that in a significant development for land reform in South Africa, President Cyril Ramaphosa had officially signed the Expropriation Bill into law. The landmark legislation was signed to address longstanding issues of land inequality and provide a framework for the expropriation of land without compensation. In the aftermath, South Africa faced excessive backlash from the US government, with President Donald Trump unleashing a raft of sanctions including cutting financial aid to South Africa. Speaking to broadcaster Newzroom Afrika on Tuesday, Matona said he views the backlash as an attempt to drag South Africa back to white minority rule. “What is at stake with this backlash is fundamentally that … it is an attempt to overthrow the governance, the democratic governance of the Republic, expounded in our Constitution as the supreme law of the country,” he said. “It is an attempt to return us to white supremacy rule where one race ruled over another. Ultimately, this is an attack on our Constitution, an attack on our sovereignty, about who we have chosen to be after 1994. “It is said that we must heal our past divisions, we must establish a society based on social justice and that to promote this, laws and other measures to advance persons disadvantaged unfairly … we know who those persons are. We know who it is that was disadvantaged so we use laws and other measures, including preferential procurement,” said Matona. He said the external pressure exerted on South Africa seems like an attempt to re-colonise the country. On Monday, IOL reported that the Jacob Zuma-led uMkhonto weSizwe (MK) Party has opened a case of treason against AfriForum, accusing the lobby group of peddling false information about South Africa’s transformation and expropriation policies. “As the MK party we are here, we came to open a case of treason against the AfriForum, based on what they have done,” deputy president of the MK party, John Hlophe, said speaking to journalists outside Cape Town central police station. “You recall that there is an executive order which Donald Trump, the American president, has now issued against South Africa following the intervention that was made by AfriForum,” he said. “We have just opened the criminal case against AfriForum because we want them to be questioned.” Last week, IOL reported that US President Donald Trump has made good on his promise to cut funding to South Africa over the government’s land expropriation policy and resettle white farmers whose land will allegedly be expropriated. In a late-night Executive Order on Friday, Trump accused South Africa’s government of “egregious actions” without providing any evidence, saying the recently enacted Expropriation Act 13 of 2024 would seize ethnic minority Afrikaners’ agricultural property without compensation. Trump said this Act followed “countless government policies” designed to dismantle equal opportunity in employment, education, and business, and hateful rhetoric and government actions fueling disproportionate violence against “racially disfavored landowners”. In addition, he also accused South Africa of having taken aggressive positions towards the US and its allies, including accusing Israel, not Hamas, of genocide against Palestinians in the International Court of Justice, and reinvigorating its relations with Iran to develop commercial, military, and nuclear arrangements. “The United States cannot support the government of South Africa’s commission of rights violations in its country or its undermining United States foreign policy, which poses national security threats to our Nation, our allies, our African partners, and our interests,” read the Order. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/south-africa/mpumalanga/b-bbee-commissioner-tshediso-matona-us-backlash-aims-to-restore-white-rule-in-south-africa-2d35791e-0023-4431-8744-54a5dc4e5362#google_vignette

Stefan Kritzinger | 6 February 2025 In October 2020, before a joint sitting of both Houses of Parliament, President Cyril Ramaphosa tabled the government’s Economic Reconstruction and Recovery Plan (ERRP) – a comprehensive response to the global Covid-19 pandemic and lockdown that inflicted unimaginable harm on South Africa’s fragile economy (one that had already been battered from a decade of state capture and corruption). With priority areas focused on infrastructure development, industrialization and local production, energy and food security, as well as reviving the tourism sector, the ERRP was also designed to help and empower small, micro and medium enterprises (SMMEs). This is critical, especially considering that SMMEs constitute 40% of the country’s Gross Domestic Profit (GDP) and are at the forefront of creating employment opportunities in a country where the unemployment rate is currently sitting at approximately 32%. Equally frightening is that the youth unemployment rate is around 45%. However, FinScope data indicates that a considerable 30% of SMMEs owners today are 35 years or younger, underpinning the role that the youth play in building a resilient economy and creating jobs in the present climate, regardless of the socio-economic challenges and obstacles