Sanral Author | 2 July 2024 SANRAL is going the extra mile to provide economic opportunities to marginalised groups in South Africa – women, youth and people living with disabilities as well as military veterans. SANRAL has unveiled economic opportunities running into millions for the vulnerable groups – all part of the agency’s agenda to transform the South African economy and the lives of communities where it builds infrastructure. The roads agency is going around the country, holding information sessions to make these vulnerable groups aware of the opportunities available to them. At a session held in Siyathuthuka, Emakhazeni Local Municipality, project manager Kwanele Simelane said it was vital for designated groups to become more involved in projects such as the Moloto Road upgrades. The Moloto Road is a major arterial road used to transport goods and people between Mpumalanga and Gauteng. The upgrades are one of SANRAL’s flagship projects, and run into billions of rands. Simelane said: “We’ve committed ourselves to supporting the development and participation of these businesses by making opportunities more accessible. Through implementation of our transformation policy, we’ve made significant progress in reducing the barriers to entry, so that everyone has a fair opportunity to participate in SANRAL projects.” In the agency’s 2021/22 Integrated Report, Chair of the SANRAL Board Themba Mhambi said that SANRAL was impressed with its own pace of transformation of the construction sector. He said that during the 2021/22 financial year, SANRAL provided 1,684 SMMEs with work on construction, rehabilitation and maintenance projects. The total amount earned by the SMMEs from these contracts was R2.3 billion. Mhambi said black-owned SMMEs won 88.05% of the contracts awarded and 89.6% of the value of the work performed. He added that of the 9,129 jobs created in the reporting period, 6,647 were for men and 2,482 for women. A breakdown based on age revealed that 3,096 young men and 1,339 young women were beneficiaries. “From a disability perspective, 62 people with disabilities were employed. In terms of SANRAL’s contract participation goals, the aim for targeted enterprises is 30%, which includes women and youth-owned businesses at 5% each, the target for military veterans and people with disabilities being 0.5% for each of those groups. “On the N3 project in the Eastern Region alone, this meant that R64,304,246.53 went towards youth-owned businesses, with the same amount going towards women-owned businesses. On the same project, women and youth each earned R30,866,038.33 of the total R103 million spent on local labour.” In Emakhazeni, Vuyani Mpongo, site agent for the main contractor on the Moloto Road upgrades, Rainbow Civils, outlined opportunities for vulnerable groups in the area on RRM projects valued at nearly R3 million scheduled to take place over 22 months. Half of the project value has been earmarked for local SMMEs with a Construction Industry Development Board (CIDB) grading of between 1 and 3. Women who attended the Emakhazeni session responded positively to the opportunities offered by SANRAL. Among them was Gloria Mahaule of Lugcabho Projects, who called for more information, assistance, and support for female SMME owners. “As women, we’re quite capable of running successful businesses within the construction and related sectors, but we still need support because many female business owners end up deserting their companies due to a lack of opportunity and guidance,” she said. Kgothatso Mnisi, director of Amakhosikazi Legacy Company, said she was looking forward to participating in SANRAL’s upcoming opportunities so she could grow her business and provide for her family. “Everything with SANRAL has been very transparent so far. I now know which documents to prepare so I can place my bid and hopefully get to participate in building a better community,” she said. Precious Motshwege, of Tshibogo Trading, who has previously participated in an RRM project with SANRAL, said she was willing to help other business owners prepare for opportunities through their recently launched Women in Business forum. “About four years ago, I had the opportunity to participate by providing road marking services for SANRAL. I gained a lot of experience that I’d love to share with other women. I’m grateful for the support SANRAL has given us, but we also need to support each other so we can all benefit,” she said. Member of Emakhazeni Mayoral Council, Jackie Mabila, also urged business owners to work together to ensure that poverty and unemployment are alleviated through the development of local businesses. “SANRAL has simplified how local businesses can benefit through projects and support programmes. It’s something that we really need here in Emakhazeni, and I’d encourage business owners to avail themselves of such initiatives,” he said. See https://sanralesdd.co.za/ for second-tier tender opportunities and more supplier development information. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://stop-over.co.za/going-the-extra-mile/

CCBSA | 2 July 2024 Coca-Cola Beverages SA fosters economic inclusion with innovative initiatives that promote employability and entrepreneurship. People matter. Our planet matters. That's why Coca-Cola Beverages SA (CCBSA) believes in doing business the right way by following its values and working towards solutions that benefit us all.  Not only is the company continuously developing sustainable ways to produce, distribute and sell its products, it's also committed to fostering economic inclusion and developing sustainability solutions that benefit its stakeholders, in particular the communities in which it is invested. CCBSA has a strong history of enhancing the livelihoods of the people in the communities it proudly serves; it helps to enable the economic empowerment of a diverse network of customers, suppliers and communities across its value chain.  It has adopted the two pillars of employability and entrepreneurship as a framework for its economic inclusion strategy. Through programmes such as Bizniz in a Box (BiB) and the Study Buddy Fund, CCBSA enables women and young people to access better future opportunities. Also, through its support for small suppliers to its business, the company is providing meaningful economic opportunities and enhanced livelihoods. Investing in education The CCBSA Study Buddy Fund comprises four pillars: 1. Bursary programme The bursary programme offers financial support to academically strong students from disadvantaged backgrounds who meet university entry requirements. 2. University partnerships Through partnerships with universities, funding is made available to enrolled students who face financial challenges and lack access to bursaries or support from the National Student Financial Aid Scheme (NSFAS). 3. Technical and Vocational Education and Training (TVET) college support This initiative supports young people who do not meet university entrance requirements by focusing on technical skills development tailored to the CCBSA value chain, including fields such as electrical and mechanical engineering. 