Luke Fraser | 19 May 2024 President Cyril Ramaphosa has signed the Preventing and Combating of Hate Crimes and Hate Speech Bill into law, and Cliffe Dekker Hofmeyr says that employers should read the new legislation about the nation’s employment laws. The Bill states that a hate crime is an offence where the offender is encouraged by prejudice towards a victim of a crime due to specific or perceived characteristics, including race, gender, sex, sexual orientation, religion, language, disability, HIV status and more. Hate speech is defined as the intentional publishing of anything that can incite or promote hate via any written, illustrated, visual display, utterance, representation, reference, or electronic communication. The Bill states that a hate crime is an offence where the offender is encouraged by prejudice towards a victim of a crime due to specific or perceived characteristics, including race, gender, sex, religion, language, disability, HIV status and more. Any person convicted of a hate speech offence will be liable to a fine, imprisonment for a period not exceeding five years or to both a fine and such imprisonment. The Bill has already faced criticism from political parties and religious groups, with many criticising the vague definition of hate speech. Cliffe Dekker Hofmeyr said that the Act does not refer to any employment legislation. “However, it is important to read the Act in relation to the Employment Equity Act 55 of 1998 (EEA) and the harassment code published under the EEA (Code),” said the legal firm “The EEA prohibits unfair discrimination against an employee on the basis of race, gender, sex, pregnancy, marital status, family responsibility, ethnic or social origin, (etc).” “The EEA and the Code prohibit harassment on the basis of these grounds in the workplace and state that harassment is a form of unfair discrimination.” Although the tests for harassment in terms of the code and the test for hate crimes and hate speech in the new law differ, the bona fide defences in relation to hate speech could be raised by an employee in disciplinary proceedings that involve verbal harassment or discrimination in the workplace. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business-opinion/772544/new-hate-speech-laws-in-south-africa-what-employers-need-to-know/

Tasneem Bulbulia | 20 May 2024 JSE-listed Impala Platinum (Implats) has concluded a series of agreements, facilitating the implementation of a broad-based black economic empowerment (BBBEE) transaction at its Impala Rustenburg and Impala Bafokeng assets. The transaction will result in 13% BBBEE ownership at both Implats, which owns the Impala Rustenburg and Impala Refineries assets, and Impala Bafokeng through its wholly-owned subsidiary, Impala Bafokeng Resources (IBR). Equity ownership in Impala and IBR will take place through an employee share ownership trust, a community share ownership trust and a strategic empowerment consortium, with ownership of 4%, 4% and 5%, respectively. Implats has partnered with Siyanda Resources, which will lead the participation of the strategic empowerment consortium. The three components of the transaction will be facilitated through loans provided by Impala and IBR, with dividend flow used to service interest and capital repayments. “We are pleased to announce the details of this empowerment transaction, which reaffirms our commitment to meaningful and sustainable economic empowerment across our operations and increases broad-based ownership in the platinum group metals (PGM) sector,” says Implats CEO Nico Muller. “The transaction demonstrates the group’s confidence in our business, the PGM sector and South Africa. “While the transaction was initially conceived as part of our commitments related to acquiring Impala Bafokeng, the intention was clearly focussed on enabling broad-based participation in the resulting entity — a stronger, longer-life and more sustainable Rustenburg asset base — and meaningful empowerment ownership in the group’s South African mining, smelting and refining assets,” he adds. Muller avers that this provides a foundation for sustainable and lasting benefits for the beneficiaries of the transaction and expands ownership across the South African PGM sector.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/implats-concludes-a-new-empowerment-transaction-at-impala-rustenburg-impala-bafokeng-2024-05-20

SA News | 21 May 2024 Higher Education, Science and Innovation Minister, Professor Blade Nzimande, has officially launched a multi-skills development centre to benefit the community of KwaSwayimane in KwaZulu-Natal. The centre is an initiative of the Sector Education and Training Authority (SETA) in response to requests submitted to the Minister by Inkosi SN Gcumisa of the Gcumisa Tribal Authority and uMshwathi Local Municipality Mayor, Mandla Zondi. They had requested the Higher Education and Training Department to build a campus of the uMgungundlovu Technical Vocational Education and Training (TVET) College, or a multi-skills development centre in KwaSwayimane village. Informed by a needs analysis, Nzimande launched a variety of SETA training interventions with a total value of R30 694 700.  Given the importance of agriculture in KwaSwayimane, AgriSETA is the lead SETA of this skills development initiative. AgriSETA has contributed R5 000 000 towards the skills development of 800 learners in crop production, livestock farming, and has provided accreditation to the three skills centres identified in uMshwathi. Other investments include: R1 830 000 contributed by Fibre Processing and Manufacturing (FP&M) SETA towards a learnership and skills programme for sewing, cabinet making and furniture making; R2 916 000 from the Media, Information and Communication Technologies Sector Education and Training Authority (MICTSETA) contribution towards learnerships and skills programmes in digital training, mobile device repair and technical support training; R12 788 700 contribution from the Construction Education & Training Authority (CETA) towards artisan development and learnerships in bricklaying, carpentry, welding and electrical, and FOODBEV SETA contribution of R3 350 000 towards a skills programme in baking. A total of R2 275 000 contributed by the Insurance Sector Education and Training Authority (INSETA) will go towards skills programmes in digital skills, while R2 535 000, contributed by the Wholesale and Retail (W&R) SETA, will go towards digital skills programmes and SMME support. Speaking at an event held at Ndlebezembuzi Hall in KwaSwayimane, Nzimande said the SETA skills development intervention will be piloted in the kwaSwayimane community, and the initial phase rollout will benefit over 2 000 community members, mostly young people who are currently not in employment, education nor training (NEET). “This contribution by our SETAs is their collective commitment to addressing unemployment, poverty, inequality and to improving the quality of life in the community of KwaSwayimane. The contribution also symbolises the commitment of government to changing the lives of ordinary citizens, particularly our rural areas.  “We are particularly excited to be making this contribution in this community. As a department, we believe that we need to make sustainable investments in our rural areas, with the view of making them economically viable,” Nzimande said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/multi-skills-development-centre-benefit-kwaswayimane-community

SA News | 21 May 2024 Deputy President Paul Mashatile has called on all South Africans to support the newly launched National Youth Service (NYS) initiative, which aims to address youth unemployment in South Africa. The Deputy President, together with the Department of Defence and the Department of Women, Youth, and Persons with Disabilities (DWYPD), unveiled the South African National Service Institution (SANSI) in Pretoria on Tuesday. The Deputy President said the South African National Defence Force (SANDF)-led NYS is a special project that will be piloted and implemented in the country’s poorest districts, where most youngsters are unemployed.  Despite interventions such as the Presidential Employment Stimulus, which has created over 1.7 million job opportunities, the country’s second-in-command bemoaned that many young people remain on the margins of real economic participation.  He cited the latest Quarterly Labour Force Survey, which shows that the official unemployment rate stands at 32.9%.  According to the survey, about 3.6 million (35.5%) out of 10.3 million young people aged between 15 and 24 were not in employment, education or training (NEET). “I am pleased that the DWYPD, in collaboration with the Department of Defence, adopted a whole-of-government and whole-of-society approach to the skills revolution for the unskilled. This will have a significant impact on restoring livelihoods, creating wealth, and alleviating poverty and hunger among the marginalised.” According to the Deputy President, the initiative aims to optimise government resources by spearheading impactful projects that assist the nation’s most vulnerable citizens.  “We envisaged inviting and encouraging young people to voluntarily join the National Youth Service, beginning with a character-building programme and progressing to industry demand-based education and training, ultimately leading to gainful employment or entrepreneurship.”  The establishment of SANSI aims to develop, capacitate, and empower young unemployed Technical Vocational Education and Training (TVET) and university graduates through a purposeful and smooth skills-to-industry pipeline that will lead to innovative entrepreneurship and long-term, sustainable employment.  The initiative also intends to transform youngsters into courageous agents of change, who will tackle the country’s most pressing issues in strategic work streams.  These include food and agricultural value chain commercialisation, maritime and ocean economy, engineering and construction, manufacturing and infrastructure rollouts, as well as skills of the future, which include digital technologies and electronics. The initiative, Mashatile stated, represents a massive investment in the effort to get young people trained and capacitated to participate in the economy. He views the move as a significant milestone in the country’s journey towards a stronger and more resilient society.  In addition, he said the initiative would serve as a hub for nurturing leadership, fostering skills development, and promoting community engagement.  “It will empower our young people to contribute meaningfully to the development of our country and the wellbeing of our communities,” he stressed.  The Deputy President announced that the provincial launches are still to follow, with the project aiming to reach at least 100 000 youth participants in the current fiscal year.  He urged all young individuals who meet the eligibility requirements for the NYS to submit their applications in large numbers.  “The youth must also take advantage of the opportunity presented by the programme to equip themselves with the much-needed skills.” Minister of Defence Thandi Modise described SANSI as a necessary and important initiative and thanked the DWYPD Minister, Dr Nkosazana Dlamini-Zuma, for rallying her to see the bigger picture. “It tallied with the call from all society that asked the Defence Force to do something and cries of mothers who had their hands on their heads and those who were trying to fight the nyaope. We see SANSI as that instrument in the hands of the Defence Force that will enable our children to come into their own,” said Modise.  Shifting her focus to the young participants in SANSI, she emphasised that the SANDF will ensure their punctuality, obedience, ability to give and receive instructions, and leadership skills. “The military will keep an eye on every little cent spent on this project and will go to the future of this country and the skills that we need,” Modise said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/mashatile-launches-sandf-led-youth-initiative-create-jobs-entrepreneurship

