Bloemfontein Courant | 26 July 2024 Owner of Bots Bakers, Emmanuel Mothae, has been announced as the 2024 IWISA No 1 Community Champion in the Free State. Mothae won R30 000 in prize money and is ready to continue making a difference in his community, as well as in the lives of the individuals his social enterprise serves. Keketso Mokgothu from Mtswako Immune Booster was second and Kemiso Motholo from KemiChem won third place of the Free State IWISA No 1 Community Champions competition in Bloemfontein in July. “The build-up to this year’s regional finals has been very exciting,” said Premier Executive for Marketing and Milling, Sibongile Mooko. “Not only did we receive almost 600 entries in total across the four participating regions, but the quality of applications was also significant.” Mooko further mentioned that the brand was touched and humbled by the exceptional contributions social enterprises are making across our nation. Mooko then expressed the brand’s gratitude to everyone who participated and wished them well. Overall winner, Emmanuel Mothae from Bots Bakers, mentioned his prize money will be used to provide ongoing support to the five youth currently employed by their small-scale bakery. “The work we do is about more than creating food security. It’s about meaningful employment for the youth of Botshabelo so they can have a fulfilling job and future. I can’t wait to get back to Botshabelo and share this news with everyone,” Mothae expressed. Mooko concluded by mentioning that the brand will remain committed to enabling and growing these game-changing enterprises across South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bloemfonteincourant.co.za/bots-bakers-wins-iwisa-no-1-competition/

SAHPRA Press Release | 22 July 2024 Pretoria, 22 July 2024 –The South African Health Products Regulatory Authority (SAHPRA) is disappointed with the unfounded fallacies and misrepresentation in circulation and churned out by some media organisations without verification, in what presents as a misinformation campaign devoid of any intent to rely on facts. SAHPRA’s draft B-BBEE Policy is proposed in order to comply with requirements of the Broad-Based Black Economic Empowerment Act, 53 of 2003, in particular Section 10(1)(a), which demands of all state entities to enact policy that can encourage inclusive economic participation. The draft policy, which may be accessed on the SAHPRA website at  https://www.sahpra.org.za/documents-for-comments/, is a result of a robust consultation process with all material stakeholders. The misinformation campaign is premised on deliberate falsehoods that do not exist within SAHPRA’s proposed policy and racially charged misrepresentations which the draft policy had clearly expressed itself on and the SAHPRA executive had addressed with stakeholders and interested parties who have attended stakeholder engagement meetings as part of the draft policy’s consultation process, the most recent of which was held in June 2024, attended by more than 300 delegates representing the lengths and breaths of the health products industry in South Africa. A recording of this session is available at  https://www.sahpra.org.za/event/sahpras-hybrid-stakeholder-engagement-meeting/. To set the record straight, we address all the falsehoods currently in circulation below: Falsehood 1: SAHPRA’s draft B-BBEE policy sets “racial requirements” for the registration of medicines Truth : The draft policy has not set any quotas for the ownership of pharmaceutical businesses based on race or gender. This is not within SAHPRA’s mandate and does not exist in any legislative frameworks that govern SAHPRA’s work and/or those that SAHPRA is responsible for implementing. As such this lie is dismissed with the contempt it deserves, as it lacks any basis in facts and does not exist anywhere within SAHPRA documents. Falsehood 2: SAHPRA will use the B-BBEE to assess medicine registration applications and thus affect access to medicines Truth : This is a deliberate misrepresentation of SAHPRA’s draft B-BBEE Policy. The draft policy clearly and prominently indicates that this would not be the case, and that SAHPRA’s health products registration processes would continue to solely rely on the safety, quality, efficacy, and performance of the health products. Any insinuations to the contrary are mischievous and do not exist in the policy currently or in SAHPRA’s future plans. Falsehood 3: The draft B-BBEE policy is aligned with the National Health Insurance and seeks to exclude certain persons from state procurement Truth: This wild conspiracy lacks any basis in reality and is indicative of an overactive but malicious imagination. There is no connection anywhere in the proposed policy to the NHI, in fact the policy clearly states that it is not concerned with any preferential policy frameworks. These are not in SAHPRA’s scope of responsibility. The draft policy seeks to ensure that the pharmaceutical industry moves towards developing sector codes and/or criteria similar to what has been successfully implemented in various other sectors of the economy including agriculture, mining, finance, tourism, and defence, among others. This is in compliance with the requirements of the B-BBEE Act and has no bearing whatsoever on any assumed conspiracies. Falsehood 4: The policy will deny participation in the pharmaceutical industry by SMEs as they may not be able to acquire B-BBEE certificates Truth : SAHPRA is on record reiterating the following facts: B-BBEE compliance affidavits by small businesses will be acceptable in the place of B-BBEE