Thabo Masombuka | 15 January 2025 The allegations, insinuations, and propositions made by the SA unit of Norton Rose Fulbright (NRF) in their court papers while seeking to challenge the gazette by the Minister of Trade, Industry & Competition are not only absurd, but point to the increasing culture of opposition of government's pro-transformation policies by the beneficiaries of the status quo, that simply are opposed to the inclusion of black people in the mainstream economy of this country. Sadly, these beneficiaries of the prevailing status quo continue to be white and male dominated businesses. It therefore comes as no shocking surprise that the likes of AFRI FORUM – renowned for their protection of minority racist interests – would be the first to come out in support of the attempt to set aside what is otherwise a progressive policy code that will serve as an instrument to promote transformation that is envisaged in the Legal Practice Act (LPA). The LPA was promulgated as early as 2014, yet no such challenge was mounted and initiated by the likes of NRF. Yet the LPC is merely an instrument to advance Section 3 (a) - (b) of the LPA, in so far as it promotes transformation and restructuring of the legal profession. In their court papers, not only do NRF, as the main applicants, make factual and legal errors of arguments, they also imply that Minister Parks Tau – supported by the Ministry of Justice & Constitutional Development – in signing and publishing the gazette on the 20th September 2024, acted irrationally without fully applying his mind. They continue implying and suggesting that the LSC is unconstitutional and discriminative in its contents. They want the courts to declare a transformation policy/code as invalid, unlawful, and unconstitutional. If this were to happen, then it would be a sad day for economic transformation in this country. This absurd proposition is often the trend and attributed to those who are not committed to changing the access to justice, ownership, and briefing opportunities for black practitioners and people. The LSC is not a product of a thumb-sucked process. It was gazetted as a result of a robustly extensive process (of over three years) of drafting, engagement, and consultation with legal practitioners across the length and breadth of the country, with Norton Rose included. It therefore cannot be correct that the LSC introduces, as alleged and argued by Norton Rose, "unreasonable and impractical" requirements that will be "impossible for legal practitioners and firms" to implement, when it is these very firms, through their industry associations, that have advocated for its (the LSC) promulgation and gazette. The LSC will facilitate the change in the ownership patterns of the sector, increasing representation in the skewed briefing patterns, compelling state owned enterprises to use black practitioners, increasing skills, enterprise and supplier development in exclusive legal areas of practice, in a manner that is suitable for law firms and advocates. The resistance and opposition to these initiatives, can only be made by those who are not only opposed to broad transformation, but also seek to tick the box, do only the bare minimums which are provided for in the Generic BBBEE Codes – which the LSC justifiably departs from. In essence, Norton Rose and 6 other so-called top law firms, whose business model and structure are designed along corporate models, are, in fact, looking to receive the benefit of empowerment recognition (BBBEE points) without committing to, spending and embracing substantive transformation initiatives that result in the long-term benefit of black practitioners and the sector. These are the real and true reasons behind the intended court application by Norton Rose and the opponents of economic transformation. Nothing more. It is by now common cause that the LSC, as gazetted by the Minister last year, is largely intended to radically introduce a number of measures aimed at levelling the playing field in the legal profession. These includes, but are not limited to, the provision of financial assistance and support – through the Legal Sector Transformation Fund (The LSTF) – to black candidate legal practitioners during their training and pupillage, including the provision of training allowances and stipends – such will inadvertently extend to rural women who are new entrants, and those on maternity. The support for legal start-up firms, the broadening of the briefing patterns by the state and its entities. These are amongst other important new provisions that Norton Rose is opposing through their intended court application. The public needs to understand and appreciate that this review and set aside application is, in fact, not really about the technical measurement and verification implications that Norton Rose is raising, but about the attempt to derail transformation, refusal to allow entrance of more black lawyers in the profession and enable equitable opportunities to legal work. That is what this court application is about. The transformation of the legal profession as a whole, including the equitable allocation and distribution of commercial work by corporate clients and state departments alike, is a non-negotiable imperative for the country's deracialisation of the economy and the promotion of access to justice for the poor. These are values already espoused in the country's constitution that Norton Rose and their AFRI FORUM counter-parts purport to be relying on. It is for this reason and many others, that the Legal Practice Council (LPC) who is the custodians of LPA, with the responsibility to drive transformation, and creating an enabling environment for inclusive growth in the sector, had to be in the forefront of drafting and requesting the Minister to gazette the LSC. The Legal Sector Code is therefore a full demonstration of the commitment by the industry and the state towards transformation, inclusive growth, and access to justice. * Thabo Masombuka is a legal practitioner and technical adviser in the drafting of the LSC and part of the Steering Committee that drafted the LSC. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/opinion/the-legal-sector-code-a-necessary-step-towards-transformation-2c27a364-d84c-4f3d-9056-fa35a3c8c9b5

