DA | 28 April 2024 Premier Alan Winde, and Provincial Minister of Finance and Economic Opportunities, Mireille Wenger, visited the Arendsness Trading Hub in Wellington, one of 12 such hubs across the province that have been enabled to keep Small, Medium and Micro-Enterprise (SMME) businesses open, when Eskom turns the power off. Premier Winde noted, “The Western Cape has a diverse economy with SMMEs at the forefront of our growth. We have to continue helping small business owners and entrepreneurs to keep growing and thriving, because small businesses create jobs and seeing more people experiencing the dignity andpride of having a job and being able to provide for themselves and their loved ones is a key priority of this government!”  He added, “One way in which we enabling job creation is by supporting small businesses with energy solutions like the Alternative Energy Support Programme.  Many SMMEs, particularly in the informal and township economies, do not have the resources to buffer the impact of load shedding, and so we must find ways to assist. I am delighted to see our interventions helping small businesses realise their full potential.” “SMMEs are the backbone of the economy of the Western Cape economy and more so in areas outside of the metro, creating up to 70% of the jobs in South Africa. In the Western Cape, we work hard to make it as easy as possible for all residents to set up and expand their businesses, so that they can create more jobs,” said Minister Wenger. “Through the Department of Economic Development and Tourism’s (DEDAT) Alternative Energy Support Programme, we allocated R12.5 million in the 2023/24 financial year to install Solar PV backup systems at trading hubs where small businesses operate, to make sure that they can stay open andkeep doing business, especially when national loadshedding hits. We are assisting at least 50 businesses to stay open, and keep trading, sustaining more than 100 jobs, despite power outages,” added Minister Wenger. The Alternative Energy Support Programme has installed 12 Solar Backup systems at 12 municipal SMME trading hubs in 7 municipalities, which include:  Drakenstein   Stellenbosch   Cape Aghulhas   Theewaterskloof  Laingsburg   Oudtshoorn   Mossel Bay   “At the heart of our economic action plan, Growth For Jobs, is the understanding that it is the private sector, and particularly, SMMEs, that create jobs. Guided by G4J we are on a mission to achieve a trillion-randjobs-rich, inclusive, sustainable, diverse, and resilient provincial economy, that is growing at between 4% and 6% per year in real terms by 2035 thus enabling the creation of between 600 000 and 1 million new jobs. Helping SMMEs to stay open is one of the ways that we are supporting and enabling the growth of SMMEs, as key drivers of jobs creation,” Minister Wenger continued. “We are determined to do as much as we can to shield small and township-based businesses from the devasting impact of power cuts, so that together, we can achieve breakout economic growth and enable hundreds of thousands of new jobs that we need to lift more and more people out of poverty,” concluded Minister Wenger. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.da.org.za/government/where-we-govern/2024/04/50-smmes-and-100-jobs-saved-by-r12-5-million-solar-pv-installations-at-informal-trading-hubs-across-the-western-cape

Chris Hattingh | 29 April 2024 If the deal goes ahead Anglo American will have to split off its SA platinum and iron ore units. The unsolicited all-share merger proposal from BHP Group, the world’s largest mining group, for Anglo American contains nuggets of truth which, if you are the minister responsible for mining and mineral resources in SA, won’t be altogether welcome (“ BHP-Anglo deal could leave SA out in the cold ”, April 26).  Should Anglo American end up moving forward with the deal it will need to split off its SA platinum and iron ore units, since BHP’s offer is contingent on this. SA’s heightened country risk premium — driven up by electricity and logistics constraints as well as bureaucratic labyrinths, equity requirements, cadre deployment and preferential procurement — raises the pain threshold for international business and capital. It might well become a more common occurrence that these businesses and investors find the threshold too high to deal with.  In the global context, Anglo American’s operations in Brazil, Chile and Peru (Latin America) are of particular interest and worth much for BHP; all sources of copper will be highly sought after. Should the deal be completed BHP will become the world’s top copper producer.   With investors adopting a risk-off stance of late, emerging and developing economies are under pressure to present ever stronger cases for investment. SA continues to do itself few favours, and the narrative, never mind the reality, might take a while yet to be improved.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/letters/2024-04-28-letter-uncomfortable-truths-in-bhp-merger-proposal/

Bizcommunity | 4 November 2024 The Mr Price Foundation and the National Youth Development Agency (Nyda) have announced the signing of a three-year Memorandum of Understanding (MoU). The collaboration aims to fast-track the economic inclusion of unemployed youth in South Africa by broadening the reach of the Mr Price Foundation’s established skills development programmes in retail and manufacturing. The Mr Price Foundation offers a suite of programmes targeting the retail and manufacturing sectors. Unemployed youth are equipped with industry-specific skills, life skills, and practical work experience, making them valuable additions to the job market. Graduates of the Foundation’s flagship JumpStart programme enter the retail industry’s talent pipeline, linking them with employment opportunities in the sector. Between 2015 and 2023, JumpStart impacted 57,592 unemployed youth, with 53% of them (30,517 candidates) securing employment post-training. In the 2024 financial year alone, JumpStart developed 7,252 youth, with an impressive 90% securing employment. “Youth unemployment in South Africa is at a tipping point. Collaborating with the Nyda allows us to rapidly scale up our established skills development initiatives, to impact more unemployed youth and fulfil our MoU mandate of building a sustainable pipeline of opportunity for youth,” said Octavius Phukubye, executive director of the Mr Price Foundation. As a government agency, Nyda leads youth development strategies and initiatives, while the Mr Price Foundation, a registered non-profit founded by Mr Price Group, combats youth unemployment and promotes education through three core programmes: JumpStart (skills development), UpLift (entrepreneurship), and EduRise (education). Interested stakeholders are invited to contact the Foundation at info@mrpricefoundation.org to explore partnership opportunities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/mr-price-and-nyda-join-forces-to-build-youth-job-skills-366668a

