The Fried Tomato | 10 June 2024 Johannesburg, 10 June 2024: Daybreak Foods, a prominent player in the agribusiness sector, has taken a commendable step towards addressing the critical issue of youth unemployment in South Africa. The company is launching a partnership with the Youth Employment Service (YES) Programme, an initiative that is a beacon of hope for many young individuals who are seeking opportunities to kickstart their careers in agriculture and related industries. The YES Programme, which has been instrumental in creating job opportunities for the youth, aligns perfectly with Daybreak Foods’ commitment to social responsibility and economic development. The collaboration is set to provide 104 participants with invaluable work experience across all sectors of Daybreak’s business, fostering a new generation of agribusiness leaders. Richard Manzini, Daybreak’s CEO and a key figure in this partnership, has been actively involved in promoting opportunities in the agribusiness sector through his presentations at Mpumalanga University and Fort Hare University in recent weeks. His efforts have both highlighted the potential of the agricultural sector in driving economic growth and inspired many young minds to consider agribusiness as a viable and rewarding career path. The impact of such partnerships cannot be overstated. They play a pivotal role in equipping the youth with the necessary skills and experience required to thrive in the competitive job market. Moreover, by focusing on agribusiness, Daybreak Foods is nurturing talent in a sector that is crucial for the country’s food security and sustainability. Manzini comments “Daybreak has to prioritise fulfilling its investment mandate to advance transformation in the agriculture industry, one of the least transformed sectors in the country. Job creation and preservation, including jobs for youth, and creating meaningful economic platforms to address poverty in our host communities, are key to our success.” The initiative by Daybreak Foods is a testament to the power of collaboration between the private sector and youth empowerment programmes. It serves as an example for other corporations to follow, emphasizing the importance of investing in the future workforce for the betterment of society as a whole. As South Africa continues to grapple with high levels of youth unemployment, it is encouraging to see organisations like Daybreak Foods stepping up to make a difference. The partnership with the YES Programme is more than just a corporate social responsibility endeavour; it is a strategic investment in the nation’s future and a step towards a more prosperous and inclusive economy. “We will write a better future; not because we are re-writing the past. No, simply because the future and present require it of us. It is who we are and our youth are a mainstay of our future.,” says Manzini , leaving it clear that he is here to tell the South African corporate story of how we can run and create great businesses that are globally competitive and inclusive. For more information on the YES Programme and its impact on youth employment, readers can explore details on the dedicated YES Programme blog. Additionally, those interested in the contributions of Richard Manzini to the Agri sector can look forward to updates on Daybreak Foods social platforms. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mypr.co.za/daybreak-foods-announces-partnership-with-youth-employment-service-yes-programme-to-address-critical-issue-of-youth-unemployment/

BEE 123 | 11 June 2024 Four years ago, Skills123 embarked on a mission to transform lives and uplift communities through the power of education and skills development. This month, we celebrate the incredible journey and achievements of this remarkable organisation, which has been dedicated to upskilling youth and fostering training and development with unwavering passion and commitment. A vision of empowerment Founded on the belief that equipping young individuals with the necessary skills can open doors to countless opportunities, Skills123 has been a beacon of hope in a world of constant change. Recognising the evolving demands of the job market, Skills123 has worked tirelessly to bridge the gap between traditional education and the practical skills needed for modern careers. From its inception, Skills123 adopted an innovative and inclusive approach. The organisation understood that true empowerment comes from providing not only technical skills but also fostering critical thinking, creativity, and resilience. Over the past four years, this holistic vision has yielded remarkable results, touching the lives of thousands. Marrying business needs with transformation goals Central to Skills123's philosophy is the belief in marrying a company’s operational requirements with their B-BBEE scorecard obligations. By aligning training programs with both business needs and transformation goals, Skills123 ensures that companies achieve a return on investment while driving sustainable transformation. This integrated approach has been key to Skills123’s success, helping businesses grow and prosper while making a meaningful impact on the community. Transforming lives through comprehensive training One of Skills123's most significant achievements has been their comprehensive training programs, which have reached thousands of young people across various regions. These programs are meticulously designed to address the specific needs of diverse industries, ensuring that participants gain relevant and practical skills. From learnership programs and skills of the future workshops to leadership training and entrepreneurship courses, Skills123 has left no stone unturned in its quest to prepare the youth for the future. Their standout success stories include programs that have empowered over thousands of young individuals with cutting-edge technical skills. Graduates of these programs have gone on to secure permanent employment in leading companies and continue to contribute to the economic transformation of their communities. The stories of these young trailblazers are a testament to the profound impact of Skills123's initiatives. Milestone achievements and impact A significant milestone in Skills123's journey is the recent graduation of 58 talented disabled individuals from one of its key learnership programs, with an additional 2 set to complete later this year. Out of this graduating cohort, an impressive 52 learners have already signed absorption contracts for permanent employment. This achievement underscores the real-world impact of Skills123’s initiatives, reflecting the dedication and hard work of both the learners and the organisation. In partnership with one of our flagship clients, we facilitated a successful bursary fund, valued at R32m, which provided over 200 students with the opportunity to advance their studies. This initiative supported students in STEM disciplines, covering tuition fees, registration, accommodation, devices, textbooks and an annual living allowance. Such efforts not only provide