Duduzile Khumalo | 16 January 2025 Langa believes the next generation has the unique ability to reshape the future of South Africa’s economy. As South Africa celebrates 30 years of democracy, the question remains, is Broad-Based Black Economic Empowerment (B-BBEE) doing enough to create a truly inclusive economy? Born in 1989, during South Africa’s transition from apartheid, Raymond Langa the Group CEO of Sandton-based Leagas Delaney South Africa had a unique perspective on the countrys evolving landscape. According to Langa, the B-BBEE policy was introduced to address the economic injustices of the past but its effectiveness is still a matter of debate. “As a millennial leader, I believe B-BBEE must go beyond compliance to foster real transformation,” he said. He added B-BBEE had achieved some wins – black ownership in listed companies is at 29%, and women hold 25.8% of top management positions, but challenges remain. “I believe B-BBEE can remain a cornerstone of transformation but it must evolve to meet the needs of today’s economy. The focus must shift towards driving innovation, addressing youth unemployment, and investing in growth industries.” Langa highlighted that youth unemployment is one of the most pressing issues in South Africa today, with a staggering 45.5% of young people out of work as of 2024. He said he advocated for systemic changes that included investing in education, skills development, and entrepreneurship. “We need to equip young South Africans with market-relevant skills and give them the tools to create their businesses. Public-private partnerships can play a critical role in scaling job-creation programmes.” Langa pointed out that for women, while progress had been made, barriers remained. “Many still face unequal pay, limited mentorship opportunities, and work environments that do not accommodate their life realities. We must champion women by addressing gender pay gaps and creating pathways for them to enter leadership roles.” He pointed out that at Leagas Delaney, initiatives such as mentorship programmes for emerging female talent and gender pay audits were steps in the right direction. “Beyond gender and youth, inclusivity should be embedded in every aspect of business.” Langa emphasised that diversity should not just be a statistic but a lived reality. “Inclusivity means creating environments where people from all backgrounds can lead, innovate, and excel. We focus on broadening our talent pool, providing diversity training, and ensuring diverse perspectives are represented in decision-making processes.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/alex-news/news-headlines/2025/01/16/raymond-advocates-for-gender-pay-equality-and-inclusive-leadership/

D iane Silcock | 14 January 2025 Companies with an annual payroll of over R500 000, religiously pay over to the South African Revenue Services (SARS), their monthly skills development levy (SDL). But are employers taking advantage of the government funding available for employee training and are they familiar with the process of applying for grants? What is the purpose of the SDL and how are the levies distributed? As stated by SARS, ‘SDL is a levy imposed to encourage learning and development in South Africa and is determined by an employer’s salary bill. The funds are to be used to develop and improve skills of employees’. The levies are distributed via the government’s Sector Education and Training Authority (SETA). There are 21 SETA’s representing all sectors of industry. What companies need to know before applying for government funding for training Cape Business News spoke to Schalk Kotzé, skills development facilitator for the National Employers’ Association of South Africa (NEASA), an organisation that assists companies to maximise the benefits of skills development. He agrees that there is a lack of knowledge around the subject. “Every SETA has specific Standard Industrial Classification (SIC) Codes,” he says, “so it’s important to ensure that employers register with SARS for SDL under the correct codes so that they are allocated the SETA appropriate to their industry. Each SETA promotes skills and development in their industry sector. If a company is outside of that particular SETA’s scope, it’ll be very difficult for them to acquire additional funding.” Kotzé says that to apply for funding, companies first need to ensure that their skills levies are up-to-date and that they have a valid SDL number as registered with SARS. But before they can submit their training reports to SETA, and claim back mandatory grants, they need to have implemented training. “If companies do not implement their training programmes, they won’t get back their mandatory grants,” Kotzé stresses. NEASA deals with all SETA’s and extensively with merSETA, the Manufacturing, Engineering, and related services SETA, where there is a big demand for training, and therefore a sector where much of their work takes place. “Funding for an apprenticeship through merSETA discretionary grants, for instance, amounts to R206 290,” says Kotzé. “It is this kind of money that can be made available to employers to utilise for staff training. Even training for unemployed learners can be applied for, so it’s not limited to their own employees. Both internal and external training counts for mandatory grants, from induction training for new employees, to an employee furthering their studies through a tertiary institution.” Mandatory grant submissions NEASA’s experienced skills development facilitators collaborate with a company’s team to plan and execute effective skills training strategies, including assisting with the submission of their Workplace Skills Plan/Annual Training Report (WSP/ATR) and liaising with the relevant SETA. 2025 deadlines The legislative timeframe for mandatory grant submissions to SETA’s generally opens up around the end of January/February with a deadline of 30 April. Therefore, it’s important for companies to keep up-to-date with the requirements of the various SETA’s as this can vary quite significantly from SETA to SETA, even in terms of documentation requirements. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cbn.co.za/industry-news/skills-training-development/skills-development-levy-benefits-deadlines-and-insight/

