Banele Ginindza | 26 January 2025 The government has said that the proposed changes to the Broad-Based Black Economic Empowerment (B-BBEE) Act to shift the contribution of the private sector into a R100 billion Transformation Fund would not impose new obligations and commitments from business the required funding by 2029. In a statement to contextualise the objectives of the Transformation Fund and the process underway to generate discussion and arrive at consensus for its eventual implementation, Minister of Trade, Industry, and Competition, Parks Tau, said the Fund was a catalyst for change and not merely a funding mechanism. “The Transformation Fund is not about imposing new obligations but about ensuring that existing commitments under the B-BBEE legislation are strategically utilized to create meaningful economic transformation,” Tau said. “It embodies our constitutional mandate to achieve equality and empower historically disadvantaged communities.” This comes as the National Treasury, in response to questions from Business Report , also said the initiative aimed to strengthen the enforcement of the B-BBEE Act of 2003. “Treasury is always available to assist departments when approached to do so. The Treasury’s role will be determined by the nature of the problem or request by the department,” it said. Tau said the Fund also reflected the statement of intent of the Government of National Unity (GNU), which emphasized fostering redress and inclusive economic growth. The GNU’s transformative agenda seeks to dismantle systemic barriers to economic participation, ensuring that historically-disadvantaged communities are afforded equal opportunities to thrive in all sectors of society. “Through collaboration with the private sector, civil society, and other stakeholders, we will create an economy that is inclusive, sustainable, and reflective of South Africa’s diversity,” Tau said. Representatives of the Democratic Alliance (DA), which is in the GNU and has rejected the plan entirely, business, and civil society, said the proposal was vague, poorly conceived, and unrealistic, adding that it would represent a huge change in the nature of empowerment measures. Toby Chance, DA spokesperson on trade, industry and competition whose question in Parliament last year blew the lid on the Fund, expressed concern this week about the risk of corruption and mismanagement that could accompany the Fund. He said that taking BEE contributions and allocating them to the State changed the way that the BEE Code works. Khulekani Mathe, CEO of Business Unity South Africa, said that while the proposal had not been made in any official policy document, it was an “ill-advised” concept. “We will definitely engage with government. It is something we think won't work, and we won't let it go through without a challenge,” Mathe said. According to Tau, the fund will be a public-private partnership managed through a National Empowerment Fund special-purpose vehicle. Funding will be raised through the Competition Commission’s public interest participation investment commitments and in line with the B-BBEE Codes of Good Practice. The State will divert to the Transformation Fund the 3% of net after-tax profits which companies are required to spend on enterprise and supplier development (ESD) under the B-BBEE Codes of Good Practice. The Fund will require multi-national companies to contribute up to 25% of the value of their South African operations as an “equity equivalent” cash contribution. The fund will offer equity funding, debt and grants to accommodate different needs of the intended target beneficiaries. However, the Institute of Race Relations said the proposal was unconstitutional on at least four grounds. Anthea Jeffery, IRR head of policy research, said the current race-based BEE has long caused enormous harm to the economy. “By using race to identify its beneficiaries, BEE allows the black political elite to feed off its preferences, even as the poor sink further into destitution. The Transformation Fund proposal must simply be scrapped, along with all other race-based laws,” Jeffery said. “The real need is to shift to a non-racial system of Economic Empowerment for the Disadvantaged (EED). This, like the social grants system, would use a means test to identify the truly disadvantaged. It would also reach right down to the grassroots by providing the poor with tax-funded vouchers for schooling, healthcare and housing.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/tau-says-no-strings-attached-in-r100bn-transformation-fund-amid-objections-bf9f6615-b8f4-426c-8941-5d131487495b

Content Supplied | 23 January 2025 Dwarsrivier Chrome Mine (DCM) wants to see Small, Medium, and Micro Enterprises (SMMEs) flourish. The mine’s socio-economic development (SED) team has in the past years uplifted local SMMEs and needy community members with basic needs. “At the heart of DCM’s approach to enterprise development is empowerment that is driven by the role we play in assisting SMMEs to succeed and reach their full potential. The same goes for bettering the lives of our local community members with any assistance they may need, even if it’s not business-related,” said socio-economic development manager, Remember Mmbengwa. Upon receiving several requests from the communities, DCM positively responded to some, and their requests were met and their lives changed. An industrial sewing machine and press heat printer were handed over to Juliet Makunyane on November 26, 2024. Makunyane is a resident of Maseven Village, who has a passion for and experience of dressmaking of over 14 years. DCM believes the equipment will assist her business to handle more orders and have reasonable turnaround times, as well as create jobs for other passionate dressmakers. Another resident who benefitted from DCM’s donations is Mahlatse Lekwadu from Lydenburg. An electric wheelchair was handed over to Lekwadu on December 11, 2024. She struggled to manoeuvre around her community and to do house chores due to an illness that keeps her wheelchair-bound. In Steelpoort, Tukakgomo, Tau Business Trading and Projects needed assistance from DCM. This small business deals with decoration and sound hire for events. Due to constant power cuts, they were unable to provide full services to their customers, resulting in the business losing clients. DCM recently donated two generators to