4. Ligbron E-Learning programme CCBSA uses e-learning to improve the teaching and learning of mathematics and science.  Supporting the SMME Sector  CCBSA launched the BiB initiative in 2016 to support small businesses, particularly those run by youth and women.  BiB's primary focus is to create an ecosystem of viable microbusinesses offering complementary products and services in a community, using a spaza shop as the anchor. Each business operates out of a custom-designed container.  Since BiB's inception, CCBSA has supported hundreds of entrepreneurs across a number of provinces, including Limpopo, Gauteng, Mpumalanga, the Eastern Cape and KwaZulu-Natal.  Empowerment through local procurement and enterprise development CCBSA aims to strengthen local procurement and increase financial support for, and enhance, local supplier development programmes. It does this in a number of ways, including by identifying and addressing some of the obstacles small, medium and micro enterprises (SMMEs) face, such as access to funding and markets. It has designed programmes, such as the Khulanathi Fund, to accelerate the growth and development of SMMEs. (Khulanathi means “grow with us” in isiZulu.) It also runs regional Supplier Skills Summits where entrepreneurs participate in a series of workshops focused on capacity-building and skills development programmes, as well as providing access to business leadership content and insights. Each Supplier Skills Summit is followed by an Access to Markets Bootcamp, an exclusive networking event that connects SMMEs with senior executives of SA businesses to help facilitate introductions and engagement around opportunities offered by large corporates. A further programme CCBSA has invested in is its Enterprise Supplier Development Postgraduate Diploma in Management Practice, which is run in conjunction with the Henley Business School. These initiatives form part of the company's transformation and sustainability journey as it looks to empower SMME owners with the knowledge, insights and skills to allow them to grow their businesses.  By supporting and growing small, medium and micro enterprises (SMMEs), CCBSA helps to unlock a better future for enterprising individuals, their families and employees, as well as their wider community. After all, economic growth is vital to the socioeconomic wellbeing of communities across SA.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/amp/bd/national/2024-07-02-native-ccbsa-empowers-young-people-and-drives-economic-growth-across-sa/

Noxolo Majavu | 3 July 2024 Commission for Employment Equity finds 1.8% of top management is made up of employees with disabilities. The Commission for Employment Equity has expressed concern regarding SA’s transformation in the labour market, noting the exclusion of people with disabilities in top management positions. The commission’s 24th report indicates that employees with disabilities have a low representation at the top management level. Only 1.8% of top management is made up of employees with disabilities and significant efforts are still needed to enhance their representation both within government and the private sector at this level. The report also highlights that managerial positions, especially in the private sector, remain predominately occupied by white people. According to the report, this trend shows the white population is over-represented, followed by Indians, while African and coloureds are primarily occupying positions from professionally qualified, middle-management levels and below. This phenomenon indicates that 30 years after democracy and 26 years since the introduction of the Employment Equity Act, racial and gender divisions persist in the labour market. “Of relevance and great concern to the Commission for Employment Equity is the low representation of employees with disabilities across all occupational levels in all the economic sectors. There appears to be unwritten quotas in the representation of employees with disabilities to either keep them at approximately 1% representation across occupational levels and even worse, as an overall representation of the total workforce in both the private and public sectors,” the report says. The report notes progress in transforming the labour market has been extremely sluggish. It underscores that there has not been substantial advancement in achieving fair representation of all designated groups across various job levels, particularly in senior management positions across all sectors of the economy. The report states the private sector employs the largest proportion of workers in SA, comprising 72.2% of the workforce, while government employment, including national, provincial and local levels, accounts for 16.8%. The successful implementation of employment equity in the private sector has the potential to bring about positive changes in the overall transformation of the labour market. “Government is making good progress in affirming the designated groups in terms of the various population groups. The representation of the African population group (74.7%) is significant in government, while in the private sector they continue to lag behind (14%) at this occupational level. The private sector is the biggest employer of foreign nationals (3.0%) at this level,” the report says.  In terms of the Employment Assistance Programme (EAP), the report reveals that the white population group is grossly over-represented in terms of its EAP across all sectors at the top management level. While Indians are underrepresented in the agriculture, forestry and fishing sector. “The representation of the coloured population only exceeds their EAP in the education sector at this level. Whereas the public administration and defence; compulsory social security sector performed well in affirming the African population group at this level. Foreign nationals are highly represented in the manufacturing, financial and insurance activities and the mining and quarrying sectors at this occupational level,” the report states. It reveals that whites predominantly benefit from recruitment, promotion and skills development opportunities at the top management level. Despite being affected by a majority of terminations (57.2%) at this level, the overall net effect still favours whites in terms of opportunities, which include both recruitment and promotions. The report shows that the representation of females is better in the government, even though their representation is below their EAP at the top management level. The representation of females remains low, particularly in the private sector (25.8%). ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/national/2024-07-03-employees-with-disabilities-excluded-from-top-positions/#google_vignette