Yuneal Padayachy | 14 January 2025 As South Africa exits 2024 and moves steadily into 2025, the landscape of Broad-Based Black Economic Empowerment (B-BBEE) is poised for significant shifts. The B-BBEE framework has been a cornerstone of Economic Transformation in our country, aiming to address historical imbalances and promote inclusive Economic Growth. In 2025, I am hoping to see the following taking place in the B-BBEE transformation space: Updated B-BBEE Sector Codes of Good Practice The B-BBEE Codes of Good Practice including for specific sectors, are subject to periodic reviews, and 2025 may see updates to these Codes of Good Practice especially aligning to the 2019 Amendments to the General B-BBEE Codes of Good Practice. Businesses should anticipate changes in scorecard elements, weightings, principles and compliance criteria. Staying abreast of the modifications will be crucial for companies striving to maintain or improve their B-BBEE status. Whilst 2024 did not bring any of these to fruition, we are hopeful and looking forward to this happening in 2025 under the new leadership at the Department of Trade, Industry and Competition. Implementation of the Legal B-BBEE Sector Codes of Good Practice With the release of the Legal B-BBEE Sector Codes of Good Practice on 20 September 2024, it was an exciting time for the sector to drive B-BBEE transformation. We are hoping to see further clarity released to allow for effective implementation of this B-BBEE Sector Code of Good Practice in 2025. Implementation of the Amended Employment Equity Act On Thursday, 28 November 2024, Proclamation Notice 231 of 2024 was issued in relation to the Commencement of the Employment Equity Act, No, 4 of 2022. The statement indicated the following: In terms of section 65(2) of the Employment Equity Act, 1998 (the EEA), I hereby, by means of the accompanying proclamation in English, determine 1 January 2025 as the date on which sections 1, 8, 14, 15A, 16, 20, 21, 27, 36, 37, 42, 53, 64A and Schedule 4 of the Employment Equity Amendment Act, No. 4 of 2022 shall come into operation. Some of the amendments to be implemented from 2025 would include the deletion of part of the definition of a ‘designated employer’, the amendment to the definition of ‘disabilities’, clarification on the consultation obligations with representative trade unions, the ability of the Minister to identify national economic sectors and set numerical targets for any such sectors, and the introduction of criteria to be met by an employer in order for a certificate of compliance to be issued by the Department of Employment & Labour. We are looking forward to the final Gazette of the Sectoral Targets and Regulations to allow for smooth implementation in 2025. Enhanced focus on implementation and monitoring One of the primary expectations I hope to see for 2025 is an increased emphasis on the effective implementation and monitoring of B-BBEE initiatives. The notion of impactful B-BBEE initiatives needs to be instilled within the mindsets of B-BBEE practitioners and transformation managers. There is a need to place a stronger focus on ensuring that companies are actively working towards achieving the outlined B-BBEE goals and that the intended benefits are reaching the targeted Black beneficiaries. The shift from being transactional to transformational is a must. Increased collaboration and partnerships Collaboration between businesses and stakeholders should remain a key theme in 2025. Companies may engage in strategic partnerships to pool resources, share best practices, and collectively work towards achieving B-BBEE objectives which will achieve larger impacts on the intended Black beneficiaries. Focus on skills development Skills development has been a crucial pillar of B-BBEE, and in 2025, there may be an intensified focus on training and upskilling initiatives. I do foresee companies exploring more innovative approaches to skills development, including mentorship programmes, online training platforms, and partnerships with educational institutions to address the skills gaps in our country. Focus on job creation South Africa still faces a large challenge in respect of unemployment. In 2025, I hope to see more collaboration between the public and private sector to address challenges of unemployment. From a B-BBEE perspective, it would be great to see more of an uptake of participation under the Youth Employment Service (YES) initiative in 2025 and giving young people an opportunity to gain working experience. Inclusive procurement practices Procurement is a significant component of B-BBEE, and 2025 is likely to witness a continued emphasis on inclusive procurement practices. Companies are encouraged to source goods and services from Black owned and Black women owned businesses focusing on small business as well. In a significant move towards enhancing efficiency, transparency, and accountability in public procurement processes, the gazetted Public Procurement Act of 2024 aims to revolutionise the way government entities engage in procurement activities. We are looking forward to