assist with the business continuity, even during load-shedding. Another beneficiary was Nare Baroka (Pty) Ltd, a female-owned business founded by Marcia Mabule Nare in Ga-Phasha Village. The business services include hiring of mobile toilets (VIP and bucket toilets) and mobile coolers for different events such as work functions, weddings, parties and funerals. The capacity of her mobile toilets and coolers could not allow her to expand her business and cater for the demand of her services. To assist her in growing her business, on December 20, 2024, DCM donated one mobile VIP toilet and one cooler to the business. Mmbengwa said DCM takes pride in assisting and witnessing the positive impact it contributes to the lives of its community members, and shall continue with its commitment of growing and uplifting these communities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/lowvelder/uncategorized/2025/01/23/dcm-continues-to-uplift-smmes-and-the-needy/

Own Correspondent | 23 January 2025 GAUTENG High Court Judge Mandlenkosi Motha was met with severe criticism from certain quarters of the legal fraternity when he raised questions about an all-white legal team in a matter that cuts at the core of an untransformed legal sector. Some did not take kindly to judge Motha’s questioning of the legal representation, as he instructed both legal teams to address him regarding the lack of diversity in their teams in a case challenging the Commissioner of Broad-Based Black Economic Empowerment Commission which he had presided over. His instruction related to a case about black economic scorecards, but the advocates in the matter were all white. This move drew heavy criticism from within and outside the legal sector, with some organisations, mainly white, threatening the judge with legal action. In fact one of the leading senior counsel in the matter refused to comply with the judge’s instructions. This defiance should have given the Legal Practice Council (LPC) and the Department of Trade, Industry and Competition a hint of what was to come when they finally implement the long awaited Legal Sector Code. At the core of the code, are the issues that Judge Motha raised regarding an untransformed legal sector. The importance of a transformed legal sector and society at large cannot be overstated. The code correctly seeks to address the structural challenges faced by black practitioners, especially black women, as a result of historical inequalities. It also wants to narrow the inadequate access to a sustainable flow of quality work from the private sector; discrimination by the private sector in terms of procurement of specialised work; inconsistent briefing patterns from organs of state and SOEs among others. The good intentions of this code cannot be barely argued against, unless one is comfortable with the current status-quo, which only benefits a few. No wonder the Basadi Ba Molao, an organisation training female lawyers, has condemned law firm Norton Rose Fulbright for its challenge of the legal sector code. Whatever comes out of the legal case against the legal sector code, transformation of the legal profession is inevitable. It’s the right thing to do and we owe it to the future of this country. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capetimes/opinion/opinion-change-bound-to-occur-in-legal-sector-d50bcac1-a94d-4746-8634-fa0fc54c5e8d

Zainul Dawood | 22 January 2025 The eThekwini Municipality intends entering into a three-year partnership with the Ithala Development Finance Corporation (IDFC) on various small, micro and medium enterprises (SMME) development interventions. The Municipality and the IDFC have previously entered into a memorandum of agreement (MOA) to embark on various projects. At a Full Council meeting in December, the municipality stated that both parties intend intend to cooperate with each other, to support SMMEs with financial and non-financial support services, and to continue with the long-term relationship between the parties. Now controversy surrounds the IDFC. The Pietermaritzburg High Court is set to witness a high-stakes legal battle, beginning on Friday, as Ithala Bank prepares to face the Prudential Authority (PA) over claims of alleged insolvency and non-compliance. In the municipal report, the city and Ithala are expected to provide R20 million each year, for SMME development programmes. The programme aims to provide collective and efficient support to SMMEs to ensure that the entrepreneurs are competitive in the markets and participate positively in the mainstream economy. The report stated that the purpose of the MOA is to establish a working relationship between the IDFC and the municipality which will set out the mechanisms for the implementation and monitoring of the areas of collaboration for SMME development. The MOA also aims to enhance the commitment of both parties to realise the objectives of strengthening the participation of SMMEs in the mainstream economy. The municipality will avail a budget of R20 million per financial period for three years which will be transferred directly to the IDFC who will then administer the funding to provide SMMEs with financial and non-financial support services, SMMEs will apply directly to Ithala Bank. The programme also aims to integrate women and youth-owned businesses in rural and township areas into the SMME development programmes. Addressing council, Democratic Alliance Councillor Sanelisiwe Chebure affirmed the DA’s unwavering commitment to the growth and development of small businesses. “We have long championed the critical role SMMEs play in driving economic growth, creating jobs, and contributing to GDP. Empowering small businesses is not just an investment in individuals but an investment in our community and our collective future,” Chebure said. She added that the DA supported the intention behind this initiative but expressed concerns regarding its implementation and oversight. “Let us not mistake intentions for outcomes. Allocating funds alone is not sufficient. We must ensure that every rand spent delivers tangible, meaningful results for the people we serve,” she said. One glaring issue is the state of the properties that SMMEs are expected to use, Chebure said. She added: “This raises a critical concern: if the municipality is investing R20 million annually to support entrepreneurs, it must ensure that Ithala does