Wolfgang Neff | 20 March 2024 In this article, Wilson Bayly Holmes-Ovcon (WBHO) CEO Wolfgang Neff writes that the Public Procurement Bill, currently before the National Council of Provinces (NCOP), could have negative consequences, especially for the country's construction sector. The Public Procurement Bill is making its way through the NCOP after having been passed by the National Assembly in December last year. In the past weeks, we have seen provincial public hearings on the Public Procurement Bill, as well as public hearings before the Select Committee on Finance in Parliament. This is a consequential Bill with far-reaching implications. It aims, among other things, to regulate public procurement and to prescribe a framework within which preferential procurement must be implemented going forward. Public procurement makes up a substantial part of the government's entire annual spend. The Public Procurement Bill, once enacted, will in effect regulate how almost a trillion rand will be spent annually by government, amounting to just over one-fifth of South Africa's gross domestic product. Industry associations such as the Public Procurement Working Group (which includes the Ahmed Kathrada Foundation and Corruption Watch), Consulting Engineers South Africa as well as Master Builders South Africa have expressed concern about the Bill. Many other stakeholders, including various civil society organisations, have made submissions and voiced their deep unease about the current Gazetted version of the Public Procurement Bill. Outside of the formal public hearings process, it is therefore surprising that the Public Procurement Bill has not received more mainstream media attention. Two main goals of the Public Procurement Bill are inarguably well-intentioned: fighting corruption in State spending is essential, as is the need for a structured approach in ensuring sustainable transformation and empowerment in the economy. But, unfortunately, the manner in which the Public Procurement Bill seeks to achieve these two goals is deeply flawed and would have contrary, unintended consequences to the detriment of the taxpayers, citizens and sustainable transformation as a whole. As has been reported in the media, the South African National Roads Agency intends having R28-billion worth of tenders in the market by the end of March. Finance Minister Enoch Godongwana has indicated government’s intention to prioritise infrastructure spending, with plans to invest more than R943-billion in public infrastructure, supporting the repair and maintenance of existing assets and the construction of new infrastructure. The construction sector is a prime example of the transformational power State spending can have while serving as a key driver of economic growth. In large part due to already existing preferential procurement and broad-based black economic empowerment measures, the construction sector has been steadily transforming for years. The construction sector has a remarkable transformation story to tell. In the case of WBHO, it continues to be a priority for us to make sure that, as one of the country’s largest construction companies, we reflect and are representative of the country we build in and for. To achieve these goals WBHO’s broad-based employee share schemes and trusts adhere to the scorecard elements in the 2017 Amended Construction Codes. WBHO’s own preferential procurement spend, which focuses on contractual spend on black suppliers and subcontractors, was R7.2-billion in the last financial year alone. WBHO, having witnessed the practical benefits that have accrued to black suppliers and subcontractors through preferential procurement as a transformational tool, wishes to see it deployed in a manner that is fair, equitable, transparent, cost-effective and competitive. What is of particular concern is that the current version of the Public Procurement Bill appears not to incorporate valuable stakeholder input on important provisions such as the undue and unchecked power it grants to the Minister of Finance, the fact that it will impede municipalities, provinces and public entities from determining their own procurement criteria, the sufficiency of the Public Procurement Bill’s consultation process, and whether the extent of the material amendments to the current version of the Bill do not warrant the National Assembly reviewing it before final approval. It is the general consensus that the current version before the NCOP, if enacted into law, will unfortunately only invite legal challenges. Well-considered and supported procurement legislation can make a massive contribution to economic growth and transformation. Such legislation should aim to promote economic growth and job creation in a way that empowers individuals and communities, as well as continuing to support and bolster the strides that have been made in transforming sectors such as the construction industry. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/opinion-procurement-laws-are-a-transformational-tool-that-must-be-used-correctly-2024-03-20

Dimpho Sepeng | 18 March 2024 As South Africa approaches Human Rights Day on March 21, Dimpho Sepeng, a young Social Media Manager and part of the marketing team at The BEE Chamber, raises poignant concerns about the persistent youth unemployment crisis in the country. Human Rights Day commemorates the events of March 21, 1960, a pivotal moment that reshaped the understanding of human rights in South Africa and specifically for Black People. This day, hundreds of South Africans took to the streets to protest against passing laws, which required Black South Africans to always carry a document of identification.  “Human rights, defined as “rights inherent to all human beings,” include the right to work, education, and a standard of living adequate for health and well-being. However, a substantial portion of South Africa’s youth faces the stark reality of these rights not being fully realised, a concern I was facing too whilst completing my studies,” Sepeng says. The alarming rates of youth unemployment in South Africa are a multifaceted challenge rooted in high inequality, inadequate education systems, and a sluggish economy. Youth unemployment in South Africa has reached staggering levels, with a disproportionate impact on Black People. “The unemployment rate among the Black African population group (36.1%) remains higher than the national average (32.1%) and other population groups and has been consistently so for the past 10 year period.” – Stats SA: Official unemployment rate by population group Q4:2023. “The right to work, as articulated in the Universal Declaration of Human Rights, emphasises “the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.” Yet, when a significant portion of the Youth population is denied this fundamental right, it becomes a direct infringement on their human rights.” Youth unemployment extends beyond economic consequences, it permeates the fabric of society, affecting mental health, self-esteem, and overall well-being. The inability to secure employment hampers access to basic needs, creating a ripple effect that extends to housing, healthcare, and education. Human rights advocacy necessitates a focus on education and skills development, but access to employment opportunities post-training is crucial for empowering youth to navigate the job market successfully. Therefore, collaboration between the government and the private sector is vital in creating sustainable job opportunities aligned with the country’s developmental goals. Sepeng adds: “While commendable policies such as the Broad-Black Economic Empowerment (B-BBEE), the Employment Equity Act, and initiatives like the Youth Employment Service (Y.E.S) exist, there is still work to be done in reducing youth unemployment and reinforcing the universal human right to work. “There is an urgent need for comprehensive and actionable strategies to create a more inclusive and equitable society. Collaborative efforts between the government and the private sector which prioritise education and skills development, are essential to address the root causes of Youth unemployment. Only by ensuring suitable opportunities for the Youth can South Africa move toward a future where all its citizens – especially the Youth – can enjoy the full spectrum of their human rights.” The BEE Chamber has been involved in managing several Y.E.S and Skills Development programmes on behalf of its Members. It strongly believes that whatever it does, there needs to be real impact on Beneficiaries in a sustainable manner which leads to economic growth for the country. It encourages the public and private sectors to collaborate where possible to allow for a better future for all.  