present in our local economy today. The youth of SA can position themselves for success Despite these and numerous other hardships, the youth of South Africa remain well-positioned to strive for greatness as entrepreneurs and business owners in 2025. Being young, in many cases, affords a person the opportunity to take risks without being tied down by the financial responsibilities of home bonds, decades of debt or numerous dependents. Risk-taking in these circumstances enables a young person to make mistakes and bounce back quickly by learning from them. For those who might disagree, I would reiterate that the fear of failing is a barricade to success, and struggling is simply nature’s way of strengthening. But even when some of our youth fail at their first business, there is still substantial time to recover and continue working towards one’s entrepreneurial dreams - because failure inadvertently accelerates success with resilience built over time. Of course, accepting that the world does not expect young people to be perfect certainly takes away a considerable amount of self-inflicted pressure that would have ordinarily discouraged one from taking a few leaps of faith in business in the first place. Slugging it out as a young, aspiring entrepreneur On top of this, the youth have the physical, mental and psychological energy for the hustle of life, and can leverage adaptation to their advantage, especially as our younger generations become more synonymous with technology, and its many rapid changes. Very often, people enjoy supporting young, ambitious and visionary entrepreneurs, especially because they bring innovative ideas to the table with a perspective of a youth market. Young aspiring entrepreneurs should never shy away from seeking networking opportunities, where they can sell their ideas to others and build an ecosystem of support, starting with their immediate family and close friends. Slugging out as a young aspiring entrepreneur also affords one substantial time to learn key skills such as marketing, sales, leadership and financial management, which can be put to the test and applied to one’s business-building journey. Young people are less likely to be stubborn and set in their own habits, positioning them to explore new skills and ways of doing things. A quick look into the life and history of entrepreneurial pioneers such as Elon Musk, Jeff Bezos and Steve Jobs will indicate how all the above factors more or less applied to them during their youth. Appreciating and accepting these key and “free of charge” lessons are a foundational gateway to success. Nevertheless, there is one material mistake that young entrepreneurs have been caught committing, and it is a mistake that ought to be avoided at all costs: poor or no tax compliance. The silent killer of youth-led businesses: non compliance While this is sometimes deliberate, it is more often caused by young entrepreneurs who have simply dedicated all of their time, energy and resources on simply making sales and securing their cash flow. Sadly, this affords them very little time to carefully ensure they meet all South African Revenue Services (SARS) requirements. There are severe, business-ending consequences for tax evasion or non-compliance in South Africa today. Besides issuing a punitive fine for non or poor compliance, SARS can also levy additional charges for submissions and payments, and in extreme cases, shut down your business due to gross non-compliance. While it is the law of the land, tax compliance should not just be seen as paying the government to do its job. There are advantages, if leveraged strategically, that can help a youth-led business thrive. By complying with the law, a business is able to build and retain credibility. There is nothing worse for the reputation of a youth-led business than being the subject of a Sunday Times article exposing how SARS is pursuing a criminal case against their company. Tax compliance further opens up opportunities to apply for contracts with big companies or the government, which require a tax clearance certificate for trading. Most importantly, tax compliance helps a youth-led business avoid unnecessary costs and helps protect the integrity of its cash flow in the long-run. Besides the obvious mistakes of missing deadlines and ignoring provisional tax, youth-led businesses can fall into the trap of registering for the wrong taxes, and paying value added tax when you should be paying corporate income tax. Misclassifying business expenses is also an easy mistake to make and can come with costs, or missing out on critical tax refunds. Tax compliance need not be feared Nonetheless, tax compliance is not a beast to be afraid of. Service providers that assist SMMEs with tax compliance exist, and offer incredibly affordable rates for all tax services needed. Depending on the type of business, the tax refund might even cover the full cost of these services, resulting in no additional costs to the business’s cash flow and avoiding severe financial consequences down the line. Despite the economic challenges of South Africa, support and opportunities do exist for aspiring young entrepreneurs today. Your only hurdle is yourself. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/tax-evasion-the-silent-killer-of-youth-led-businesses-in-south-africa-2ae17e04-73d6-44a8-88c8-2fbd8f1aa86b