financial assistance but also empower students to access quality education and reach their full potential. The wrap-around support enabled them to focus on their studies. Programme Types & Skills123 Impact Over 4-years Programme Type # of learners # of clients per programme Learnership <2495 138 Bursary 280 11 YES 3186 120 Internship 255 24 Short course/skills programme 179 9 Grad programme 12 1 Total 6407 303 These numbers speak volumes about the impact Skills123 has had on the lives of young individuals. The organisation has not only provided education and training but has also created tangible opportunities for permanent employment, further studies, and personal growth. Pioneering innovative solutions In an age where adaptability is key, Skills123 has continually evolved to meet new challenges. The Covid-19 pandemic posed unprecedented obstacles, yet Skills123 swiftly transitioned to virtual training models, ensuring that learning never stopped. Their resilience and ability to innovate during trying times have set a benchmark for other organisations. Moreover, Skills123’s collaboration with industry leaders and educational institutions has led to the development of cutting-edge curricula and certification programmes. These partnerships have not only enhanced the quality of training but have also provided participants with valuable industry insights and connections. Looking ahead: A bright future As we celebrate Skills123’s fourth anniversary, it is clear that their journey is just beginning. The foundation they have built over the past four years is solid, and their vision for the future is both ambitious and inspiring. With plans to expand their reach, introduce new programmes, and continue fostering a culture of continuous learning, Skills123 is poised to make an even greater impact in the years to come. Skills123’s four-year journey is a testament to the power of vision, dedication, and community. They have not only transformed lives through skills and training but have also created a movement that champions the potential of every young individual. By aligning business needs with transformative goals, Skills123 ensures a sustainable and impactful approach to empowerment. As we look back with pride and forward with hope, one thing is certain: Skills123 is lighting the path to a brighter and more empowered future for our youth. Here’s to four years of incredible achievements and to many more years of transforming lives. Happy anniversary, Skills123! ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/celebrating-4-transformative-years-skills123-journey-to-youth-unemployment-alleviation-014365a

Arrive Alive | 10 June 2024 Empowering young people with skills and knowledge is an essential activity in building and maintaining the economy of any society. The spotlight is increasingly falling on vocational skills and the Retail Motor Industry Organisation (RMI), the leading voice in the automotive aftermarket, says that during Youth Month there is no better time to applaud Government’s efforts to tackle youth unemployment in the long term by prioritising education and the skills deficit that exists. Ipeleng Mabusela, RMI CEO: Strategy and Corporate support says if the country wants to address the current skills crisis we need to strengthen and build more TVET Colleges and shift focus towards more vocational and technical education. “Vocational skills form the backbone of any economy and can be a valuable stepping stone to advanced careers in the future,” he says.  In the automotive aftermarket sector specifically, growth is definitely predicted from the small to medium businesses that are going to drive the economy. “It is here that we are sitting with a skills crisis of technicians across the automotive sector. As an industry we have to address the automotive skills shortages, reduce unemployment and be part of real transformation. The reality is that there has been no real skills development and/or under-investment in human capital for many years in our country. Skills have been outpaced by technology and there has been a loss of businesses and profits. Improved skills will result in increased productivity. It is all about professional standards and changing of perceptions and encouraging business owners to draw in new entrants into the sector,” says Mabusela.  Mabusela believes if we can drive the inclusion of more apprentices and start migrating the informal business into the formal sector, we will have a far stronger sector.  “Significantly for every small and informal business or every apprentice successfully converted and absorbed into the formal sector, 5 jobs are likely to be created. Each of these newly employed people in turn, financially support another 20 people on average in the process,” he says. And this commitment is not filled with empty promises. Since 2017 RMI has been integrally involved with the Department of Higher Education and Training (DHET) to assume the role of Occupational Team Convener (OTC) for the Diesel and Automotive Motor mechanic trades using the occupational qualification delivery method at Technical Vocational Education and Training (TVET) colleges in South Africa. They have also partnered with the German Chamber of Crafts Erfurt, more popularly known as Handwerkskammer Erfurt (HWK Erfurt), to upskill lecturers drive vocational training in the automotive aftermarket. Almaine Horne, Acting Registrar: School of Occupation and Training for Eastcape Midlands TVET College (EMC) is one of the colleges in the Eastern Cape that have benefited from the training.  Horne believes a TVET qualification is so relevant in today’s world since it is a skills-centered training programme which equips unemployed youth with the necessary knowledge and skills to ensure that they are ready for the modern day work environment. ‘And,” she says, “our collaboration and partnerships with industry ensure that our learners are fully empowered to meet the needs of industry.” Many of the ECM students come from poor disadvantaged backgrounds in Kariega, Gqeberha and surrounding areas and this is one way they can change their lives. Mabusela says the transfer of knowledge and skills becomes easy if there is an adequate balance between the theoretical and the practical component of the training and that is why industry needs to work so closely with academia. “It makes it more effective for the students to grasp content because they are able to build on the knowledge and skills attained by continuously sharpening their skills and practicing and polishing up their craft in a practical workspace.” More recently, through one of the RMI’s constituent associations, the Motor Industry Workshop Association (MIWA), the organisation has also been targeting technical schools through their Motor Mech competitions which at held at Port Rex in East London. Daniel Pienaar Technical High school in Gqeberha and HTS Drosdty in Worcester. “We believe if we are to be successful in addressing the skills gap we need to attract young people right from school level. Here the students can be