For more information on The BEE Chamber and the services it provides, please visit The BEE Chamber website, or contact the team via members@bee.co.za or 011 726-3052. https://www.womenontop.co.za/careers-jobs/its-time-to-address-youth-unemployment-in-sa/?utm_source=rss&utm_medium=rss&utm_campaign=its-time-to-address-youth-unemployment-in-sa

SA News | 21 March 2024 President Cyril Ramaphosa has commended black industrialists who have been honoured for their outstanding contributions to the country’s economy and society. “Your resilience, innovation and vision inspire us all to reach greater heights and build a brighter future for generations to come,” President Ramaphosa said. Addressing the Black Industrialists and Exporters Conference and awards ceremony at the Sandton Convention Centre on Wednesday, President Ramaphosa called on all black industrialist companies to unite in their commitment to building a more inclusive, dynamic and prosperous economy that where every entrepreneur, regardless of background, has the opportunity to succeed. The awards acknowledged the contributions by black industrialists to the economy while reflecting on progress made in advancing redress and transforming a skewed racialised economy. A total of R261 billion has been committed for procurement from black industrialists companies over a period of five years. “As we continue to support, invest and collaborate, we will unlock even greater potential and prosperity for our nation,” President Ramaphosa said on Wednesday. He said through technology adoption, market diversification and strategic partnerships, black industrialists are positioning themselves as leaders in their respective industries and ambassadors of African excellence worldwide. “As we celebrate the achievements of black industrialists, we must look to the future. Our businesses must not only thrive locally but also compete on the global stage.   “My challenge to the 239 black industrialists who will benefit from these procurement commitments is to return to this stage at the 3rd Black Industrialists Conference, not as beneficiaries of procurement but as drivers of investment in the next generation of black entrepreneurs. “These commitments will help to accelerate the re-industrialisation of our economy,” President Ramaphosa said. The R27 billion committed to agriculture and agro-processing will bring more black farmers into the formal economy, readying them for the export opportunities that lie abroad. “The R79 billion that has been committed for procurement in the retail sector will see more local products – made by black industrialists – in the hands of South African consumers. “The R52 billion in procurement commitments in infrastructure will see more black-owned and -managed businesses contributing to the expansion and improvement of our ports, energy infrastructure and logistics networks. “We are now at the point where black industrialists can be the capital that can fund and support growth in the next generation,” the President said. President Ramaphosa said the black businesses are a cornerstone of the country’s economy. “They are creating jobs, exporting goods, earning foreign exchange and helping to lift communities out of poverty. “We know that the playing field for black business in South Africa is still not level. Yet there has been significant progress over the 30 years of freedom,” President Ramaphosa said. The Black Industrialists and Exporters Conference also featured exhibitions that showcases proudly South African products manufactured by black industrialists and an awards ceremony that recognised and reward industrialists who have contributed significantly to industrialisation, job creation, poverty alleviation, innovation and transformation efforts. The Black Industrialists and Exporters conference took place on the eve of the 20th anniversary of the implementation of the Broad-Based Black Economic Empowerment Act (B-BBEE Act). The objective of the black industrialists programme is to increase participation of black South Africans in the ownership and control of productive enterprises in key sectors and the entire value chain of the country’s economy. More than 600 firms supported by the Department of Trade, Industry, and Competition showed a turnover of about R80 billion during the 2023/24 financial year, illustrating the tangible results of drawing more black entrepreneurs into the industrial economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/black-industrialists-honoured-their-outstanding-contributions

Elais Monage | 25 March 2024 Reflecting on the Black Industrialists and Exporters Conference hosted by the Department of Trade Industry and Competition (DTIC) this week one is left with mixed feelings that while the aspirations of the program are noble, not enough is being done to push the boundaries and realise the full potential of the Black Industrialists program. One of the fundamental flaws limiting this programs success is the lack of a clear and well-articulated description coupled with a broader vision of what the notion of a black industrialist actually entails. Lewis Carroll’s age-old adage, that if you don’t know where you are going, any road will take you there, rings true here. There is a growing sense of the term “black industrialist” beginning to take on a “catch-all” phrase to blanket everyone, from those who have built empires from the ground up, hold controlling equity stakes and demonstrate deep operational expertise in their respective businesses, to anyone with a loan or grant from the Industrial Development Corporation (IDC), National Empowerment Fund (NEF) or the DTIC and holding notional equity stakes in companies. This is not to suggest that that notion of a black industrialist should be used as a gate-keeper with regards to who can and who can’t be referred to by the term. However, there are some obvious risks to the approach that is currently being adopted, hence some perceived limitations of the program. The first, and perhaps a subordinate issue, is that blanketing all and sundry as black industrialists does not give the emerging and upstart entrants something to aspire to, simply because the concept is neither understood nor properly defined. At the same time flippant use of the term dilutes the weight of the notion of a black industrialist for those who have a proven track record and have created and developed multi-generational assets of significant scale.  