IT Web | 6 February 2025 In a bid to bridge SA's critical skills gap, the Shoprite Foundation has invested over R3 million in the development of two robotics labs. According to the foundation, these “state-of-the-art labs at Cingani High School and Soqhayisa Senior Secondary School in Motherwell, Eastern Cape are giving Grades 8 and 9 learners hands-on experience in robotics, coding and digital literacy – critical skills for a rapidly evolving job market". “Technology has the ability to transform lives. By investing in technology education, the Shoprite Foundation is supporting a future where young people have the necessary skills and opportunities to succeed in a world where demand continues to grow for roles such as artificial intelligence (AI) and machine learning specialists, as well as robotics engineers,” said Maude Modise, managing trustee of the foundation. She added that the introduction of two labs marks an exciting step towards broadening access to robotics in schools and communities across SA. Modise said through this investment, the foundation aims to equip youth with core competencies such as analytical thinking, cognitive abilities, resilience, teamwork and collaboration. Learners that participate in the robotics lab curriculum will have the opportunity to earn industry-recognised certifications, which they can add to their resumes before entering higher education or the workforce. “Watching young learners experiment with robotics and eventually master practical, future-orientated skills is one of the most rewarding aspects of the work we do at the Shoprite Foundation. It is also essential to enable the professional development of our educators, who are at the heart of this project’s success,” said Modise. Twenty-five teachers from Cingani and Soqhayisa schools have completed extensive training in robotics and coding, blending theoretical knowledge with hands-on practise. Modise said the training emphasised critical skills like problem-solving, creativity and critical thinking. “Evaluations were done through practical projects and quizzes, ensuring educators are equipped to teach these subjects effectively.” She added that the launch of the robotics labs in Motherwell, supported by Sifiso Edtech, follows the successful roll-out two of robotics labs in KwaZulu-Natal in January 2024 and which supports thousands of high school learners. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/shoprite-foundation-brings-robotics-to-sa-schools-with-r3m-investment/mQwkoM6Y4bg73r9A

SA News | 5 February 2025 The Minister of the Department of Employment and Labour, Ms. Nomakhosazana Meth has announced an upward adjustment of the National Minimum Wage (NMW) rates for 2025 from R27,58 to R28,79 for each ordinary hour worked. South Africa introduced the implementation of the National Minimum Wage Act In 2019. In terms of the policy instrument, this obligates employers to pay workers a minimum amount per hour. The National Minimum Wage is subject to annual review and increases annually from 1 March. Application of the National Minimum Wage The National Minimum Wage amendment is enforced by law and binding from 1 March 2025. Violations of the Act are subject to fines. The National Minimum Wage determination Includes vulnerable sectors such as farm workers and domestic workers, whom since 2022, were aligned with the NMW rates. The National Minimum Wage is the minimum amount of pay that an employer is legally required to remunerate employees for work done. No employee should be paid below the National Minimum Wage. The 4,2 percent increase shall apply to all workers. The NMW cannot be varied by contract, collective agreement or law; and it is also an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment In Implementing the NMW. Exceptions to the application of the NMW However, because of special dispensation under which they are hired workers employed on expanded public works programme are entitled to a minimum wage increase of R15,83 from R15,16 per hour. Those who have concluded leamershlp agreements as contemplated In section 17 of the Skills Development Act, 1998, are entitled to the allowances as determined in the latest government gazette schedule and these will be published in the department's website - www.labour.gov.za Also. comprehensive tables explaining the adjustments in the Sectoral Determination for areas and rates, work categories for Contract Cleaning Sector, plus those of the Wholesale and Retail Sector are also made available in the Departmental website. The NMW Act applies to all workers and their employers except members of the South African National Defence Force, the National Intelligence Agency and the South African Secret Service. The NMW does not apply to a volunteer, who is a person who performs work for another person and who does not receive or is not entitled lo receive, any remuneration for his or her service.The amount does not Include payment of allowances (such as transport, tools, food or