introduced to more technical subjects like Mathematics/Technical Mathematics, Physical Science or Technical Science, Engineering Graphics and Design (the design elements of parts and body style) and Mechanical Technology (Automotive), as well as Fitting and Machining (the manufacturing of parts). Johan Havenga from HTS Drosdty agrees stressing the importance of  schools working together with training centres, industry and Higher Qualification Institutions so that students can start working in the industry when they are in school still. Competition like Motor Mech expose the industry to these learners. Jason Bekker from Port Rex says it is very rare that schools and the private automotive industry get together and collaborate and give learners an exciting platform to kick start their careers. “It’s really a special relationship as learners get a huge head start once they complete their schooling due to the many eyes drawn to these shows, and for those who excel, apprenticeship opportunities literally fall at their feet.” He is also completely in agreement that schools and colleges should align more closely with industry by updating their curricula to reflect current industry needs. The DHET’s Centre of Specialisation (CoS) at the Athlone campus of the College of Cape Town has seen keen interest from RMI members at vehicle dealerships and independent mechanical repair workshops. The recipe is working for the College, Industry and young apprentices, and  ideally should be replicated across the country. “Employers are literally queuing to have their apprentices trained by our College. They see the Return on Investment, willingness to host the apprentices, and to assign a workplace mentor. In the current intake, the College is the lead employer and the training provider. This means the apprentices are paid by the College and the employers are the host, providing the necessary ingredient of exposure and training at the workplace on latest technology,” comments Rasheed Adhikari, lecturer at the College of Cape Town’s Athlone campus. “If we can close the gap from high school to apprenticeship level we will have made significant progress and open up a wealth of new career opportunities for our young people in the future,” concludes Mabusela. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.arrivealive.co.za/news.aspx?s=1&i=68202&page=industry-working-hand-in-hand-with-technical-schools-and-colleges

Engineering News | 12 June 2024 Schneider Electric , the leader in the digital transformation of energy management and automation , is celebrating South Africa ’s Youth Day on 16 June 2024 with several exciting and comprehensive initiatives that has seen the company making a tangible difference to the skills development and growth of the country’s youth. This year’s Youth Day theme: “Actively embracing the socioeconomic gains of our democracy", reinforces Schneider Electric ’s philosophy of the 3Es - Education, Experience, and Exposure - to ensure holistic development for the youth. “We believe this approach covers all-important developmental elements such as business communication, etiquette, organisational skills, basic project management, and time management.  Our youth development initiatives are both robust and forward-thinking, focusing on various aspects of early career development,” notes Nimmita Maharaj, Diversity and Transformation Director, Anglophone Africa at Schneider Electric . Additionally, there is a strong technical focus with product training that includes Schneider Electric ’s vendor-neutral EcoStruxure IoT architecture as well as client and customer site visits, and commercial exposure in areas like e-commerce and channel marketing. Every year, as part of its Bursar Programme, Schneider Electric sponsors between 10 and 20 students across various fields, including engineering , computer science, HR, marketing, and commerce. The programme ensures a sustainable talent pipeline, with recruits drawn from diverse tertiary institutions such as Wits University, North-West University (NWU), University of Venda, University of Kwazulu-Natal (UKZN), and University of Cape Town ( UCT ).  Modlay Davids, Talent Acquisition and Employer Branding Lead, Human Resources at Schneider Electric says: “In this way we are proactively addressing business skills requirements for the future and nurturing brand loyalty from an early stage.” Schneider Electric is committed to gender equity, maintaining a male-to-female split of 60/40 in its youth programmes. This focus ensures that young women are equally represented and empowered in the industry, particularly in scarce skills such as STEM. Schneider Electric ’s South African offices have over the past five years absorbed into permanent roles: 42 graduates from its graduate programme. 15 interns who have transitioned into full-time roles. 21 learners from business administration learnerships, with another 16 employed by industry peers. In practice As testament to Schneider Electric 's dedication to youth empowerment and job creation, the company has in the last year been recognised with several prestigious awards: Job Creation Award at the Top Empowerment Awards by Topco Media in July 2023. Youth Employment Award in the Champion Employer Category, Gold 2023, from the South African Council of Graduates (SACGRA), received in May 2024. Schneider Electric’s Best Internship Programme for Middle East and Africa (MEA) in June 2023 for its MEA Grad and Intern programme. “Participants in Schneider Electric ’s youth programmes benefit from a structured support system that includes buddies and mentors who provide guidance throughout their journey. This mentorship is crucial for fostering personal and professional growth,” explains Modlay Davis. Last, but certainly not least, is the tangible impact Schneider Electric ’s youth programmes has made on individuals: Londiwe Mngadi, Senior Design Firm Engineer "Joining Schneider Electric as a graduate trainee has laid the perfect foundation for my career.  As a young female working in a male dominated environment , Schneider Electric has fostered my confidence greatly through the culture of inclusivity and the ‘How Women Rise’ programme, which focuses on breaking barriers and female empowerment. “In addition, I have been able to impact the lives of other young women at high school and tertiary level, educating them about careers in STEM, something that is very close to my heart. Through this I contribute to youth development in my community and impact their thinking positively.” Thulani Myeni, Tender Engineer “The experience at Schneider Electric has been more than just about professional development, acquiring technical expertise, or business acumen. It has allowed me to grow personally and has empowered me to give back to my family - the financial security I have gained allows me to support my family in a way I never thought possible, thereby contributing to, and making an impact on my community and society at large.  “The company’s commitment to youth development is not just strategy on paper . Schneider Electric truly invests in young minds, providing the tools and opportunities we need to succeed. It's a place where you can learn, grow, and make a real difference.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/schneider-electric-takes-a-holistic-approach-to-youth-development-2024-06-12