implementation of the Public Procurement Act of 2024 in organs of state and public entities. As South Africa looks ahead to 2025, the evolution of B-BBEE transformation is inevitable. Companies must proactively adapt to the changing landscape, embracing technology, fostering collaboration, and prioritising the holistic impact of their B-BBEE initiatives. The trajectory of B-BBEE transformation in South Africa for 2025 promises an array of pivotal changes and opportunities for businesses. As we anticipate updated B-BBEE Sector Codes of Good Practice, a pronounced emphasis on implementation and monitoring, increased collaboration, and a sharpened focus on skills development, job creation, and inclusive procurement practices, the landscape of empowerment and economic growth is set to undergo significant evolution. Businesses must be vigilant in staying abreast of these developments, ready to pivot and align their strategies to effectively navigate the shifting B-BBEE landscape. Embracing innovation, forging strategic partnerships, and committing to impactful initiatives will be integral in not just meeting compliance criteria but truly fostering inclusive economic growth and addressing historical imbalances. https://www.bizcommunity.com/article/anticipating-b-bbee-transformation-in-south-africa-in-2025-586080a

Linda Ensor | 13 January 2025 Act stipulates an employment equity compliance certificate will be a prerequisite for doing business. The department of trade, industry & competition has invited various industries for consultations on proposed numerical equity targets for the different economic sectors. Employers, however, say the consultations will be meaningless unless they are provided with the proposed targets so they can adequately prepare.  The proposed targets have been formulated in terms of the Employment Equity Amendment Act — signed into law by President Cyril Ramaphosa in April 2023 — which provides that the minister must set numerical targets for each economic sector to achieve the equitable representation of people from designated groups, namely historically disadvantaged people based on race, gender and disability at all occupational levels in the workforce.   The aim is to address underrepresentation of the designated groups in the workforce in relation to the economically active population. Employers will be required to comply with their own set annual employment equity targets towards the achievement of the five-year sector targets. The act stipulates that an employment equity compliance certificate will be a prerequisite for doing business with any organ of state and securing state contracts.  National Employers’ Association of SA (Neasa) CEO Gerhard Papenfus said in a statement on Monday that the association was actively preparing to launch legal action against any draft or final regulations and targets the department published and would explore all avenues to protect employers from “this devastating legislation”.  Sakeliga is also planning a legal challenge to what it says is “an irrational, harmful and unconstitutional act”, which employment & labour minister Nomakhosazana Meth said would take effect from January 1 2025. Sakeliga does not believe the state has the capacity to enforce the legislation. Papenfus said that during December, including on Christmas Day, when the majority of private entities were closed, the department started inviting all industries to attend consultations to discuss the proposed numerical sector targets. The cut-off date for registration was Monday, though Papenfuss noted that many companies  resume operations only on January 15.  But, he noted, the sectors had not been provided with the proposed targets and how they were arrived at. “It is practically impossible for stakeholders or employers to prepare for a consultation without having knowledge of what the proposed targets are.  “The department apparently plans to consult with entire sectors within very brief time slots (60-90 minutes) — quite simply an impossible endeavour. Neasa believes that these sessions will not be consultations in any sense of the word, but that the department is going to merely inform the sectors of decisions that have already been made as a ‘tickbox’ exercise,” Papenfus said.   Former employment and labour minister Thulas Nxesi published draft employment equity regulations and numerical sectoral targets in 2024, but Neasa threatened legal action if the department failed to follow the prescribed legislative process as the relevant section of the act was not yet in operation.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/national/2025-01-13-dtic-consultations-kick-off-for-sectoral-equity-targets/

Africa.com | 11 January 2025 In December 2024, JSE-listed Bidvest announced that it would dispose of 100% of Bidvest Bank Holdings Limited to Access Bank plc. Bidvest is expected to raise R2.8 billion from the sale, which will then be used to settle its existing debt. Access Bank plans to implement Broad-Based Black Economic Empowerment (BBBEE) ownership, including an Employee Stock Ownership Plan. Access Bank is the largest lender in Nigeria by assets and is a full-service bank with over 60 million customers globally across three continents. The group has four business segments: retail, business, commercial and corporate. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.africa.com/south-africas-bidvest-bank-is-being-sold-to-nigerian-based-access-bank/