accommodation) payments in kind (board or lodging), tips, bonuses and gifts among others. "We are committed to the implementation of social protection initiatives and wage Increases, such as the introduction and implementation of the National Minimum Wage, as this ensures that workers receive their dues and are not exploited for the services they render. Every employer may not pay wages that are below the minimum wage," says Minister Meth. For media enquiries contact:Ms, Thobeka Magcal, Ministry SpokespersonEmail: Thobeka.Magcal@Labour,gov.zaMobile: 072 737 2205Teboho Thejane, Departmental SpokespersonEmail: Teboho.Thejane@labour.gov ,zaMobile: 082 697 0694 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/news/media-statements/minister-nomakhosazana-meth-adjusts-national-minimum-wage-r2879-hour-05-feb

By Safair | 5 February 2025 For months, South Africa’s aviation landscape has been clouded by regulatory uncertainty, with FlySafair at the centre of a dispute over ownership structures and compliance with nationality provisions. After concerns were raised by rival airline, the Air Services Licensing Council (ASLC) ruled that FlySafair must adjust its voting rights within 12 months—but crucially, the airline remains fully operational, ensuring that passengers can continue booking and flying with confidence. At issue is the interpretation of the Air Services Licensing Act, which requires that at least 75% of an airline’s voting rights be held by South African residents. FlySafair, whose structure includes a 50% trust managed by local trustees, had previously been understood to meet this requirement. However, the ASLC has adopted a stricter stance, demanding that these rights be held by natural persons rather than corporate or trust structures—an interpretation that could have far-reaching consequences for multiple South African airlines. No Immediate Threat to Flights Despite the headlines, the ASLC’s decision does not pose an immediate operational risk. The council has granted a 12-month compliance period, meaning flights will continue as scheduled. Gordon reassured customers that FlySafair remains a fully licensed and compliant carrier: “There is no immediate threat to our ability to operate, and our team is committed to resolving this matter while keeping customers flying. It’s great that we can keep our focus where it matters most: on our customers.” Legal and Structural Pathways Forward FlySafair is currently evaluating its legal and structural options. While one route involves making adjustments to its ownership structure, the airline has not ruled out challenging the ruling in court, particularly given its broader implications for the aviation sector. Other industry players will likely be watching closely. If the ASLC’s stance is upheld, airlines may need to restructure their holdings or face regulatory action—raising questions about South Africa’s competitiveness and attractiveness to investors in the aviation space. A Need for Clearer Guidelines For now, FlySafair’s situation underscores the need for regulatory consistency. The ASLC has yet to provide detailed guidance on what an acceptable compliance structure would look like, leaving airlines navigating a grey area. As South Africa’s most successful low-cost carrier, FlySafair is no stranger to navigating industry challenges. Whether through legal clarification or structural adjustments, the airline remains confident that it will continue serving South Africans with affordable, reliable air travel—no matter the regulatory turbulence ahead. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2025-02-05-regulatory-crosswinds-flysafair-cleared-for-takeoff-amid-ownership-dispute/?utm_source=Sailthru&utm_medium=email&utm_campaign=first_thing

Banele Ginindza | 9 February 2025 The South African Reserve Bank (SARB) remains in the spotlight as the Standing Committee on Finance continues its investigation into the billions in retirement funds allegedly siphoned off during the Steinhoff saga. Committee Chairperson Joe Maswanganyi has made it clear that the SARB is not absolved of its responsibility and must ensure the recovery of funds belonging to workers. Committee Chairperson, Joe Maswanganyi said the Steinhoff investigations have not been shelved by the committee which still awaits supplementary information from the SARB on progress with tracing the money trail and facilitating its repayment. “The Steinhoff matter has never been taken off the agenda. The money owed to the state must be paid back, it is workers money that has to be recovered. We have been monitoring the matter from even the 6th Parliament,” Maswanganyi said. “We are still awaiting reports on the matter from the PIC, the Reserve Bank and the legal teams that have been running with the investigations. We are aware of all the details that have been provided before and we do not want to be held down by all that. We have inherited the matter and we will ensure that the money is paid back.” The SARB came under the spotlight in the Steinhoff saga after it initiated disciplinary action against its former divisional head of the financial surveillance department, Raymond Paola, for allegedly