Bizcommunity | 30 April 2024 Solidaridad, in collaboration with the Industrial Development Corporation of South Africa (IDC) and the Department of Trade, Industry and Competition (DTIC) has launched the Social Employment Fund Project; a significant initiative that aims to tackle economic stimulation, reduce unemployment and enhance food security by engaging South Africa's unemployed youth. In South Africa, unemployment remains a pressing issue, with particularly dire consequences for young people. According to Statistics South Africa’s Quarterly Labour Force Survey , the official unemployment rate was 31.9% in the third quarter of 2023. While this indicates some progress, youth unemployment remains a significant concern in South Africa, underscoring the need for targeted interventions and sustainable solutions to create more employment opportunities for young people. A call for action "The question presented by the Social Employment Fund is whether the smallholder sector can effectively absorb the unemployed population within rural and peri-urban communities. One significant barrier to scale for most smallholders is the substantial investment required for mechanisation, a benefit often enjoyed by commercial farmers. As a result, labour emerges as a critical input in the business case for scaling up smallholders. Through initiatives like the Social Employment Fund Project, in 2023, we established one more soil lab and engaged 1,352 horticulture smallholder farmers in agriculture services, with the same number benefiting from digital inclusion initiatives. We also managed to involve 2,014 young individuals in agricultural projects. The project is spearing ahead at full speed in 2024,” says Mohau Mailula, Solidaridad country manager for South Africa. The Social Employment Fund Project, currently implemented in two provinces – Gauteng and the North West - is aligned with Solidaridad's thematic areas of focus: food and nutrition, greening and the environment, and support for digital inclusion. This holistic approach ensures comprehensive development and sustainable impact in the region. "At Solidaridad, we define scale in two dimensions: increased production, which pertains to a farm's growth in hectareage, and intensification, which focuses on maximizing yield per hectare. This dual approach not only enhances farmers' revenue but also establishes a self-sustaining cycle. To maintain the heightened productivity levels, smallholders must retain their labour force, thereby, reinforcing the link between scale, productivity, and employment stability within the sector," asserts Mailula. In the pursuit of “the common good” “The Social Employment Fund also operates on the principle of work for the common good, advocating for enterprises and individuals to incorporate activities and decision-making processes that benefit the broader community over narrow self-interests. With a focus on rural and peri-urban communities, the project identified food security as a critical thematic area. This is due to the reality that rural resources provide the urban market with the nutritional diversity it enjoys, while rural communities often find themselves deprived of such variety. "By leveraging our proximity to these communities, it became imperative to enhance their food security and ensure access to a nutrient-rich diet. To achieve this, we established 300 food gardens, strategically distributing 10% of their collective yield to school feeding programs, ultimately benefiting 9,100 learners. This not only addresses immediate nutritional needs but also fosters long-term community resilience and well-being." says Mailula. As the African proverb goes, a river cuts through rock, not because of its power, but because of its persistence. As a river's persistent flow gradually shapes the landscape, so do our consistent efforts collectively pave the path towards local community progress. Every step counts. Every job matters. Each hungry stomach that is sustained is significant. In this journey towards community resilience, job skills empowerment is crucial because individuals with job skills sustain themselves and strengthen our local food security. True to the Afrocentric cultural worldview of Ubuntu (humanity), we all need to unite and do our part for the improvement of all. "As we move forward, we must work together to champion the horn of South Africa and our continent at large. The challenges facing our agricultural sector and workforce are multifaceted and require sustained commitment and collaboration from all stakeholders. "Solidaridad remains steadfast in its dedication to empowering farmers, fostering job creation, and promoting sustainable livelihoods, and we call on all partners and stakeholders to join us in this vital endeavour. Together, we can build a more resilient and prosperous future for all," concludes Shungu Kanyemba, managing director at Solidaridad Southern Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/solidaridad-launches-employment-fund-to-boost-food-security-employ-youth-673961a

