Given Majola | 30 May 2024 The Automotive Aftermarket Association Forum (AAAF) has warned that more than 162 000 jobs were at risk among the predominantly black-owned Small, Medium and Micro Enterprises (SMMEs) in the automotive aftermarket industry due to the closure of dozens of workshops daily under the controversial multibillion rand RT46 Government Tender. AAAF this week said that most several workshops in Gauteng, Eastern Cape, Free State, and KwaZulu-Natal were facing closure or going out of business after being allegedly excluded by WesBank from sharing the contracts for the repair and maintenance of the government fleet. The RT46 tender is currently administered by WesBank, NedFleet, and Fleet Africa. It provides vehicle fleet management services to the State for a five-year period, effective 1 April 2021. This tender pertains to the management of repairs and maintenance of the government fleet, including police cars and ambulances are on the road and delivering services which are much needed. The workshops are operating among others in auto glass, panel-beating, recovery, towing, automotive workshops, car wash and spares retailing. AAF chairperson, Sello Mosai, said that the gravity of the situation was such that workshop owners affiliated with them were considering extreme measures rather than face the inability to pay rent or cover essential expenses such as school fees and food for their families. “Historically disadvantaged individual merchants and SMMEs in these contracts operate within South Africa’s legal frameworks with a BBBEE-level 1 rating,” Mosai said. “Despite the government’s good intentions to promote transformation and inclusion of historically disadvantaged individuals, particularly black-owned companies, the ownership patterns in the automotive industry and value chain continue to reflect a concerning picture. “It is abundantly clear that the sector remains predominantly owned along racial lines and concentrated in the hands of the historically advantaged.” The SA Police Service has written a letter to its fleet manager WesBank informing it to stop giving its cars to the small businesses for repairs, alleging that they took too long to fix them, crippling the efficient response to crime. This has threatened to put an estimated 54 000 jobs on the line and about R450 million monthly revenue loss for small independent businesses in the automotive industry. Mosai said they had engaged WesBank about the alleged discrimination and barriers faced by black-owned businesses contracted through the RT46 Tender, adding that they had also raised the matter with the National Treasury and the Department of Transport but little had been achieved or done. The Transversal Term Contracts cluster refers to centrally facilitated contracts arranged by the National Treasury for goods or services needed by one or more institutions. Among the running RT contracts are those administered by Wesbank (RT46), Nedbank, Fleet Africa, and several others. In response to Business Report, WesBank said it followed the rules and guidelines set by the government in the execution of the RT46 Contract. Wesbank said it has implemented several projects with a number of automotive associations and forums to enable skills development for the black-owned SME merchants in the automotive sector, and to ensure they were better positioned to operate sustainably. “Since the inception of the contract in 2021, the majority of the work allocation in the execution of this contract has been given to black-owned SMEs merchants,” it said. “We have about 6 500 black-owned SME merchants on our books that we allocate work to in a fair and equitable manner as prescribed by the contract.” WesBank added that it remained committed to the underlying principles of the contract, which was to provide growth opportunities for black-owned SMEs, while also meeting the need to provide the required services to the network of government Fleet units, which in turn provided critical services to all South Africans. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/black-owned-car-workshops-cry-foul-over-wesbank-blocking-them-from-government-fleet-repairs-tender-d4ace59e-bc83-4cc2-b1e5-6912028d9889

Daniël Eloff | 2 June 2024 Milton Friedman’s remark about the permanence of temporary government programs is epitomized by South Africa’s long-standing BEE, affirmative action, and employment equity policies. Initially meant to address historical injustices temporarily, these initiatives have become entrenched without achieving significant progress. Instead, they have perpetuated inequality and dependency, necessitating a shift towards economic growth and job creation for lasting change. Milton Friedman once quipped that nothing was so permanent as a temporary government programme. Nothing illustrates this colloquial truth as clearly as South Africa’s enduring experiment with Broad-Based Black Economic Empowerment (BEE), affirmative action, and employment equity. In theory and initially, these initiatives were conceived as temporary measures to rectify historical injustices, providing a leg-up to marginalised communities until a more equitable state was achieved. However, decades later, these programmes remain entrenched in South Africa’s socio-economic landscape, our jurisprudence and stubborn bureaucratic agendas, while little to no progress has been made in achieving a better life for all. In fact, they have led to worse conditions for the majority of South Africans. Since their inception, BEE, affirmative action, and employment equity have become fixtures of South Africa’s governance framework. The Employment Equity Act was enacted in 1998, followed by the Preferential Procurement Policy Framework Act in 2000, and Broad-Based Black Economic Empowerment in 2003. Despite the lofty ideals of these pieces of legislation, the practical outcomes have often fallen short of what was promised by the politicians who championed them and still champion them. Temporary Conceptually, Section 42 of the Employment Equity Act envisions employment equity as a temporary intervention, envisaging its cessation once demographic economic parity is achieved in the workforce. Moreover, in her 1995 book  Who’s Afraid of Affirmative Action: A Survival Guide for Black Professionals , anti-apartheid activist Christine Qunta famously remarked that affirmative action “will temporarily give preference to qualified Black persons, to correct past imbalances, until