The second, and more prevalent matter, is that it becomes increasingly elusive to tangibly measure where progress and success of black industrialists is happening. One is led to make this second conclusion based on the assessment of the last 30 years of democracy, 20 years since the implementation of the Broad Based Black Economic Empowerment (BBBEE) legislation and 9 years since the launch of the Black Industrialists Policy, that the country cannot attest to having a black owned commercial bank, telecommunications company or oil major. There are a handful of law firms, consulting houses and auditing firms that are black owned and controlled, however these are far and few apart while the mainstream firms in these respective areas cannot be attributed as being in the hands of black people.   While it is the stated intention of the government to develop a class of black industrialists, who will diversify the historic pattens of ownership of industries making the industries representative of the country’s broader demographic, and to create the fertile ground for these industrialists to build something of generational value, a few areas can be highlighted where the state is missing a fundamental opportunity to purposefully attain this aspiration. The spectrum auction and licencing round of 2022, with the next phase set for 2024, is one such area where the state missed an opportunity to sow the seeds for the development of the black-owned telecommunications company of formidable statue, however, much of this capacity was taken up, and likely to happen again in the next round, by the established telecommunication companies, entrenching their dominance. The Public Procurement Bill is another such area that could be leveraged by the state, given its R1 trillion annual spend, to run a massive scale industrialisation program targeted at setting up and developing black industrialists. However, not only has the process of legislating the bill taken an inordinate amount of time, prior versions of the bill did not explicitly take this as an opportune moment to drive the black industrialist’s agenda. Common to both of these examples is that these are public instruments, or areas in which the government has considerable influence, but are seemingly unable to match up the stated black industrialists’ aspiration with the very tools in the government’s tool kit. It is my assessment that the factors contributing to limiting the impact of the governments own stated intension to develop this class of black industrialists is firstly a lack of a clear and well-articulated vision of what the black industrialists program seeks to achieve. And secondly, an ancillary but fundamental factor is what a black industrialist actually is. This is where the government needs to go back to the drawing board, because articulating these aspects will guide which direction policy will go and by extension resources that need to be mobilised to achieve the goal.  As a start, my submission is that the definition of a black industrialist should entail two critical aspects. Firstly, a company that is both majority black owned with effective beneficial value accruing to the owners. Secondly, there must be demonstrable operational involvement by the industrialists in all aspects of the business, and not limited to boardroom positions. On the part of the government defining its vision for black industrialists, it is important to note that many instruments are in the direct control of the state to achieve the aspiration of developing a black industrialist class of noteworthy scale, however, political will to achieve this is the ultimate overlay if any such program is going to enjoy success. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cnbcafrica.com/2024/the-notion-of-a-black-industrialist-requires-a-complete-review-if-the-program-is-going-to-have-the-desired-transformational-impact/

Dimpho Sepeng | 21 March 2024 AS Mzansi commemorates Human Rights Day on Thursday, 21 March, South Africans are reminded of the sacrifices and the struggle when 69 lives were lost in the Sharpeville Massacre in 1960.   This is the day set aside to honour and remember those who fought for the liberation and the rights South Africans enjoy today.   The day also honours 35 people who were killed on 21 March 1985 when apartheid police targeted community members after a funeral at Uitenhage/Langa.  Mzansi observes this day to promote respect for human rights for all and restore and uphold human dignity in line with the Bill of Rights, but the alarming rate of joblessness, especially among the youth.  Dimpho Sepeng, a young social media manager and part of the marketing team at The BEE Chamber, has also raised concerns about the persistent youth unemployment crisis in the country.   Dimpho indicated that the alarming youth unemployment is a challenge rooted in high inequality, inadequate education systems, and a sluggish economy.  “The right to work, as articulated in the Universal Declaration of Human Rights, emphasises "the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment," said Dimpho.  She said that youth unemployment extends beyond economic consequences as it affects mental health, self-esteem, and overall well-being.  “Human rights advocacy necessitates a focus on education and skills development, but access to employment opportunities post-training is crucial for empowering youth to navigate the job market successfully. Therefore, collaboration between the government and the private sector is vital in creating sustainable job opportunities aligned with the country's developmental goals."  According to Dimpho, there's an urgent need for comprehensive and actionable plans to create a more inclusive and equitable society.   “Collaborative efforts between the government and the private sector, which prioritise education and skills development, are essential to address the root causes of youth unemployment.   “Only by ensuring suitable opportunities for the youth can South Africa move toward a future where all its citizens, especially the youth, can enjoy the full spectrum of their human rights," she said. https://www.snl24.com/dailysun/news/human-rights-day-lack-of-ispani-in-spotlight-20240321

Ntsaphokazi Madyibi and Motshedisi Mathibe | 25 March 2024 One of the strategies many developed nations used to achieve rapid social and economic growth was investing in the education of young people to develop solutions for their pressing issues. Despite the gains from South Africa’s young democracy, now 30 years old, there is a considerable amount of work to be done to ensure we develop an educated workforce that will not only seek employment but also create jobs through entrepreneurial opportunities. Chapter Two of the Constitution outlines the Bill of Rights for citizens, among which is the right to education. As we approach a new decade, we need to reflect on the past and chart a new path for the country. It is for this reason that we are exploring the right to education under the theme of “Entrepreneurship as a skill that the youth have been deprived of”. This is based on the understanding that the public education system is the backbone of skills development for the majority of young people. Reflecting on the history of exclusion from the education system, the promise of education was seen as a beacon of hope to improve people’s lives. Nelson Mandela said education is the most powerful tool that can be used to change the world. Today, we find ourselves reflecting on these words in light of the fact that almost 46% of our youth do not have a matric qualification. This prompts us to ask: what happened, and what can be done to improve this situation? A professor once said, “A child born into poverty will likely repeat that cycle unless they are taken out of it.” This statement resonated with many young South Africans as it mirrors their stories. They believe education can rescue someone from the clutches of poverty. But they are faced with the stark reality that almost half of those looking for work do not even have a matric qualification.  