Creamer Media | 2 May 2024 Key questions around B-BBEE implications remain unanswered as deadline looms A pivotal shift for South Africa's Skills Development sector, the recent announcement of a three-year extension to the S12H tax incentive, has sparked both relief and renewed uncertainty for companies. While welcomed, it has brought some pressing questions to the fore around the transition to the Quality Council for Trades and Occupations (QCTO) and its implications for Broad-Based Black Economic Empowerment (B-BBEE).  Rajan Naidoo, Managing Director of EduPower Skills Academy says businesses’ need for further information is now urgent with the 1st July starting date for the transition to QCTO Occupational Certificates looming. “The extension to the S12H tax incentive has provided some guidance for the sector around rebates but we still need clarity in several other areas,” he adds. “With just over two months until companies can no longer register learners for SETA-accredited learnerships, each day without answers heightens the challenges faced by businesses that want to comply with regulations and meet their B-BBEE objectives.”  Naidoo highlights the following key questions regarding B-BBEE and the transition to the QCTO Occupational Certificates: 1. How will QCTO qualifications be recognised within the B-BBEE framework? There is uncertainty around how QCTO Occupational Certificates will be acknowledged under Skills Development on B-BBEE scorecards; and if these will contribute the same number of points as SETA legacy qualifications. 2. Are there specific Skills Development scorecard changes related to QCTO qualifications?  In light of the traditional 12-month cycle associated with learnerships and employment creation, clarity is required regarding how the awarding of corporate credits will be dealt with in future. The longer duration and potentially higher credit requirements of QCTO Occupational Certificates compared to legacy learnerships could also pose challenges for B-BBEE verifiers.  3. Are there any incentives or bonuses for supporting QCTO qualifications? While the extension of the S12H tax incentive is a positive, businesses need to understand if there will be any other funding. Currently, companies can access mandatory and discretionary grants via their industry SETAs. However, will these continue or be replaced with other incentives? 4. Will existing B-BBEE points remain valid?  Clarification is needed about whether investments made in prior skills development initiatives by companies will still count towards their B-BBEE scores during the transition period. 5. Will companies be able to claim B-BBEE points for investing in the transition to QCTO qualifications?  The substantial investment required to transition to QCTO qualifications prompts questions regarding the eligibility of companies – especially those with Training departments – to claim B-BBEE points for expenses related to this process, including training materials and staff development. 6. Will B-BBEE verification agencies be qualified to adjudicate QCTO qualifications and what documentation will be required? Businesses need assurances that B-BBEE Verification Agencies will be upskilled and certified in the transition to QCTO qualifications and their implications for scorecards. There has also been no communication around the specific documentation and evidence required to prove compliance with QCTO Occupational Certificates during B-BBEE verification audits. 7. How will QCTO qualifications impact Employment Equity targets and Socio-economic Development initiatives? The question of how employing individuals with QCTO qualifications and supporting QCTO-related socio-economic development initiatives will align with companies’ B-BBEE strategies and goals still remains. The Skills Development industry is clearly in a state of limbo currently, grappling with uncertainties surrounding the impact of QCTO on B-BBEE compliance. As the 30th June deadline which marks the end of SETA-accredited learnerships approaches, Naidoo emphasises the critical need for decisive action and clear guidelines to address these concerns and many other unanswered questions facing the industry. "Without this direction, we risk stalling progress and undermining the very essence of transformational change that the Skills Development sector has worked so hard to achieve,” he concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/print-version/transition-to-quality-council-for-trades-and-occupations-qcto-creates-uncertainty-2024-05-02

Samsung Newsroom | 30 April 2024 Samsung has retained its Level-1 B-BBEE status for six (6) years in succession. This is a true testament of Samsung’s 30-year commitment and the positive impact its continuous investment has had, to the country’s transformation agenda.   This Level-1 B-BBEE achievement complemented by its continued investment in the country, places Samsung in a firm position where it remains a strong supporter of economic transformation and an active contributor to the future of the South African economy. Since the dawn of democracy when Samsung entered the African continent through the establishment of the South African office, the company has been pushing its transformation agenda by investing in a number of empowerment programmes for the future, which have now led to positive social changes within the broader African continent.   The B-BBEE level rating is used to measure the extent to which local companies comply with the system of B-BBEE, driven by key pillars that include Ownership through EEIP & Management Control (Indirect Empowerment), Employment Equity & Skills Development, Preferential Procurement & Enterprise Development as well as Socio-Economic Development (Social Responsibility). Even though there may be all kinds of complexities to implementing B-BBEE, Samsung has made incredible strides forward in its long-term vision for the country and its overall B-BBEE philosophy and strategy.   Driven through the company’s landmark R280-million Equity Equivalent Investment Programme (EEIP) which was launched in May 2019 in partnership with the Department of Trade, Industry and Competition (Dtic), Samsung is now celebrating five years of this programme’s sustained success. This EEIP programme is projected to have a measurable impact on job creation and a contribution of nearly R1-billion to the South African economy at large. Five years in and Samsung’s EEIP programme has managed to rise to the challenge of achieving its ambitious goals. Measurable outcomes include an accumulative investment of R138-million to date in SME development and capacity building in the ICT sector. With environmental sustainability being one of the major focus areas for Samsung, one black-woman-owned E-waste business was supported.   