a normal situation has been established.” The prevailing narrative during the 1990s and early 2000s suggested that these measures were necessary evils, expedients to pave the way for a future of equality. The non-racial society South Africa finally achieved had to be put on ice temporarily in order to achieve equality. However, the passage of 30 years has revealed a different truth – one where racialised economic empowerment has failed to catalyse substantive change for the majority of South Africans, and has arguably further entrenched economic imbalances. The irony is palpable: despite the dismantling of racialised policies and the redistribution of economic and political power, the majority of South Africans – predominantly black – continue to languish in poverty. This stark reality begs the question: why have these supposed well-intentioned policies failed to deliver meaningful change? A working paper from Harvard’s Growth Lab challenges the South African status quo, advocating for the elimination of BEE from specifically State-Owned Enterprises procurement to combat issues such as load-shedding. The paper contends that preferential procurement rules, intended to promote black economic empowerment and localisation, have instead burdened state entities and undermined their core functionalities. The Harvard authors argue for a strategic shift away from broad-based procurement requirements towards measures that support early-stage industries and promote local production. They highlight the adverse impact of preferential procurement on state performance, suggesting that these measures are exacerbating rather than ameliorating socio-economic disparities. The crux of their argument lies in the recognition that these policies, while aiming to promote black economic empowerment and local development, have imposed significant costs on state functionality. Rather than fostering genuine progress, they have become burdensome obstacles, hindering for example the core functions of public entities like Eskom. Glaring The evidence is glaring: BEE and employment equity have not catalysed the transformational change purportedly envisioned by their architects. Instead, they have perpetuated a cycle of dependency and inequality, and have become cumbersome economic hurdles, further entrenching inequality within South African society. Despite the now glaring failings of BEE, affirmative action, and employment equity, these initially temporary policies are now entrenched in South Africa’s politics, jurisprudence and bureaucracies. What was supposed to be a temporary solution to a temporary problem has now become an enduring feature of our socio-economic landscape. The 30-year perpetuation of these policies surely puts in doubt the efficacy of our government’s approach to redress. BEE, affirmative action, and employment equity are temporary solutions to temporary problems and inequalities. To accept that BEE, affirmative action, and employment equity are not temporary measures is to accept that the historical injustices that South Africans faced are not temporary nor can they be addressed. And if this were the case, what have BEE, affirmative action, and employment equity in the first place achieved, other than to soothe the conscience of those that have been elected? Racial categorisation If we admit that BEE, affirmative action, and employment equity are not temporary measures, it entails admitting that racial categorisation and division will continue, reinforcing the idea that individuals should be treated differently based on their race or ethnicity. This goes against the principles of equality, non-discrimination and non-racialism, which are fundamental to a just society and are at the core of our constitutional dispensation. In essence, we risk sacrificing these core values for short-term gains, which gains we never see. The only viable path to addressing South Africa’s stark inequalities lies in ensuring robust economic growth and job creation. Rather than focusing on redistributive policies that have proven ineffective, the government should prioritise creating an environment conducive to entrepreneurship, investment, and innovation. Economic growth generates new opportunities and wealth, which can be more sustainably and equitably distributed across the population. By fostering a dynamic economy that encourages job creation and supports small and medium-sized enterprises, we can empower individuals to improve their circumstances through merit and hard work, rather than relying on perpetual state intervention, which ultimately fails. Creating wealth is a more potent and enduring solution than the redistribution of existing resources, as it lays the foundation for long-term prosperity and reduces dependency on state mechanisms that have historically fallen short. The enduring failed legacy of BEE, affirmative action, and employment equity underscores the perils of trading long-term principles for short-term gains. It is increasingly clear that the path to true equality lies not in perpetuating racial categorisation, but in upholding the fundamental principles of equality, non-discrimination, and non-racialism. To paraphrase Benjamin Franklin, sacrificing these core values for temporary upliftment yields neither lasting progress nor moral integrity. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.biznews.com/rational-perspective/2024/06/02/sas-bee-policies-daniel-eloff

Staff Writer | 31 May 2024 South Africa’s business process outsourcing (BPO) sector created 6 018 new jobs countrywide between October and December 2023. This is according to industry body Business Process Enabling South Africa (BPESA), which states that 39% these jobs were in KwaZulu-Natal (KZN). In July 2023, it was reported the sector contributed around R1.3 billion to the country's export revenue, says BPESA. Additionally, the KZN South Coast has emerged as a top destination for growth and investment, it notes, with BPO operators looking for alternative tier two locations closer to the talent pool, with reduced property costs. “The KZN South Coast has beautiful tourist towns; stable, warm year-round weather; and a pleasing landscape that makes it a great destination from which to operate,” explains Reshni Singh, CEO of BPESA. “There is a very active community ensuring maintenance and upkeep, with businesses and citizens working effectively together to ensure sustained operations. The property sector is driving a lot of