Luke Fraser | 4 July 2024 The University of Johannesburg (UJ) is the best university in South Africa for driving meaningful change. This is according to the 2024 Times Higher Education (THE) Impact Rankings, which evaluate 2,152 universities from 125 counties/regions. The rankings are based on universities that excel across multiple United Nations Sustainable Development Goals (SDGs). “Not only do these institutions stand out in individual areas, but they also demonstrate comprehensive excellence in contributing to global sustainable development,” said THE. “By excelling in a variety of SDGs, these universities showcase their commitment to addressing the world’s most pressing challenges, including environmental sustainability, social inclusion, economic growth and partnerships.” The 17 SGDs are as follows: SDG 1 – no poverty SDG 2 – zero hunger SDG 3 – good health and well-being SDG 5 – gender equality SDG 6 – clean water and sanitation SDG 8 – decent work and economic growth SDG 9 – industry, innovation and infrastructure SDG 10 – reduced inequalities SDG 11 – sustainable cities and communities SDG 13 – climate action SDG 14 – life below water SDG 15 – life on land SDG 16 – peace, justice and strong institutions SDG 17 – partnerships for the goals 22% of overall scores are based on SDG 17 – partnerships for the goals. The weight of the score reflects the university’s overall efforts in fostering robust international partnerships. The overall ranking also considers the three highest scores for the other SGDs for each university, with each counting 26% towards the overall score. “This approach highlights the universities’ specialised strengths while also rewarding well-rounded contributions to the global SDG agenda,” said THE. UJ was the highest-ranked university in South Africa and joint 36th in the world, along with Durham University in the UK and the Hong Kong University of Science and Technology. With an overall score of 93.0, UJ jumped ten places in the global rankings from 2023. The University of Pretoria was the second-highest-placed university in South Africa and 42nd overall. Its overall score of 92.7 was only slightly behind UCT. The University of Cape Town also cracked into the top 100 for the first time, with a score of 90.4. No other South African universities were able to crack the top 200 globally. The South African rankings can be found below: Global rankings Overall, Australia’s Western Sydney University topped the list for the third straight year with a score of 99.7. The UK’s University of Manchester and Australia’s University of Tasmania came in joint second place, scoring 98.5. The overall global top 10 can be found below: 1 – Western Sydney University, Australia (99.7) 2 – University of Manchester, United Kingdom (98.5) 2 – University of Tasmania, Australia (98.5) 4 – Aalborg University, Denmark (98.0) 5 – RMIT University, Australia (97.7) 6 – University of Alberta, Canada (97.4) 7 – UNSW Sydney, Australia (97.2) 8 – Queen’s University, Canada (97.1) 9 – Arizona State University, United States of America (96.4) 10 – University of Exeter, United Kingdom (96.1) ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/lifestyle/780738/new-rankings-for-universities-in-south-africa-trying-to-make-a-difference/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

Mark Garden | 8 July 2024 Before leaving his position as Minister of Competition, Trade and Industry, Ebrahim Patel published two important regulations (one of which is in draft form). These regulations, relevant to all sectors of the economy, relate to commercial dealings among small businesses and agreements between suppliers, customers, and distributors. Patel signed the Block Exemption Regulations for Small, Micro and Medium-sized Businesses into law on 23 May. SMMEs looking to enhance their collaboration should consider the scope of the exemptions. The Competition Act prohibits certain agreements and practices between SMMEs, which the SMME block exemptions aim to permit. In particular, section 4 prohibits certain conduct among competitors, and section 5 prohibits certain conduct between suppliers and customers. A business is classified as an SMME according to the sector in which it operates, the size or class of its business, its total full-time paid employees, and its total annual turnover. These specific categories are defined on page 9 of Government Gazette No. 4258 of 12 July 2019. What conduct has been exempted? Seven categories of agreements or practices have been exempted, including certain categories of: research and development agreements; production agreements and toll manufacturing agreements (which do not result in the removal of a competitor from the market); joint purchasing agreements; joint selling agreements; commercialisation agreements; standardisation agreements; and collective negotiations with large buyers or suppliers for the terms and conditions of purchase or supply. What conduct is not exempted? Under these regulations, SMMEs are not permitted to fix the selling prices of goods or services to consumers or engage in collusive tendering (bid-rigging). It remains to be seen how these exemptions will co-exist with the provisions of section 4(1)(b) of the Competition Act, which refer to certain categories of conduct that are absolutely and automatically prohibited. These include fixing selling and purchase prices, dividing markets, and collusive tendering. Although the regulations explicitly provide that the fixing of selling prices and collusive tendering fall outside the scope of the safe harbour created in terms of the regulations, the fixing of purchase prices and market division are omitted from the exclusion. Is this an oversight, or does it mean that the minister intended to relax the hard prohibition against fixing purchase prices and dividing markets by competitor SMMEs? How does a business secure an exemption? SMMEs need prior approval from the Competition Commission to benefit from the exemption. The Commission must approve or decline a written application from an SMME within 30 business days of receiving it. Given the historic experience of drawn-out timeframes that ordinarily accompany section 10 exemption applications, the 30-day window is a positive move. Notably, after approval and within 30 business days of implementation, the exempted SMME must notify the Commission of the upcoming rollout. The exempted SMME is also obliged to keep meeting minutes and written records of any agreements or practices rolled out pursuant to the SMME Block Exemption and the Commission’s approval. Draft Vertical Restraints Regulations Patel also published draft regulations to help the competition authorities assess whether certain agreements between suppliers, customers, and distributors may be anticompetitive. The Draft Vertical Restraints Regulations are significant for market participants engaged in selective distribution models, franchise arrangements, and the provision of spare parts or aftermarket repairs. Vertical relationships, such as those between manufacturers and retailers, or wholesalers and distributors, or franchisors and franchisees, are common in the business world. In terms of the Competition Act, an agreement between parties in a vertical relationship is prohibited if it has the effect of substantially preventing or reducing competition in a market unless a party to the agreement can prove that any technological, efficiency or other pro-competitive