Samsung believes that entrepreneurship is vital to combating youth unemployment. To this effect, two Software Development enterprises were assisted. Also, to give marginalised communities better access to electronic repair services and encourage a culture of entrepreneurship, Samsung provided support to two Accredited Service Centres .   Lenhle Khoza, B-BBEE & Transformation Manager at Samsung Africa said: “As the company enters its second phase of EEIP programme, its investment in the socio-economic development of the country and its people will remain as one of the main focus areas. To improve our reach and impact, the expansion plan of Samsung’s EEIP programme is now focusing on provinces beyond the initial areas that included Gauteng, Western Cape and KZN. The roll-out plans have now been extended to other under-privileged rural provinces such as the Eastern Cape and Limpopo.” And through ongoing investment, the EEIP programme aims to deliver measurable impact and a lasting legacy for generations to come. As part of the second phase of the Enterprise Development programme which was launched towards the end of last year, a further investment of over R30-million is planned over the next three years. A well-considered and integrated approach has enabled Samsung to partner with universities and SETA accredited training providers to train 1440 software developers and accredited technicians to enhance their prospects of securing employment, starting their own businesses and further training.   By the end of March this year, 595 unemployed youth had been trained. This addresses a key need in the South African ICT sector and has resulted in a marked increase in female software developer and artisan graduates. Increasing female representation in ICT training is ultimately vital to reverse the market trend of lower gender representation in this sector. Employment is a fundamental component of Samsung’s EEIP training plan and Samsung is working closely with its partners to achieve a target absorption rate of 100%.   Importantly, to prove that its transformation agenda is not just a tick box exercise – Samsung has increased its focus on unemployed learners through its internship and learnership programmes, supported by an emphasis on creating work experiences during and post the learnership or internship period. This skills development programme is geared towards ensuring that Samsung increases the employability of the country’s young hopefuls.   This year, Samsung has re-affirmed its commitment to not only providing external bursaries, but also plans to continue investing in youth on a larger scale. Samsung’s bursary fund supported a diverse pool of 49 students in fields that varied from finance, law, supply chain, HR, IT to marketing. Internally, Samsung has an impactful employee development programme. In the case of Management Control, the representation in both Samsung’s Board and Exco reflects the demographics of the country. Samsung has also been driving employment equity through the progression and appointment of employees at each occupational level. In addition, the company has also been re-directing existing spend to qualifying Black-Owned and Black-Women Owned (BWO) Qualifying Small Enterprises (“QSEs”) and Exempt Micro Enterprises (“EMEs”) to include them in the existing procurement value chain of Samsung South Africa with a focus on the following areas that have been approved: Marketing, Services, Sales, Logistics and Recruitment.   This is supplemented by the continued focus on the development of black talent in the business through the provision of grant and preferential loan funding to qualifying Enterprise and Supplier Development beneficiaries, with the possibility of graduating them to become suppliers to Samsung. These empowerment efforts have a strong focus on SME development and are in-line with Samsung’s transformation plans which aim to address key developmental aspects linked to the National Development Plan (NDP) and the overall transformation of the economy.   And as a good corporate citizen that has consistently supported the country’s transformation agenda in the last three decades, Samsung has invested in a number of education-focused, corporate social responsibility (CSR) programmes. These education-focused Socio-Economic Development initiatives that include the Samsung Innovation Campus (SIC) and Solve For Tomorrow (SFT) competition are re-affirming the company’s commitment to STEM education and the upliftment of underserved communities.   “As a passionate supporter of the country’s transformation objectives, we have consistently been striving to adhere to the country’s legislation. This sixth-year, as a Level-1 B-BBEE compliant organisation is indeed an accomplishment worth celebrating. With our combined efforts, we have managed to exceed almost all the requirements of the pillars of South Africa’s B-BBEE system,” concluded Khoza. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://news.samsung.com/za/samsung-retains-level-1-b-bbee-ranking-for-six-successive-years

IRFA | 2 November 2024 At the 2024 Institute of Retirement Funds Africa (IRFA) Conference, under the theme “Better Together: Building a Sustainable Future in the African Retirement Sector,” Prescient Investment Management delivered a compelling presentation. They emphasised the pivotal role of infrastructure and clean energy investments as key drivers for sustainable growth and long-term returns, shaping the future of retirement funds. Conway Williams, Head of Credit, and Luzuko Nomjana, Portfolio Manager of the Clean Energy Fund, outlined how infrastructure and clean energy investments offer a unique opportunity for retirement funds to achieve stable, long-term returns while contributing to South Africa’s socio-economic development. It is a known fact that South Africa requires significant investment – we require R1.6 trillion of public-sector infrastructure investment and a further R3.2 trillion from the private sector to meet targets set out in the government’s National Development Plan by 2030. Various government-backed initiatives, such as the dated Infrastructure Investment Plan (IIP); and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), offer opportunities for investors in areas like energy, water, transport, and telecommunications. The presentation emphasised that infrastructure and clean energy investments are not just nation-building efforts; they are financially sound investments that yield competitive returns and can stabilise retirement portfolios across market cycles. In light of South Africa’s energy crisis, investments in renewable energy, such as wind and solar, offer a solution to the country’s power shortages while providing stable cash flows to investors. Similarly, infrastructure investments in water, transport, and digital infrastructure offer pathways to long-term growth and reliable income. Prescient’s approach aligns strongly with the conference theme, emphasising the importance of collaboration between government, private investors, and public stakeholders to create a sustainable future. This “Better Together” ethos reflects how pooled resources and strategic partnerships can lead to the development of critical infrastructure that benefits our developmental narrative while providing retirement fund members with well-considered opportunities and thus the appropriate risk-adjusted returns. A key part of the presentation addressed the myths surrounding infrastructure and clean energy investments, particularly concerns over regulatory and political risk; project delays and cost overruns; issues surrounding liquidity, and finally the myth of high risks and low returns. Additionally, the presentation highlighted the broader developmental impact of infrastructure investments, showcasing how reliable infrastructure in sectors like energy, water, and transport drives economic growth, job creation, and improved living conditions. International examples, such as those in Brazil, India, and Chile, illustrate how large-scale infrastructure development has transformed economies and improved public services, ultimately enhancing the lives of ordinary citizens. Prescient provided attendees with a deeper understanding of how infrastructure and clean energy investments can play a crucial role in their portfolios. These investments not only offer attractive returns but also align with the broader goal of building a more sustainable and equitable future for South Africa. In this way, Prescient Investment Management’s vision aligned seamlessly with the IRFA Conference’s theme, fostering collaboration and innovation in the African retirement sector to build a sustainable future. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/partner-content/2024-11-02-shaping-tomorrow-the-vital-role-of-infrastructure-in-your-portfolio/

Edward West | 2 May 2024 Suzuki Auto S’s relationship with Tibane Mobile Transfer (TMT) has soured after the former enterprise development partner said the motor vehicle importer had reneged on their business arrangements without notice. TMS Group CEO David Sithole said in a letter that a good working relationship had built between the two companies after TMT was introduced to Suzuki Auto SA by the Nelson Mandela Foundation around 2016, and TMT provided driver services to collect and return Suzuki cars that had been loaned out to The Nelson Mandela Foundation for their projects. This eventually led to TMT becoming Suzuki’s Enterprise Development for their BBBEE scorecard. Sithole said the Enterprise Development programme contract started in 2022/2023 financial year, and was to run for 3 consecutive financial years, but renewed every year, based on the net profit made by Suzuki Auto SA. The programme centred around Suzuki doing pre-Delivery inspections on Suzuki vehicles sold to corporate, government and car rental customers, registering, licensing and delivering the vehicles sold to these customers, and also supplying parts and panels to these clients. “The first year of the contract their contribution to us was the rent payment of the facilities for a year (we signed a five-year lease), the purchasing of equipment and tools, mentoring and a payment of a deposit to Suzuki Auto SA, so that TMT could have a Suzuki parts account.” When the second year started, Suzuki Auto SA again paid for one years’ rent. TMT also invested to upscale the facility in anticipation of work coming from Suzuki Auto SA. “Unfortunately, Suzuki Auto SA reneged on our partnership without providing any explanation and the work suddenly ceased without any prior warning or advice. They ceased to bring any of the abovementioned work as undertaken, and this led to us bleeding money as we had employed staff and had monthly overheads we needed to meet, with no income,” said Sithole. When questioned by Business Report, Suzuki Auto SA said Tibane Mobile Services (TMS) had an Enterprise Development Agreement with them that expired on February 29, 2024, an agreement that covered a period of one year to 12 months. “Suzuki Auto SA delivered on all of its contractual responsibilities in terms of this agreement…There was no premature termination of the agreement,” the company said. Suzuki Auto SA said it had changed its business operations due to the changing market environment and, therefore, the services that TMS provided were no longer required. “Suzuki Auto SA did offer Tibane Mobile Services further Enterprise Development support for a third consecutive year in terms of a proposed further one-year agreement. Regrettably, this offer was rejected and was not accepted by Tibane Mobile Services,” the company said. Sithole said they had requested meetings with Suzuki Auto SA to get an explanation for the cessation of business. “They kept on postponing the meetings and cancelling at the last minute. Until we got an email from Suzuki Auto SA HR department on the 26th of October 2023, requesting us to amend the enterprise development agreement to a supplier development agreement. This did not sit well with us and without a valid explanation we were not comfortable to amend the contract… we sat on the 7th of December 2023 and in that meeting the responses we got from Suzuki Auto Management were not satisfactory on the reason why they stopped sending work to us,” Sithole said. He said since then Suzuki Auto SA had “initiated their attorneys on us” and things had been going to and from between the parties with no proper resolution in sight. Suzuki Auto SA said it has several BEE partners ranging from retail dealership partners to service providers, and the company has a Level 7 BEE ranking. Sithole said the “least that Suzuki SA can do is to put us back to the positive financial position we were in prior to their empty promises”. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/suzuki-auto-sa-and-tibane-motor-transfer-disagree-on-empowerment-deal-7946eb7a-a960-4906-9f21-dfb329702509