Property Wheel | 13 January 2025 ArcelorMittal (SA) has confirmed that it is mothballing its long-steel operations at its Newcastle Works, Vereeniging Works, and the rail and structural subsidiary, AMRAS which will have a devastating impact on surrounding communities, suppliers, contractors, and the broader metals and engineering sector says the Steel and Engineering Industries Federation of Southern Africa (SEIFSA).   “SEIFSA have repeatedly warned of a socio-economic catastrophe should ArcelorMittal shutter its plants,” says Eliage Monage, SEIFSA President. “Some of the alarming estimates over and above the reported 3 500 direct jobs on the line are the medium-term impact of second round effects in the order of 20 000 to 25 000 jobs and in the longer-term, multiples of more than this. The effect of this latest development will reverberate throughout the economy and the continent, impacting the auto, motor, construction, and mining sub-sector of the economy and all who work in it.” This development presents a major setback to the base of the industrial sector and industrialisation more broadly, he says. “The tragic reality is that the lofty goals set by the Steel Master Plan (SMP) to charter a roadmap to reenergise the sector, expand production, and increase demand across the steel and fabrication industry value chain and to introduce an industrialisation programme, have failed dismally.” “The SMP was meant to deliver a comprehensive industrial policy framework where a total, inclusive, industry perspective would be taken and complementarities across the value chain enhanced. Sadly, what we are witnessing is the opposite wherein policy is implemented in a fragmented manner with a short-term view and with pockets of industry being pit against each other.” Monage says that ArcelorMittal’s year-long plea for help from the government has been unsuccessful. “The fact of the matter is that ArcelorMittal never had a prayer – sadly we have seen this play out before with the closure and mothballing of Highveld Steel and Saldanha respectively, all at the feet of a dithering government too slow to react and offering too little too late. For South Africa’s economy, ArcelorMittal’s decision means that there will be fewer players in the country producing long-steel products such as fencing material, reinforcing bars, beams, rails and profiles that are used in the construction, mining and manufacturing sectors.” SEIFSA says that the downsizing at ArcelorMittal highlights three key industrial-policy tents. “Firstly, if government lacks the capacity to do everything, then it should focus on its core functions – which in the economy means infrastructure, building human and social capacity and maintaining security. Second, government’s role in industrial policy is to shape an enabling environment that aligns national and business interest. It is not to mediate short-term compromises between competing stakeholders. Finally, industrial policy should be used to rescue struggling industries or companies, especially where the long-term socio-economic benefits outweigh the costs.” A sectoral engagement between Minister Parks Tau representing the Department of Trade Industry and Competition (DTIC) and the Metals and Engineering Sector took in late November 2024 which sought to provide a platform wherein the Ministry and industry could come together to develop a way forward to arrest the rapid decline in the sector’s performance. “The closure of ArcelorMittal’s long-steel business is a profound policy failure. Nevertheless, steel still has the potential to be the core of the re-industrialisation programme for South Africa. What is now required on an urgent basis in the face of this crisis is leadership – a focused character and decisiveness – that up an until now has been missing and without which we will be doomed to the same results, with negative consequences for the long-term sustainability of the metals and engineering sector,” concludes Monage. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://propertywheel.co.za/2025/01/the-closure-of-arcelormittals-long-steel-business-is-a-profound-policy-failure-says-seifsa/

Bulelani Nonyukela | 9 January 2025 ANC president Cyril Ramaphosa is advocating for the processing of South Africa’s mineral resources in the country and the export of finished products rather than raw materials. This proposal mirrors that of his party’s youth league , which has called for at least 70% of raw materials to remain in South Africa, citing it as a solution to socioeconomic challenges, particularly the high levels of unemployment among the youth. Ramaphosa said South Africa should not continue exporting most of its unprocessed materials. “When we mine our minerals, we must at least beneficiate many of them here and export the finished products so that other countries buy products made in South Africa. That is the task we are taking up and addressing,” Ramaphosa told supporters at Athlone Civic Centre, Cape Town, on Wednesday, where the ANC is holding its 113th anniversary celebrations. The main rally will take place on Saturday. He highlighted the issue of youth unemployment, saying almost 60% of the unemployed are young people. “The ANC has a task to ensure we address the unemployment challenge faced by young people. We must open up opportunities for them and listen to their needs.” Despite being one of the world’s wealthiest nations in terms of mineral resources, South Africa continues to face high poverty levels. The country is one of the world’s largest producers of platinum group metals, manganese, chromium, gold, aluminosilicates, ferrochromium, vanadium and other critical minerals. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/politics/2025-01-09-listen-ramaphosa-pushes-for-minerals-to-be-processed-locally-to-boost-jobs/