certificates; and The B-BBEE level of a business is of no effect in the medicines registration process, and this will stay the case even once the policy is implemented. The policy seeks to increase participation by previously marginalised persons and has no intent whatsoever to decrease participation by or exclude any persons based on race or gender. SAHPRA is on record indicating this, and this is also clearly stipulated in the policy. SAHPRA remains committed to executing its legislative mandate and all Health Product registration processes in line with its core purpose, to assess and register medicines, medical devices and in-vitro diagnostics (IVDs) in line with the requisite standards to protect the health and well-being of South Africans, being to ensure the safety, efficacy, and quality of health products. Thus, SAHPRA invites all stakeholders and interested persons to peruse the draft policy available on the SAHPRA website at this link https://www.sahpra.org.za/documents-for-comments/ and submit substantiated comments by 09 September 2024. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sahpra.org.za/news-and-updates/sahpra-dismisses-unfounded-misinformation-campaign-deliberately-misrepresenting-its-draft-b-bbee-policy-by-some-sectors-of-society-and-media-organisations/

SA News | 29 July 2024 President Cyril Ramaphosa says the newly signed Public Procurement Act is another important step in ensuring that public funds are put to use where intended. The President was addressing the nation through his weekly newsletter. Amongst others, the Act is aimed at creating a framework that will regulate public procurement, including preferential procurement by all organs of state. “As we intensify our collective efforts to build an inclusive economy that creates jobs, the Public Procurement Act allows us to make [the] best use of public funds to support transformation and local development. At the same time, by implementing measures to prevent the abuse of public procurement, the Act will help to ensure that public funds are put to the uses for which they are intended,” he said on Monday. The President explained that the Act is also part of the implementation of the State Capture report recommendations on how to prevent corruption in government procurement. He added that the new law “eliminates the problem identified by Chief Justice [Raymond] Zondo of fragmentation in procurement laws by creating a cohesive regulatory framework”. “Among other things, the law establishes a Public Procurement Office in the National Treasury, which must put in place measures to ensure the integrity of the procurement process. All the members of this office must perform their functions impartially and without fear, favour or prejudice. “The Public Procurement Office must promote standardisation in procurement and modernise the system through technology and innovation. The law focuses on the people who are involved in procurement, requiring them to comply with a code of conduct and receive professional development and training,” he said. Protecting public servants President Ramaphosa highlighted that the new law also goes further to also protect public servants who are working in the procurement space. “No government official may be directed, either verbally or in writing, to violate the required procurement processes. And no official can be victimised or suffer ‘occupational detriment’ for reporting any unlawful instruction. “This is an important provision because many of the abuses that took place during the State Capture era involved political office bearers, business people and others putting pressure on managers to flout procurement regulations,” President Ramaphosa explained. Additionally, the Public Procurement Act forbids people from trying to interfere with or influencing procurement and also prohibits tampering with tender bids. “Suppliers who are found to abuse the procurement system or otherwise commit fraud and corruption are prevented through a ‘debarment order’ from participating in any procurement processes for a specified period. “Certain categories of people are automatically excluded from submitting bids to the State.  "These include public office bearers, public servants in any sphere of government, officials in Parliament and provincial legislatures, special advisers and employees of public entities. In other words, people who work for the State may not do business with the state,” the President said. Transparency  The President explained that the Act also provides for increased transparency in the awarding of government tenders. “It provides for the use of technology to disclose procurement information, including awards of bids, the process followed and suppliers awarded. This follows our decision in 2020 to make information on all COVID-19 related contracts available online. No longer will tenders be awarded in dark corners far from public scrutiny. “The approach in the Act is in line with the Constitutional requirement that public procurement must be done in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. “The Constitution also says that this should not prevent procurement policies that provide for the protection or advancement of people disadvantaged by unfair discrimination,” he said. The President said the signing of the Act is a sign that government is committed to rectifying the gaps highlighted by the State Capture report. “The report of the State Capture Commission shone a bright light on the weaknesses in our public procurement system. We are now fixing the problems the Commission identified and are making public procurement a more effective instrument for social and economic change,” the President concluded. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/public-procurement-act-direct-public-funds-where-they-are-intended