Simnikiwe Mzekandaba | 22 May 2024 Some 200 small, micro and medium enterprises (SMMEs) and over 2 000 individuals will be equipped with advanced artificial intelligence (AI) knowledge and other capabilities to prepare them for jobs of the future. This is one of the facets of a R1.3 billion investment agreement entered into between software giant Microsoft SA and the Department of Trade, Industry and Competition (DTIC). Microsoft SA and the department yesterday inked the agreement, to be deployed over the next 10 years in the development of black-owned SMMEs in tech and non-tech sectors. The financial value of the commitment is calculated on the company’s estimated turnover over the next 10 years. The investment, says the DTIC, is facilitated under the Equity Equivalent Investment Programme provisions of the B-BBEE Act. It is designed to provide organisations such as Microsoft, which are not able to facilitate local ownership in their firms, with an avenue to accrue BEE points. According to Microsoft SA, the investment commitment aims to spur SMME development, create local opportunities and ready the country for AI transformation. Speaking ahead of the signing ceremony, Microsoft SA MD Kalane Rampai emphasised that “AI is here”. “Last year, we were talking about AI as a breakthrough technology. This year, if you are not using AI, you are already behind. “We cannot downplay the role that AI is currently playing and will continue to play in future. Therefore, there is no doubt that technology is altering the way we work, how we work and the job itself – we need to make sure our people have the requisite skills to stay relevant. “We believe there is a massive opportunity for those willing to skill up on AI. At the same time, organisations that empower employees with AI tools and training will attract the best talent.” Lillian Barnard, president of Microsoft Africa, added: “This investment represents our commitment to empowering individuals and small businesses to be part of Africa’s digital economy, and drive job creation and growth that will benefit the entire region.” SA’s SMMEs have been identified as engines for job creation and increasing economic activity in the country. Rampai noted that with the number of local SMMEs increasing by 6% year-on-year, there is impetus to make sure they are sustainable and geared for growth. Resultantly, the investment will focus on enabling SMMEs to grow, providing them access to new markets and making sure they become net job creators, he stated. “The investment aims to provide a platform for SMME development founded on technology, digital transformation, as well as market opportunities. “As Microsoft, we believe SMMEs can contribute significantly to developing our digital economy and the wider economic growth of Africa.” In addition to skills development, the investment will ensure the digital transformation of up to 42 SMMEs and start-ups, alignment with 18 TVET colleges to use technology to prepare students with future-ready skills and enhance employability, and supporting up to 20 advanced research and development projects. DTIC minister Ebrahim Patel said the establishment of the investment deal comes amid rapid technological change. “There is hardly a part of the economy and society that is not being enriched and reshaped by technology. This trend has not reached its end; it is part of humanity’s grapple with the changes brought about by technology. “The fund [investment] will assist black South Africans in non-tech sectors to harness the power of technology, and improve their competitiveness and ability to innovate and expand their operations. “It will also act as a bridge to enable young people to get training, certification and job placement, so that talented South Africans gain access to the opportunities that arise from an increasingly digitalised world.” The DTIC said the investment commitment will be allocated as follows: An enterprise development initiative, estimated at R663 million, will focus on technology start-ups owned and operated by black South African entrepreneurs and development of new solutions in disruptive technologies. Another portion of the initiative will focus on non-technology companies, encouraging greater use of technologies like machine learning and other forms of AI by black-owned SMEs. A skills development initiative, estimated at R347 million, will focus on providing intensive training to young black South Africans through certification courses and learnerships. The R&D initiative, estimated at R160 million, will invest in research programmes. This includes a R50 million investment, which will be spent in consultation with the Localisation Support Fund to introduce emerging technologies into industrialisation and localisation initiatives. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/microsoft-injects-r13bn-into-sa-economy-in-bee-deal/G98Yd7LGRNYvX2PD

Defence Web | 22 May 2024 The South African National Defence Force (SANDF) has been tasked with leading the new South African National Service Institute (SANSI), which aims to encourage entrepreneurship and job creation amongst the youth. Deputy President Paul Mashatile together with the Department of Defence and the Department of Women, Youth, and Persons with Disabilities (DWYPD), unveiled SANSI in Pretoria on 21 May. The Deputy President said the SANDF-led national youth service is a special project that will be piloted and implemented in the country’s poorest districts, where most youngsters are unemployed. Despite interventions such as the Presidential Employment Stimulus, which has created over 1.7 million job opportunities, the country’s second-in-command bemoaned that many young people remain on the margins of real economic participation. He cited the latest Quarterly Labour Force Survey, which shows that the official unemployment rate stands at 32.9%. According to the survey, about 3.6 million (35.5%) out of 10.3 million young people aged between 15 and 24 were not in employment, education or training (NEET). “I am pleased that the DWYPD, in collaboration with the Department of Defence, adopted a whole-of-government and whole-of-society approach to the skills revolution for the unskilled. This will have a significant impact on restoring livelihoods, creating wealth, and alleviating poverty and hunger among the marginalised.” According to the Deputy President, the initiative aims to optimise government resources by spearheading impactful projects that assist the nation’s most vulnerable citizens. “We envisaged inviting and encouraging young people to voluntarily join the National Youth Service, beginning with a character-building programme and progressing to industry demand-based education and training, ultimately leading to gainful employment or entrepreneurship.” The establishment of SANSI aims to develop, capacitate, and empower young unemployed Technical Vocational Education and Training (TVET) and university graduates through a purposeful and smooth skills-to-industry pipeline that will lead to innovative entrepreneurship and long-term, sustainable employment. “The initiative also intends to transform youngsters into courageous agents of change, who will tackle the country’s most pressing issues in strategic work streams,” SANews reported. These include food and agricultural value chain