Open Text | 1 November 2024 OpenText’s Allyson Towle, Marketing Manager and SMME Operations Manager, proudly announces the successful completion of the business’s three-year graduate programme, which culminated at the end of October. A ceremony will be held in November to award certificates to 13 successful participants, with a remarkable 70% of candidates securing permanent roles with their host companies. This initiative has not only empowered young South Africans with certifications, but has also fostered critical soft and business skills for a more competitive digital workforce. The programme’s inspiration stems from OpenText’s commitment to youth employment in alignment with the SITA (State Information Technology Agency) and the Micro Focus (OpenText) SITA Framework Agreement. "Through this initiative, we aim to support unemployed youth by providing them with training, certification and hands-on experience, helping to bridge the gap between education and meaningful employment," says Towle. Initially, 20 learners were selected for this unique opportunity, where they earned an NQF Level 5 systems support engineer diploma and received placements with small-to-medium-sized enterprises (SMEs) nationwide. The programme focused on equipping participants with skills for the digital workforce, from foundational business knowledge to adaptability in the new world of work. Programme highlights and evolution Among the programme’s major achievements, OpenText notes that 13 participants completed the full three-year journey, with eight finding permanent employment within their host companies. To ensure success and adaptability, OpenText expanded the cohort during the second year by onboarding an additional 10 learners due to early programme departures. While some graduates accepted other job opportunities mid-programme, each participant’s enhanced skillset contributed positively to South Africa’s job market. Impact and testimonials Graduates expressed how the programme profoundly influenced their professional paths. T Makamu shared: “The programme not only boosted my professional skills and confidence, but also opened up new opportunities I hadn't considered before.” Another graduate, S Mahlangu, reflected: “This programme bridged the gap from being an unskilled graduate to now having various skills that shape my career. The knowledge transfer and hands-on experience were impactful.” Additionally, P Ntuli found that the programme "boosted my confidence and skills, helping me secure a promotion soon after graduation". The initiative also drew positive feedback from host companies. iOCO, one of the programme’s host companies, noted: “Two of our three interns have been a major help to our customer, MultiChoice Africa, using the OpenText Digital Operations Platform. Their impact on our senior team has been so positive that we decided to retain them onsite at MultiChoice on a full-time basis.” A commitment to the future workforce The OpenText graduate programme is a testament to the power of corporate and community partnerships in addressing youth unemployment and building a skilled workforce ready for South Africa’s digital transformation. Towle concludes by saying that OpenText remains committed to future programmes and initiatives that empower South African youth and contribute to sustainable workforce development. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/opentext-celebrates-successful-conclusion-of-three-year-graduate-programme/rW1xLv5nzEk7Rk6m

Karabo Seane | 1 November 2024 South Africa is on a cusp of disaster. The country’s unemployment crisis, particularly among its youth, has reached alarming proportions. With a staggering 45.5% of individuals aged 15-34 years out of work and the national average being 32.9% in the first quarter of 2024 reported by Stats SA. This is a clear sign that the situation is at a tipping point and that bold actions are needed. In his fascinating book ‘21 Lessons for the 21st Century’ (2018) historian Yuval Noah Harari notes: "The most important thing is to realise that jobs are not just about providing income, but also about providing meaning and purpose." In essence, Harari emphasises the importance of dignified work in fostering a sense of purpose and fulfilment. It is therefore important to address the social and psychological impacts of unemployment. Revitalizing the Economy through Inclusive Growth World Bank's Jacques Morisset argues in an article (2023) on the US based Brookings Institution that "South Africa needs to make work more attractive, both for employers and employees". Morisset adds that boosting employment could be achieved by changing the relative returns to a worker between being active or inactive in the labour market. Interestingly, he suggests three policy changes: the first being initiated by the Minister of Finance in lowering the entry tax rate of the personal income tax from 18% to say 5%, or increasing the threshold at which a citizen starts to pay the personal income tax. His second policy change suggestion gives authorities the power to modify existing social transfers to encourage poor workers to enter the labour market. The last policy change suggests the facilitation of additional job opportunities closer to the home of low-income workers, which automatically reduce transport costs. These suggestions are in line with South Africa's National Development Plan (NDP), which aims to create a more inclusive economy by promoting economic growth, reducing inequality and investing in human development. Education and Skills Development: The Foundation for Employment KZN’s Professor Labby Ramrathan's words underscore the critical role education plays in empowering young people when he says: "Education is the key to unlocking the potential of our youth", however, limited educational attainment, social and economic disadvantages are significant factors driving elevated unemployment rates. As a matter of urgency, the government and private sector must plough investments into STEM education, promoting vocational training and apprenticeships to encourage entrepreneurship and innovation. Unleashing Entrepreneurship and Small Business Growth One of the ways in which the government can address unleashing Entrepreneurship and Small Business Growth is to simplify company registration processes on CIPC and improve access to finance. They can also use targeted support programmes to facilitate the growth of small businesses and entrepreneurship amongst the youth and unemployed people. In his acknowledgement of the role SMMEs play in the economy, President Cyril Ramaphosa emphasised in the 2020 state of the Nation Address that “small businesses are the backbone of our economy, and we must support them to drive growth and job creation”. By empowering