facilitating questionable facilitation of billions of rand for Steinhoff out of South Africa via 16 exchange control applications, contravening a litany of the bank’s rules governing cross-border transactions between 2012 and 2017. The SARB’s preliminary investigation had been focused on Steinhoff’s risk manager, Chris Grové, another former SARB employee, when documents, including emails suggested Grové was the point man between Steinhoff and SARB who worked closely with Paola. The bank has maintained stolid silence on the matter since and has declined to answer questions, among others, on: whom Paola’s executives were in this Steinhoff saga; if SARB regulator controls had been fixed in the face of these alleged exchange control violations with Paola the last decision-maker at SARB, and if more senior people other than Paola were aware of the transactions. “We have pursued the matter with the SARB even the last time we met, we are waiting for supplementary information. It has been intermittent yes, but we have not called it off. Our understanding is that it is also being pursued by the law enforcement agencies,” Maswanganyi said. He said the recent revelation of lack of transparency and transformation by the banking sector at the joint sitting of the finance committees last week had strengthened the case for banks to indicate, even before a Summit, their commitment towards black empowerment, which had ownership components rather than black directors merely being to tick B-BBEE policies. “The new focus is on transformation in which ownership of the banks will be explained to us, we want to see what the participation of blacks in the sector is, if the empowerment is adequate and meaningful rather than an exercise to tick the boxes,” he said. “We want to know about access to credit, why are black women and youth not in important roles of procurement, ownership rather than just employment. We still have to have consultations with other sectors such as asset managers, insurers and others then we shall report to Parliament.” In ongoing investigation and litigation of the Steinhoff matter, the SARB in October seized more than R67 million in assets belonging to former Steinhoff executive, Stephanus (or Stéhan) Grobler. In gazetted forfeiture notices, the SARB seized more than R66m in shares and loan accounts as declared by Grobler in February 2020. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/south-africas-reserve-bank-faces-pressure-to-recover-billions-lost-in-steinhoff-scandal-8959e172-5f7d-4704-8bd3-f0e5525822e7

Yuneal Padayachy | 6 February 2025 A transactional strategy often prioritises short-term gains and superficial compliance, whereas a transformational approach involves a deeper, more holistic transformation of an organisation’s DNA. By aligning initiatives with the broader goals of the B-BBEE scorecard, companies can foster lasting change that transcends mere tokenism, writes Yuneal Padayachy, chief support officer at the BEE Chamber. In my extensive experience within the Broad-Based Black Economic Empowerment (B-BBEE) industry, I have witnessed a notable uptick in organisations transitioning from a Transactional mindset to a Transformational ethos when formulating their B-BBEE strategies. This shift signifies a positive trend towards integrating empowerment initiatives that go beyond ticking boxes, ultimately benefiting both businesses and the broader economy. Unpacking the crucial distinction between Transactional and Transformational B-BBEE strategies, there is a significance of moving beyond mere compliance towards fostering genuine, impactful changes within organisations. The B-BBEE environment is evolving and the shift towards more sustainable and inclusive practices are needed. Drawing a clear distinction between the two approaches, a Transactional strategy often prioritises short-term gains and superficial compliance, whereas a Transformational approach involves a deeper, more holistic transformation of an organisation’s DNA. By aligning initiatives with the broader goals of the B-BBEE Scorecard, companies can foster lasting change that transcends mere tokenism. Despite the challenges that we face, particularly around the Legal B-BBEE Sector Codes of Good Practice, we should not lose sight of why we have B-BBEE Legislation and the objectives we are trying to achieve as a country. At the BEE Chamber we have always emphasised the imperative need for organisations to adopt a transformative approach to B-BBEE as this is what it means to us. As we move swiftly into 2025, the BEE Chamber is excited to see the transformative role played by the public and private sector that will have an impact on our country. A transformational approach – As stated, this approach means an organisation’s focus is on changing its internal DNA. Consideration should be on what a transformed organisational DNA will mean for the business and the economy at large. Based on the desired outcome, an organisation must evaluate the scorecard they are measured on then decide what initiatives will support the end goal. Using the B-BBEE Scorecard as a benchmark of transformation, as opposed to the end goal itself – the points on