How can education enable entrepreneurship?  Education, in its form, is very broad. This article, the focus is drawn to the integration of entrepreneurial skills at primary and secondary schools. Schools are social centres that provide learners with opportunities to acquire knowledge, interact with peers and prepare for the future. Education yields a variety of outcomes, with the major ones being knowledge acquisition and skills development. From this perspective, entrepreneurship can be introduced as a creative problem-solving mechanism, where people can learn to develop solutions to pressing problems.  Contrary to the belief that entrepreneurship cannot be taught, it is an academic discipline that dates back to the early 1950s. Joseph Schumpeter, an Austrian political economist, defined entrepreneurship as a process of creative destruction where long-standing products or services are replaced by more innovative and disruptive ones. In her book, Journeying Through Entrepreneurship , Ntsaphokazi Madyibi argues that entrepreneurs can sometimes emerge as a response to a particular problem that came as a result of know-how (having both the knowledge and the skill) to develop and execute a solution.  Integrating entrepreneurial programmes in the education curriculum can enable learners to gain the know-how of solving societal problems so that they can develop solutions to alleviate poverty, reduce unemployment and improve their environmental wellbeing even after they have exited the education system without matric.   A distinction needs to be made between starting a business and entrepreneurship. Entrepreneurship is primarily concerned with the mindset and behaviours, whereas business ownership involves using an existing model. The best way to understand this distinction is that anyone can take something and sell it, but it’s only a few people who can start something that creates value in the lives of people. Most entrepreneurs are driven by a vision that emanates from their passions, which then compels them to create something valuable that they can commercialise through an enterprise. Whereas starting a business might be about selling anything (even something that one might not necessarily care about); if there is a transaction, one is in business. The reason it becomes difficult for people to see themselves as entrepreneurs is we have reduced this dynamic phenomenon to a “business”, whereas the business is the outcome of the entrepreneurship process. When someone identifies a problem, there is an automatic response from our minds that entices us about all the possible solutions to that problem; and if we were to be trained to “act (behaviour)” on those convictions, then half of our problems would be solved, and we would prosper.  Embedding entrepreneurial skills in curricula In looking at the right to education, we must not only consider education for the purposes of employment, but to teach young people to think about how their education can help shape the world they aspire to live in. It is through leadership that we can develop intentional strategies of integrating entrepreneurship skills into the education curriculum.  Equal opportunities: embedding entrepreneurial skills in the curriculum provides an opportunity for learners to make informed decisions about how they can contribute positively to their communities, societies, and the country at large.  Reduces reliance on grants: the majority of the unemployment pool rely on social grants for survival whereas if they had entrepreneurial skills, they might have been able to develop solutions for their current circumstances.  Foster innovation and diversity: when we focus on integrating entrepreneurial skills at schools, we would have diverse mindsets thinking about positive change in their neighbourhoods and thus develop different solutions to the various challenges facing the country and the youth.  When more young people think about solutions, we could see South Africa embracing diverse markets that can also compete in the global space.  Empowering the youth through entrepreneurship Entrepreneurship has the power to transform lives, uplift neighbourhoods and drive economic growth. In South Africa, where youth unemployment rates are high, entrepreneurship has become a crucial tool for empowering young people and securing their right to success. Despite the difficulties they face, young people are defying the odds and embracing entrepreneurship as a means to create employment opportunities for themselves and others.  The government, along with various organisations and initiatives, has recognised the importance of entrepreneurship and implemented measures to support young entrepreneurs. By providing financial support, mentorship programmes, skills development opportunities and an enabling regulatory environment, they are laying the foundation for a vibrant entrepreneurial ecosystem. Aspiring entrepreneurs in South Africa can get a range of resources, support systems, and networks to navigate the entrepreneurial landscape effectively. By using these resources, developing their skills, and embracing innovation, they can increase their chances of success and contribute to the country’s economic growth and social transformation. Ntsaphokazi Madyibi is the author of Journeying Through Entrepreneurship and the founder of the Entrepreneurs Development Forum. Motshedisi Mathibe is an associate professor and head of faculty at GIBS Business School. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/thought-leader/opinion/2024-03-25-prepare-schools-to-develop-entrepreneurial-skills/

Norman Cloete | 24 March 2024 As the nation observed Human Rights Day this week, Afrika Tikkun proudly joins in commemorating this significant occasion, advocating for access to rights and celebrating three decades of Constitutional democracy in South Africa. This year's theme, “Three Decades of Respect for and Promotion of Human Rights”, holds particular resonance as Afrika Tikkun marks its 30th anniversary. Indeed Afrika Tikkun’s legacy is synonymous with empowering communities and individuals to realise their inalienable human rights. The right to life, education, food and nutrition and dignity, are some of the rights underpinning Afrika Tikkun’s mission. Human Rights Day in South Africa holds profound significance, commemorating the tragic events of 21 March 1960, when peaceful protesters in Sharpeville were brutally killed by apartheid security forces. This day serves as a reminder of the importance of upholding and protecting human rights for all. For the past three decades, Afrika Tikkun has been dedicated to advancing the principles enshrined in the South African Constitution, providing holistic support to communities across South Africa through its holistic, award-winning Cradle-to-Career 360-degree (C2C) model. Much like the Bill of Rights guarantees fundamental freedoms and protections, Afrika Tikkun's programmes aim to empower individuals from infancy through adulthood, ensuring they have access to education, healthcare and socio-economic opportunities. Through its comprehensive programmes, Afrika Tikkun has changed countless lives. For the past 30 years, Afrika Tikkun has impacted 173 993 beneficiaries, served 25 032 781 meals, intervened and provided social support to 87 909 families and distributed 77 359 food parcels. "As we commemorate Human Rights Day and celebrate 30 years of democracy, Afrika Tikkun reaffirms its commitment to promoting and protecting the rights of all South Africans," says Dr Onyi Nwaneri, Group CEO of