gain resulting from that agreement outweighs that effect. The draft regulations provide a non-exhaustive list of relevant factors in determining whether a vertical agreement may contravene the Competition Act. The regulations blend well-established legal principles with a uniquely South African approach that aims to incorporate support for SMMEs and black-owned businesses into the assessment. Although most of the regulations echo familiar concepts in competition law, the shortness of the text sometimes sacrifices clarity. Additionally, some foreign legal principles seem to have been incorporated without sufficient context, particularly in the treatment of selective distribution agreements. Of particular concern for businesses is the list of eight specific practices deemed “likely to result in a substantial prevention or lessening of competition”, including: restrictions on active or passive sales by members of a selective distribution network; restrictions on passive sales to customers outside assigned territories or customer groups; restrictions on members of a selective distribution agreement on selling the brands of competing suppliers; restrictions on the supply of spare parts, repair tools, and technical information to independent repairers and service providers from the manufacturer; restrictions on a buyer to manufacture, purchase, sell, or resell goods and services after the termination of an agreement; obligations causing a buyer of online intermediation services not to offer, sell, or resell goods or services to end users under more favourable conditions via competing online intermediation services; agreements with business infrastructure or service providers that restrict access to that infrastructure or service by third party competitors; and restrictive agreements that exclude SMEs and historically disadvantaged persons. This list, seemingly drawn from foreign precedents and recent market inquiries in South Africa, could be interpreted as introducing a presumption of anti-competitiveness for certain ordinary business practices. Such a presumption could force businesses to have to justify these agreements to the competition authorities. It is also important to note that these regulations are not mere guidelines but subordinate or secondary legislation with the force of law. Therefore, businesses and legal practitioners should carefully scrutinise the draft and consider submitting their comments before the deadline of 16 July 2024. The final regulations will undoubtedly shape the landscape of vertical agreements in South Africa, influencing how businesses interact within their supply chains and impacting the broader competitive environment. This article was written by Mark Garden and Clare-Alice Vertue, who are partners at Webber Wentzel, Annerita Maritz, who is a candidate attorney at the law firm. Disclaimer: The views expressed in this article are those of the writers and are not necessarily shared by Moonstone Information Refinery or its sister companies. The information in this article does not constitute legal advice that is appropriate to every individual’s needs and circumstances. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moonstone.co.za/new-competition-laws-will-impact-small-businesses/

Stats SA | 4 July 2024 June was a bumper month for statistical reports. Stats SA published 40 releases in the month, providing monthly, quarterly and annual economic updates. Here are a few highlights. The South African economy weakens in the first quarter The month began with the release of the latest gross domestic product (GDP) figures. The economy contracted by 0,1% in the first quarter of 2024, dragged lower by manufacturing, mining and construction. A weaker automotive sector was the main reason behind manufacturing’s poor showing, while mining was pulled lower by the platinum group metals, coal, gold and manganese ore. Other industries that performed poorly on the supply side of the economy include transport, storage & communication; electricity, gas & water; and general government services. Not all was bad news, however. Agricultural activity rose sharply on the back of stronger horticultural production. Trade catering & accommodation; personal services; and finance, real estate & business services made much smaller gains. The demand side of the economy was also lacklustre. Imports, exports, gross fixed capital formation, household consumption and government consumption all decreased in the first quarter. Formal sector jobs decline According to the latest Quarterly Employment Statistic (QES) release, the first quarter also witnessed softer employment numbers in the formal non-agricultural sector. The net loss of 67 000 jobs was mainly concentrated in the trade and community services industries, with smaller declines recorded in business services and mining. On a positive note, employment increases were recorded in manufacturing, transport and construction. The formal non-agricultural sector reported a 5,5% decrease in total turnover in the first quarter. Seven of the eight industries in the Quarterly Financial Statistic (QFS) report recorded declines. Mining recorded the largest percentage decrease. Community, social & personal services (excluding government and educational institutions) kept its head above water, increasing turnover by 3,3%. The second quarter is off to a relatively positive start The latest set of business cycle indicators cover April, the first month of the second quarter. Several sectors recorded both positive year-on-year and month-on-month gains. These include mining, manufacturing, electricity generation, wholesale trade, retail trade, motor trade, tourist accommodation and passenger transport. On the downside, food & beverages income (restaurants, catering & fast food) decreased by 4,6% year-on-year and by 4,0% month-on-month in April. The volume of goods (freight payload) transported on South African roads continued a downward trajectory, recording negative year-on-year and month-on-month growth rates. National government spending breaks the R2 trillion mark Stats SA is responsible for publishing several annual reports on government finances, which includes national, provincial and local government, as well as extra-budgetary accounts & funds and higher education institutions. According to the Financial statistics of national government statistical report, released in June, government spending topped R2,0 trillion in 2022/23. Financial transfers to other levels of government, institutions and foreign governments accounted for just over half of the R2,0 trillion, followed by interest paid on debt and social benefits. National government generated or received R1,7 trillion in revenue, with taxes accounting for 97%. Want to find out more on what Stats SA has to offer? Our publication schedule is available here. For a comprehensive list of products and releases, download our catalogue here. For a regular update of indicators and infographics, visit our data story feed here and catch the latest edition of the Stats Biz newsletter here. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.statssa.gov.za/?p=17364