not short-change these entrepreneurs by offering them unusable properties.” Chebure said the municipality must play a vigilant oversight role, ensuring that every property allocated to the small businesses is suitable, functional, and conducive to their growth. Another concern, Chebure said, was the pervasive lack of accessibility and transparency surrounding funding. She said far too many entrepreneurs, especially young people with innovative ideas, are being excluded from the opportunities. “There are too many barriers—complex application processes, bureaucratic red tape, and an opaque system that appears to benefit only a select few,” she said. Entrepreneurs need guidance, training, mentorship, and access to spaces that are not just functional but conducive to growth, she added. “Regular audits and impact assessments are essential to ensure that funds are being used effectively and that the intended beneficiaries are truly reaping the benefits. We cannot afford to let mismanagement or negligence derail this initiative,” she said. Also speaking at council, ANC councillor Philly Ndlovu the deputy chairperson of the Economic Development and Planning committee, who said the ANC support the MOA. “We are more excited because it will focus on SMMEs, both young and old, and those living with disabilities. As councillors, we need to take oversight together. We will visit beneficiaries on an annual basis. If we say that we want to play a role in unemployment we believe that such initiatives are the ones that play a role to ensure we create job opportunities,” she said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/ethekwini-municipality-and-ithala-a-new-era-for-small-business-support-a1c38c4b-929e-4832-b48b-5fb0ad2cf4a8

Lindsay Dentlinger | 22 January 2025 CAPE TOWN - Parliament’s Justice Committee says it wants the government to fight tooth and nail against a legal challenge mounted against a new Broad-Based Black Economic Empowerment code aimed at transforming the legal sector.  Global firm Norton Rose Fulbright launched the case earlier in January, arguing the targets set by Trade and Industry Minister Parks Tau are unrealistic.  At a media briefing in Parliament on Tuesday, Justice Committee chairperson Xola Nqola said the committee supports the new legal sector code prompted by unequal access to work for black legal professionals. In its legal challenge against the State, Norton Rose Fulbright argues the new targets will impact its ability to attract local clients and practically extinguish its ability to obtain work directly from the State.  Nqola said the committee supports the new legal sector code without reservations.  “But, of course, that will actually step on the toes of those who are anti, and against transformation in the country, big NPOs, big law firms and everyone else who might have an interest in the matter.” Nqola said the committee believes the code will contribute immensely to transformation in the legal profession.  “We are calling upon the Department of Justice and the Department of Trade, Industry and Competition to go to court and fight fiercely to ensure no one removes that code.” In the 70-page document published by the government in September, the policy has been justified by, amongst others, discrimination in quality work from the private sector, and unequal access to senior positions in large law firms.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/2025/01/22/parliaments-justice-committee-wants-govt-to-fight-for-new-bbbee-code-to-transform-legal-sector

Editorial | 22 January 2025 Satellites offer unbridled internet access but existing operators are justified in seeking more spectrum. The telecom industry is on the cusp of major transformation. The communications & digital technologies department will soon invite comments on proposed reforms that include updates on equity ownership requirements and the introduction of equity of equivalence programmes to attract international companies. It has been a long time coming. For far too long, high data prices and limited access have stifled SA’s digital growth. Traditional telecom operators have enjoyed their monopolistic comforts, leaving many in rural and remote areas with subpar internet. To be sure, the government itself cannot escape the blame for putting SA in the unadmired position of having some of the highest internet connectivity prices. It took the Independent Communications Authority of SA (Icasa), the regulatory body, about a decade to auction the radio frequency spectrum — the government-controlled airwaves that are licensed to mobile phone companies. This regulatory inefficiency has enabled MTN and Vodacom to keep prices high to make up for the billions of rand in costs to repurpose the frequency bands used for voice to handle surging connectivity demand. Prices dropped shortly after the government allocated the spectrum, true, but there is scope for more cuts. Even after the government ended the “spectrum crunch” in 2022, some of it is still tangled up in the old analogue TV broadcasts due to the government’s tortoise-paced transition. This is crucial because these frequencies are perfect for covering vast distances, cutting down the need for a forest of towers to get the job done. The promise of low-Earth orbit (LEO) satellites is a breath of fresh air, and the government’s promised reforms through increased competition could not come soon enough. Under the proposed reforms, the government plans to introduce equity ownership equivalence programmes — a clever workaround for multinationals wanting to tick the broad-based BEE box without parting with equity. Instead of selling a chunk of their SA operations to black South Africans, they can contribute to economic empowerment in other ways, including skills development, promoting enterprise development and rural women and young people. These contributions can amount to as much as 25% of their local operations, or 4% of their SA revenue each year.  