commercialisation, maritime and ocean economy, engineering and construction, manufacturing and infrastructure rollouts, as well as skills of the future, which include digital technologies and electronics. The initiative, Mashatile stated, represents a massive investment in the effort to get young people trained and capacitated to participate in the economy. “It will empower our young people to contribute meaningfully to the development of our country and the wellbeing of our communities,” he stressed. The Deputy President announced that the provincial launches are still to follow, with the project aiming to reach at least 100 000 youth participants in the current fiscal year. He urged all young individuals who meet the eligibility requirements for the NYS to submit their applications in large numbers. Defence and Military Veterans Minister Thandi Modise described SANSI as a necessary and important initiative and thanked the DWYPD Minister, Dr Nkosazana Dlamini-Zuma, for rallying her to see the bigger picture. “We see SANSI as that instrument in the hands of the Defence Force that will enable our children to come into their own,” said Modise. Shifting her focus to the young participants in SANSI, she emphasised that the SANDF will ensure their punctuality, obedience, ability to give and receive instructions, and leadership skills. “The military will keep an eye on every little cent spent on this project and will go to the future of this country and the skills that we need,” Modise said Modise at a weekend briefing said the SANDF is part of “a nationally co-ordinated effort to reinforce our nation’s ongoing war of Youth Unemployment through the massification of value chain driven and sector specific skills development, enterprise development, production brigades and infant industries to power up South Africa’s re-industrialisation targets”. Project Koba-Tlala, which started out as an SA Army Reserve initiative to skill part-time soldiers, will most likely be incorporated into SANSI. Project Koba-Tlala has its roots – literally – in the provision of fresh produce for military kitchens driven by then Chief Army Reserves, Brigadier General Gerhard Kamffer, seven years ago. He saw it as a way for part-time soldiers to not only become income producing but also to contribute at least some of the fresh produce used daily in military messes. The one-star saw it led by Reserves and his vision was to expand into other service areas such as vehicle maintenance and localised security. Potchefstroom, the unofficial military capital of North West province, was selected as a test site. Involvement of municipal and provincial authorities as well as academic institutions saw momentum gained with Koba-Tlala spreading to other sites, near military bases and facilities in the Gauteng, KwaZulu-Natal and Western Cape provinces. Marievale military base in Gauteng, home to SA Army elements, saw a thriving vegetable garden established and in Western Cape fresh produce produced under the Koba-Tlala flag made its way to kitchens and messes at Fort Ikapa. Changes in senior command and responsibilities saw Kamffer become project director for Koba-Tlala in the SA Army Corporate Services Directorate and a June 2022 announcement that it would be the nucleus of a production brigade in General Lawrence Mbatha’s landward force. A presentation to Parliament’s Joint Standing Committee (JSCD) at that time gave a reskilling number of over 1 400 Reserve Force personnel from various musterings with 862 earmarked for skills upgrading in the 2022/23 financial year. The part-time soldiers were shown the ropes on skills as diverse as computer coding through to community development and liaison, agriculture including animal husbandry, water and sanitation, firefighting, first aid and security. These skills would assist them in gainful employment when not in uniform. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.defenceweb.co.za/sa-defence/sa-defence-sa-defence/sandf-led-youth-initiative-launched/

Nokwanda Mathenjwa | 27 May 2024 Over the past months and leading up to the May 29 elections, political parties have been canvassing and publicly presenting their manifestos, which carry bold announcements of how they will better serve our beloved country should they be instated into political power. Most analysts foresee the ANC not achieving an outright majority due to declining voter numbers, with coalitions becoming the country’s political norm. The boldest announcement of each political party is related to what has been crippling our country’s tax base and socio-economic improvements, the stubbornly high unemployment rate. The most populous parties, the ANC and the Democratic Alliance have promised the creation of 2.5 million and 2 million jobs, respectively. While the Economic Freedom Fighters promise a boisterous 6.2 million jobs. Unemployment has been one of the most critical challenges facing our country, recording a post lockdown unemployment rate of 28.84% in 2021. Statistics South Africa recently released its Quarterly Labour Force Survey for the first quarter of 2024, ending March 2024. According to their results, the official unemployment rate increased by 0.8% from 32.1% in the fourth quarter of 2023 to 32.9%, which means 13.1 million people are unemployed. Approximately 330 000 people lost jobs, while 22 000 gained jobs, translating to 16.7 million employed people. This means the labour force experienced a net loss of 308 000 jobs. Statista reports that from 2003-2008 South Africa’s unemployment rate averaged 19.58%, 21.9% during 2009-2014, 23.54% over the 2015-2019 period, and 26.2% for 2020-2022. The youth unemployment rate mirrors this trend over the same period, registering 38.6%, 42.24%, 42.93% and 46.87, respectively. This shows us that for the two past decades, South Africa has been stuck in the 20% to 30% unemployment margin, which it has been unable to sustainably address. South Africa has an unemployment pandemic, we cannot normalise it with vaccines, social distancing and masks. The upward resilience of South Africa's unemployment rate upholds itself as the highest in the world. The deeply concerning matter is the increasingly high youth unemployment rate of 45.5%, an increase from 4.9 million to 5.9 million, the second highest in the world. Meaning 63.3% of the country’s population between the ages of 15-34 is unemployed. This lopsided population distribution means the youth will always be at the receiving end of positive or negative economic