It-Online | 3 July 2024 The month of June gave rise to a raft of activities celebrating the country’s youth. It was also a stark reminder of the plight of young people when it comes to the burden of unemployment. “But that doesn’t mean there isn’t hope,” says Larisha Naidoo, head of Anglo American Zimele. “There are three ways that young people can improve their prospects for employment.” Upskill yourself to enable access to employment opportunities Naidoo points out that close to most of South Africa’s settlements there are community centres and places where young people can go to access opportunities for skilling in industries that have a high demand for skilled individuals. Young people can also explore voluntary work to develop skills, these are accessible in many community projects funded by government and NPOs. “Tourism and hospitality is one such industry, which Zimele identified in 2019,” says Naidoo. “Since 2020, through our partnerships with companies in the sector, 4,567 young people from mining communities in Limpopo, Northern Cape and North West have been skilled and trained in the industry, and 54% of them have been placed in jobs, with only a 16% drop-off rate.” Focus on entrepreneurship instead of being employed There are numerous enterprise development (ED) programmes in the country with a particular focus on youth-owned enterprises, Naidoo adds. Some of them, like Zimele’s ED programme, help aspiring entrepreneurs through the entire process – from conceptualising the business idea, drawing up a business plan, teaching business skills and mentorship to grow the business, to enabling access to markets and support with loan funding to further expand the business. Sometimes the only thing you need is an idea and determination to see it through. “Entrepreneurship is a viable route for young people who are unemployed to be able to participate meaningfully in the economy and, ultimately, also employ other young people as the business grows,” says Naidoo. Being Flexible Finally, young people should look at industries where opportunities exist, and adapt their initial plans. “Sometimes, passion may lead to studies in a particular field, but job and/or entrepreneurship opportunities exist in other fields that are also of interest and enable economic participation,” she says. “Young people must be flexible to take best advantage of the opportunities outside of their set career plans.” She illustrates with the example of Maungo Cruise Mokgoje, 29, who found himself jobless during the pandemic when his internship as an assistant planner in merchandising was cut short. He tried his hand at farming for a year, in an effort to support himself, but he needed income in the shorter term. And so, he started The Cruise Hygiene and Cleaning Services, which specialises in cleaning of couches, carpets, mattresses, and even cars. The business traded informally for two years, but with the help of Zimele and their partner, 3M, it was registered in January 2022, and Mokgoje was provided with a variety of support. Five years in, Cruise employs five permanent staff and even more temporary staff depending on the workload, and has a solid base and is providing services to both companies and individuals who are regular customers. “There is more than one route to finding employment,” Naidoo concludes. “At Zimele we have seen that the youth who are willing to see opportunity and adapt accordingly, are the ones who find meaningful employment and start successful businesses. You can also start by identifying a demand for a service in your community and then identify small ways in which you can provide that service. “When you consider the youth unemployment figures, or if you have been looking for work unsuccessfully for several years, we know it can be disheartening. But I would urge young people not to give up – the opportunities are out there, and we can turn things around.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2024/07/03/tips-for-young-people-to-find-their-way-out-of-unemployment/

Tasneem Bulbulia | 8 July 2024 South Africa ’s transport industry is a significant contributor to the country’s gross domestic product; however, it is being impacted on by several factors, which necessitates the reskilling and upskilling of participants, to ensure the industry’s sustainability and improved performance moving forward. This was highlighted by Transport Education Training Authority (Teta) CEO Maphefo Anno-Frempong, delivering the keynote address during the first day of the yearly Southern African Transport Conference, which is being held this week at the Council for Scientific and Industrial Research, in Pretoria, under the theme “Upskilling and reskilling the transport industry for current and future challenges”. She pointed out that more work needed to be done to improve the industry, given that it has yet to recover to its pre-pandemic levels. Anno-Frempong explained that global supply chain challenges, a move towards a green economy for sustainable development, strides in innovation and research, the Fourth Industrial Revolution (4IR) and digitalisation , legislative and regulatory changes, youth employment initiatives, and an ageing workforce were all factors that had necessitated reskilling and upskilling in the industry. She cited a study undertaken by Teta, which indicated there was no concern for occupations becoming completely obsolete. Rather, it is mainly support roles that will become redundant, with fewer roles per occupation required. The main occupations that required upskilling/reskilling were drivers and IT specialists, Anno-Frempong informed. She emphasised the need for skills to be geared for success and relevance, such as driving, business and technology skills. Occupations and skills that require reskilling/skills repurposing include, in maritime, IT specialists, financial management and engineers. In forwarding and clearing, drivers, IT specialists and those involved in the loading of cargo. In freight handling, drivers, technicians, and health and safety skills. In road freight , drivers, mechanics, management skills and machine operators. Taxis would require drivers and business and management skills. Rail would need rail operators and maintenance and IT specialists. Lastly, road passenger would require drivers, mechanics, and gearbox specialists. Upskilling and reskilling was not without its challenges, the study found, with these including a lack of basic skills, outdated curricula, funding and resource shortfalls, costly legal requirements, skills development being undervalued compared with work experience, lengthy qualification processes, resistance to change, outdated technology being used, unawareness of sector education and training authority funding, and a lack of awareness at a school level. More positively, reskilling offers employment opportunities in emerging jobs in the industry. The top ten emerging jobs in  transport were autonomous vehicle operator or technician, electric vehicle technician, urban mobility specialities, transportation security specialist, logistics coordinator for e-commerce, drone delivery operators, data analyst or transportation planner, sustainable transport specialist, smart traffic management engineer, and transportation IoT specialisation, Anno-Frempong outlined. She highlighted that Teta was collaborating with several universities and organisations in 4IR training . Anno-Frempong emphasised that the new occupational qualifications that were being phased in for skills training would bridge the skills gap, enhance workforce competence, promote lifelong learning, and ensure industry relevance in the transport industry.   