entrepreneurs, South Africa can unlock innovation, create jobs and stimulate local economies. The Role of Government The current Government (of National Unity) with all its political rumblings has brought hope to many South Africans but that is not enough, GNU must put the unemployment crisis as a permanent agenda of their administration until the end of the office term. Initiatives such as the Youth Employment Service, National Youth Development Agency and Small Enterprise Development Agency must remove all bureaucratic barriers to entrance, ensure survival to those already participating in the sector and provide vital and genuine support for all job seekers. Targeted programs addressing the specific needs of youth and women are also vital in bridging the employment gap and must be revitalised. Author Guy Standing correctly observes in his book ‘The Precariat: The New Dangerous Class’ (2011) that: "The precariat suffers from economic insecurity, social insecurity, and emotional insecurity." Addressing these insecurities requires government to implement comprehensive policies that promote stability, social protection and human development. Provincial Disparities and Urban-Rural Divides The legacy of apartheid policies that brought huge disparities between urban and rural areas must be erased and new policies aimed at promoting regional development and addressing infrastructure deficiencies must be implemented correctly and explored to help bridge the gap. The Role of Technology in Job Creation South Africa cannot afford to play catch-up when it comes to technology and embracing technological advancements can create new job opportunities. With this in mind, we must always remember what Harari cautioned us about: "The automation of work will accelerate, and more people will be pushed out of the labour market." GNU must urgently implement proactive measures addressing the consequences of technological change. There’s no other time except now. The Future of Work: Preparing for Emerging Industries As we navigate youth employment crisis and unemployment in general, it is essential to consider all changes related to the future of work. Emerging industries such as renewable energy, technology, and healthcare hold tremendous potential for job creation. To capitalise on these opportunities, education and training institutions must work together with labour providers to understand workforce needs to adapt relevant programmes. If this is done correctly, South Africans will be prepared for emerging industries and the impact of automation could be mitigated while taking advantage of creating sustainable employment opportunities. Overcoming Systemic Barriers: Addressing Inequality and Access Existing systemic barriers still linger even today and hinder many South Africans from accessing employment opportunities. These include limited inadequate transportation, connectivity, social and economic inequalities. To overcome these barriers, policymakers must implement targeted interventions. The first start is the improvement of access to education and vocational training and investment in infrastructure development. Author of the ‘Capital in the Twenty-First Century’ French economist Thomas Piketty's earlier observation about inequality is pertinent in this case, the government must remove all systemic barriers to reduce inequality and promote social mobility for all. Conclusion In 2020, the International Labour Organization (ILO) released a report indicating that the global youth unemployment rate was expected to remain above 17% in 2022, as a country, this is the threshold we should’ve have benchmarked ourselves against but failed, the result of which is the continuing unemployment we are witnessing today. As South Africa finds itself standing at the abyss, staring into a void of lost opportunities and diminished hope, by all means necessary we must avoid this crisis to spiral out of control. We must heed the warning of Former President Thabo Mbeki when he said: “South Africa will experience its own ‘Arab Spring’ if the unemployment, poverty, and crime are not addressed urgently.” The march in September by the ANC Youth League is another reminder of the growing discontentment with the escalating unemployment crisis. Piketty is correct when he argues that: "The main issue is not the size of the inequality, it's the persistence of inequality." South Africa must arrest itself from the persisting inequality by finding comprehensive solutions that foster collaboration among all role players. In that way, we can slowly monitor progress as we create employment and a brighter future for all. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/opinion/south-africas-employment-conundrum-a-ticking-time-bomb-requiring-immediate-diffusion-ef6f9bab-b8e7-41f5-a933-0eedb70f6176

Myles Illidge | 12 June 2024 Cell C has informed staff of its plans to franchise 44 of the 47 retail outlets it owns as mobile operators face intense competition in the market. It was originally reported that the decision could impact at least 400 staff. However, Cell C has denied this. Instead, it hopes to create more job opportunities. Cell C chief officer for sales, distribution, and regions, Chris Lazarus, said the franchising process offers an opportunity to create more jobs for South Africans. “We’re embarking on a process to franchise the 44 stores that we have,” Lazarus told Kaya FM. “We’re also going to look at creating an opportunity of enterprise development and SMME, where our staff themselves can partake in the future ownership of some of these stores.” He added that the franchising of 44 Cell C stores should not be seen as the company divorcing itself from the brand. “The brand remains that of Cell C, and if anything, you’re going to see further investment in that brand over the next 18 months,” said Lazarus. In an interview with SABC News, Lazarus said not a single staff member will lose their job. “Any contract that we have with a staff member, the terms and conditions of that staff member will be transferred to whoever the new owner of the store is, so nobody will be impacted,” he said. Cell C’s decision to cut costs by franchising its stores isn’t surprising, with the mobile operator’s annual results for the 2022/23 financial year revealing that it was hopelessly insolvent. Its balance sheet showed that its liabilities exceeded its assets by R9.294 billion. More recently, in February 2024, Cell C’s parent company, Blue Label Telecoms, revealed that the operator made a R337-million loss in the six months ended 30 November 2023. This represented a significant swing from the R5.81 billion profit it reported for the same period in 2022. However, Blue Label Telecoms co-CEO Mark Levy explained that the profit in 2022 was a once-off, resulting from Cell C’s recapitalisation. Cell C’s recapitalisation took place in September 2022. Blue Label Telecoms concluded a series of agreements with Cell C and its stakeholders to refinance the mobile operator. Despite the challenges, Cell C remains optimistic about its prospects. In December 2023, it said its business stabilisation efforts were bearing fruit. It said the business showed its resilience by maintaining revenue of R10.09 billion for the year-to-date to September 2023 versus R10.14 billion in 2022. Its average revenue per user had also increased from R74 in 2022 to R80 by the end of September 2023. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/cellular/540655-cell-c-selling-its-stores.html