Jim Tait | 5 May 2024 In an open letter to Ms Thato Ramaili, CEO of the Property Professions Regulatory Authority, Jim Tait raises concerns regarding the requirement for real estate practitioners to submit fully compliant BEE certificates. Highlighting challenges and proposing alternative approaches, Tait emphasizes the need for a more practical implementation strategy. Urging collaboration with industry stakeholders and addressing internal inefficiencies within the PPRA, his letter seeks to ensure equitable progress in the real estate sector. Dear Ms. Thato Ramaili, CEO of the Property Professions Regulatory Authority I am writing to you directly as well as addressing this as an open letter to voice significant concerns shared by many within the real estate sector regarding the PPRA’s intention to enforce the requirement for every business property practitioner to submit not only valid but fully compliant BEE certificates with their Fidelity Fund Certificate (FFC) renewal applications starting in 2025, and with immediate effect for new applications. Historical Context and Current Challenges While the intentions behind Black Economic Empowerment (BEE) and, more recently, Broad-Based Black Economic Empowerment (B-BBEE) aim to correct historical imbalances and foster a more inclusive economic environment, their implementation has not achieved the desired impact since their inception. Unfortunately, both BEE and B-BBEE have often led to significant challenges throughout the economy and in this case, particularly in the real estate sector, especially for small to mid-sized enterprises. These policies have frequently benefited a select few at the expense of broader economic development, failing to foster real empowerment or economic inclusivity. Supporting New Enterprise Creation A more sustainable and equitable approach would involve actively supporting the creation and growth of new enterprises by previously disadvantaged groups. By facilitating access to funding, training, and resources, we can empower these individuals to set up, own, and manage their own companies. This strategy recognizes that wealth and empowerment cannot simply be legislated into existence but must be built through genuine opportunities for entrepreneurship. Such an approachnot only expands the economy but also enhances competition, leading to better deals in the real estate sector—more competitive commission structures for all agents, and improved services and pricing for all consumers. Unintended Consequences of Redistribution Policies Furthermore, policies that mandate the redistribution of ownership based on demographic criteria can have unintended psychological and motivational consequences. For the party from whom assets are taken, such policies can diminish the incentive to innovate and invest. For the recipient, this approach can undermine self-esteem and foster dependency, as benefits are not earned through merit. True empowerment arises from opportunities gained through one’s capabilities and hard work. It is crucial to foster a policy environment that encourages success based on merit, ensuring that all individuals can genuinely feel proud of their achievements and contribute positively to the economy. Global Perspectives and Alternative Approaches Research and case studies from around the world suggest that empowerment and transformation can be achieved through various means not limited to strict regulatory compliance. Countries like Brazil and Malaysia have successfully implemented broader educational and economic participation programs that have led to substantial improvements in socio-economic disparities without the drawbacks observed in narrowly focused policies such as those observed with BEE and B-BEE in South Africa. Barriers to Entry and Funding Challenges It is pertinent to acknowledge that the qualifications required to enter the real estate sector are not overly restrictive, which theoretically allows access for individuals from various backgrounds, including those who have been previously disadvantaged. This openness is crucial for fostering a diverse and dynamic industry. However, a significant hurdle arises in the early stages of establishing a real estate business, particularly for those aiming to run their own agencies. The gap between performing work and receiving income can often span several months, posing a substantial cash flow challenge. This delay in income makes it extremely difficult for new entrants, especially those from disadvantaged backgrounds, to sustain themselves and their businesses during the initial phases.Helping these individuals overcome these early financial hurdles would not only be more effective than mandating existing businesses to relinquish or redistribute their hard-earned assets, but it would also significantly enhance the self-esteem and autonomy of new entrants, truly empowering them to succeed on their own merits. Concerns over Practical Implementation and Industry Impact The transition from a validity requirement to a compliance mandate within such a condensed timeframe (approximately 17 months) could disproportionately impact smaller agencies. These entities often lack the resources to rapidly overhaul their operational structures to meet the stringent new standards. It is crucial to consider the feasibility of such significant changes without jeopardizing the livelihoods of those the policy aims to support. Additionally, the introduction ofthese changes has been sudden and, to many in the industry, unexpected. This shift has caused considerable uncertainty and apprehension among practitioners, who were previously under the impression that existing certificates were primarily for data-gathering rather than strict