developments. Various sources cite varying reasons for this high unemployment; these being the power crisis which has a debilitating effect on households and businesses, population growth in ratio to economic growth, inadequate work experience, the social cost of job hunting, lack of career guidance in schools, and inappropriate and unknowledgeable ways of jobs searching. The impact of high unemployment results in poverty, social exclusion, which requires finances to maintain, crime that has been on the rise and social instability, mentally and physically. The effects of unemployment on society and community, therefore, lead to deeper issues of health, crime, lack of relevant skills and entrenched poverty, which burden overall government resources and force the fiscus to spend more to address them. This approach to addressing solutions is unsustainable for South Africa’s shrinking tax base. According to the International Labour Organisation, the average global unemployment rate settles around 5%, which is substantially lower than South Africa’s. This global average indicates countries' concerted efforts; focus and national agenda to create jobs to ensure citizens not only have the dignity of earning a decent salary but contribute meaningfully to the countries’ economic activity, whether through productivity, consumption or paying taxes. Achieving the global unemployment rate will be a stretch for the country, which has been growing too slow to absorb labour for a growing population. However, in 2010 the South African News Agency reported that the government had a target of creating 5 million jobs over 10 years, thus reducing the unemployment rate from 25% to 10-15%. This would have realistically created 500 000 jobs over 10 years. What disrupted this New Economic Growth Path? The Job Summit hosted in 2018 committed to 275 000 jobs annually. 78 000 jobs were created between September 2018 and September 2019, with job losses in 2020/2021 recording 2.24/1.44 million due to Covid-19. Though the job summit showed positive signs, these were shy of the target. Fifteen years later, as we excitingly approach the national elections we are enticed with different job creation scenarios of between 400 000 to 600 000 jobs per year, which has never been achieved before. A slow growing economy will unlikely produce these ambitious job targets, South Africa has been recording a growth rate of 1% - 2% over the past decade. In 2021 the growth rate was 4.7%, as a result of expansionary policies for both business and consumers to ease the adverse effects of Covid19 and the hard-lock down. The country’s weakened economic growth reflects the dire impact de-industrialisation has had on our economy over the years. Investments in the manufacturing sector have been declining, especially labour-intensive industries like clothing, textiles and leather, which has compromised industries’ competitive edge and resulted in a high volume of job losses, due to the growing penetration of cheaper Chinese imports and recent global technology advancements. China recorded 51.9% of imports into South Africa in 2000 increasing to 75.1% in 2010, and the import penetration rate was 5.9% in 2000 increasing to 28.5% in 2001. This has resulted in a 45% employment loss between 1992 and 2010, which the country has been struggling to recover from, and created a shrinking manufacturing sector. According to Statistics South Africa, contributing 12% to the country’s gross domestic product in 2019, 13.2% in 2021, and 11.4% in 2022, while a South African Reserve Bank report states the sector contributed 23% to the GDP in the 1980s. Re-industrialisation is, therefore, imperative to achieve sustainable economic growth, development and employment; however, manifestos have been vague on the pragmatic approaches they will implement to achieve full employment and void of actionable industry programmes. As per the National Development Plan: Vision 2030, a 5.4% average growth rate per year is required to create 11 million jobs over 20 years, that equates to 550 000 jobs annually. As citizens and voters, we all have diverse questions about these job creation possibilities. Like, what type of jobs will be created? How will these jobs be created? Which key industries will the government prioritise and enable to create these jobs? What incentives and instruments will be deployed? We need to reinvest in our manufacturing sector capabilities; however, our competitive and comparative advantage disqualifies us from manufacturing all products. Which imported products do we substitute for local production, and which do we continue importing? What will the role of the private sector be? Will jobs be decent, meaningful, and sustainable to employees and the economy, or will they be filling up potholes, restoring electricity cables and painting sidewalks? With outright rule or coalition governance, without an industry-linked job strategy that intends to create jobs in productive industries, South Africa will remain in a perpetual growth-job conundrum. The government needs to invest in or create new industries that will sustainably absorb unemployed youth, some of whom will be casting their first vote this year. We need industries that match local product demand; not only government or private services, and eventually export to international markets. The Asian miracle was achieved with this two-pronged approach; infant industry protection or import substitution industrialisation or localisation as most know it, and export-oriented growth when industries were considered competitive enough to participate in global trade. To implement this national agenda youth can be organised into cooperative clusters linked to industry ecosystems. These cooperative clusters can include one or both Industrial Policy compositions; horizontal or vertical. Industrial Policy is any type of government policy or intervention to improve a country’s business environment or transform the structure of sectors. Horizontal or functional policy improves the broader business environment across different sectors like infrastructure development, which has broad spillover effects on other sectors; construction has been one of the job-shedding industries. A country’s economic activity is depicted by infrastructure development or lack thereof. Vertical or selective industrial policy is directed to the development and promotion of a specific sector and is, therefore, targeted in approach. In achieving its industrial strategy, the youth cooperatives or youth employment economic clusters would need to target industries that have export, employment generation and knowledge creation potential. These can be new industries to enable economic growth or industries familiar to the economy that have a high impact on job creation and broader economic development. Investing in specific traditional industries such as agriculture, clothing, pharmaceuticals or new industries like renewable energy and 4IR technologies will not only expand industries’ products or services but also develop new and adjacent value chains. Let’s go out and vote on the 29th of May, let’s make our 30 year mark. Our challenges should not deter, but aggravate us to contribute towards change and transformation. No vote is still a vote. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/sa-has-an-unemployment-pandemic-we-cannot-mask-it-bf6227c1-bd77-442c-8762-538064468836