a B-BBEE Scorecard will organically lead to a transformational approach. A transactional approach – Applying a transactional approach means an organisation focuses on the points they can earn, not considering what impact it will have on its internal DNA and beneficiaries. The focus is on circumvention, a minimal investment in people and quick-fix solutions. Thus, it creates an illusion of transformation with no long-term benefit that is sustainable. Organisations applying this approach generally return to the B-BBEE drawing board annually to rehash another transactional approach with no tangible return on their investment. Despite the strides made in promoting transformational B-BBEE practices, challenges persist. We acknowledged the prevalence of tenderpreneurs, blatant circumvention or not willing to walk the path of B-BBEE Transformation and profit-driven schemes that undermine the true intent of B-BBEE legislation and what we are trying to achieve as a country. Reflecting on the negative perceptions surrounding B-BBEE, we need to debunk myths linking the policy to corruption rather emphasising that corruption has no relation to race, and meaningful transformation is essential for our country’s progress. Looking ahead to the future, we are optimistic for a paradigm shift towards sustainable B-BBEE practices that have become ingrained in the fabric of businesses. We would like to urge decision-makers across sectors to embrace their role as enablers of growth and champions of economic inclusivity, they play a pivotal role in shaping a more equitable and prosperous society. As the BEE Chamber continues to advocate for excellence in B-BBEE implementation, the call for a collective commitment to economic transformation resonates as a national imperative. With a focus on building internal capacity and fostering a culture of continuous engagement, the BEE Chamber stands at the forefront of empowering organisations to drive impactful change and enable the participation of all South Africans in the economic mainstream with a specific focus on black people. https://it-online.co.za/2025/02/06/b-bbee-strategies-shift-from-transactional-to-transformative/

Mayibongwe Maqhina | 4 February 2025 The Banking Association of South Africa (BASA) said the 2024 transformation in banking report, which will be released soon, showed there has been consistent improvement in key transformation expectations in bank ownership over the years, except during the Covid-19 pandemic. Briefing the joint meeting of the standing committee on finance and portfolio commit on trade, industry and competition on Tuesday, BASA managing director Bongi Kunene used the occasion to give highlights of the report covering the period between 2018 and 2023. “In 2023, the banking industry exceeded targets for voting rights and economic interests by black, black women and designated groups,” she said. Kunene also said in terms of management, there was a strong pipeline of black senior and middle managers that had been developed by the banks. “There has been a significant investment in skills development, meaning senior managers will better reflect demographics as we go along.” She said there has been ongoing transformation and skills development to focus on women in management at banks. “There is an increasing prioritisation of women managers within the banking sector. Sixty-two are junior managers, 38 middle managers, 25 senior, and 11 top senior bank managers. At board level, 24 black directors were women. She said the banks have collectively spent R337 billion on empowerment financing. “This amount covers empowerment and transformational infrastructure. This category includes affordable housing, black SMMEs, and black-led-economic empowerment transformation.” Kunene also stated that, in terms of supplier development, the banks spent R1.8 billion, including R216 million on enterprise development and support for micro and small businesses. “The biggest portion of banks’ spend would go to preferential procurement scorecards. It has reached R133 billion.” She said a lot of progress has been made by the banks to provide accounts in terms of the Financial Sector Conduct Authority. “Banks provided R23m financial products and spent R237m on consumer financial education in 2023. This on its own takes us to inclusive economic growth.” She also said progress for inclusive growth was being made. Kunene said no member of BASA was found guilty in a court of law of systemic or institutionalised racism. She indicated that BASA did not resolve customer complaints involving their members. On the closure of bank accounts, Kunene said banks give reasonable prior notice before closing an account. “That is done to provide customers with an opportunity to engage the bank and be heard.” Kunene stated that banks have a right to close accounts to prevent accounts being used to commit criminal activities. “They have to do so in a manner that complies with the law and respects the rights of customers.” She also said banks have to comply with contract law, which was clear what they have to do if they refuse to establish or terminate an account. “All of this must be done in a manner the contract is lawful and does not violate public policy and constitutional values.” Kunene also said while courts have confirmed banks’ right to close accounts on reasonable notice, a third party may not instruct a bank to reinstate a banking relationship. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/basa-reports-progress-in-banking-transformation-and-womens-representation-182bfdd7-12cb-4ffa-a2f1-498c0c84795e