The potential benefits of LEO satellites are manifold. Imagine a world where connectivity is not just a luxury for the urban elite but a right for everyone, from the bustling streets of Johannesburg to the most remote corners of the Karoo. That is the kind of utopia LEO satellites can help us achieve. These satellites are more than a technological marvel; they are great equalisers, bringing high-speed internet to the masses, regardless of their geographical location. Still, it is not unreasonable to surmise that mobile operators — MTN and Vodacom — are likely to feel aggrieved by the entry of LEOS. They could argue that the playing field isn’t level and that they are being disadvantaged by the regulatory delays in freeing up valuable spectrum that is stuck in limbo, still hindered by the interminable delay in migrating from analogue to digital television broadcasting. If and when LEOS swoop in with their advanced, space-based internet solutions, MTN and Vodacom might justifiably feel they are fighting with one hand tied behind their backs, unable to fully leverage their potential due to bureaucratic inertia. The promise of integrating LEO satellites and the proposed reforms are important and long overdue. Still, the government must tackle regulatory delays and spectrum limitations for existing players, or risk it creating the very problem it seeks to solve. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/editorials/2025-01-22-editorial-connectivity-for-all/

Sara Gon | 22 January 2025 SA’s minister of trade, industry, and competition, Parks Tau, has proposed establishing a R100 billion Transformation Fund by exacting contributions from the private sector. This will be done by: Diverting to the Transformation Fund the 3% of net after-tax profits which companies are required to spend on enterprise and supplier development (ESD) under the B-BBEE Codes of Good Practice; Forcing multi-national companies that refuse to hand over equity to black partners to contribute up to 25% of the value of their South African operations as an “equity equivalent” cash contribution, and Using “public interest” provisions to withhold his department’s permission from companies pursuing a merger or an acquisition unless they pay money into the Transformation Fund. These proposals are not just “deeply worrying”, as the DA’s trade and industry spokesperson, Toby Chance, has called them; they are perverse. The BEE Codes and the Competition Commission’s public interest provisions are to investment what mosquito repellant is to mosquitoes. Supposedly, this large pot of money will be responsibly managed by public and private sector stakeholders through a special entity housed within the government’s National Empowerment Fund. Its purpose will be to channel money – in the form of loans, grants and equity funding – to the ruling party’s preferred groups, such as black South Africans, women, youth, people with disabilities, and those living in rural and township areas. Obscene levels of unemployment But three decades into democracy and many experiments in black economic empowerment later, any monetary spend should aim at initiatives that will diminish our obscene levels of unemployment by giving companies every encouragement to grow while being profitable. Picking favourites, as the ANC government is intent on doing, distorts markets, dampens economic growth, and creates a class of connected cronies who rig the game to enrich themselves at the expense of the underprivileged. The government’s task should be to facilitate the ability of any company to employ and empower the unemployed, irrespective of company ownership. Investment, both local and foreign, is already being discouraged in so many ways. Tau’s proposal will exacerbate the disinclination to invest. The ANC continues to ignore, or fails to understand, that global business is not moved to invest in South Africa because it was once the moral darling of the world. South Africa as a country means little when better alternatives are available. The expertise small business owners desperately need to acquire is that which allows a business to grow and an owner to generate a decent income. These are the skills needed to administer their businesses. Small businesses need to know how to quote properly, how to keep a set of books, how to estimate the length of a job as accurately as possible, how to better cost the materials and other expenses required for a job in advance and understand the economics of pricing etc. In other words, how to professionalise existing skills. Cut the red tape and incentivise the successful to give administrative support to those who have potential and are prepared to work hard. Knowing how to manage a small business will also improve the owners’ ability to seek capital more successfully. The ANC seems to be wedded to the myth that whites as a group succeed in raising capital because they are white. In reality, raising capital is difficult for everyone. Perverse policy Crucially, no one will prosper if cities are not repaired and properly managed. This will affect those who stand to benefit from the government’s BBBEE largesse. Instead, more people will be harmed. This perverse policy will further crush the remaining life out of the economy and make it harder still for poor people to find jobs and get ahead. It remains critically important to find effective ways to increase opportunities for the disadvantaged. This cannot be done without overcoming key barriers to upward mobility – meagre economic growth, a poor and inappropriate public education system, stubbornly high unemployment, and high levels of corruption and criminality. Intensifying BEE or fiddling with it and other transformation policies will not help to overcome these problems. On the contrary, the erosion of property rights and business autonomy will raise these barriers still higher. So too will the further race-based exclusion of skills, experience, and entrepreneurship from a moribund economy. The IRR proposes that South Africa should move away from race-based policies and embrace a system of “Economic Empowerment for the Disadvantaged” (EED). EED does not use race as a proxy for disadvantage. Instead, it focuses directly on disadvantage, using income and other indicators of socio-economic status to identify those most in need of help. This way racial classification and racial preferences can fall away. Empower poor people EED focuses not on outputs like numerical quotas, but rather on providing the inputs to empower poor people. It seeks to overcome these by focusing on all the right “Es” − rapid economic growth, excellent education, very much more employment, and the promotion of vibrant and successful entrepreneurship. The IRR has been doing socio-economic polling for many years and consistently sees the same results. The 2024 poll revealed that 63% of respondents said the government must remove barriers to economic growth and allow businesses to create jobs. The same poll revealed that 53% of those polled believed that appointments should be made on the basis of merit, but there should be special training to help previously disadvantaged groups; 23% believed that all appointments should be on the basis of merit alone without any special training being available. Just 9% said that only black people should be appointed to jobs for a very long time ahead and 11% said that only black people should be appointed until those in employment were demographically representative of the population. While the politically connected might have something to lose from moving away from race-based policies such as BEE, the vast majority of South Africans have literally nothing to lose and everything to gain by implementing a non-racial policy such as EED. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://dailyfriend.co.za/2025/01/22/parks-taus-perverse-r100bn-transformation-fund/

Tshego Bokaba | 20 January 2025 South Africa’s youth stand at a critical juncture. With more than four in 10 young people between the ages of 15-34 not in employment, education, or training, the challenge of youth unemployment has never been more urgent. But within this challenge lies immense opportunity – an opportunity that can be unlocked through sunrise sectors. Sunrise sectors are emerging industries experiencing rapid growth in revenue, investment, and employment opportunities – and they are poised to play a significant role in the economy’s future. These include areas such as global business services, agriculture, the care economy, digital industries, infrastructure, and the green economy. What makes these sectors vital is not just their growth potential but their ability to provide meaningful, sustainable employment for young people. Addressing equitable access to these opportunities is one of the most significant challenges we face, particularly for youth in rural areas. For meaningful change, resources and opportunities must reach young people where they are, instead of being concentrated in urban centres. Equally crucial is fostering partnerships between the private sector and educational institutions, particularly Technical Vocational Education and Training (TVET) colleges, to align training programmes with the needs of these growing industries. There is a stark gap between the skills young people acquire and the demands of the job market. For example, training apprentice car mechanics on a 1978 model or offering plumbing courses without modern equipment limits the relevance and employability of graduates. To prepare youth for tomorrow’s economy, the private sector and government must collaborate to ensure these institutions are equipped with industry-relevant tools and curricula. STEM (science, technology, engineering, and mathematics) education also plays a pivotal role in preparing youth for the future. However, technical skills alone are not enough. An entrepreneurial mindset, coupled with access to practical training and mentorship, is essential. In Germany, 80% of employees work in small and medium-sized enterprises (SMEs). In South Africa, the reverse is true, highlighting a vast, untapped space for SME growth. At the Momentum Group Foundation, our mission is to empower youth by bridging the gap between formal education and the demands of these burgeoning industries. We focus on creating access to strategic sectors for marginalised groups, with transformation at the core of our agenda. Through partnerships with nine non-profit organisations, we invest in initiatives that equip young people with the skills, knowledge, and tools they need to succeed in these high-growth sectors. Take, for example, our Women in Farming programme. This partnership with Agri SA supports young women in agriculture, equipping them with the tools, training, and funding needed to transform their small-scale enterprises into thriving businesses. Through this programme, beneficiaries have been able to expand their operations, create jobs, and gain access to new markets. For some, the programme not only provided R80,000 in funding but also offered essential training in business management, financial literacy, and compliance, enabling them to build a sustainable enterprise. Momentum Group Foundation is also deeply invested in the ICT space, recognising its potential to drive youth employment and economic inclusion. Through partnerships with organisations such as WeThinkCode_ and Life Choices Academy, the foundation equips young people with critical digital skills. These initiatives not only provide coding and software development training but also ensure job placements in a rapidly evolving tech sector. By bridging the gap between education and industry demands, these programmes empower youth with the tools they need to thrive in the digital economy. South Africa’s sunrise sectors hold the promise of brighter futures for our youth. By investing in education, skills, and entrepreneurship, and fostering partnerships across sectors, we can help young South Africans not just find jobs, but create them, building a more inclusive and dynamic economy for generations to come. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/personal-finance/financial-planning/empowering-south-africas-youth-through-sunrise-sectors-and-education-93a2e970-4f62-4ccd-8116-2d5064d3b5e7