Mangaliso Mdhlela | 26 May 2024 The National Empowerment Fund (NEF) has approved R1.2-billion worth of investments to support businesses owned and managed by black South Africans. At least R692-million of this will be disbursed into the -domestic economy, creating thousands of jobs, Minister of Trade and Industry Ibrahim Patel said in an interview with Sunday World. Patel said the Black Industrialist Programme must be intensified on all fronts, and that as the enabling financing institution, it must be recapitalised if the needs of black industrialisation are to be fulfilled. Support for black business, BEE and job creation are among the key issues on the agenda of political parties in the run-up to Wednesday’s elections. “This is the NEF mandate in alignment with the Department of Trade and Industry’s towards three shared outcomes, which are industrialisation, transformation and the creation of a capable state,” Patel said. The minister said focusing on key areas of BEE and strengthening the NEF, would allow thedepartment to pool sufficient resources to capacitate and recapitalise the NEF to achieve and fulfil its mandate of supporting black industrialisation project for inclusive economic growth, in which the black economic empowerment is accelerated. “Transformation is about building an economy that works where people are, and bringingdevelopment to rural provinces and districts,” Patel said. Established by the National Empowerment Fund Act, the NEF is the only development finance institution in the country that is exclusively mandated to grow the broad-based black economic empowerment through the provision of financial and non-financial support to black-owned and managed businesses. Black business sectors funded by the NEF include, among others, tourism and entertainment, transportation, textile industry services, retail, property, printing services, motor industry, mining service, manufacturing, and information and computer technology. NEF CEO Dr Nthabiseng Mole-ko recently told the Black Business Council Annual Summit that the time has come to recapitalise funding entities such as her organisation if there is -going to be accelerated progress towards developing industries to end poverty and unemployment. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/nef-sets-aside-r1-2bn-to-invest-in-black-business/

Bizcommunity | 27 May 2024 The Tourism Transformation Fund (TTF), launched in 2017 through a collaboration between the Department of Tourism and the National Empowerment Fund (NEF), is showing positive progress in driving economic transformation and empowerment within South Africa's tourism sector. Since its inception, the TTF has approved a total of R272.58m in funding for various tourism projects. This investment is translating into tangible results: six projects are operational, another six are under development, and ten more are in various stages of development, with many expected to commence construction soon. The initiative has also demonstrably contributed to job creation, supporting over 1,047 jobs. Additionally, the TTF is fostering diversity and inclusion within the industry. A remarkable 76% of the 23 funded businesses boast Black women ownership, with a further 27% being youth-owned. Targeted support to Black businesses in tourism "Our collaboration with the National Empowerment Fund in establishing the Tourism Transformation Fund has been a key indicator of our commitment to driving inclusive growth in the tourism sector. By providing targeted support to Black-owned enterprises, we aim to create a more equitable and prosperous industry that benefits all South Africans," says Deputy Minister of Tourism, Fish Mahlalela. NEF acting chief executive officer, Mziwabantu Dayimani says the TTF represents a significant step towards empowering Black entrepreneurs in the tourism sector. "Administered by the NEF on behalf of the DT, the TTF offers a comprehensive funding solution tailored to the diverse needs of Black-owned enterprises across the tourism value chain. Through a combination of grant funding, debt financing and equity contributions, the TTF facilitates capital investment in tourism projects, empowering entrepreneurs to start new businesses and expand existing enterprises. In this way the TTF aims to catalyse the growth and emergence of a new generation of black-owned tourism enterprises,” says Deputy Minister Mahlalela. The grant funding provided by the DT is capped at 50% of the total funding required, for up to a maximum of R5m per successful applicant. The balance is made up of debt finance and equity contributions by the NEF or any other Development Finance Institutions (DFIs) as well as the owner’s contribution. A transformative mandate The TTF aims to contribute to the transformation of the South African economy through Broad-Based Black Economic Empowerment (B-BBEE) as a fundamental policy alongside imperatives such as the National Development Plan (NDP), the Industrial Policy Action Plan (IPAP) of the country as well as the Economic Reconstruction and Recovery Plan. Economic transformation through B-BBEE as a priority in the tourism sector is reflected in the Tourism Act (Act no 3 of 2014), the National Tourism Sector Strategy and the Tourism B-BBEE Sector Code amended in 2015. Slow rate of transformation in tourism While there has been some growth in the number of new Black-owned small and micro enterprises entering the sector and also some progress made by existing large tourism players to transform, the overall pace and extent of transformation in the tourism sector has