Staff Reporter | 5 February 2025 South African Small, Micro, and Medium-sized Enterprise (SMME) owners understand that obtaining business funding is imperative to business growth. However, imagine running a thriving SMME and being denied funding because of a lack of formal banking history. For many South African SMME owners, this can be a genuine hurdle. There appears to be good news on the horizon though, with moves by lending industry players to get this barrier out of the way. As Garth Rossiter, Chief Risk Officer at Lula says: “It is vital that SMMEs have access to reliable and responsible lenders and are able to make use of credit in a responsible manner in order to scale their enterprises”. Considering that SMMEs contribute approximately 40% of the South African GDP, serving this exciting sector of the market is key to the overall economic growth of the country. In order to qualify for business funding, the personal credit score and financial health of business owners can often significantly impact the eligibility of the business for funding approval. In the context of lending, it is crucial for these owners to monitor their personal credit scores closely. They may also want to consider seeking funding from lenders who prioritise fairness, transparency, and responsible lending practices, such as Lula, or other alternative lenders who are members of the South African SMME Finance Association (SASFA). To obtain credit scores when assessing an application for funding, Lula, like similar traditional and alternative lenders, uses credit bureaus for the necessary information. However, not all credit bureaus and lenders are the same. In the South African economy, conventional methods of data usage when assessing credit are insufficient when it comes to serving a market that is often not represented on traditional credit bureau databases. Many SMMEs in South Africa often lack documented records of their credit activities in the traditional sense, such as bank accounts and other credit facilities, which have been the primary means of tracking financial activity until now. As Mladen Čolić, Head of FinTech at TransUnion Africa explains, “We use alternative data, like mobile device information, to calculate credit scores for individuals without traditional payment profiles, enabling an assessment of their creditworthiness despite limited formal economic activity.” This new scoring method of risk assessment is good news, specifically for the underserved entrepreneurs who drive the SMME sector of the country. To unlock the potential that funding offers SMMEs for growth and progress, factors such as industry, geography, and even mobile usage and expenditure are considered. The dual impact of business and personal credit scores allows lenders to determine overall risk. Addressing both is critical for improving eligibility. Many creative, resilient, and forward-thinking SMMEs are run by people who may not have had access to formal banking, and there must be reputable lenders who offer a platform for these SMMEs to grow and scale. As Rossiter points out: “We’re passionate about small businesses and helping them grow. By taking into consideration factors more than just the traditional lending attributes for credit scoring, this move is opening possibilities for SMMEs to contribute to the South African economy in a much more powerful manner.” As a personal credit score is used in the credit granting process, SMME owners considering obtaining funding for their established businesses should also pay attention to their credit health. Owners should: Request their credit score from credit bureaus like TransUnion (one free credit report is available per annum in accordance with the National Credit Act) Settle all monthly obligation payments Avoid overextending themselves by having too much or unaffordable debt Ensure their credit utilisation does not near their limit, which may be an indicator of overutilisation and thus financial stress; and Monitor their credit report regularly, not only to dispute any errors but to remain vigilant for potential fraudulent activity as well. Access to funding can transform SMMEs, unlocking opportunities for innovation, investment, and expansion which extends to the lives of those employed and served by SMMEs. Small businesses should be encouraged by the moves being made by forward-thinking lending industry players that will help them thrive and contribute to building a stronger, more inclusive economy. If everyone works towards a common goal, it will bridge gaps and drive positive change. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/personal-finance/financial-planning/how-your-credit-score-can-boost-small-business-growth-in-south-africa-b2bb762e-cb66-4fa3-9eb3-1cd18cd9c715