Maphefo Anno-Frempong | 16 January 2025 As we look towards 2025, the transport education sector stands at a crucial crossroads within the broader transport value chain and logistics economy. The challenges and opportunities that lie ahead compel us to reflect on our past while innovating for our future. At the Transport Education and Training Authority (TETA), we are committed to ensuring that our educational frameworks not only adapt to changing technologies but also empower the youth and women in our sector to thrive. Learning from the past and present The lessons of history are invaluable as we shape our future. Our sector has experienced significant transformation, driven by globalisation, technological advancements, and changing consumer behaviour. We must carry forward the resilience and adaptability we've cultivated over the years. Understanding the historical significance of transport in socio-economic development allows us to appreciate the foundations upon which we can build innovative educational programmes. Evolving practices for tomorrow’s needs In 2025, the transport sector will be markedly different. Traditional methods of freight movement, logistics management, and customer interaction will evolve significantly. We must anticipate shifts towards automation, with Artificial Intelligence (AI) and digital instruments becoming integral to our operations. Consequently, the methods we rely on today, such as manual tracking and paper-based communication, will need rethinking. Educational programmes must prepare students for these advancements, promoting familiarity with digital platforms and data analytics. Adapting to new customers and societal changes The transport curriculum must evolve to meet the needs of tomorrow’s customers and societies. As we embrace a more diverse population, our educational initiatives must reflect cultural sensitivities and varying customer expectations. This includes developing communication strategies that cater to a broader audience and understanding the importance of social equity in access to transport services. By fostering inclusivity, we can ensure a future where everyone benefits from a robust transport system. Addressing social and economic factors The transport sector must also adapt to a variety of social, cultural, and economic factors that will shape our landscape. Issues such as climate change, urbanisation, and the growing gig economy demand our immediate attention. TETA, for example, is dedicated to sponsoring progress that prioritises sustainability and resilience. Our organisation actively supports educational and skills development programmes that promote entrepreneurship, particularly among women and young people. By equipping underrepresented groups with the skills needed to operate and grow sustainable businesses in the transport sector, we can collectively uplift our economy. Harnessing technology for future success The advent of AI and other digital instruments is reshaping the transport sector at an unprecedented pace. To stay competitive within the global economy, we must integrate these technologies into our operations and educational models. TETA envisions a future where our institutions leverage AI for logistics optimisation, predictive maintenance, and enhanced customer engagement. We must prepare our workforce for these changes - ensuring they possess the necessary technical skills and knowledge to thrive in an increasingly automated world. Transport's role in other industries Transport is crucial in enabling other industries, such as agriculture, to function efficiently. By reinforcing the interdependence of transport and other economic sectors, we can advocate for policies that promote collaborative growth. In 2025, we will need to fortify our partnerships with various industries and TETA’s to create seamless supply chains that support not only local economies but contribute to national resilience and global competitiveness. Predictions for 2025: A call to action As we project into 2025, the transport education sector will focus on the following key predictions: • Diverse Skill Development Programmes : We will see an expansion of focused educational initiatives tailored towards technology and entrepreneurship, specifically targeting youth and women. • Sustainable Practices : The industry will prioritise environmentally sustainable logistics, contributing to a green economy by reducing carbon footprints and promoting eco-friendly solutions. • Collaborative Ecosystems : Strengthening partnerships with agriculture and other sectors to create holistic and efficient supply chains will be imperative. • Increased Inclusivity : Educational frameworks will increasingly prioritise equity and access, ensuring diverse groups are empowered to participate in the sector. Conclusion: A journey towards empowerment As the CEO of TETA, I envision a future where our transport education sector not only meets the demands of an evolving economy but plays a pivotal role in shaping a sustainable, inclusive, and technologically advanced logistic landscape. By investing in our youth and women, harnessing emerging technologies, and fostering collaboration across industries, we can build a robust foundation for the transport sector and, in turn, the South African economy as a whole. Let us embark on this journey together, forging a path that respects our past while boldly embracing the future. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/a-vision-for-the-future-transforming-transport-education-and-shaping-the-logistics-economy-697081a

Manyane Manyane | 20 January 2025 The ANC Youth League (ANCYL) is set to picket against the retrenchment of mine workers and other industrial job losses. The party said the picket would amplify the voices of workers and youth affected by corporate ‘greed and policy failures’. The youth league will also demand urgent action to halt de-industrialisation. The picket is scheduled for January 24. This comes after ArcelorMittal announced the closure of its steel business including its Newcastle and Vereeniging plants as well as its rail and structures operation. This would affect 3,500 jobs. ANCYL secretary general Mntuwoxolo Ngudle said the party was concerned about the ongoing erosion of South Africa’s industrial base and the threat of de-industrialisation, particularly in the steel manufacturing sector. “Recent developments, including the decision to mothball or shut down production at Newcastle Works, Vereeniging Works, and the Retail and Structural Mill, represent a significant setback for our nation’s economic development and employment prospects. “These closures are expected to directly impact over 3,500 workers and indirectly affect up to 25,000 jobs in the broader value chain. This comes at a time when unemployment remains a national crisis, with over 12 million active and discouraged job seekers unable to find work,” said Ngudle. The party called on the government to take decisive action to ensure the continuity of steel production and preserve jobs. This includes: - Securing Strategic Industries: Exploring state ownership or partnerships to safeguard the future of affected steel manufacturing plants. -Strengthening Industrial Policies: Introducing or enhancing export tariffs on scrap metals to ensure these resources remain