Oratile Mashilo | 9 January 2025 The labour department's initiative aims to create more than 350 000 jobs. In an effort to tackle South Africa’s high unemployment rate, Department of Employment and Labour Minister Nomakhosazana Meth signed contracts with 12 partner organisations from the Labour Activation Programme (LAP) in Western Cape on Thursday. The LAP is the department’s job creation initiative. “LAP partners in the Western Cape will each sign a pledge committing to the absorption of more than 17 000 jobseekers in key sectors of the economy including retail, customer service, hospitality, agriculture, tourism, manufacturing, transportation, food delivery, mining, and information communication and technology.” Over R651 million in funding Speaking to the media in Khayelitsha, Meth said the agreements show government’s commitment to create jobs. “Nationally, we aim to create over 350 000 jobs across all nine provinces, and I am proud to announce that to date, we have formalised 29 partnership agreements, benefiting over 107 764 individuals,” she added. Furthermore, the entities are set to receive a collective amount of more than R651 million in funding, creating more than 17 000 jobs. “These opportunities are expected to be created in the province over the next few months,” said the ministry. 12 LAP partners Meth explained that her department will work together with the 12 entities to track progress, identify challenges and find solutions. These are the 12 LAP partners: Caliber Solutions : will empower aspiring professionals in retail and management. CAPE BPO : focuses on customer service, creating pathways for our youth in the thriving BPO sector. Damascus Holdings : brings training excellence in hospitality, upskilling hundreds of potential cooks, waitstaff, and hotel managers. Elgin Community College : a beacon of hope in the Overberg Region, will reach over 3 600 beneficiaries through agriculture, tourism, and manufacturing programmes. FurnTech : will elevate furniture manufacturing — combining craftsmanship with innovation. Green Riders : pioneers of e-mobility solutions, showcasing how environmental responsibility can spark job creation. House of Boniwe : a 100% black female-owned enterprise, demonstrates the power of inclusive, strategic project delivery in agriculture, construction and ICT. Khaulele Holdings and Misuyolo : will harness technology, agri-tourism, and manufacturing to transform local economies. Skills Credit and Taking Care of Business : uplift communities through technical, entrepreneurial, and circular economy initiatives. Tourism & Business Institute : will shape a new generation of tourism and hospitality experts, driving forward one of our country’s most promising industries. “This approach underscores our broader strategy to align the Labour Activation Programme with national policy frameworks — from the National Development Plan to other inter-departmental collaborations. “Prioritising synergy across government, private enterprises, and civil society, we will ensure a unified, impactful approach to job creation and social upliftment,” said Meth. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/news/south-africa/labour-minister-signs-contracts-worth-more-than-r651m-to-create-jobs/

Nicola Mawson | 8 January 2025 More than 60% of South African companies see skills gaps as a key barrier to business transformation by 2030, according to the World Economic Forum’s (WEF’s) Future of Jobs Report 2025, released today. The report, which has been published twice a year for the past decade, provides insights into the emerging jobs landscape for the 2025-2030 period. It was compiled based on the perspectives of more than 1 000 employers, which represent more than 14 million workers across 22 industry clusters and 55 economies. The WEF jobs report comes at a time when youth employment is a serious issue, with 34.2% of South Africa’s young people between the ages of 18 and 34 not being in employment, education or training as of the third quarter of last year. This compares with an overall unemployment rate of 32.1%, according to the latest Statistics South Africa (Stats SA) figures. The unemployment rate among working age South Africans is highest for those without a matric qualification, while those with a tertiary qualification were less likely to be unemployed, Stats SA’s latest Quarterly Labour Force Survey shows. Overall, the WEF said: “Technological change, geoeconomic fragmentation, economic uncertainty, demographic shifts and the green transition – individually and in combination – are among the major drivers expected to shape and transform the global labour market by 2030.” Locally, it also noted that a third of companies planning to expand their talent pool and improve skills matching in an environment of rapid technology change aimed to remove degree requirements, creating more accessible pathways to emerging jobs. The WEF’s report noted that with jobs such as and Machine Learning Specialists as well as Robotics Engineers on the rise, companies were planning to upskill employees and hire talent with new skills to meet evolving business needs. ICT industry veteran commentator, Adrian Schofield, said that changes in technology and the increasing impact of introducing AI and machine learning across a diverse range of industrial, commercial and social activities were shifting the spectrum of skills demand. “In my opinion, there are two main factors that are significantly holding back South Africa’s ability to adapt to these changes and to take advantage of the potential positive contribution to the economy and the quality of life,” he said. The first factor Schofield highlighted was the continuing poor quality of basic education, leaving young people unable to gain access to employment or become entrepreneurs. “For more than a century, South Africa has failed to provide a standard of education in government schools that is the fundamental human right for all children and the essential building block for a just society,” he said. The second issue Schofield highlighted was the stagnant economy. South Africa’s gross domestic product declined 0.3% in the third quarter of last year after a restated 0.3% in the prior quarter. Leanne Emery-Hunter, the chief operations officer at the Youth Employment Service (YES), said South Africa was experiencing a critical skills shortage across almost all sectors, with an urgent need for skills in the IT and finance sectors. “The crux of the problem lies in a misalignment between the skills South African employers demand, and the skills our young people possess,” she said. Concurring with Schofield, she added that “we know that our education system is failing to equip our youth with the practical skills and industry knowledge needed to hit the ground running”. Emery-Hunter said this mismatch created a vicious cycle. “Not only is our economy not growing fast enough to create enough jobs for young people to be absorbed into the labour market, but young people also lack the skills for available jobs, exacerbating the crisis,” she said. “Even if we were somehow able to fix some of our structural problems and our economy started to grow more rapidly, many businesses would not have the skills they need to be competitive.