Meanwhile, delivering her first speech since assuming her new role, Transport Minister Barbara Creecy expressed her commitment to continuing initiatives to improve the sector, including private-public partnerships, reforms to rebuild Transnet to pre-pandemic levels, and rehabilitating the Passenger Rail Agency of South Africa lines and reopening them to the public. Progress achieved by the National Logistics Crisis Committee would also be bolstered, as would implementation of the Freight Logistics Roadmap. The Ministry was also developing a draft devolution strategy for urban commuter rail , Creecy informed. Further, she emphasised that work had to be done to mitigate the high rate of road accidents and deaths. Creecy further pledged to work with the taxi industry for it to take its place as part of a cleaner, greener ecosystem. Creecy also called for reskilling and upskilling; as well as using the country’s location to position it as a transport hub and work to unlock opportunities provided by the African Continental Free Trade Area as well as BRICS.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/transport-conference-outlines-challenges-opportunities-in-necessary-reskillingupskilling-2024-07-08

SA News | 9 July 2024 Newly appointed Employment and Labour Minister, Nomakhosazana Meth, says the department is facing a mammoth task of ensuring that it continues in earnest to usher in, not only hope to citizens, but substantive positive change in their lives. Meth was speaking during a Ministerial Committee meeting to welcome new principals and to present to them the department’s programme. Together with Deputy Ministers Phumzile Mgcina and Jomo Sibiya, Meth held a meeting with the Executive Committee, including the department's Acting Director-General, Onke Mjo, and the department’s Deputy Director-Generals. Monday’s meeting was also attended by heads of the Compensation Fund (CF) and Unemployment Insurance Fund (UIF), as well as heads of entities, such as Supported Employment Enterprises (SEE), Commission for Conciliation Mediation and Arbitration (CCMA), Productivity SA, and National Economic and Labour Council (Nedlac). In her address, Meth said South Africa is still struggling with the stubborn triple challenges of poverty, unemployment, and inequality. She said the scourge of unemployment remains a huge hurdle that the country is facing, with the official unemployment rate currently standing at 32.9% while the expanded unemployment rate is at 41.9%, according to the Quarterly Labour Force Survey (QLFS) for Quarter 1 of 2024. “The picture becomes dire when it comes to the youth unemployment rate with youth aged 15 – 24 years standing at 59.7% and youth aged 25 – 34 years standing at 40.7%. These statistics should remind us that the stakes are still high, and we must hasten to strengthen the implementation of interventions to dent the unemployment rate.”Meth maintained that substantive results can be achieved through an intensive and collaborative mechanism, “that will propel all of us to realise the department's objectives". Priorities    She said in carrying forth its mandate, the department will be guided by a set of six priorities for the seventh administration, and these are:•    Priority 1: Put South Africa to work.•    Priority 2: Build our industries for an inclusive economy.•    Priority 3: Tackle the prohibitive cost of living.•    Priority 4: Invest in people.•    Priority 5: Defend democracy and advance freedom.•    Priority 6: Better Africa and the World. “These priorities must find expression in the work of the Department of Employment and Labour family.“The priority is to create and sustain 2.5 million work opportunities delivering public goods and services in communities; implement a cross-cutting industrial strategy that drives growth and creates opportunity for youth and other unemployed people; tackle the war on poverty by providing comprehensive social security and basic services through the Unemployment Insurance Fund and Compensation Fund; and continue enforcement of compliance with the National Minimum Wage across all applicable industries in South Africa,” Meth said. Through investing in people, the Minister emphasised that the department, as the custodian of employment law, has a responsibility to ensure workplaces that are free of traumatic events and a deterioration in the quality of life of many workers; managing compliance with employment law and Immigration Act; and strengthen relations with stakeholders, internationally and at regional level. “Ours in the seventh administration is to ensure that we shift gears and embrace the principles brought about by the Government of National Unity (GNU). I require active and impactful participation in the District Development Model (DDM) as that will continue to expand our reach as the department,” Meth said. The DDM aims to improve the coherence and impact of government service delivery with a focus on 44 districts and eight metros around the country as development spaces that can be used as centres of service delivery and economic development, including job creation. She also emphasised the department’s role at the International Labour Organization (ILO), which is a vehicle in building a better Africa and the world. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/new-labour-minister-charts-way-forward

Dr Zizamele Cebekhulu-Makhaza | 11 July 2024 As South Africans brace for the significant changes that the Government of National Unity (GNU) is expected to bring about, we must advocate for national leadership appointed according to merit rather than political affiliation. The government’s primary goal for the next five years should be to revitalise the economy, develop regulations that support the private sector, and drive job creation. For this, it needs to create a public sector that makes decisions for the good of our society rather than self-gratification or individual profit. Cadre deployment in government has been disastrous for South Africa. Appointing public servants to positions of power primarily based on political affiliation has been detrimental to the country’s attempts to create a functional government that serves to protect the interests of the people, and the economy. The practice of cadre deployment must be eliminated with immediate effect. Cadre deployment often allows for underqualified or inexperienced people to be appointed to the country’s most important positions. It has significant implications for government departments, state-owned enterprises (SOEs), and other areas