available for domestic use, thereby lowering production costs and supporting local industries. - Revisiting Trade Measures: Adjusting import duties on steel products to protect South African manufacturers, within permissible international trade limits. - Job Protection: Implementing measures that directly address the economic impact on workers and communities dependent on the steel industry. The youth league further highlighted the failures of past privatisation efforts, which have left strategic assets vulnerable to exploitation by foreign-controlled monopolies. They said these policies prioritised private profit at the expense of South Africa’s economic sovereignty and industrial growth. Ngudle said a new approach is needed—one that places national development and job creation at the forefront. “South Africa’s youth bear the brunt of the unemployment crisis. The closure of industrial plants not only limits job opportunities but also undermines the future of our economy. A thriving industrial sector is critical to creating sustainable employment and empowering young people to contribute meaningfully to the country’s development,” Ngudle said. The sentiments were echoed by the DA, saying ArcerloMittal’s announcement underscores the urgent need for South Africa to overhaul its industrial policies. The party said without bold and innovative changes, ‘our economy will remain in a downward spiral and the unemployment crisis will deepen’. The opposition’s Trade, Industry and Competition spokesperson Toby Chance said expressions of concern from the government are not enough. “Empty rhetoric and inaction within the Department of Trade, Industry, and Competition have allowed this situation to worsen. A last-minute bailout of ArcelorMittal by the Industrial Development Corporation of SA (IDC) will only prolong the pain. “It is time for decisive leadership and legislative reforms that create an enabling environment for economic growth and job creation. This will have a more far-reaching impact than trying to pick winners and pandering to vested interests,” said Chance. Chance said the party championed evidence-based solutions in “our” Enterprising Economy policy document released last year. The proposals are designed to drive sustained economic growth and address unemployment by: - Reforming labour legislation to make it easier for businesses to hire and create jobs, while protecting workers' rights; - Simplifying and streamlining regulations to foster small business growth and encourage entrepreneurship; - Promoting industrial diversification by incentivising innovation and investment in high-growth sectors, such as green technologies, advanced manufacturing and value-added services; - Attracting foreign direct investment (FDI) through investor-friendly policies and ensuring policy certainty to build business confidence; - Upgrading trade policies to ensure competitiveness in global markets while protecting key industries that feed global supply chains; - Abandoning the unworkable and divisive BBBEE scorecard and replacing it with a new set of socio-economic outcomes to aim at, in line with the UN Sustainable Development Goals (SDGs) which are universally accepted by business In a statement released on January 6, the Congress of South Africa Trade Unions (Cosatu) said it was imperative that the government consider protective measures for mass employment industries. The South African Federation of Trade Union (Saftu) said ArcerloMittal’s decision to shut down its Vanderbijlpark operations was not just a corporate decision. The Federation said this was a national crisis with roots in failed neoliberal policies that prioritised privatisation over public good. “South Africa cannot afford to lose more jobs, industrial capacity, and economic sovereignty. Saftu stands in solidarity with the affected workers and communities and will fight to ensure that the country’s industrial future is not sacrificed for short-term profits,” Saftu said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business/jobs/ancyl-to-picket-against-retrenchments-of-mine-workers-and-industrial-job-losses-24c940ef-4a66-407a-9544-25b5e45a5f68

Government - Staff Writer | 19 January 2025 The South African government plans to establish a R100 billion Transformation Fund to foster economic transformation by supporting black-owned businesses and Small, Medium, and Micro Enterprises (SMMEs). This initiative, outlined by Minister of Trade, Industry, and Competition Parks Tau in a recent parliamentary Q&A , will be financed through private sector contributions in alignment with Broad-Based Black Economic Empowerment (B-BBEE) regulations and other mechanisms under the Competition Act. The announcement has sparked significant debate. The government cites its potential to address economic inequality, while critics warn of its adverse effects on investment and economic growth. According to Minister Tau, the fund will draw on various streams of private-sector financing. The Enterprise and Supplier Development (ESD) element of the B-BBEE Codes of Good Practice mandates companies to allocate 3% of their annual net profit after tax toward developing black-owned suppliers. These contributions will now be channelled into the Transformation Fund to ensure broader and more impactful economic transformation. Additionally, multinational corporations operating in South Africa will be required to make cash contributions equivalent to 25% of the value of their local operations if they choose not to comply with ownership provisions under the Equity Equivalent Investment Programme (EEIP). Another key source of funding will come from public interest commitments linked to mergers and acquisitions. Under Section 18(1) of the Competition Act, the Minister can intervene in merger proceedings to address public interest concerns, including requirements for financial commitments toward transformation, employment preservation, and inclusivity. These interventions will provide additional contributions to the Transformation Fund. The fund’s primary purpose is to enhance economic participation among historically disadvantaged groups, including black South Africans, women, youth, people with disabilities, and those living in rural and township areas. By addressing financial barriers, the fund seeks to empower black-owned businesses and SMMEs to enter and thrive in the mainstream economy. This