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/south-africa-faces-critical-skills-gap-threatening-business-transformation-by-2030-wef-report-78dcee0c-5cc2-46aa-adba-9e609e240593

Nokwanda Mathenjwa | 7 January 2025 The rural economy has been neglected and left to its own demise, once an exciting and soulful place to visit during the holiday season. Local stores and halls have become dilapidated structures that only pleasure us through nostalgia. Growing up most South Africans would purchase their basic household needs at a local general store. The owners of these general stores were mainly locals and those families were considered more well-off than most families in the community. Despite that, the community has a sense of comradery that garnered unreserved supported by consumers in around their jurisdiction. The rise of shopping centers in rural areas promising access, convenience, variety and job creation came at the detriment of rural entrepreneurial activity and self-sufficiency of locals. Previously, the wages locals would earn or working family members would send home would be first spent within the community. A portion would be spent purchasing necessities KwaSibiya General Store, another allocation kwaJabulani Butchery, another at MamNkosi’s for a homegrown chicken and eggs, KwaZikalala for homemade pies namagwinya, a local tailor for garments and a community hair salon. Travelling to town was a monthly excursion to purchase larger items and volumes of goods. Nowadays locals receive their wages and monies from families, catch a taxi to town, spend at a chain store and that revenue flows into the JSE. Instead of circulating within the local rural economy at least 4 times for local sustenance, within hours these large cashflows return to the pockets of investors and shareholders and is seldom reinvested towards local infrastructure or social development needs. According to a 2012 Property24 report, 160 retail shopping centres were developed in townships and rural areas between 1962 and 2009, generating R34 billion in sales and creating 54 300 permanent jobs since the 1980s. A 2015 report by Futuregrowth Asset Management which owns 30 shopping centres states that centres helped created 7 600 jobs. When compared to a rural population of 19.2 million, township population of 11.6 million as per 2020 Macrotrends statistics and rural unemployment recorded at 3.9 million by Trading economics in 2016, this success is dismal for the country’s economic development. The job creation figures are unjustifiable and prove the premise of shopping centers to be excessive and conspicuous consumerism over productive and sustainable development of underserved communities. The community members employed at these malls or shopping centres spend their money there, thus perpetuating this vicious non-developmental cycle. It is evidently not enough to only employ locals, as noted above, the spillover effect on poverty alleviation is meagre. The unemployed continue to outweigh the employed and those living in abject poverty remain neglected. If locals were given shares in shopping centers, communities would have reasonable ownership through community trusts that dictate the use of funds through consultative processes. These can include improving local infrastructure, higher education reservations for their immediate children, stipulated dividends per household and/or local business development, etc for as long as the centres operate on traditional, community or municipal land. What do numbers look like for local small businesses? A 2008 study by the Bureau of Market Research found that township business owners recorded a decline in business activity within six months of a mall opening. While 75% of business owners within 1km radius to the mall reported a drop in profits and 36% of businesses within a 4-5km radius reported the same. Do the jobs created by shopping centres measure up against the loss in local business activity? Similar statistics for rural areas are currently unknown, these township figures will therefore serve as proxy. Rural areas are endowed with land and agricultural finesse, if retailers sourced products like fruits and vegetables from local farmers, we would not be the most unequal country in the world. When making these purchases community members would spend within their local communities, the circulation of money would occur on a broader scale and consumers would indirectly support small and large-scale local farmers. The community co-operatives formed for poultry farming should have had direct links to chain stores. Thus, empowering communities to produce what they consume. In the same breath uniform manufacturing co-operatives can be formed to supply uniforms to schools in their district. With adequate government support the rural economy can still be empowered to achieve its full economic potential through self-sustainable means. Food security is a challenge the rural economy can address, with about 2.1 million (11.6%) of South African households reported experiencing hunger in 2021, according to StatsSA. Two-thirds of these households are situated in Cape Town (240 970) and Johannesburg (238 610), with unemployment being the main contributor. The rural economy can be a feeder to these cities and metros. Because the profits accrued by malls do not cascade down to rural communities and local small businesses, they are counter intuitive to South Africa’s agenda of inclusive growth and socio-economic development. Mall and shopping centre owners together with retailers need to grab a seat at the inclusive and sustainable development table. They need to adopt forward and backward linkages approaches that support local small business growth and development to meaningful combat unemployment, alleviate poverty and reduce inequality. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/the-lethargic-death-of-the-south-africas-rural-economy-4478cfa9-0c71-4d73-a3ca-5b405bc2f7b9

Ashley Lechman | 4 January 2024 One of the most prevalent things that keeps small and medium enterprise (SME) owners up at night is cash flow; especially if they are determined to scale and succeed in the current economic climate. Without cash flow, SMEs do not have one of the key resources to foster sustainable growth. Even more important than cash flow when it comes to scaling a business, however, is the access to flexible funding and resources. As Thomas McKinnon, Chief Growth Officer of SME services provider Lula, explains, “Running an SME in South Africa often costs more than it does for big businesses. Higher interest rates, steep rental costs, and weaker buying power make it tough to balance costs and cash flow. SMEs also face the challenge of offering longer terms to debtors while having to pay creditors faster, so they get squeezed on both sides in the market. That’s why flexible funding options are essential for managing cash flow and adapting quickly in our uncertain economy.” This need for flexibility has become more dominant globally, from flexible working hours to flexible funding opportunities. Similarly, flexibility when it comes to physical space has become even more important considering the current demand. SMEs require adaptable business space, efficient warehouses, scalable workshops, adjustable workspaces, and they need these spaces to be suitable for multiple purposes. “This is a huge shift,” says Chief Marketing and Product Officer for Inospace, Jodi Sher. “Inospace ​manages, owns​ and operates serviced logistics parks offering numerous facilities as last mile logistics hubs for SMEs. By providing scalable space, value-added services and flexible leasing terms, Inospace is uniquely positioned to help entrepreneurs, especially when there is need to adapt, which is incredibly powerful when you’re looking to grow a business,” adds Sher. Despite the upturn in sentiment since the formation of the GNU, the economic landscape of South Africa remains unpredictable. It is therefore vital that SMEs have the support of partners who are purposeful and passionate about seeing SMEs succeed. This is especially true for SMEs that need help to navigate limited resources and various operational challenges. Access to flexible and fast capital, operational support, and communities of like-minded entrepreneurs provide SMEs the practical tools to avoid the pitfalls of isolation, and cash flow crises that can too easily hinder the growth of a viable business. While the government has made efforts to reduce the red tape that can hamper running a business, more is needed to support SMEs. SMEs would grow faster and more sustainably if they had access to: flexible funding options for growth and cash flow management, scalable, adaptable workspaces designed for modern business needs, access to logistics support and technological solutions, skills development and training programmes, and supportive communities to foster collaboration. Both Lula and Inospace are the kinds of private sector companies that offer SMEs this support. Lula, as a registered member of the South African SME Finance Association (SASFA), is ​in a strong​​ position to offer not only alternative lending services, but bank accounts that allow flexibility with various affordable fee structures. This is immensely advantageous for SMEs that wish to manage their banking fees with more agility. Lula therefore aims to bridge the funding gap that exists for established SMEs who need access to capital, often at short notice, in order to maximise opportunities to grow. Inospace has built its brand around empowering SMEs. The facilities and products offered are specifically designed to elevate SMEs around last mile logistics and e-commerce, and offer access to technologies that businesses of this size would not ordinarily be able to afford. In addition, both companies offer support for their clients with some self-service portals, but also access to people. When SMEs want help to understand the impact of decisions on their business, the certainty and security of interacting with a person who is invested in their success goes beyond mere efficiency. Lula and Inospace are therefore strategic in assisting the SMEs with whom they work to achieve success. South Africa is uniquely entrepreneurial and resilient. Ensuring that SMEs can flourish starts with recognising the central role that they play in the economy and providing the resources for them to do so successfully. With approximately 40% of the contribution of the South African GDP being made up by SMEs, ensuring that resources are available in a challenging market is more than a sentiment: it is essential. Building growing and thriving SMEs equates to rebuilding the economy and therefore building a better South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/space-to-operate-breaking-down-the-barriers-to-scale-for-smes-in-south-africa-6d3aab04-479b-414b-91cc-c3b31b7ea671