Tarryn Mason | 30 July 2024 Empowering South Africa's youth with essential skills is crucial for driving economic growth, reducing unemployment and fostering innovation in an ever-evolving global landscape. Earlier this month we celebrated World Youth Skills Day and were reminded of the importance of youth skills development as a crucial element in shaping the future of any nation. In South Africa, this holds even more significance due to our unique socio-economic landscape. The challenges faced by South African youth, including high unemployment rates and disparities in education, demand a strong focus on equipping the younger generation with the skills needed to thrive in the modern world. The current landscape South Africa faces a youth unemployment crisis, with rates significantly higher than the global average. According to recent statistics, more than half of South Africans aged 15-24 are unemployed. This stark reality underscores the urgent need for targeted skills development programmes that can bridge the gap between education and employment. Moreover, the quality of education in South Africa varies widely, with many young people lacking access to adequate resources and opportunities. This disparity is particularly pronounced in rural and underprivileged urban areas, where schools often struggle with limited funding, outdated infrastructure and insufficient teaching staff. Economic impact Investing in youth skills development is not just a moral imperative but an economic necessity. A skilled workforce is the backbone of a thriving economy. By equipping our young people with relevant skills, we can boost our productivity, innovation and competitiveness on the global stage. Skilled youth are better positioned to secure employment, reducing the overall unemployment rate and alleviating the economic burden on the state. Furthermore, young entrepreneurs equipped with the right skills can drive economic growth by creating new businesses and job opportunities, fostering a culture of innovation and resilience. Social cohesion Youth skills development plays a pivotal role in promoting social cohesion and stability. When young people are given the tools to succeed, they are less likely to engage in criminal activities or fall into the cycle of poverty. Education and skills training provide a sense of purpose and direction, helping to build a more inclusive and equitable society. In addition, empowering young people with skills fosters a sense of belonging and community. It bridges social divides and promotes mutual understanding, reducing tensions and fostering a more harmonious social fabric. Individual empowerment On an individual level, skills development is transformative. It empowers young people to take control of their futures, make informed decisions and pursue their dreams. Skills training enhances self-confidence, fosters independence and opens up a world of possibilities. For many young South Africans, especially those from disadvantaged backgrounds, access to skills development programmes can be a lifeline. It offers a pathway out of poverty, providing opportunities to break the cycle of deprivation and build a better life. Solutions Recognising the critical importance of youth skills development, both government and the private sector have launched various initiatives aimed at addressing the challenges. Programmes such as the National Youth Policy, the Skills Development Act and the Youth Employment Service (YES) are designed to provide training, mentorship and employment opportunities to young people. The private sector plays a crucial role in advancing skills development by partnering with educational institutions to offer training programmes in the form of learnerships, internships, apprenticeships, etc. These collaborations ensure that the skills taught are relevant to industry needs, enhancing the employability of young graduates. Youth skills development is the cornerstone of a prosperous and equitable economy. By investing in the education and training of young people, we can unlock our country’s full potential, driving economic growth, fostering social cohesion and empowering individuals to build better futures. The challenges are significant, but with concerted efforts from the government, private sector and civil society, we can create a skilled generation capable of leading the country to a brighter tomorrow. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/building-a-skilled-generation-the-importance-of-youth-skills-development-in-south-africa-694561a