Polity | 13 June 2024 In its relentless pursuit of tax compliance, SARS has launched a series of initiatives aimed at streamlining tax processes through various automation enhancements. This includes the strengthening of tax treatment on cross-border transactions, and additional scrutiny imposed on the claiming of refunds and tax benefits. Homing in on Small, Medium, and Micro Enterprises (SMMEs) and High Wealth Individuals (HWIs), SARS is employing sophisticated strategies to ensure that no stone is left unturned in the tenets of tax fairness and transparency. The nuanced challenges posed by these two distinct groups highlight the necessity for tailored approaches and robust enforcement strategies. The SMME Challenge: Navigating Compliance on a Budget SMMEs are a vital part of the South African economy, contributing significantly to job creation and economic growth. However, their limited resources often mean that tax compliance is managed on a tight budget. Many SMMEs opt for cost-effective accounting solutions for managing their tax obligations, which may not always provide the depth of expertise required for comprehensive tax management. This can lead to errors and oversights, making SMMEs vulnerable to compliance risks. To address these issues, SARS has been developing the SMME Compliance Programme, designed to provide clear guidance and support to help small businesses navigate the complex tax landscape. By simplifying tax processes and offering educational resources , SARS aims to improve filing rates and reduce under-declarations, thereby furthering their agenda of eradicating non-compliance across all spectrums. HWIs: Increased Scrutiny on International Tax Affairs On the other end of the spectrum, HWIs often provide much more complex tax situations for SARS to deal with. Their financial affairs frequently include international assets, diverse investment portfolios and offshore trusts, requiring sophisticated tax planning and risk mitigation strategies. Proper legal advice is crucial to ensure that these individuals comply with both domestic and international tax laws. SARS has significantly bolstered its capabilities to monitor and address the tax affairs of HWIs. Consider the scenario of an HWI with substantial offshore investments held in trusts. Without proper declaration and compliance, such setups could easily lead to significant tax liabilities.  Through its enhanced surveillance and data-sharing mechanisms, SARS can now detect these offshore assets and ensure they are fully declared. This proactive approach not only ensures compliance but also helps in the accurate assessment of tax liabilities, thereby reducing the risk of legal repercussions for the taxpayer. Implications for Taxpayers SARS' ultimate goal is to make tax compliance as seamless as possible. Inspired by the principles of "Tax Administration 3.0," the vision is for a tax system where compliance happens organically, with minimal friction for the taxpayer.  This entails investing in technology that automates routine tasks and provides clear, accessible interfaces for taxpayers to interact with SARS. By prioritizing strategic initiatives that leverage the latest technology , SARS aims to build public trust and ensure that the tax system is fair and transparent for all. As SARS continues to refine its compliance programme, taxpayers across the spectrum can expect a more streamlined system . By staying informed and proactive in their compliance efforts, both SMMEs and HWIs can navigate the tax landscape with confidence, contributing to a fair and robust tax system that supports South Africa 's growth and development. Let the Law be on Your Side The message for taxpayers, whether they are part of the SMME sector or classified as HWIs, is clear: compliance is no longer an option but a necessity, so, here’s what you need to know: Ensure that all income and assets are accurately reported.  Always submit both accurate and timely tax filings.  Where multi-layered and global assets, be certain to understand the complexities of international tax law and seek proper legal advice is crucial.  Where you find yourself on the wrong side of SARS, there is a first-mover advantage in seeking the appropriate tax advisory, and legal muscle, ensuring the necessary steps are taken to protect your war chest from being raided. However, where things do go wrong, SARS must be engaged legally, and we generally find them utmost agreeable where a correct tax strategy is followed. As a rule of thumb, any and all correspondence received from SARS should be immediately addressed, by a strong multi-faceted tax, legal, and financial team. This will not only serve to safeguard you against SARS implementing collection measures but also being specialists in their own right, you will be correctly advised on the most appropriate solution to ensure your tax compliance. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/apocalypse-of-automation-sars-drive-to-strengthen-tax-treatment-2024-06-13

Creamer Media | 14 June 2024 Addressing youth unemployment and the associated skills deficit are crucial for ensuring a sustainable and equitable future for the South African mining sector. The private-sector-led Youth Employment Service (YES) initiative plays a key role in this effort, says YES strategic research and marketing services head Simona Mazza. The mining industry continues to directly employ about 481 000 people, according to Statistics South Africa , and provides at least that many jobs in supporting industries. However, the industry is also facing significant challenges including constrained infrastructure and dwindling reserves of traditional minerals like gold . Further, Mazza notes concerns about mine safety , environmental damage and community dependence on mines. Despite these issues, significant opportunities also exist, owing to the rich deposits of critical minerals that South Africa possesses, which are essential for the green energy transition. Additionally, technological advancements and other innovations are being leveraged to enhance productivity, safety and efficiency in operations . Aligned with the environmental , social and governmental (ESG) pillars, mining companies are also increasingly prioritising environmental responsibility and social development initiatives to minimise negative impacts and create shared value for communities. Workforce TransformationThe mining industry is undergoing a significant transformation in its workforce, which includes efforts to upskill existing employees and increase diversity and inclusion. Mazza emphasises the industry’s focus on attracting young