aligns with the objectives of the National Development Plan (NDP) Vision 2030, which aims to reduce poverty, inequality, and unemployment. The Transformation Fund will be managed through a Special Purpose Vehicle within the National Empowerment Fund and will involve both public and private sector stakeholders. It will provide a range of financial support, including equity funding, loans, and grants, tailored to the needs of its beneficiaries. By integrating B-BBEE compliance with broader economic transformation objectives, the fund is designed to create an enabling environment for black-owned enterprises to participate in corporate value chains and access markets as suppliers. Despite its ambitious goals, the proposed fund has drawn sharp criticism from various quarters. Business advocacy group Sakeliga and opposition parties like the Democratic Alliance (DA) have raised concerns about the potential economic fallout. Sakeliga CEO Piet le Roux warned that it could harm economic production by effectively expropriating up to 3% of post-tax corporate profits. He argued that this approach undermines direct business relationships and risks turning black entrepreneurs into dependents of state-controlled mechanisms. The DA has echoed these criticisms, describing the fund as a further entrenchment of discredited B-BBEE policies. They argue that forcing businesses to divert significant portions of their profits into a centrally administered fund could deter investment, particularly from multinational corporations already facing stringent compliance requirements. The party also questioned whether the fund’s establishment aligns with legal requirements for state revenues to be managed through the National Revenue Fund under the National Treasury’s oversight. Critics have also raised fears that the fund could become a “slush fund” vulnerable to corruption, given South Africa’s history of mismanagement in similar initiatives. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/807490/plans-to-expropriate-3-of-private-company-profit-for-new-r100-billion-fund/

Malcolm Libera | 16 January 2025 South Africa’s property sector is at the centre of a critical legal challenge as business interest group Sakeliga seeks to overturn aspects of the Property Practitioners Act of 2022. The organisation argues that this law imposes harmful regulatory overreach and unjustifiably enforces Broad-Based Black Economic Empowerment (B-BBEE) compliance on businesses within the sector. Sakeliga said the case, if successful, could have far-reaching implications for thousands of businesses and their clients, potentially restoring their freedom to operate without mandatory BEE certification. The roots of this legal challenge stem from changes implemented by the Property Practitioners Regulatory Authority (PPRA) in April 2024. These changes required property practitioners to achieve a minimum BEE compliance score of Level 8, or 40 points, as a condition for obtaining Fidelity Fund Certificates (FFCs). These certificates are essential for property practitioners to operate legally. Previously, businesses needed only to possess BEE certificates without strict compliance mandates. The new policy marked a decisive enforcement shift, threatening non-compliant businesses with exclusion from the industry. This heightened enforcement provoked a backlash, culminating in Sakeliga’s intervention. In September 2024, the organisation secured a significant victory when the PPRA reversed its enforcement policy and resumed issuing FFCs regardless of BEE compliance. While this marked a temporary respite for property practitioners, Sakeliga noted that the underlying legislation remained unchanged, leaving the door open for future overreach. At the heart of the dispute is the Property Practitioners Act’s broad definition of “property practitioner.” When the Act replaced the Estate Agencies Affairs Act in 2022, it expanded the term to encompass a wide array of roles, including estate agents, property developers, lessors, management agents, homeowners associations, bond originators, and auctioneers, among others. This sweeping categorisation has drawn criticism for entangling diverse entities into a web of costly and burdensome compliance requirements, which Sakeliga argues undermines their ability to create value for themselves and their communities. Sakeliga’s court case seeks to address two key issues First, it challenges the overly broad definition of “property practitioner” under Section 1 of the Act. The organisation contends that this definition unjustly extends the legislation’s reach to thousands of businesses and transactions that should not fall within its scope. By narrowing this definition, Sakeliga aims to free many businesses from regulatory obligations that it deems excessive and unwarranted. Second, Sakeliga is targeting Section 50(a)(x) of the Act, which links the issuance of FFCs to the possession of BEE certificates. The organisation argues that this requirement serves no legitimate government purpose and violates constitutional principles. It asserts that the primary purpose of an FFC is to ensure that property professionals handle client funds diligently and ethically. Requiring BEE compliance, it claims, is unrelated to this purpose and represents an improper imposition on businesses. Sakeliga maintains that participation in BEE should remain voluntary and that businesses opting out should not be forced to allocate resources to irrelevant compliance measures. By seeking to have these provisions declared unconstitutional and invalid, Sakeliga aims to create a more equitable and business-friendly environment within the property sector. The organisation believes that removing these burdensome requirements will benefit businesses and enhance economic activity, ultimately improving living standards across affected communities. While businesses and clients have found ways to navigate the challenges posed by the Act, Sakeliga argues that state interference has exacted a broader societal cost in the form of reduced economic opportunities and lower standards of living. As the case progresses, it has the potential to set a precedent not only for the property sector but also for other industries subject to similar regulatory challenges. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/trending/807186/big-fight-looming-over-south-africas-property-laws/