Phenyo Selinda | 30 July 2024 Employment and Labour Minister Nomakhosazana Meth has welcomed the signing into law of the Companies Amendment Act by President Cyril Ramaphosa. President Ramaphosa signed into law amendments to the Companies Act of 2008 on Friday, which promote the ease of doing business and impose greater corporate transparency on the earnings gap between the highest and lowest paid persons in a company. The Companies Amendment Bill and Companies Second Amendment Bill, which were referred to the President for assent, jointly constitute initiatives by the government to make the conduct of business less burdensome. They also tighten the pursuit of delinquent directors or prescribed officers for wrongdoing, including State capture, and address disparities in earnings. Streamlining Company Law The Companies Amendment Act, as signed by the President, streamlines company law to be clear, user-friendly and less burdensome on the conduct of business. This reform is important for the efficient and effective conduct of the domestic economy, as well as the attraction of foreign investment. The Act is also aimed at achieving equity between directors and senior management on the one hand, and shareholders and workers on the other hand. Link to Employment Equity According to Meth, this law has a direct linkage to the Employment Equity Amendment Act, 2022, particularly section 27, which refers to the statement of income differentials required from designated employers. Meth highlighted that the requirement of disclosure by companies of the average and median total remuneration of all employees, the remuneration gap between the total remuneration of the top 5% highest paid employees, and the total remuneration of the bottom 5% lowest paid employees of the company, will go a long way in exposing existing inequalities in employment. Strengthening Labour Market Compliance “As a result, the work done by the Department of Employment and Labour to transform the labour market will be strengthened, as the two pieces of law are complementing each other and will ensure more transparency from the employers. Through our departmental inspectorate, we will promote, strengthen and enforce compliance of our labour laws, as we strive for a labour market that is conducive to economic growth,” Meth said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://centralnews.co.za/employment-and-labour-minister-welcomes-signing-of-companies-amendment-act/

Tshehla Cornelius Koteli | 30 July 2024 The battle for South Africans to look for different ways to fight the high rate of youth unemployment continues. FNB says government initiatives alone cannot address the high rate of unemployment in the country. Therefore, there needs to be bold initiatives from the private sector to help. SME (small and medium-sized enterprises) Development Head at FNB, Heather Lowe, is of the view that the private sector does have the necessary will in place to help with unemployment, however, job creation is not usually a core competency. “That is why partnerships between the private sector and quality business growth agencies with proven expertise can make a difference,” adds Lowe. Ways to tackle unemployment Catherine Wijnberg, founder and group CEO at Fetola says there are multiple reasons that can limit job creation such as lack of economic growth, and lack of preparedness youth have for employment and entrepreneurship. She views entrepreneurship as one of the solutions to youth unemployment . At the age of 28, it is advisable for aspiring entrepreneurs to have work experience, networks, and exposure to the world of business. o address youth unemployment, there would need to be programs to unlock economic growth and effective small business development solutions. “Solutions such as business accelerators would empower the youth to create their own opportunities,” adds Wijnberg. She is of the view partnerships between the private sector and small business accelerators are key to building businesses that thrive. Partnerships between the two can create long-term beneficial societal impact and inclusive economic growth. Benefits of education and entrepreneurship “Entrepreneurship success rates also increase with post-matric education, which encourages advanced thinking, organisational skills and inner resilience, or grit.” “As work experience and higher education are both highly beneficial for successful entrepreneurship, how best can we enable this?” Wijnberg says young people with work experience and education usually have the insight needed to identify a market for their business and the confidence to launch it. She believes it is important to understand how to optimise the necessary foundations to successfully launch thriving Small, Medium and Micro Enterprises (SMMEs) . ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/business/government-initiatives-alone-cant-address-sas-unemployment-rate/

Piet le Roux | 31 July 2024 In July 2024, the  South African Health Products Regulatory Authority  (SAHPRA) published a revised version of its draft Broad-Based Black Economic Empowerment (B-BBEE) licensing policy, titled the “Draft Broad-Based Black Economic Empowerment Policy for Issuance of Licences as per section 22C of the Medicines Act.” (Revised Policy). This policy , developed in collaboration with the B-BBEE Commission and the Department of Trade, Industry and Competition, is intended to align with the BEE Code for the sector. It attempts to link regulatory licence applications in terms of the Medicines Act with BEE compliance. The Revised Policy, should it be made effective, will apply to licence applications under section 22C of the Medicines Act. This provision relates to licences to compound and dispense medicines for medical practitioners, dentists, veterinarians, nurses or other person registered under the Health Professions Act. It also relates to licences to manufacture, import, export, act as a wholesaler of or distribute medicines, scheduled substances, medical devices or in vitro diagnostics (IVDs). Questionable reassurances with regards to refusals to issue licences   The Revised Policy broadly retains the policy positions of the previous version from April 2023, but removes the provision that “[s]hould an applicant fail to submit its B-BBEE level certificate, or the certificate not be verifiable, SAHPRA will not issue a licence to such applicant”. SAHPRA likely removed this provision because of input from Sakeliga and others who argued that SAHPRA does not have the requisite powers to refuse a licence on grounds of BEE level non-compliance. In a webinar with stakeholders on 14 June 2024, SAHPRA confirmed that it does not have such powers:  “…there will not be an applicant who would be refused a licence because of your BEE status, as I've said earlier. And again, I want to really stress this matter. We cannot do that. We don't have a mandate to do that.”  