of public responsibility. For example, our SOEs are crucial for managing infrastructure and delivering essential services in key sectors such as energy, transport, and water supply – all of which are vital for the country’s development and the well-being of its citizens. However, when politically-connected individuals lacking the necessary skills and experience are appointed to lead these types of enterprises, they often fail to fulfil their duties effectively. The results are poor decision-making and the overall mismanagement of state resources. Consequently, many critical SOEs have suffered untold damages from ineffective leadership. Additionally, cadre deployment negatively impacts the administration and management of public-private partnerships (PPPs). PPPs are essential for leveraging private-sector expertise and investment to improve public services and infrastructure. Effective management of these partnerships requires a deep understanding of both public sector needs and private sector capabilities. Cadre deployment also directly impacts a key pillar in South Africa’s socio-economic development plans: education. This has resulted in poor administration and ineffective educational policies which have hampered efforts to improve schooling outcomes among early-grades, and to align education and skills development with industry needs, further entrenching poverty, unemployment, and inequality. Our children, youth, and workers suffer when educational reforms are driven by individual political agendas rather than long-term strategic goals. We must strengthen basic education, prioritise skills development according to the needs of our industries and businesses, and empower educational institutions to produce graduates equipped to meet the demands of our modern economy. Failure to do so will see local organisations continuously resort to importing the necessary skills and talent, even as unemployment remains persistently high in our country. We must grow our own wood to drive economic growth, innovation, and competitiveness in global markets. Similarly, in the health sector, poor management of the National Health Insurance (NHI) could lead to significant national health challenges that disproportionately affect South Africa’s poor and most vulnerable citizens, deepening divisions in healthcare rather than bridging them. Successful implementation of the NHI Bill will therefore require a competent and experienced guiding hand in the government. This means we urgently need an effective Department of Health headed by qualified medical experts, and not cadre appointment politicians and bureaucrats who are underequipped to address the country’s complex healthcare needs. Whoever our new ministers and public leaders may be, we must commit ourselves as a nation to holding these appointees to a far higher standard than their predecessors. We must vet them from day one, and scrutinise their backgrounds to ensure they have the appropriate qualifications and experience to fulfil the duties within their particular portfolios. And if they lack the credentials, we must demand change. Only then will we see the public sector deliver a fertile environment for sustainable socio-economic development, rising investment, and accelerated business growth. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/calling-for-a-gnu-free-of-cadre-deployment-67cd74be-f203-43d7-a045-03fdc3a9fe5a

Boitumelo Kgobotlo | 9 July 2024 The Minister of Employment and Labour, Nomakhosazana Meth , has promised that she will dedicate her tenure to creating 2.5-million job opportunities. These include permanent and fixed-term contracts, depending on the employer and partners for the projects. Meth said the country was faced with high rates of unemployment and that citizens did not only need hope but effective change that would secure a better future for all. Meet-and-greet meeting Meth spoke at a meet-and-greet ministerial committee meeting that included heads of departmental funds like the Unemployment Insurance Fund and the Compensation Fund. The two entities are meant to function at their best in the seventh administration to provide social security and basic services. The department also aims to ensure that all companies respect the national minimum wage. “The scourge of unemployment remains a huge hurdle that the country is facing. The Quarterly Labour Force Survey for quarter one of 2024 indicates that the official unemployment rate is standing at 32.9% while the expanded unemployment rate is at 41.9%,” said Meth. “The picture becomes dire when it comes to the youth unemployment rate, with youth aged 15–24 years standing at 59.7% and youth aged 25–34 years standing at 40.7%. “These statistics should remind us that the stakes are still high, and we must hasten to strengthen the implementation of interventions to reduce the unemployment rate.” Six priorities Meth set out six priorities for the department, which she said would be possible to achieve through an intensive and collaborative mechanism that would drive everyone to always put the department’s objectives upfront. The priorities included building industries for an inclusive economy, tackling the high cost of living, investing in people, defending democracy, advancing freedom, and bettering Africa and the world. “Ours in the seventh administration is to ensure that we shift gears and embrace the principles brought about by the government of national unity. “I require active and impactful participation in the district development model, as that will continue to expand our reach as the Department of Employment and Labour. “Our role at the International Labour Organisation cannot be emphasised enough, as it is a vehicle for building a better Africa and the world.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER ’. https://sundayworld.co.za/news/labour-minister-meth-targets-2-5-million-job-opportunities/

Stephanie Allais and Siphelo Ngcwangu | 10 July 2024 Dear Minister Nobuhle Nkabane, The clumsy rules for employers to get training money back actually encourages them to give poor data. Continually tweaking behaviour via incentives, rules, and tools has led to a system that is simply too complex for its own good. This is Part One in a three-part series. As academics who have worked closely with your department over many years, we welcome your appointment to lead higher education and training, convinced that you will bring renewed energy and fresh insights to an area critical to the future of our country’s young people and its economic success. It is often said that South Africa has a skills crisis, and that our education system doesn’t meet the needs of the economy. But we have an elaborate national system that asks employers every year what skills they need. So, why is training not meeting the country’s needs? Simply put, the rules and tools set up over the years to consult employers and fund their training requirements are too complex. Well-intentioned policymakers have added unnecessary complexity time and again, creating too many tools to do too many things. They end up doing none of them well and sometimes