Afrika Tikkun. "Our holistic C2C model mirrors the principles of the Bill of Rights, recognising the inherent dignity and worth of every person and providing them with the tools and opportunities to thrive,” the organisation said. As South Africa continues its journey toward a more inclusive and equitable society, Afrika Tikkun remains steadfast in its mission to create lasting change and build a future where every person's rights are respected, protected and fulfilled. On this Human Rights Day, Afrika Tikkun calls upon individuals, communities and government to work together to promote access to rights for all. By upholding the principles of equality, justice and dignity, we can build a brighter future for generations to come. Afrika Tikkun is a leading youth development organisation celebrating 30 years of providing education, social services and skills development and training to underserved communities within South Africa, through its five centres of excellence across Gauteng and the Western Cape. Afrika Tikkun’s award-winning cradle-to-career 360-degree model provides a holistic approach to the development of young people from early childhood to school leaving age, to when they journey into accessing economic opportunities. Currently assisting over 40 000 children and youth across the country, Afrika Tikkun’s primary goal is to create a sustainable future through economic empowerment for the youth of South Africa, for the next 30 years and beyond. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/saturday-star/news/three-decades-of-respect-for-promotion-of-human-rights-13859a14-e575-48b8-90c9-2e21dbab8339

Ashley Lechman | 27 March 2024 Statistics South Africa (Stats SA) said yesterday that formal employment in the country for the fourth quarter of 2023 decreased by 194 000 jobs, or 1.8%, quarter on quarter. This brought the level of employment to 10.7 million, according to Stats SA’s quarterly employment statistics (QES) survey. Lara Hodes, an economist at Investec, said Declines were logged in five of the eight industries included in the survey, evincing the fragile state of the economy The country’s numerous challenges including electricity supply and logistical constraints which were particularly elevated in quarter four 2023 continued to impede optimal growth, she said. The survey showed that the community services industry saw the highest number of job losses, totalling 214 000, followed by the construction industry, which lost 19 000 jobs, and the business services industry, which experienced a loss of 12 000 jobs. The mining sector reported a moderate decrease, with 1 000 job losses reported during the same period. However, the QES further showed that 98 000 jobs were added between December 2022 and December 2023. Stats SA said that certain industries experienced growth in employment. “The trade industry saw an uptick of 56 000 jobs, trailed by the transport industry with 2 000 jobs, and the electricity industry with 1 000 jobs. Full-time employment decreased by 5 000 jobs, dropping from 9 498 000 in the third quarter of 2023 to 9 493 000 in the fourth quarter of 2023,” Stats SA said. Full-time employment sees a decline The survey further revealed that many industries witnessed declines in full-time employment. The construction sector observed a reduction of 13 000 jobs, followed by the manufacturing industry with a loss of 12 000 jobs, and the community services industry with a decrease of 11 000 jobs. Conversely, the trade industry reported an increase of 31 000 jobs. Meanwhile, moderate increases were noted in the transport and electricity industries, with 3 000 jobs and 1 000 jobs, respectively. Year-on-year, the number of full-time jobs rose by 12 000 in December 2023 compared with December 2022. Meanwhile, part-time employment decreased by 189 000, reaching a total of 1 212 000 in December 2023 compared with 1 401 000 reported in September 2023. Year-on-year part-time employment saw a rise of 86 000 jobs compared with the corresponding quarter of 2023. Trade union Uasa said yesterday that it was deeply distressed by the decrease in employment. “Sadly, the recent increase in inflation, ongoing job cuts and retrenchments across various sectors, mainly in the mining sector, will further result in dire financial depression and economic distress for South Africa and its people,” it said. Uasa urged the government to intervene by providing relief funds to sustain threatened industries, including small business owners, and assist with sustainable job creation that could “We must absorb a significant portion of the unemployed pool. The reality is that fellow South Africans are suffering. We must protect our industries, which are the backbone of our economy,” Uasa said. Remuneration Total gross earnings paid to employees increased by 5.8%, totalling R995.6 billion in December 2023 compared with R941.3bn in September 2023. This upswing was primarily driven by the growth in earnings within trade (R15.1bn), manufacturing (R12.6bn), construction (R7.3bn), business services (R7.1bn), community services (R5.8bn), transport (R4.7bn), electricity (R1.8bn) and mining (R216 million). Stats SA went on to report that basic salaries and wages increased by 0.9% (R7.9bn) in December 2023 to reach R857bn, primarily driven by growth in trade, manufacturing, construction, business services, transport, electricity, and mining industries. However, there was a decline in the community services industry. Year-on-year basic salaries and wages paid to employees rose by 5.4%, or R43.6bn, from December 2022 to December 2023. Bonus payments increased by R45bn (69%) to reach R110bn. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/jobs-decrease-in-final-quarter-of-2023-by-18-1006289e-de4d-4f1e-92d2-8e36d8bf2821

Justene Smith | 5 November 2024 Learn more about the significance of Disability Rights Awareness Month and get inspired with some creative and impactful ways to honour it in your workplace. Every year, Disability Rights Awareness Month (DRAM) is observed from 3 November to 3 December in South Africa, culminating in the globally recognised International Day of Persons with Disabilities (IDPD) on 3 December. This period serves as an important reminder of the rights of persons with disabilities and the urgent need to promote accessibility, inclusivity and equality within all sectors of society, particularly in the workplace. The role of inclusive workplaces Creating an inclusive workplace is fundamental to achieving the goals of both DRAM and IDPD. Employment is a key area where inclusion must be prioritised, as it provides a sense of purpose, economic independence and a platform for professional growth. Inclusive workplaces do more than comply with legal requirements; they proactively embrace the unique perspectives and skills of all employees, including those with disabilities. By adopting practices such as reasonable accommodation, accessible technology and flexible work arrangements, organisations can ensure that employees are not just present but are truly able to thrive. Why inclusion matters Empowering individuals: When workplaces are inclusive, individuals with disabilities can contribute fully, enhancing their confidence, professional development and overall well-being. Boosting innovation and productivity: Diversity in all forms, including disability, drives creativity and problem-solving. Inclusive teams are often more innovative and the different viewpoints brought by employees with disabilities can help address a wider range of customer needs. Enhancing company reputation: Organisations that champion disability inclusion are viewed more favourably by consumers, partners and potential employees. A