BEE certificates are “non-negotiable”   While SAHPRA confirmed that a certain BEE status is not required, it remains of the view that it has the power to demand that a BEE certificate be submitted by licence applicants. Submitting a BEE certificate, SAHPRA contended in the June webinar, will be “non-negotiable” for applicants. This, it contends, forms part of aligning SAHPRA policies with the B-BBEE sector code.   Beware the phased approach   The requirement to submit a BEE certificate, regardless of the level, is nonetheless still problematic. This indicates a phased approach where an initially subtle infusion of licensing requirements with BEE compliance occurs, as in other industries.    The first phase is usually styled as an “information gathering” exercise whereby licence applicants need to provide a BEE certificate. This ensures that all future licensees have at least tacitly consented to some degree of BEE compliance, albeit not at specific levels.  The second phase usually entails commitments to progressively higher BEE levels or “transformation” performance becomes a compulsory licensing condition. This could entail reaching a certain BEE level or making other race-based commitments.  The above approach has been followed by the regulatory bodies for property practitioners’, financial services, agriculture, and air services, among others. These regulators typically embark on a seemingly innocent “information gathering” exercise, and then later attempt to make compulsory certain BEE levels as a pre-condition of licensing. In almost all cases, this occurs despite no lawful mandate. Such requirements are also fundamentally unconstitutional. This is why Sakeliga is either considering or actively preparing litigation on several BEE matters. Considering what has unfolded in other sectors, we caution against SAHPRA’s purported reassurances that no one will be refused a licence because BEE. Several signs point to SAHPRA preparing to escalate its demands in future, as per the phased approach. The Revised Policy reads:  “In phase 1, SAHPRA will require an applicant to submit its B-BBEE level certificate when applying for a licence. This requirement will be effective on a date to be communicated to industry.  Based on the learnings of the first phase, SAHPRA will develop criteria to be applied in the licensing process in terms of section 22C(1)(b) of the Medicines Act.”  Phase 1 may be a precursor to a more pernicious Phase 2   The “criteria” SAHPRA may try to enforce in Phase 2 will likely relate to a minimum BEE score or level. This highlights the risk associated with complying with the seemingly more innocuous requirement in Phase 1 in the Revised Policy. Sakeliga warns that if the Revised Policy is approved, institutions subject to the Medicines Act should avoid complying with Phase 1 BEE demands as far as possible. This is to prevent implicitly endorsing future, stricter BEE compliance demands that could be expected in Phase 2. There are risks associated with both compliance and non-compliance with these types of BEE directives. Institutions should not assume that non-compliance is necessarily the riskier option, and they should obtain sound legal advice to inform their compliance considerations.  Sakeliga provided comments on the previous version of the draft policy in 2023. We will monitor the development of the Revised Policy, and have already instructed our legal team to review its Constitutionality and lawfulness. We invite any potentially affected persons to raise concerns about the revised policy at  legal@sakeliga.co.za. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/sahpra-admits-it-lacks-authority-to-force-bee--sak

Bloomberg | 30 July 2024 Private equity shareholders of Primedia Group are considering strategic options for their stakes in the South Africa broadcaster, according to people with knowledge of the matter. The company, owned by EPE Capital Partners Ltd., FirstRand Ltd., Old Mutual Ltd. and the Mineworkers Investment Trust, has turned around under Chief Executive Officer Jonathan Procter, helping boost its valuation, said the people who asked not to be identified because the talks are private. A jump in operating cash flow at Primedia makes it easier for the PE firms to begin discussions with local and international companies, they said. Interest in broadcasting firms in Africa—home to the youngest and fastest growing population in the world—has been on the rise in tandem with the surging use of mobile phones and declining data prices. France’s Canal+ is in the process of acquiring South African broadcaster MultiChoice Group Ltd., in a deal that values the company at R55 billion ($3 billion). Primedia, the owner of Eyewitness News and the 702 radio channel, is targeting a 25% increase in earnings before interest, taxes, depreciation and amortization to R1 billion ($54 million) in the near term, two of the people said. Improving finances at the broadcaster may value the firm at R6.4 billion to R9.2 billion ($350 million to $500 million), the people said. Primedia “attracts interest from international