been slow. Transformation efforts are yet to sufficiently change the structure of the sector to facilitate equitable growth with sustained positive socio-economic impacts for the people of South Africa. Need to strengthen transformation programmes There was thus a need to strengthen the focus of the Department’s sector transformation programmes beyond policy interventions and to consolidate state resources through partnerships to create targeted interventions to facilitate more inclusive growth and economic transformation. The Department signed a Memorandum of Agreement (MoA) with the NEF at the end of March 2017 to establish and administer the TTF and applications for the pilot phase opened on 17 May 2018. Review of TTF Following a review process in 2021, the pilot phase of the TTF has undergone enhancements, including an increase in grant funding for successful applicants. "The NEF continues to monitor the performance of the various TTF transactions approved for funding to date and to provide mentorship support in the effort to improve business sustainability, growth and the preservation of jobs. To date, application patterns have demonstrated a significant demand for funding among Black entrepreneurs nationwide for tourism-related funding," Dayimani says. Deputy Minister Mahlalela adds that travel and tourism contribute significantly to South Africa’s economy and is a source of employment across the country. Dayimani concludes by saying: "There are many untapped opportunities for funding and the continued need for transformation in the tourism sector. The TTF will continue in its pursuit of the quest for economic recovery, inclusive growth, job creation, as well as women and youth empowerment." Dayimani concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/tourism-fund-drives-jobs-empowers-black-businesses-128256a

Dr Olebogeng Selebi | 27 May 2024 The future of work is rapidly evolving due to technological advancements and shifting economic landscapes. As we stand on the brink of a new era, adapting to these changes is imperative. According to the Institute of the Future, a US-based think tank, 85% of jobs that today’s students will hold by 2030 have not yet been created. This highlights the need for a workforce that is equipped with the skills to thrive in a dynamic environment. In South Africa, this reality is evidenced by a recent drop in the graduate unemployment rate from 10.6% in the first quarter of 2023 to 9.6% in the second quarter. South African employers are particularly concerned about the lack of proficiency in core skills such as communication, socio-emotional intelligence, digital literacy and mental flexibility among employees and new hires. The labour market increasingly values soft skills like leadership, communication, conflict resolution, interpersonal skills, teamwork and time management. The importance of these skills is universally acknowledged. Initiatives are in progress to standardise the teaching, assessment and recognition of these skills within post-secondary education and workplace training. The COVID-19 pandemic exposed significant skill gaps, particularly in digital skills and remote work, which employers believe pose a barrier to technological adoption and productivity growth. The digital migration of skills has enabled talent to contribute to global economies virtually, breaking geographical barriers. This issue is not new in Africa, particularly South Africa, where skilled workers are less likely to return due to factors beyond salary expectations. This exodus worsens the skills gap, impacting productivity, economic growth and social equity. The continent must align educational output and upskilling programmes with industries for growth to retain skilled workers. The effective retention of skilled labour requires shared responsibility between governments and employers. Companies must also drive worker autonomy, invest in continuous learning, and prioritise employee well-being and mental health. Addressing the skills gap requires a comprehensive and strategic approach that involves multiple stakeholders, including the government, educational institutions, the private sector and civil society. Educational institutions should incorporate technical and soft skills into their curricula, fostering collaboration between industries and educational bodies. Private companies can play a crucial role in designing and delivering relevant training programmes, ensuring that graduates are job-ready and relevant to market needs. Promoting a culture of continuous learning and professional development is essential. Incentives for employers to invest in upskilling their workforce can help bridge the skills gap within organisations. Online learning platforms and flexible training modules can make upskilling more accessible. Initiatives of this nature ensure that skills development is more inclusive and equitable. Programmes must address historical inequalities and provide targeted support to marginalised groups, fostering a more inclusive workforce. Bridging the skills gap is not just about meeting job market demands – it’s about building a foundation for long-term prosperity and equity. South Africa can achieve this by investing in education, training and continuous learning. Today’s choices will shape the country’s trajectory in the global economy, and through proactive collaboration and forward-thinking strategies, we can navigate challenges and seize future opportunities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/industry-news/774049/sa-needs-to-narrow-its-skills-gap-deputy-director-of-ups-centre-for-the-future-of-worksa-needs-to-narrow-its-skills-gap/