commitment to accessibility and inclusivity sends a strong message that the company values equity and diversity. Meeting legal and ethical standards: Many countries, including South Africa, have legal frameworks such as the Employment Equity Act and the Promotion of Equality and Prevention of Unfair Discrimination Act (PEPUDA) that require employers to create equitable opportunities for persons with disabilities. Beyond compliance, this is an ethical obligation that aligns with broader human rights principles. What you can do Celebrating disability awareness in the workplace during November is a great way to promote inclusivity, education and understanding. Here are some creative and impactful ideas to acknowledge and celebrate DRAM and IDPD: 1. Host disability awareness workshops and training Inclusive language workshop: Provide a session on how to use respectful, person-first language when discussing disabilities. Unconscious bias training: Offer training focused on recognising and addressing biases related to disabilities. Guest speaker event: Invite a speaker with lived experience of a disability or an expert on disability rights to share insights and engage employees. 2. Organise an accessibility audit challenge Encourage employees to participate in an accessibility audit of your workplace, website or products. Employees can identify areas where physical or digital spaces could be made more accessible, such as wheelchair ramps, website screen reader compatibility or ergonomic desk setups. 3. Panel discussion with disability advocates Organise a panel discussion with employees, community advocates or experts on topics like: The importance of inclusive hiring practices Disability rights in the workplace Navigating the workplace with a visible or invisible disability. This can be done in-person or virtually to increase participation 4. Launch a disability inclusion mentorship programme Pair employees with disabilities with mentors in leadership positions or create a reverse mentorship programme where employees with disabilities can share their experiences with leaders. This builds cross-departmental connections and fosters an inclusive culture. 5. Host a Q&A with HR on disability inclusion Have an open Q&A session with your HR or DEIB team where employees can ask about disability accommodations, inclusive hiring practices and how to support colleagues with disabilities. This can help demystify the accommodation process and encourage employees to seek out needed support. 6. Recognise International Day of Persons with Disabilities On December 3rd, the International Day of Persons with Disabilities, host a culminating event to cap off your November activities. This could be a keynote address, a networking event or an awards ceremony recognising employees or teams who have made significant contributions to disability inclusion. 7. Promote accessible health and wellness initiatives Highlight wellness programmes that are inclusive of employees with disabilities, such as adaptive fitness classes, mental health resources or ergonomic consultations. Create space for employees to learn about accessible options for health and wellness in the workplace. By integrating these activities, your workplace can celebrate DRAM and IDPD in a way that’s educational, engaging and impactful. Moving towards a more inclusive future For DRAM and the IDPD to have a lasting impact, organisations must move beyond symbolic gestures and take meaningful steps to create inclusive workplaces. This means developing comprehensive disability inclusion policies, providing ongoing training on disability awareness and etiquette and making accessibility a core component of all business operations. As we observe these important events, let us remember that inclusion is not just a policy – it's a culture. When workplaces become spaces where every person feels valued, supported and empowered to succeed, we build a society that respects the rights and dignity of all its members. By actively participating in DRAM and recognising the IDPD, we can contribute to creating a more inclusive world, one workplace at a time. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/from-awareness-to-action-empowering-voices-for-disability-rights-811863a

Hügo Krüger and Sdumo Hlope | 28 March 2024 The mandatory localisation requirement, jokingly called “the 10% rule”, which is part of the Preferential Policy Framework Act (PPPFA) of 2000 is destructive to South Africa’s state-owned enterprises (SOEs). The 10% rule refers to the practice where buyers are typically unwilling to engage with suppliers unless they perceive a personal benefit equivalent to at least 10% of the deal’s value. Procurement regulations such as these were identified on page 60 of the recently published Vgbe Energy Report as a root cause of the low energy availability factor (EAF). “The main root cause for the low EAF is the dysfunctional management system of Eskom. It is characterised by inefficient processes – especially in procurement – a lack of authority and an opaque decision-making structure,” it said. The outcome of the PPPFA within Eskom Generation, as an SOE, leads to a situation where a purchase or repair becomes significantly more expensive when compared to similar activities at an independent power provider (IPP). This is mainly due to the PPPFA encouraging the involvement of local agents, even to the extent that they are specifying that they must be situated near power plants. In addition to the PPPFA, one of Eskom’s tender requirements mandates prospective suppliers to comply with mandatory skills development and localisation. The requirements can even go to the extent that they mandate employing people and/or pay for bursaries for students. They are expected to give details of their plans for localisation initiatives and specify the jobs to be created from the contract. In addition, suppliers in the vicinity of the power station being served are viewed “favourably” compared to suppliers that are further away. This, therefore, encourages potential manufacturers to set up pilot offices closer to the power station, adding the cost to the supply chain costs, or simply not tender at all. However, despite often complying with the localisation and development requirements, there is no guarantee of receiving orders, because the supplier must compete with others. Additionally, it has been observed that even when companies attempt to collaborate with value-added agents near the site or establish manufacturing facilities nearby, they may fail to secure work if the buyer has alternative motives. The practice of “localisation” increases the cost to Eskom and tends to discourage some qualifying original equipment manufacturers (OEM) suppliers in favour of a non-value-adding middleman. Orders are frequently not awarded, resulting in the closure of localised plants, staff lay-offs and a general reluctance to engage with Eskom. The PPPFA prohibits the preference of certain suppliers over others. Moreover, the additional challenge of a “Preferential Procurement” impact ranging between 10% and 20% on stringent procurement regulations further dissuades quality suppliers from participating in tenders. If they are unable, for any reason, to meet the BEE requirements, they will face a pricing or evaluation disadvantage of between 10% and 20% before even submitting their bid. Such practices contribute to driving away reputable suppliers and, inevitably, lead to corruption when buyers bypass the crucial technical expertise responsible for safeguarding Eskom from procuring inferior and, sometimes, incorrect goods and services. This is because an SOE may become aligned with a particular supplier, making them