talent into mining , as there is a current lack of a talent pipeline to meet future needs, with the industry seemingly being less appealing to the current generation . She explains that the industry requires individuals with skills in artificial intelligence, robotics and automation to navigate the evolving landscape of mining operations . While acknowledging that mines can “seek out talent at South Africa ’s top schools and universities”, doing so exclusively would ignore a large cohort of talent at South Africa ’s disadvantaged schools. “Those high-potential individuals need to be found, nurtured and fed into the talent pipeline in preparation for the full range of mining jobs,” Mazza says. The YES initiative can address the talent pipeline issue by providing a 12-month work experience programme that places young people in relevant, future-facing roles. Mining companies can collaborate with YES in three ways. The first is that youth can be placed in their head offices. The second way is to place youth within the mining supply chain, ensuring that companies’ suppliers are supported with young talent. The third enables mines to choose to place youth in nonprofit organisations within the mining communities, which impacts companies’ ESG and Sustainable Development Goals targets. Impact of YESSince its launch in 2018, YES has evolved to include over 1 700 corporate participants, making it the largest youth employment programme funded solely by the private sector, Mazza explains. While historically used to boost broad-based black economic empowerment ratings, she explains that companies are shifting focus with the initiative towards enhancing sustainability impact outcomes, with 20% of YES jobs now catering to this goal. “Companies have employment equity targets to meet by 2029, and YES qualifies as part of the five-year plan for many of our companies,” she adds. Companies aligned with the programme can show regulators a five-year plan that transforms YES-affiliated youth into future middle management. It also contributes to companies’ social and labour plans and supports the Trusted Employer Scheme by demonstrating skills transfer efforts. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/youth-service-addresses-skills-deficit-enabling-future-success-2024-05-30

Monique Lewis | 30 October 2024 Finance Minister Enoch Godongwana is expected to indicate how the Government of National Unity (GNU) plans to control debt and grow the economy when he delivers the Medium-Term Budget Policy Statement (MTBPS) in Parliament this afternoon. He will deliver the MTBPS under very difficult economic circumstances. Gross domestic product has averaged less than 1% over the past decade. This is insufficient to keep pace with population growth. The South African Reserve Bank says a sustained increase in real net investment needs to underpin recovery following years of decline. Local communities and entrepreneurs say they would like market space in the spaza shop business. “Government should assist our people financially. We used to run these businesses properly but the government needs to assist,” says one person. Another adds: “They have a huge unemployment in the township … township business is supposed to be creating jobs. You see, it is unfortunate, but it’s not something that cannot be looked into and to reverse it. Obviously, it’s going to be difficult, and it’s all about, how do we support young entrepreneurs and make them conscious of the fact that they are also part of this economy.” Meanwhile, a coalition of trade unions and social movements are expected to march to Parliament today against government’s proposed budget cuts. The action comes amid fears among unions of further budget cuts, reduced social spending, and increased economic strain on working-class families. Speakers at the event include the Reverend Allan Boesak, South African Federation of Trade Unions (SAFTU) leader, Zwlinzima Vavi and Congress of South African Trade Unions (Cosatu) President Zingiswa Losi. A memorandum of demands will be handed over to government. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sabcnews.com/sabcnews/godongwana-expected-to-indicate-how-gnu-aims-to-grow-economy/

Sizwesethu Futshane | 30 October 2024 Black contractors in East London and Mthatha have commended the South African National Roads Agency SOC Limited (SANRAL) on its new Contractor Development Programme (CDP), designed to develop and grow grade 5 to 9 CE contractors. SANRAL presented its new Contractor Development Programme to contractors and other stakeholders at consultative sessions held on 28 and 29 October in East London and Mthatha respectively. This formed part of a countrywide roadshow taking place between 21 October and 7 November 2024 to introduce the CDP to affected stakeholders. Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer, said: “SANRAL has identified a need to create a platform for the development of emerging contractors to enable them to compete with the established players that have dominated the sector and capitalised on the roads agency’s projects over the years.” SANRAL is implementing the three- to five-year CDP to increase the capacity, equity ownership, sustainability and quality of work produced by grade 5 to 9 CE contractors. registered with the Construction Industry Development Board (CIDB), as well as to improve their performance.“We want to make sure that when you leave the programme you are able to bid for other work within and outside of SANRAL and that your quality of work is of a superior standard. We want to ensure that you emerge with sound financial management tools to reinvest in your company as it scales upward,” added Memeza. Memeza said the CDP sessions in the Eastern Cape sessions had been very engaging, which demonstrated the eagerness of contractors and black industrialists to participate in the programme and showed that they were invested in its success.Through the Contractor Development Programme, SANRAL will create a unique platform for CIDB grades 5 to 7 to maximise participation in its projects. SANRAL will provide skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades. Mr Siphiwo Mxhosa, SANRAL’s Acting General Manager for Transformation and Stakeholder Relations, said: “We should not speak of transformation in theory. SANRAL is implementing various multi-billion rand projects in the Eastern Cape, including the upgrading of the N2 from KwaBhaca to eMaxesibeni valued at R1.2bn, the R56 from Matatiele to the KwaZulu-Natal border valued at R1.2bn, and the Msikaba and Mtentu mega bridges on the R23bn N2 Wild Coast Road project. These are massive projects which present huge opportunities for all contractors, big and small.” Mr Mxhosa said SANRAL wanted to ensure that companies owned by previously marginalised groups – that is black (African, Coloured and Indian) people, black women, black youth, people with disabilities and military veterans – “become the main beneficiaries of our intensive road infrastructure build programme”. He added that SANRAL’s approach was in line