Tarryn Mason | 28 May 2024 How will the imminent transition from the Setas to occupational qualifications under the QCTO impact our unemployment crisis? It’s no secret that South Africa has the highest unemployment rate in the world, a title we have held for some time. And the latest figures aren’t too encouraging either - Stats SA recently confirmed that our jobless rate rose to 32.9% in the first quarter of 2024, an increase of 0.8% from the previous quarter. Particularly worrying is our youth unemployment rate, with a staggering 59.7% of young people between the ages of 15 and 24 being unemployed. Given these gloomy numbers as well as our persistent skills crisis, it’s no wonder that many of us in the skills development and training fields are deeply concerned about the looming changes set to shake up the industry in the next few weeks, and the impact on our already dire unemployment situation. For those that don’t already know (an alarming number of employers as well as some training providers are still in the dark!), on 30 June 2024 all historical Seta qualifications are due to fall away and from 1 July onwards, all learners will only be able to register for occupationally directed qualifications through the QCTO (Quality Council for Trades and Occupations). While the QCTO was established with the laudable aim of ensuring quality and relevance in vocational education and training as well as promoting skills development that aligns with the needs of the economy and enhances employment opportunities, the reality is that very few stakeholders, including the QCTO itself, are ready for the final changeover to take place just yet. For starters, with barely a month until the deadline, there are nowhere near enough qualifications registered on the QCTO system right now to cater for all workplace training currently taking place. There are currently only 769 registered qualifications that have been published on the QCTO website, which are expected, at this stage, to replace the thousands of legacy qualifications that are due to come to an end on 30 June this year. More specifically, and as it relates to unemployment, right now there are very few full qualifications at an entry-level that have been registered by the QCTO. For many years, under the Seta system, lower-level qualifications served the important function of providing a foot in the door for individuals who were unemployed and unskilled, affording them a ‘bridge’ into the workplace. Given the currently available QCTO qualifications, this opportunity will no longer be an option for the majority of South African youth who don’t even have a Matric, let alone maths and science, which are entry-level requirements for many of the new occupational qualifications. Another limiting factor is the lack of generic qualifications that could be applicable across different industries. The new QCTO qualifications are extremely focused and specific to particular occupations, requiring learners to be very targeted in their career choices with minimal flexibility. When looking at the history and objectives of the national qualifications framework (NQF), The South African Qualifications Authority (SAQA) state the following on their website: “When learners know that there are clear learning pathways which provide access to, and mobility and progression within education, training and career paths, they are more inclined to improve their skills and knowledge, as such improvements increase their employment opportunities.” The SAQA website goes on to cite British academic, Sir Christopher Ball’s view on the kind of learner profile that is suited to the 21st century – the ‘flexible generalist’. Ball was of the view that such people are needed to realise the goal of life-long learning. `Flexible generalists` are people equipped with the necessary knowledge, skills and values to easily adjust to multiple career changes in order to achieve their own personal development, while at the same time making a significant contribution to society. The shift in thinking is from education for employment (developing the ability to do a specific job) to education for employability (developing the ability to adapt acquired skills to new working environments). This raises several questions: Is the concept and spirit of the QCTO not completely at odds with the above notion of the ‘flexible generalist’ and will this new system leave us with a less adaptable workforce? And more importantly, will the QCTO succeed in its objective of creating a skilled workforce in order to contribute to job creation and economic growth or will our grim unemployment figures continue to soar? Perhaps the solution lies somewhere in the middle with a combination of the specialised structure of the occupational qualifications, while at the same time offering the flexibility of more generic options that can provide individuals with broader, transferable skills, fostering adaptability in a rapidly changing job market. Surely there’s a space for both models. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/navigating-unemployment-in-a-changing-skills-development-landscape-784862a

Ryan Neill | 28 May 2024 Small and medium-sized enterprises (SMMEs) often encounter a significant hurdle: pricing their products or services effectively in the journey of entrepreneurship. Many inadvertently set prices too high, ultimately pricing themselves out of the market and hindering their own growth. From an enterprise supplier development (ESD) perspective, addressing this challenge is crucial for the sustainable success of SMMEs. Central to this issue is a misunderstanding of market dynamics and the value proposition of SMMEs. Driven by a desire for immediate profitability, businesses often overlook the importance of affordability in consumer decision-making. However, understanding customer needs and preferences is essential. Through thorough market research, SMMEs can identify competitive pricing strategies that align with their target audience, fostering long-term growth over short-term gains. SMMEs must recognise the broader socio-economic implications of pricing inefficiencies. These businesses play a vital role in local economic development, creating jobs, driving innovation, and engaging with communities. Pricing strategies that hinder their success have far-reaching effects, impacting supply chains, employment, and overall economic vitality. Collaboration and mentorship are critical in addressing this challenge. ESD programs provide SMMEs with guidance, resources, and networking opportunities, empowering them to make informed decisions about pricing and business management. By fostering a culture of knowledge sharing and support, these programs enable SMMEs to navigate market dynamics with confidence. Ultimately, pricing is about finding a balance between profitability and accessibility, short-term gains and long-term sustainability. From an ESD perspective, the goal is to create an ecosystem where SMMEs can thrive, contributing to economic growth and social development. By rethinking pricing strategies through the lens of market dynamics and community impact, SMMEs can chart a course towards sustainable growth and prosperity. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/striking-the-right-balance-the-pricing-dilemma-for-small-businesses-562620a