the “preferred choice” and thereby shutting out competition. Buyers should not possess the authority to circumvent valuable instructions provided by qualified engineers who are entrusted with the critical responsibility of protecting Eskom’s generation plants and ensuring compliance with technically sound procedures. Perpetrators that make money out of the 10% rule understand that they do not need to meet all the technical specifications or demonstrate experience. Instead, they need only the right political connections to secure a contract. This compromises the integrity of the procurement process and undermines the purpose of having technical gatekeepers to ensure the quality and appropriateness of the goods and services procured by Eskom. Furthermore, the lack of inherent experience and sufficient training for buyers and procurement teams, coupled with inadequate market testing, results in errors in requests for quotations and impractical gatekeepers. Incidentally, bids are frequently withdrawn and cancelled after months, only to be reissued later. Local content minimum requirements are often not rigorously tested to determine if the market has the capacity and qualifications to comply with them. Even if they do, bidders may be hesitant to use local contractors for part of their supply scope when they can procure from their own prequalified companies, often at a lower cost and without taking risks on unfamiliar companies. The practice has several adverse impacts on Eskom’s performance, as outlined in the following examples: – In the past, there have been instances where Eskom was directed to procure boiler tubes through local agents who, in turn, demanded preferential payment terms but failed to fulfil their obligations to the suppliers. As a result, the agents would abscond, leaving the genuine suppliers financially burdened and unwilling to continue supplying Eskom, also leaving Eskom without the necessary components for critical maintenance. – In the case of repairs, Rotek and Eskom often no longer provide work instructions, leading to a lack of clarity for the agents about the required tasks. This eliminates communication between the repairer and Eskom. If direct communication were re-established, the repairer might identify the operational issues causing failures and implement preventive measures. However, the intermediary localised BEE agent charges Eskom significantly more than the repair cost, with mark-ups reaching up to 1000% for purchases below R1 million. – Eskom becomes vulnerable to significantly inflated prices due to the mark-ups. Additionally, Eskom loses any recourse to the repair company, as the agent lacks the capacity to underwrite guarantees and address defects. – OEMs, who possess in-depth knowledge of Eskom's plant and requirements, may specify fit-for-purpose products. However, agents, often with inflated mark-ups, often request inferior products from non-OEMs, third party manufacturers, resulting in planned premature failures. The issues are among the many that collectively contribute to financial losses, inefficiencies and potential compromises in the quality of goods and services procured by Eskom. Addressing the challenges is crucial for ensuring transparency, cost-effectiveness and the long-term reliability of Eskom’s operations. Under the guise of “supporting local business”, plants are forced by the politicians, through the board, to buy local. Although noble, the localisation policy ignores basic practical realities such as the fact that South Africa industrialised around mining and, therefore, most of the manufacturing is in the Witwatersrand area. Most potential subcontractors and suppliers are in the vicinity of the airport, which is the first port of entry for most small and urgent cargo. Why, for example, would a company, in Gauteng, manufacturing a wide range of products for various industries, suddenly have to set up a facility next to a coal plant for a contract that may be no more than 5% of its turnover? Why should it not load the pricing with the overhead costs of the new facility which would then have some “preferential treatment” compared to far-out plants? The mandatory localisation requirement is neither sustainable nor does it make good business sense for the SOE, especially considering that OEMs or main contractors typically provide guarantees for only 24 or 48 months. Beyond that period, Eskom assumes the risk for the life of the plant. The impact of mandatory localisation on foreign companies is evident as they gradually cease bidding, hindering Eskom’s ability to procure the quality equipment essential for improving plant EAF, addressing the need at hand. In the context of new generation capacity, it becomes unrealistic for the government to expect foreign manufacturers or specialised equipment providers, earning a modest profit margin of around 8% on exports, to commit to investing 30% of the sales price in the local market as is dictated by Eskom on behalf of the the Department of Trade, Industry and Competition via the National Industrial Participation Policy. The companies are not in the business of venture capital or extensive investment, and committing such a significant percentage to “localisation” without commensurate profit raises serious concerns about the economic viability of the transaction. Any business with the intention of staying viable would hesitate to risk 30% of the sales price for anything less than a 30% profit. As explained above, the mandatory localisation clause, originating from the PPPFA, reveals a series of unintended consequences that inevitably leads to an explosion of cost, a deterioration in quality control and a deferral of adequate maintenance. It is therefore a substantial root cause of load shedding and a contributing factor to the decline of South Africa’s SOEs in general. To ensure the successful navigation of Eskom Generation within an unbundled framework, the adoption of a more pragmatic approach to localisation is imperative, or else it will be unable to stay in business when forced to compete against independent power providers. Unworkable policies, such as preferential procurement, Treasury Note 3 and mandatory localisation, must undergo reform if Eskom is to recover and thrive once more. Hügo Krüger, MSc in civil nuclear engineering and Sdumo Hlope, BSc in physics and chemistry and MSc in engineering mManagement. Input provided by TisaEnergy . * The views in this column are independent of Business Report and Independent Media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/mandatory-localisation-the-10-rule-a-root-cause-of-the-low-energy-availability-factor-2682ca64-bbf1-465b-a732-15f07285e1ca