incentivise negative outcomes. Clumsy and tedious funding processes and complex, overly elaborate regulatory oversight complete the picture. The result is little coherent direction from the state in priority areas, and an inability by employers to prioritise the training they need. Effective leadership As the new minister, you could provide refreshed and effective leadership with a few simple changes. This is not about new policy, just simplification and streamlining. The system was designed to understand the skills employers need within the context of specific industries, and to encourage and support them to do the required training. Employers with an annual payroll exceeding R500,000 pay a levy allocated via the tax system to Sector Education and Training Authorities (Setas). They in turn give 20% of the money back when employers submit an annual workplace skills plan and training report. The idea is for these documents to provide insight into employers’ skills needs and show what training is taking place. Setas and the government can then direct funds to meeting training gaps by funding areas not covered by workplace training. The assumption is that because this data identifies the skills employers need, it can be used to formulate sectoral training planned by Setas. It also informs the list of Occupations in High Demand developed by the government, and a critical skills list that guides the allocation of certain work visas. The problem in the real world is that current data from employers gives very poor insight into skills needs. In some cases, employers only get their money back from the Setas if their training report matches their previous plan. This incentivises them to propose only training that will be easily achieved. The clumsy rules for employers to get training money back actually encourages them to give poor data. Some employers also only list those training programmes that will be funded by Seta. This might sound crazy, but it is the result of overly complex policy. Labour force trends Plans developed by Setas have two main funding mechanisms for skills provision: earmarked “funding windows” during which employers and training providers can apply, and bursaries. Setas decide on these based on the aggregated data obtained from employers, as well as analysis of labour force trends and other research. So, for example, employers list production workers as scarce even when they are not because they know they will need to train new employees, and grants are made available for scarce skills training. This way, they get back their levy funds to do the core training they need to do every year. Another example: where employers have crucial training by international providers often linked to suppliers of specific technology, they can’t get funding because these trainers are not accredited in South Africa. This essential training by highly regarded international providers is valued and needed by employers. So, some employers simply don’t report skills gaps in these areas because it’s a waste of their time as they won’t get money back for it. Broad-based black economic empowerment (BBBEE) employment scorecard reporting adds further complexity, and additional perverse incentives. Some employers report on skills gaps to obtain funded learnerships as cheap labour, with no plan to hire trainees once they have completed their courses. With no real skills gaps, training funding gives them subsidised labour. The system does try to deal with this: the BBBEE scorecard rewards employers if they hire staff they train. The result is that large employers reduce the amount of training they do in crucial trades, because they don’t want to be reporting training above their own skills needs for fear of being penalised for not hiring trainees once they qualify. This way, fewer young people are trained as artisans who could work in small businesses inside big companies’ value chains, and are lost to the relevant industries. Continually tweaking behaviour via incentives, rules, and tools has led to a system that is simply too complex for its own good. There are other problems facing employers in reporting their skills needs. They have to describe their workforce against the codes of the Organising Framework for Occupations, which many find cumbersome and hard to relate to their own organograms, job descriptions, and concrete requirements. So, transaction costs are huge. Additionally, the annual nature of the process mitigates against long-term planning. Equally significantly, many employers don’t participate at all. No insights are obtained from non-levy-paying members, and there is very little engagement with smaller companies, making the national data incomplete in significant ways. As a result, the government and the Setas collect data from employers that is essentially meaningless and incomplete within the context of the overall economy, then use it for planning through clumsy funding systems. Setas are supposed to be tripartite structures, accounting to employers, unions, and the government. So why are employers’ voices not stronger in the design of these systems? Again, we have good intentions backfiring. In reality, Setas are ultimately responsible to the Department of Higher Education and Training (DHET), not the tripartite structures. The DHET oversees their annual performance plans and adjudicates the strength of their sector skills programmes. The aim is positive – to make sure the Setas are doing what they should. But it does so within a complex and over-designed system that reduces oversight to box ticking instead of strategic assessment. The state is left checking allocations against designated windows, instead of making strategic decisions about economic and educational priorities. Recently gazetted changes to the rules and tools for skills planning address little of this because they don’t reduce complexity or change lines of accountability. Anticipating skills requirements across a complex economy like South Africa’s is not a simple exercise. International and local research shows that employers struggle to articulate their skills needs. But some small changes could substantially improve the data South Africa collects and how it is used. For example, Stats SA could regularly assess and analyse workplace skills needs by industry and for the whole economy. Developing insight at a sectoral level also requires understanding the skills needs of non-levy-paying companies. Industry associations could be helpful here. SETAs could be important intermediaries between the worlds of education and work, but only if they spend more time in high-level engagement with employers on their real training needs, planning and funding accordingly. Stephanie Allais is Professor of Education and Research Chair of Skills Development at the Centre for Researching Education and Labour, University of the Witwatersrand. Siphelo Ngcwangu is Associate Professor of Sociology at the University of Johannesburg. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2024-07-10-getting-south-africas-skills-needs-right-requires-the-right-incentives-and-accurate-data-part-one/