the activity, with the area open to business and growth.” Compounded by a weak economy, SA’s joblessness has continued to rise. The official unemployment rate stood at 32.9% in the first quarter this year. Youth aged 15-34 years remain vulnerable in the labour market, with the rate of unemployed youth increasing to 45.5% during the period under review. The BPO sector, sometimes referred to as the global business services (GBS) sector, has been identified as the green shoot that can help overcome the country’s unemployment, with the sector targeting 500 000 new jobs by 2030. BPESA – through key collaborations – is charged with promoting SA as a premier offshoring destination to stimulate local job creation, attract investment, and ensure excellence in service delivery and management across the GBS sector. Singh highlights Port Shepstone, Scottburgh, Ramsgate, Southbroom, Pennington and Margate as key sites for BPO hubs. “The local Margate Airport and easy commute from King Shaka International Airport make this an accessible destination, with abundant skills and talent from the tourism sector offering entrenched customer-centric service skills, which are a prerequisite for the BPO sector. Business incubators, such as a satellite office of SmartXchange, help to grow businesses and build digital skills.” Singh further indicates the KZN South Coast is comparable with tier two regions that are already seeing sector growth, among them George and Mitchells Plain in the Western Cape; Gqeberha and East London in the Eastern Cape; Soweto and Alexandra in Gauteng; and Ballito, uMlazi and Dundee in KZN. Deborah Ludick, acting CEO of South Coast Tourism and Investment Enterprise , comments: “We have a business-friendly investment climate supported by the launch of our Ugu District One-Stop Shop, with access to an abundance of young, educated and tech-savvy workers ready for employment. “The sector also promotes socially-conscious practices, while upskilling young and disadvantaged individuals for further career prospects, making it an industry worth promoting.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/local-bpo-sector-bulks-up-employment-in-q4/Olx4zMkarNkv56km

The Citizen | 3 November 2024 NATIONAL NEWS - Budget airline FlySafair faced off with both the Air Service Licensing Council and its own pilot body in the same week. Then, while the council ruled against the airline about its controversial foreign ownership, trade union Solidarity threatened strike action by the carrier’s pilot body. In a drawn out hearing and deliberation process, the Air Service Licensing Council ruled late on Friday that the airline’s foreign ownership structure does not comply with current regulations. As it stands, foreign ownership of a domestically registered airline is limited to 25%. In a submission to the council in May this year, its competitor Lift suggested that FlySafair’s majority ownership lies in Ireland with shareholder ASL Aviation Holdings holding a vast majority of the issued equity in the company. In an internal WhatsApp message, FlySafair chief executive Elmar Conradie said to staff that the council “has found that we are non-compliant, and they have advised us that they will share further communication around their sanction and their reasoning within 20 working days”. Conradie added: “This is obviously not the outcome we had hoped for, but it is [a relief] to have some forward traction on this matter after a long wait. We obviously believe that we are, and have always been, compliant with the limitations of foreign involvement, and have taken senior legal advice on the topic at every turn.”  Prior to the council ruling, the carrier submitted an urgent application in the Pretoria High Court in October asking for a legal interpretation and clarification on the rules relating to airline shareholding and control, arguing that clarification is essential for the entire airline industry as different interpretations of these rules could lead to serious consequences, such as suspensions of operating licences, which would disrupt air travel and harm the economy. The current case echoes the 2013 Comair challenge to FlySafair’s ownership, during which the judge expressed strong doubts about its compliance with legal requirements.  In 2014, FlySafair responded by challenging Comair’s shareholding when the regulator attempted to suspend Comair’s licence, though Comair ultimately succeeded in overturning the suspension in court before going defunct. FlySafair spokesperson Kirby Gordon said: “We wish to offer our customers assurance that this decision has no immediate impact on our operations as we pursue business as usual.” Strike looming for FlySafair? In another potential setback for FlySafair, strike action could be on the horizon. Trade union Solidarity has notified the airline this week that it is seeking a strike certificate, supported by 93% of its members, due to a dispute over a new rostering system set to start in February. Solidarity said the crew were unhappy and expressed frustration with FlySafair’s intent to proceed with the changes despite ongoing consultations with labour. “We are compelled to take action on behalf of our members,” Solidarity wrote in a letter seen by The Citizen , while also expressing willingness to explore alternative solutions for an amicable resolution. Gordon declined to comment on the matter, saying that FlySafair does not comment on union matters but would issue a statement “in due course if we deem it necessary”. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.mosselbayadvertiser.com/News/Article/National-News/flysafair-not-compliant-with-foreign-ownership-rules-says-licencing-council-202411030531