Bongani Mdakane | 1 April 2024 For as long as black businesses work in silos and lack a culture of supporting one another and focus on creating wealth for the many and not the few, it is difficult to see how programmes such as BEE can meaningfully advance black economic empowerment. This is the view of businessman and veteran journalist and former editor and publisher of publications, Dr Thami Mazwai, who spoke exclusively to Sunday World last week. Mazwai also lamented the fact that the country might be groping in the dark in terms of understanding what strides have been made in comprehending where the bottlenecks that hinder black economic development might be in “our black economic development project”. He said this was the case because there are no reliable figures or statistics to point the country to what progress has been made to economically advance the poor majority. Mazwai said to walk in the dark, which is equivalent to not having recorded data to measure progress, was unacceptable and not helpful in measuring whether the BEE project was succeeding in dealing with questions of poverty, inequality and unemployment, the three elements the programme purports to address. Mazwai also pointed out that for as long as the BEE programme was not enforced and monitored with hawk-like eyes, and “made a must”, no discernible black economic development will take place, or become realisable. Mazwai argued that some of the bugbears that have been a hindrance or a stumbling block to black economic development and the creation of wealth and huge corporations in black townships and villages have been the inability to “fully exploit social capital”, which by implication manifests itself in pooling of all resources, with black business working, under the umbrella of BEE, together to create wealth beneficial to all South Africans, particularly the African people. Mazwai suggested such culture of division, detrimental to real black economic development, has its roots in the “divide and rule practices sponsored in the past eras of oppressive and dispossession by the cruel systems of colonialism and apartheid.  “This is our biggest problem, but it is understandable; it flows from our past. There was a system affecting black society, which was the apartheid system that divided black people, which today manifests in many defects including our failure to appreciate the value of social capital which is not great in our society,’ he said. Mazwai said such human deficit as displayed in lack of social capital, has found an expression in failures of the BEE project, and that until black people find a solution to address the problem and learn to cooperate and work together, black economic development will remain a stifled idea and not a concrete reality manifest in measurable real black economic development outcomes. He argued that the triple challenges of poverty, inequality, and unemployment, must be tackled differently and in a more nuanced and fact-based approach, rather than in general terms without having proper and audited data or statistics to “correct the imbalances of apartheid and colonialism disparities”. “If we disregard social capital, we are not going to make progress,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/business/true-economic-empowerment-is-about-the-many-working-together/

Anzio Jacobs | 27 March 2024 As we immerse ourselves in the significance of Human Rights Month, the Nelson Mandela Children’s Fund echoes a resounding call to action, reverberating from every corner of our society. All South Africans must confront the harsh realities faced by the most vulnerable among us – our children. There is no room left for ignorance; our society is ailing. Recent events, such as the unsettling disappearance of Joslin Smith, have underscored the precarious nature of our communities’ safety nets, leaving our children exposed and vulnerable. Despite the acknowledgement of gender-based violence and femicide (GBVF) by our leaders, this pervasive scourge continues to plague our nation, particularly within our most disenfranchised communities. This cannot be allowed to persist unchallenged. As ordinary South Africans, we must answer the call to safeguard the hard-earned rights of all, especially our children. At the core of our mission lies a genuine desire to effect substantial change in how we treat our children and youth as a nation and beyond our borders. This vision, championed by our late founder, Nelson Mandela, remains as relevant today as ever. However, as we reflect on nearly three decades of democracy, there is little cause for celebration. Tintswalo’s story is an anomaly. It serves only as a stark reminder of the myriad challenges our children face, from falling victim to stray bullets in their neighbourhoods to navigating an unjust justice system. We cannot turn a blind eye to the liberation of some while others remain shackled by fear and insecurity. The economic, social, and environmental crises that grip our nation have converged to create a poly-crisis, exacerbating the already unbearable living conditions for those on the margins of society. In communities where economic hardship is rife, families struggle to provide even the necessities, contributing to a cycle of violence and despair. We must adopt a holistic approach to address the root causes of inequality and injustice; we need change, not lip service. As we navigate these challenges, we must scrutinise resource allocation, particularly within the education sector. Over the past three decades, budgetary trends concerning children's rights have fluctuated, mirroring the broader socio-economic landscape. Analysis of budget speeches reveals a nuanced trajectory, with periods of increased investment juxtaposed with austerity measures and budget cuts. And yet, our economy rests on the stability of our education system as a whole. Education is a cornerstone of societal transformation, yet disparities between schools in affluent and impoverished areas persist, perpetuating cycles of poverty and inequality. We must prioritise quintile 1 and 2 schools, ensuring they receive the necessary resources to provide quality education. Holding government officials and administrators accountable through tangible actions and audited records is paramount in this endeavour. We must reassess our educational paradigm, shifting the focus from purely academic pursuits to a more holistic approach that embraces vocational and technical skills. Equipping our youth with practical skills, such as carpentry and agriculture, empowers them to participate in the economy and actively foster sustainable growth. Asian economies exemplify this approach, which underscores the transformative potential of combining academic knowledge with vocational expertise to uplift marginalised communities. In envisioning a brighter future for our children, we must confront the harsh realities of the present. Tintswalo’s story symbolises both the promise of progress and the stark realities of regression. It serves as a critical reminder of our collective responsibility towards our children, a responsibility enshrined in our Constitution and foundational to our democratic ethos. We need to step in as a society again and reclaim ownership of our social and moral fabric. We need to learn to love each other as South Africans in all our diversity and step forward to play our role in helping those who cannot help themselves, as we have done at the ICJ (International Court of Justice) in support of a ceasefire and the protection of life. We as a nation cannot stand in silence as we watch those most vulnerable fall victim to violence that can and should be stopped. As we navigate the complexities of present-day South Africa, let us heed the call to pursue a future where every child can thrive. Let us transcend political divides as we head into uncharted waters as a nation and begin to do the work to heal. Let us forgo individual interests, uniting under the banner of human rights and social justice. For in Tintswalo's story lies the promise of a better tomorrow, where every child's rights are fiercely protected and upheld. In conclusion, as we commemorate Human Rights Month, let us reaffirm our unwavering commitment to the fundamental rights of every child. Let us harness the collective power of action to dismantle the barriers hindering their progress and unlock their boundless potential. By empowering our children, we empower the future of our nation. Jacobs is the acting child safety and protection manager at the Nelson Mandela Children’s Fund. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/pretoria-news/opinion/empowering-tomorrow-a-childrens-human-rights-imperative-1629ee86-5bc4-4ac3-bd3e-119de9f717f5