compliance enforcement. Another important point to consider is one of the qualifying criteria for an estate agent to be issued a Fidelity Fund Certificate (FFC). The agency under which they work must also possess a current and valid FFC. Should the agency not be issued an FFC, by default, all agents working for that agency would not receive theirs either. This could affect a large percentage of estate agents working in the industry, potentially impacting thousands of agents. Recommendations for a Constructive Way Forward Given the potential negative consequences outlined, I strongly urge the PPRA to adopt a more practical and proven approach to policy implementation. Engaging with industry stakeholders to develop alternative empowerment strategies could ensure that the goals of transformation are met without unintended setbacks. Furthermore, given the PPRA’s history of inefficiency and suboptimal performance, particularly in the issuance of Fidelity Fund Certificates (FFCs), it is imperative that the Authority focuses its energy on a significant internal overhaul. These existing inefficiencies are already costing working estate agents a considerable amount in wasted time, energy and income. By getting its operational house in order, the PPRA would be better equipped to serve the real estate industry faithfully and efficiently, restoring confidence among property practitioners. In closing, while the intentions behind the BEE certifications align with national goals of empowerment and transformation, the method and pace of implementation require urgent reassessment to avoid repeating the economically destructive failures that have historically plagued both BEE and B-BBEE policies. These policies have consistently led to unintended negative impacts on the industry. Thank you for your attention to these matters. We look forward to a constructive dialogue and are eager to contribute to solutions that advance our industry and fulfill the broader goals of equity and empowerment in South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.biznews.com/rational-perspective/2024/05/05/jim-tait-property-regulator-bee

South African Government | 5 May 2024 The Minister of Higher Education, Science and Innovation, Prof Blade Nzimande will launch the 4IR Centres of Excellence at TVET Colleges at the Council for Scientific and Industrial Research in Pretoria. The launch of the 4IR Centres of Excellence is a result of a strong partnership between selected Sector Education and Training Authorities (SETAs) and the Department of Higher Education  and Training and Technical and Vocational Education and Training (TVET) Colleges. These SETAs include Education and Training and Development Project, Financial and Accounting and Manufacturing, Engineering and Related Services Sector Education and Training Authorities. The ETDP SETA-DHET project emanated from research work, discussions between the SETA Accounting Authority/Board and the DHET, and a desire to respond to the white paper on post-school education and training to make TVET colleges institutions of choice. The ETDP SETA- DHET partnership agreed to sponsor ten TVET colleges while the MerSETA targeted minimum ten colleges over a five-year period. This noble idea to establish 4IR Centres of Excellence is intended to ensure 4IR skills training taking place in the TVET colleges for both students and lecturers and to also benefit the communities surrounding the colleges, inclusive of those youth described as the Not in Education, Employment or Training (NEET) to improve their employability. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/news/media-advisories/government-activities/minister-blade-nzimande-launches-4ir-centres-excellence

Linda Ensor | 9 May 2024 The DA and FF+ opposed the adoption of the bill by the select committee, while the ANC and EFF supported it. In a race against time, the National Council of Provinces’ (NCOP) select committee on finance has adopted with amendments the Public Procurement Bill with the aim of it being accepted by parliament before the final end of business of the National Assembly on May 16.  All provinces, with the exception of the Western Cape, support the bill, which will be voted on by the NCOP on Thursday. The National Assembly’s standing committee on finance will consider the amendments on Friday and the National Assembly will vote on the amended bill before it rises on May 16.  The DA and FF+ opposed the adoption of the bill by the select committee, while the ANC and EFF supported it.  The bill aims to provide a broad preferential procurement framework for procurement by organs of state and includes sections aimed at empowerment and transformation such as set-asides, pre-qualifying criteria and mandatory subcontracting and localisation in certain circumstances. Preferences must be given to blacks, women, people with disabilities, small enterprises, co-operatives and military veterans, the latter being added by the select committee. With a new government after the elections and possibly a new minister of finance and new finance committees in parliament, it was considered preferable to finalise the bill during the current parliamentary term. In this context, the select committee has introduced a clause in the bill requiring a review of the act within 24 months of its being published in the government gazette. The review must include an evaluation of implementation and the need for amendments, and the Treasury must consult stakeholders, including the National Economic Development and Labour Council (Nedlac).  Within 27 months of the acting being published, the Treasury must make public a report on the review and submit it to parliament. In its report on the bill, the select committee noted “that there are several issues raised by the stakeholders and the committee that are not addressed in this bill. The committee sees the bill as a “first phase” bill. Further matters can be considered in a “second phase” bill.  Committee chairperson Yunus Carrim said the committee spent 40 hours processing the bill. “Even if we had another six months, it’s unlikely we would make any further major changes.  “It’s a ‘first phase’ bill because there might be some challenges in its implementation. Also, stakeholders who took part in the Nedlac process were unhappy with the changes made by the National Assembly committee and wanted the bill to be sent back to Nedlac. While we respect Nedlac, parliament ultimately decides on a bill, taking into account Nedlac agreements. But we compromised and decided that the minister has to review the act within 24 months, after public consultation, and bring any amendments to parliament in the ‘second phase’.”  Carrim said the main improvements made to the bill by the committee were that constitutional issues had been addressed and the sequential nature of different forms of empowerment clarified, as well as definitions of terms. “There is clearer alignment between the different sections. Transparency provisions have been enhanced. Tribunals will be set up in the provinces. Time frames for decision-making have been included. There’s a clearer link with the BBBEE Act.”  The committee believed that the second phase of the bill should consider the extent of the minister’s power to regulate. It also recommended that within six months of the bill becoming law, the National Treasury estimate the financial cost of implementing the bill and report to the committee on this.  “The committee is concerned about the capacity of National Treasury and the relevant institutions in all three spheres of government to effectively implement the bill. It notes, however, that the bill provides for different sections of the bill to be implemented at different times. The committee recommends that capacity, funding and other resources should also be taken into account when decisions are taken on this phasing in of the bill. The committee recommends that within six weeks of the committee being constituted in the seventh term of parliament, National Treasury must present an implementation programme on this bill to the committee.” In an 11th hour letter to the committee sent on Tuesday, the Institute of Race Relations objected to the little time given to stakeholders to make submissions on the final draft of the bill. It also argued that the Treasury needed to disclose what the bill would cost provinces in terms of BEE premiums.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/politics/2024-05-09-public-procurement-bill-on-the-way-to-adoption-by-ncop/

SA News : 9 May 2024 The Marketing, Advertising, and Communications (MAC) Sector Council, in collaboration with eQvest Limited, has announced the Media, Advertising, and Communications Charter (MACC) Fund. The MACC Fund is positioned as a transformative instrument within South Africa’s creative and cultural industries, particularly the film and television sector. The council and eQvest made the announcement during a media briefing at The Syrene Hotel in Sandton, Johannesburg, on Wednesday.  Council members, together with eQvest executives, highlighted the fund’s role in fostering social impact and its compliance with Broad-Based Black Economic Empowerment (B-BBEE) standards in the MAC sector. According to the team, the MACC Fund represents a significant step forward in catalysing growth and transformation within the media, advertising and communications industry.  By fostering diversity and inclusivity, the fund seeks to create a more equitable playing field, empowering underrepresented voices and promoting innovation. Chairperson of the MAC Sector Council, Angelo Tandy, hailed the collaboration with eQvest as a significant milestone in their endeavour to foster meaningful progress in the industry. “The MACC Fund represents a powerful tool for advancing diversity, equity, and inclusion, and we are excited to see the impact it will have on the sector,” Tandy explained.  Hosted on the eQvest funding platform, the fund represents a pioneering initiative to bridge the gap between promising private companies and potential investors, driving economic empowerment and fostering diversity within the media landscape. eQvest CEO, Nathaniel Bricknell, said his company was thrilled to collaborate with the MAC Sector Council in launching the fund.  “This initiative underscores our shared commitment to driving positive change and fostering innovation within the media, advertising, and communications industry. Together, we will work towards a more inclusive and equitable future,” Bricknell added.   By leveraging a unique private-public partnership model, the initiative aims to boost investment into areas critical for national development.  It also includes social cohesion, nation-building and poverty alleviation, above-the-line media, outdoor media buying, equipment purchasing, as well as infrastructure development.  The partnership recognised that the local industry falls short of global counterparts such as Hollywood, Bollywood and Nollywood in terms of production volume and market share. This shortfall is often due to insufficient private sector investment and the underuse of available incentives, including tax allowances for film investors. The MACC Fund was created as a critical response to these challenges, providing focused investment and support to promote equitable growth, bolster sectoral capabilities, and guarantee a unified strategy for transforming the landscape of these industries. The MAC Sector Council is a leading authority in the media, advertising, and communications industry, dedicated to promoting diversity, equity, and innovation.  Comprised of industry leaders and experts, the council works collaboratively to address key challenges and opportunities facing the sector. The council is responsible for, among other things, overseeing the implementation and monitoring compliance with the council’s code.  It also guides on matters relating to BEE in the MAC sector and develops baseline indicators for all different elements of the B-BBEE. The eQvest is a pioneering investment platform committed to driving positive change and fostering innovation in the private equity space.  With a focus on sustainability and social impact, eQvest connects investors with high-potential investment opportunities, driving growth and transformation across various sectors. For more information on the fund visit https://maccfund.co.za . ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/fund-invest-sas-creative-cultural-industries-announced