Technology News | 3 June 2024 We’re living at a time when technology has the power to transform society. The digital age therefore presents a range of opportunities for South Africa’s youth. A recent study by the Oxford Internet Institute reveals that internet access and use are consistently associated with positive wellbeing. This data underscores the importance of equipping our youth with digital skills and tools. With the government’s commitment to supporting the digital economy through strategic platforms like the Fourth Industrial Revolution (4IR) Project, it is crucial that we foster an environment conducive to learning and innovation. The private sector plays a pivotal role in this regard, training and upskilling young people for the digital economy. But it’s not enough to create a competent workforce; it’s also about empowering our youth to leverage technology to build a better world. One initiative that embodies this ethos is Telkom’s Centres of Excellence (CoE). A post-graduate research programme, CoE encourages young scientists and engineers to develop high-level ICT skills while also bolstering South Africa’s competitiveness on the global stage. To date, the programme has invested more than R408 million in technical skills development, producing more than 3 560 masters and doctoral degrees in engineering and computer science. We also recognise the transformative power of entrepreneurship. Through our Telkom FutureMakers Programme, Telkom supports social entrepreneurs who are making a difference in their communities. One notable aspect of this programme is the Township Innovation Incubator, which aims to nurture township SMMEs that are using ICT innovation to address community challenges. This initiative seeks to level the playing field, providing young entrepreneurs with the resources they need to turn their business ideas into reality. But empowerment goes beyond skill-building programmes and career-development resources. It requires a solid educational foundation. The Telkom Foundation, established in 1998, is committed to investing in education as a means to effect meaningful change in South Africa’s communities. Through the Telkom Foundation, learners are supported from Grade 8 through to university, particularly in fields like computer science and engineering. This long-term investment in education has yielded impressive results. Recently, out of 4 000+ matriculants from Telkom Foundation schools, 870 achieved distinctions, with about 39 scoring between four and seven distinctions, mainly in maths and science. These initiatives demonstrate a concerted effort to empower our youth and prepare them for the future. They provide a blueprint for how businesses can contribute to societal transformation, particularly in the digital economy. However, the responsibility does not lie solely with the private sector. It requires a collective effort from all stakeholders – government, educators, parents, and the youth themselves. We must all rally behind our young people, supporting their endeavours and nurturing their potential. While the challenges faced by today’s youth are daunting, there are ample opportunities for growth and development. Through educational opportunities, skill-building programmes, and career development resources, we can equip our youth with the tools they need to thrive in the digital age. And in doing so, we are not just investing in their future; we are investing in the future of South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://za.investing.com/news/technology-news/to-empower-the-youth-is-to-invest-in-the-future-3177154

Duncan McLeod | 4 June 2024 Canal+ and MultiChoice have hinted at how they will seek to get around strict foreign ownership restrictions in South Africa. France’s Groupe Canal+ and its acquisition target, JSE-listed MultiChoice Group, have hinted at how they will seek to get around strict restrictions on foreign ownership of broadcasters in South Africa if their deal is given the go-ahead by shareholders. The two companies issued a joint circular (PDF) to shareholders on Tuesday in which they set out in more detail the terms of the proposed mandatory all-cash transaction, valued at R125 per MultiChoice share. There’s still no detailed clarity, however, on exactly how they intend to navigate the restriction, which is contained in the Electronic Communications Act and which prohibits foreign entities from holding more than 20% of the voting rights of a South African broadcaster. This restriction in the ECA may prove to the biggest stumbling block in the way of consummating the deal between the two companies. “Canal+ and MultiChoice are respectful of all applicable laws and regulations relating to the sectors in which they operate,” the two firms said in the joint circular. “Certain entities within the MultiChoice Group are subject to the applicable laws in the electronic communications sector in which MultiChoice operates that have foreign control restrictions. These include section 64 of the ECA, which places certain restrictions on foreign entities (such as Canal+) in respect of commercial broadcasting licensees,” they said. “In light of the duty on Canal+ to make a mandatory offer for the MultiChoice shares, Canal+ and MultiChoice are in the process of assessing and finalising suitable structuring options and potential transactions, which may be undertaken by the MultiChoice Group on or shortly before the closing date to ensure compliance with the applicable limitations on foreign control while also maintaining MultiChoice’s broad-based black economic empowerment credentials,” they said, without elaborating. Compliance The parties have, however, given themselves until April next year to finalise the offer to MultiChoice shareholders, allowing them time to figure out the best way of achieving this outcome. But they’ve hinted strongly at how they intend to deal with the ECA foreign ownership restriction. “In terms of the cooperation agreement … MultiChoice shall take such actions or series of actions as may from time to time be agreed in writing between Canal+ and MultiChoice to ensure compliance by the MultiChoice Group upon closing date with the ECA and certain other applicable laws and regulations promulgated under the ECA and the Icasa Act.” No agreement has been reached between the parties in this respect, but MultiChoice and Canal+ may agree to: A corporate reorganisation of the MultiChoice Group; and/or Participation by one or more local B-BBEE partners; and/or Mechanisms to limit the voting rights of foreigners and/or a limit to MultiChoice’s voting rights over the licensed entities in the MultiChoice Group. “Canal+ and MultiChoice will provide further details in this regard (including any transactions in connection therewith) as soon as reasonably practicable.” Meanwhile, an independent board has reviewed the valuations prepared in an independent expert’s report and concluded that the terms and conditions of the Canal+ offer of R125/share are fair and reasonable to MultiChoice shareholders. “It has therefore recommended the offer to MultiChoice shareholders in the event of it becoming unconditional.”  — © 2024 NewsCentral Media ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://techcentral.co.za/canal-plus-multichoice-ownership-rules/245728/