with the Public Procurement Act, which sought to enhance effective economic use of public resources in order to advance transformation and broaden economic participation.Ms Memeza said the success of the Contractor Development Programme would largely depend on the funding to be provided to the targeted companies in the programme. SANRAL would extend an interest free loan, paid in advance, of between 15% and 20% of the contract value to contractors. This was meant to assist with the working capital at the start of the projects. The participating contractors graduate from the CDP after completion of developmental goals. These include:?Successful completion of an NQF 5 or similar learnership;?Upgrading of CIDB grade at least one level above from when they entered the programme;?Having the required capital available from their current CIDB grading;?The company is sufficiently staffed with experienced and competent individuals to graduate out of the programme. Feedback from contractors in attendance included alleged fronting, which undermine SANRAL’s transformation efforts. SANRAL was urged to ensure that black-owned consulting companies were not left behind in the process, and was requested to review its requirements to enable participation by more black-owned accredited training service providers. Industry stakeholders such as the CEO of the Amathole Economic Development Agency, Avuyile Xabadiya, said SANRAL’s Contractor Development Programme would assist in fast tracking local economic development goals in the region and that the agency would lend the necessary support to the CDP. Ms Memeza said SANRAL would publish an expression of interest for interested contractors to make submissions, with the aim of appointing selected contractors to participate in the CDP by April 2025. The closing date for comments and written submissions on SANRAL’s Contractor Development Programme is 7 November 2024. All written submissions can be sent to cdpbis@sanral.co.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://stop-over.co.za/eastern-cape-contractors-welcome-sanrals-contractor-development-programme/

Setumo Stone | 17th June 2024 A black empowerment company, Infoverge Solutions, has filed for an application for a court order to review and set aside Airports Company South Africa’s (Acsa) decision to award part of a R380-million tender to the controversial French company, Idemia South Africa.   In August 2023, international companies partnered with local small businesses to win the three-phase tender, which aimed to automate border control with biometric and facial recognition systems.  Idemia initially included Infoverge as an empowerment partner in the phase 1 project but later terminated the “teaming agreement”.  On June 7, Infoverge petitioned the Pretoria High Court to annul the tender award.   Infoverge claims that Idemia specifically relied on its status as a 100% black-owned exempted micro-enterprise (EME) to make its bid compliant with Acsa’s Request for Proposal (RFP), and as a result, they should set aside the award.  In court papers, Infoverge CEO Musawenkosi Mahlaba stated, “Now that the tender has been awarded to it, Idemia has sidelined Infoverge and has purported to terminate the agreement in terms of which Infoverge not only rendered material assistance to Idemia in order to compile a successful tender but in terms of which Infoverge is entitled to conclude a formal subcontract with Idemia to perform work totalling at least 30% of the contract value.”  In February, ITweb reported that there were accusations against Idemia for holding dual roles as referee and player in the same multimillion-rand contract. Idemia allegedly gained an unfair advantage over other bidders because of the memorandum of agreement between Acsa and Idemia before the RFP being issued.  In the media report, Acsa also acknowledged that its officials and representatives attended workshops hosted by Idemia, but denied that Idemia had influenced the bid specifications.  As Infoverge headed to court, sources sympathetic to the company claimed that an Acsa official had played a key role in persuading Idemia to support a company associated with him by terminating Infoverge’s contract. The court papers do not mention the allegation.  Mahlaba said in the founding affidavit that Infoverge introduced Idemia’s sales director, Vincent Makoti, to the Acsa executive team in 2020, and after several meetings, Idemia entered into a memorandum of understanding for passenger flow facilitation.  When Infoverge learned about the RFP publication on May 18, 2022, it had no capacity to execute the entire project and “again approached Idemia with the suggestion that the two parties collaborate in preparing a bid, which was to be submitted in Idemia’s name, with Infoverge as the EME executing 30% of the total contract value”.   On July 15, 2022, both parties agreed to cooperate in preparing a proposal in response to the RFP, where Idemia would serve as the “prime contractor”.  Mahlaba said for Idemia to submit a compliant bid, Infoverge provided Idemia with compliance documentation, including proof of Broad-Based Black Economic Empowerment qualifying status.  Acsa awarded Phase 1 of the project to Idemia, whose representatives gave Infoverge a spreadsheet on the project cost following a meeting on November 9, 2023. According to Infoverge, the summary of costs totalled over R41-million, excluding VAT and project profit. On November 22, Infoverge sent its quotation to Idemia and receipt was confirmed.  For some reason, said Mahlaba, Idemia’s Paul Jeremias and Pierre Beck “requested that Infoverge’s quote be sent to them only and to no other members of Idemia’s team.” But, shortly after Acsa awarded the tender to Idemia, Idemia replaced the entire team that worked on the proposal, save for Beck.  Mahlaba stated that Infoverge discovered in January 2024 that they needed to pay Idemia over R115-million for Phase 1 work, excluding VAT. As a result of the revelations, the company wrote to Idemia, indicating that its original quote of R8.939-million, excluding VAT, was inaccurate, and revised it to R53-million, excluding VAT.  He said in response, Idemia was “most concerned about Infoverge having become privy to the project costs relating to Phase 1, as awarded to Idemia”.   “On April 18, 2024, Infoverge received a letter from ENS Incorporated, acting for Idemia, in which Idemia purported to terminate the teaming agreement with immediate effect,” Mahlaba said.  The attorneys for Infoverge, DMV Incorporated, responded by denying ENS’ allegations and adding that Idemia’s bid would have failed without Infoverge’s status as an EME.  Infoverge rejected the repudiation and decided to enforce the teaming agreement.  Despite the “violation” of the RFP, Acsa declined to intervene.   In these circumstances, said Mahlaba, continuing with the project would mock the RFP and, more fundamentally, the objectives of black empowerment.   ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/business/acsa-dragged-to-court-over-black-disempowerment/