Citadel | 4 November 2024 Citadel’s Chief Economist says the medium-term budget was fair and transparent – and made it quite clear that more hard work was needed to fix economic growth, growing debt and the country’s continued greylisting. Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS) delivered today poured cold water on all the good news the market was expecting about an improving economy following the formation of a Government of National Unity (GNU), improved energy security and lowering inflation, according to Citadel Chief Economist, Maarten Ackerman. “From the minister’s opening sentence (on domestic outlook), the MTBPS was a reality check on the positive expectations prior to this announcement. There were no short-term wins in any of the numbers. The rand weakened and bonds sold off immediately because the budget is based on the reality on the ground and not just positive thinking. We can’t fault the budget, however. The process has been thorough and world class,” said Ackerman. DEBT AND HIGH EXPENSES STILL BLOCK SOUTH AFRICA’S ECONOMIC GROWTH Godongwana announced a forecast for real Gross Domestic Product (GDP) growth of only 1.1% in 2024, which was lower than the estimate of 1.3% he announced in February. Over the medium term, growth was forecast to average 1.8%, with the best-case scenario being 2.5% and worst-case scenario potentially reaching a low of 0.5% growth. To improve the situation and achieve higher inclusive growth, Godongwana said the country needed to focus on four growth pillars: macroeconomic stability, structural reforms, growth-enhancing infrastructure, and improved state capability. Ackerman believes that economic growth reform was “contingent on structural reforms”. “The big elephant in the room is still the public sector wage bill, and today we were told we rank third highest in the world at about 14% of GDP, whereas the global average is only 10%. They also made the point that we are much higher than the rest of the world on general government employment levels, so it is good news to hear that the government is offering about 30,000 public servants early retirement packages. In the short-term unfortunately, it feeds into the government’s high debt (at a cost of R11 billion), but we appreciate that it is a difficult task and at least they are taking big steps to lower the wage bill.” On the topic of government debt, the Minister announced that South Africa’s debt-to-GDP ratio sat at an “unsustainable” 75.5%. “The only reason we are still sub-80% is because of the monetisation of the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) in February, which took away some of Treasury’s funding pressures. On the positive side, we did achieve a positive primary balance, but that excludes debt payment costs…. which we can’t just ignore as it is now more than 20% of budget expenditure said Ackerman. Ackerman said it was very concerning that South Africa fared the worst out of 94 emerging market economies in terms of the country’s debt trajectory. Both the percentage of debt-to-GDP and the country’s debt servicing costs were far higher than all the other emerging markets. GOOD AND BAD NEWS ON SOUTH AFRICA’S GREYLISTING Godongwana said it was good news that the Financial Action Task Force (FATF), the international body that greylisted South Africa, found that the country either largely or fully addressed 16 of the 22 action items on its checklist. Ackerman however cautioned that the remaining items, which included the need for more sustained prosecutions of high-profile financial crimes, were the hardest items on the list. “It is highly unlikely that South Africa will tick all the boxes it needs to before the FATF’s next assessment in February 2025. It may take another year to get off the greylist,” said Ackerman. EXPANDED INFRASTRUCTURE SPENDING BRINGS SOME GOOD NEWS “Infrastructure spending is always a great injection into the economy,” said Ackerman. “Half of what we are spending on is needed, like improving our ports and rail system. But there is more we need to do in terms of structural reforms to get the economy back to capacity growth. This is why it was good news today to see that Project Vulindlela added three new items to its second phase, including smart cities, digital public infrastructure and strengthening local government’s ability to deliver basic services.” He added local government debt relief, which would enable municipalities to pay their debts to ESKOM and the Water Board, was a positive step forward, “but the numbers are still enormous.” CONCLUSION “It was very prudent of Treasury to not be too optimistic, because they have to take global headwinds into account, as well as many remaining local structural issues that will take some years to address,” said Ackerman. Looking at Godongwana’s current budget, he anticipated that above capacity economic growth is only likely in years to come. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.fanews.co.za/article/economy/43/general/1198/medium-term-budget-a-cold-shower-of-reality/40521

Kamogelo Moichela | 5 June 2024 Despite its traction, political analyst Professor Sipho Seepe is adamant that an ANC-DA coalition is likely to be fraught with policy challenges and potential conflicts such as power dynamics, land, Broad-Based Black Economic Empowerment (B-BBEE), and foreign policies. For the first time in the history of democracy, the ANC which has been ruling for 30 years, is engaged in heavy talks with opposition parties in a bid to form a new government but a coalition one this time. This is after the ANC suffered a massive defeat in the 2024 election. The ruling party got 40.18%, failing to reach at least 50% support to retain absolute power in the country which forced it to settle for a coalition government. The policy divergent between both parties includes the National Health Insurance Act (NHI), B-BBEE, and the Basic Education Laws Amendment Bill (Bela Bill). The DA recently slammed the ANC-led government for signing into law the NHI. Seepe said the coalition plan has raised concerns among many South Africans, particularly ANC members and their allies, including the Congress of South African Trade Unions (Cosatu). With a combined support of more than 60%, a coalition between the ANC and the DA would enable them to control the National Assembly. Cosatu rejected the coalition, accusing the DA of being against the idea of improving and protecting the rights of workers. On land, the DA states that land reform should be expedited by using the willing buyer-willing seller approach. ANC states: Restitution of land: Giving back land that was taken from its original owners during colonial and apartheid periods. Here is a picture between the two parties on B-BBEE: ANC - Economic transformation: Increasing black ownership, control, and participation in important industries to establish a more egalitarian economy. DA - Economic empowerment for all: According to the DA, empowerment ought to be predicated more on economic necessity than racial class. Meanwhile, the ANC has not ruled out working with the Economic Freedom Fighters (EFF) and uMkhonto weSizwe (MK) Party, but this has been met with criticism from the business community. The ruling party has also been in talks with the Inkatha Freedom Party (IFP) for a government of national unity. Seepe further said in all the negotiations, the ANC will remain a senior partner. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/nhi-b-bbee-land-policies-might-blow-up-anc-da-coalition-says-prof-seepe-64c1b043-c250-42d5-adf2-b9290e17938d

Brand South Africa | 6 June 2024 We are at the end of the 6th administration in South Africa’s 30-year-old democracy. Though an infant in comparison to its sister countries across the African continent who’ve gained their independence earlier, South Africa has grown in leaps and bounds to ascend into the realm of the upper echelons of economic prosperity. As a preferred investment destination on the continent, its quest to build a formidable and developed nation is not without bounds. As citizens look forward to ushering in the 7th administration, they wait in anticipation for a government that’ll set a positive tone for the next 30 years and beyond.   Chief among some of the challenges is economic development that’ll bring about a remedy for the country’s incremental unemployment rate within this evolving digital era. It is without any shadow of a doubt that the multiple sectors that make up our economy exhibit prospects of exponential growth. The one thing that they all have in common is that they all have some level of dependency on the Information and Communication Technology and Digital sector, and as these sectors continue to progress, they warrant a rise in the development of the Digital sector. The government, business and civil society have come to understand this imminent and inevitable need that South Africa has. Since the first South Africa Investment Conference (SAIC) in 2018, investments in the digital economy have grown exponentially over the past five years. Our country has received commitments of R200 billion ($10,5 billion) in total investments for our country’s telecommunications network by Vodacom, MTN, Telkom, Rain and Liquid Telecom.   South Africa’s geographic location touches multiple oceans and as such, has traditionally put us at a great advantage of a network of subsea communication cables that connects us to other continents. Furthermore, our country’s high internet penetration rate has attracted investments from international companies that have begun to cement South Africa’s position as a subsea landing hub in the sub-Saharan region and a point of entry for those companies looking to broaden their horizons into the rest of the African continent. A good example of these investors is Google, who’ve made a commitment to collaborate with the government to bridge the 30% digital penetration gap to give more South Africans access to the internet. According to their CEO, Dr. Alistair Mokoena, they estimate that there will be another 300 000 000 users coming online in Africa by 2030 thus the urgency in ensuring that demand is met.   Their investment towards the subsea network of cables is expected to add $6.7 billion to South Africa’s GDP and add 180 000 indirect jobs resulting from the infrastructure’s widespread economic impact. On top of that, Google seeks to address data storage through its first ever Google Cloud Region in Africa where cloud region signals will be made available for their partners, society, end users and their customers. This investment is set to add $2 billion to South Africa’s GDP and 40 000 indirect jobs to the economy.   Another multinational that has been around for as long as the existence of South Africa’s democracy is Microsoft. The blue-chip organisation is doubling down on its commitment to advance capabilities for Small, Medium and Micro Enterprises (SMMEs) and the youth through a R1,3 billion ($69,6 million) investment. Microsoft’s programmes are designed to build ICT capability so that South Africans can create new ways to address youth unemployment, employability, inequality, sustainability, and global competitiveness in the areas of Data Analytics, Cybersecurity, AI and Machine Learning. These include digital transformation for up to 42 SMMEs and startups, alignment with 18 TVET colleges to enhance the employability of students and the support of up to 20 advanced research and development projects to address the current and future policy needs of the country in cyber security and AI.   According to the Minister of Trade, Industry and Competition, Mr. Ebrahim Patel, “The Fund 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”. Enabling them to harness the potential of rapidly developing technologies through advanced skills.   True to their nature, institutions of higher learning have kept their finger on the digital economy’s pulse as well. Quite recently, we’ve seen the University of Johannesburg, through its Johannesburg Business School, join forces with the Chemical Industries Education and Training Authority (CHIETA) to create an innovative research project to address critical skills development. Their research objectives include Virtual Reality (VR), business intelligence and skills forecasting among others to upskill young people to make a meaningful contribution in our digital sector.   These interventions prove yet again that the development of our country’s digital ecosystem will make a significant contribution to the growth of our economy in all aspects. Let us continue to educate and empower ourselves with the relevant knowledge and skills that’ll lock our spot at the helm of economic prosperity in Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://brandsouthafrica.com/167552/news-facts/development-within-south-africas-digital-economy-underscored-as-a-solution-to-economic-growth/

Mamsi Nkosi | 8 June 2024 South Africa’s ICT sector is currently experiencing a significant hiring slowdown, with recruitment declining by 11% year-on-year compared to the first quarter of 2023. This is according to the latest CareerJunction Employment Insights report, gathered from Saongroup South Africa, which works with over 5,000 of SA’s top recruiters. According to the report, despite the continued demand for IT skills, the sector continues to experience a dip in hiring activity, with a 26% year-on-year decline over the last two years. In South Africa, big businesses have eyed layoffs in various sectors as a way to navigate uncertain economic times. Economists from the Bureau of Economic Research reported that despite a recent one percentage point increase in the unemployment rate from 32.9% to 33.9%, it remains bleak. Tech business leaders share their insights on what can be done to turn the economic tide, not only from a job creation perspective, but also to create meaningful work experiences and provide accredited training for the digital skills of the future. Salesforce Salesforce research has indicated that more than 60% of full-time desk workers do not have the skills to use generative AI technology, even though most of them are convinced this knowledge will advance their careers. As a result, training the next generation, as well as reskilling the current generation when it comes to AI, is a key component of the tech revolution According to Ursula Fear, Senior Talent Programme Manager at Salesforce South Africa, AI specialists need to be empowered to implement rapidly, monitor, and ensure best security practices when it comes to AI. “We need to act urgently to mitigate the fact that we don’t want to have too many certified yet unemployable young people entering the workforce. Importing talent is not a long-term solution and we cannot extend the contracts of those who enter the country to fix the problem now. We need to upskill locally and ensure that we have the talent to take the vital technology sector, which contributes about 8% to the economy , to the next level,” says Fear. “South Africa requires a mindset change, and the government cannot address the skills crisis alone. It requires collaboration and partnership from the business sector to form long-term solutions that tangibly address the existing digital skills gap by providing youth with hands-on experience. Education and tertiary certifications form a critical component of empowering our current and future ICT workforce, but what is truly needed is the provision of hands-on experience and mentorship to sustainably develop leaders and entrepreneurs of the future and grow the South African economy,” adds Fear. Blink by MiWay: Embracing technology means creating opportunities Technology is here to stay, and with high unemployment levels in South Africa and a tech job crisis, there are many ways in which we can use technology to create opportunities, both professionally and personally. “As a technology-first business, we highly value the right digital skills and appreciate that what encompasses digital and tech skills is constantly being expanded, along with digital innovation”, says Keletso Mpisane, Head of Blink by MiWay. Skills needed in the insurance sector include analytical skills, attention to detail, legal knowledge, and technical proficiency. These skills all abide by the use of technology, specifically with data control and the use of big data. The development of these skills is needed for the insurance sector, which provides a platform for those skills to be honed and nurtured and creates opportunities for work. Zoho: The right tech tools at the right price As Andrew Bourne, Regional Head, Africa at Zoho, believes, “the right tech tools, at the right price can support digital literacy and develop the ICT skills South Africa needs”. In fact, says Bourne, “we need to future-proof children so that they are equipped to apply for jobs that require digital and development skills”. “With low-code platforms, for example, citizen developers can create complex and powerful business applications without requiring costly and lengthy training. Most low-code application development can be managed with users who only have moderate technical knowledge,” he adds. Sportingbet: Innovation sparks job creation The rise of online sports betting platforms is creating new skills development and employment opportunities, with technology playing a crucial role in job creation, in particular for women. Gail Odgers, Head of Acquisition at Sportingbet, says: “It’s important for systems to be put in place that facilitate mentorship, learning opportunities, and skill development for women, and this needs to be a continuous process. Also, soft skills development and engagement leveraging industry updates, coaching, and engaging with other women in the industry at conferences. “I feel positive about the future outlook for sports betting in South Africa. Things look very different today than they did even five years ago. We are seeing more women rising in this space and it would be good to see more women in sports betting business ownership,” adds Odgers. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itnewsafrica.com/2024/06/how-can-tech-innovation-address-sas-employment-crisis/

Jo Mangaliso Mdhlela | 10 June 2024 Trade union federation Cosatu says it will be engaging the Public Investment Corporation (PIC), which invests on behalf of the Government Employees Pension Fund (GEPF), as well as the government, to push for workers to be included as owners of African Bank.   “This can come in the form of shares owned by African Bank employees as well as a strategic stake by the PIC,” Cosatu spokesperson Matthew Parks told Sunday World this week.  The African Bank Group has reported an encouraging turnaround in its consolidated unaudited interim financial results for the six months ended March 31, 2024.  The bank achieved a net pro-fit of R203-million and a reduction in impairments of 40% through a tightening of lending criteria and a shift in its net advances mix.   The group has also recorded a 38% increase in its customer base, which currently stands at 5.7-million.  Parks said Cosatu welcomed the successful intervention and turnaround strategy led by the South African Reserve Bank.   “We support the broad-based black economic empowerment strategy about its ownership as the banking sector has not moved at the pace the country expects regarding transformation and diversity,” he said.  “Cosatu will be engaging the PIC who invest on behalf of the GEPF as well as the government to push for the workers to be included as owners of the bank,” Parks said.   Group CEO Kennedy Bungane said despite operating in a tough economic climate, the results reflected a turnaround of African Bank.   “This was bolstered by the integration of Grindrod Bank into the Business Banking division, a move that received regulatory approval in March.   “The acquisition positions African Bank to better serve underserviced small, medium, and micro enterprises and entrepreneurs, aligning with its foundational vision in the business banking sector,” said Bungane.  Respected businessman, publisher and activist Dr Thami Mazwai praised the strides the African Bank was making to have a consortium of black businesspersons partake in the acquisition of a majority stake in the banking business.  Mazwai, a former Robben Island political prisoner, and visiting professor of entrepreneurship at the University of Western Cape and chairman of Mtiya Dyna-mics, said this move was long overdue, “and should have happened a long time ago”.  “This initiative by the African Bank reflects the vision espoused by people such as Dr Sam Motsuenyane, the founding father of the National African Bank during the difficult period of apartheid and discrimination, who was also a pioneer of the National African Federated Chamber of Commerce and Industry,” said Mazwai.  “Cosatu and Nactu were integral part of the liberation struggle and played a critical role in the liberation of our people. I will be glad if this will also be expressed in economic participation of these trade union federations,” Mazwai said.  The bank maintains a surplus liquidity of R7.9-billion in cash reserves, excluding statutory asset requirements. The capital adequacy position remains robust at 32.5%, despite recent acquisitions, exceeding both regulatory and internal minimums.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/workers-deserve-stake-in-african-ban-cosatu/

Creamer Media : 10 June 2024 With technological advancements rapidly changing the face of work and employees having to acquire essential new skills, the need for corporate training has never been greater. The results of a 2023 survey by global professional services network Deloitte found that 56% of South African respondents said between half and their entire workforce complement would be required to change their skills in the next three years to remain competitive. Additionally, the LinkedIn 2023 Workplace Learning Report says 89% of professionals believe developing employee skills will help companies navigate the changing work environment . Given the speed at which the corporate environment is changing, the temptation to roll out employee training as quickly as possible is certainly there. However, companies also need to be wary of sacrificing the effectiveness of programmes and adherence to regulations as they seek to expedite these processes. Muhammad Ali, managing director of South African ISO specialist World Wide Industrial & Systems Engineers(WWISE), points out that standards set out by the International Organization for Standardization (ISO) can play a crucial role in assisting South Africa ’s companies in their training endeavours. “Human resources practitioners will want to consider standardisation for various reasons,” Ali says. “A significant one is that ISO standards are now aligned with the South African Education and Training Authority (SETA) as well as the Quality Council for Trades & Occupations (QCTO). Tax rebates and the Skills Development Levy (SDL) are among the benefits,” he explains. Aside from this, since many training requirements are also legal requirements, compliance is effectively built into the programme. The result of this is conformity that ensures the standard of product or service is consistent. Furthermore, Ali says, companies can use ISO to ensure their suppliers meet international standards and, in many cases, this improves the relationship. “Identifying the skills shortage and working with a skills development programme are all part and parcel of any SETA, SDL and QCTO programme, all of which are governed by law in South Africa . By training and upskilling employees, their productivity and efficacy improve. “Evidence of effective utilisation of the training is crucial, so it is important to measure this against objectives and key performance indicators.” Most companies implement ISO standards when the need arises from tender or client requirements. Simply put, failure to meet these can result in the firm losing the contract.Ali says top management needs to create a level of governance that optimises processes and best practice standards. “Once implemented, the induction phase is critical in integrating new employees into the culture of the organisation by demonstrating the ISO management systems and how to effectively use them to understand policies, conformance values and consequences of not following the standards. There are various ISO standards applicable to training programmes, including: ISO 9001 – Quality Management Systems . Creates overall corporate governance using a risk and process-based approach with an internal and external client focus. ISO 14001 – Environmental Management Systems . Creates an understanding of environmental impact in all organisations, from paper usage to waste . ISO 45001 – Occupational Health & Safety Management Systems . Create a system where injuries, ill health and all safety hazards are accounted for with mitigating controls. ISO 27001 – Information Security , Cybersecurity and Privacy Management System . To manage the data and information through all processes in the organisation to preserve the confidentiality, integrity and availability of Information. It also focuses on competence (education, training and experience) and controls related to onboarding employees with induction and respective privacy laws. Ali adds it is essential for all company stakeholders to buy into ISO standards for training programmes to be successful. “Facilitators need to ensure trainees commit to the programme by providing engaging content with practical examples. Resistance to change is simply not an option.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/iso-standardisation-can-bring-the-best-out-of-corporate-training-2024-06-10