and local investors from time to time,” the company said in an emailed response to queries. “These expressions of interest are considered by the board and shareholders, although no process has been announced by the board.” EPE Capital and Old Mutual Private Equity referred queries to Primedia. Rand Merchant Bank, a unit of FirstRand, and Mineworkers Investment didn’t respond to requests for comment. The process is still at an early stage, and there’s no guarantee any deal will go ahead, the people said. Primedia was founded in 1994 and operates in eight African countries including South Africa, Nigeria and Zimbabwe. The company recently established a studio-production business that holds the licensing rights to local versions of shows including the Masked Singer and Deal or No Deal. The company has also started selling content to streaming services such as Netflix and Apple+, and opened a sporting business for advertising and sponsorships as it increasingly pivots the company to becoming more digital focused. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/trending/784894/another-major-south-african-media-group-could-see-a-shift-in-owners/

Seth Thorne | 31 July 2024 President Cyril Ramaphosa has hailed the assent of the Public Procurement Act , arguing that it is a key intervention in clamping down on the rampant corruption in South Africa’s public procurement. However, some, including Western Cape Premier Alan Winde, have raised “serious concerns over the constitutionality” of the act, labelling it as a “handbrake for service delivery.” Signed into law on 23 July 2024, Ramaphosa said in his weekly newsletter on 29 July that the Act makes public procurement in the country, which features endemic corruption, “far more transparent.” It is estimated that the South African government spends approximately R1 trillion annually on procurement through tenders, making it the largest buyer in the country. However, sticky fingers and corrupt ‘tenderpreneurs’ run rampant in South African procurement, with Chief Justice Raymond Zondo describing issues in public procurement as “the centrepiece of state capture”.  “The name is corruption, but the game is procurement,” former Eskom board chair Jabu Mabuza told the state capture inquiry back in 2019. In his commission findings, Zondo made recommendations on how to address the corruption within the procurement of goods and services by the government – particularly to do with the “fragmentation” of the procurement system. Ramaphosa said that these recommendations sparked the development of the Public Procurement Bill, which was tabled in Parliament in June 2023 and signed into law just over a year later. Broadly, the Act outlines that all state departments and public entities must use a standardised, preferential framework when procuring goods and outlines that those who work for the state are excluded from submitting bids to the state. “This law eliminates the problem identified by Chief Justice Zondo of fragmentation in procurement laws by creating a cohesive regulatory framework,” said Ramapohsa. It focuses on the people who are involved in procurement, requiring them to comply with a code of conduct and receive professional development and training. It specifies that the Minister of Finance is required to prescribe measures for the public, civil society, and the media to access, scrutinise and monitor procurement processes. It also looks for the use of technology to disclose procurement information, including the awarding of bids, and the process followed. “This indicates a commitment to transparency and public oversight of procurement activities,” said Cliffe Dekker Hofmeyr’s Marelise van der Westhuizen and Katekani Mashamba. “No longer will tenders be awarded in dark corners far from public scrutiny,” said Ramaphosa. Ramaphosa said that the country’s procurement system currently “faces challenges of professional capacity, fragmentation and operational flexibility.” In hopes of countering this, the act establishes a Public Procurement Office in the National Treasury to promote standardisation in procurement and “modernise the system” It also notably provides for set-asides in the allocation of contracts to advance companies owned by historically disadvantaged groups, including black South Africans, women, youth, persons with disabilities and military veterans. “The report of the State Capture Commission shone a bright light on the weaknesses in our public procurement system.” “We are now fixing the problems,” concluded the President. However, not everyone agrees. Blowback On 29 June, Western Cape premier Alan Winde and Western Cape MEC of Finance Deidre Baartman wrote to President Ramaphosa, “raising serious concerns over the constitutionality” of the new laws. In a statement, Winde said that “we firmly believe that the Act in its current form does not pass constitutional muster as it usurps the autonomy of provinces and municipalities in adopting their own preferential procurement policies.” Winde and Baartman argue that “the act will impose significant costs on the procurement process as well add to the administrative burden involved in procurement – it will be a handbrake on all systems and processes [and ultimately] impact service delivery.” “The Constitution envisages that organs of state have the discretion to decide whether to adopt a preferential procurement policy – this Act is the national government drafting policy, and usurping the autonomy of organs of state, instead of providing a framework,” said Baartman. The Finance MEC said that “the process followed in drafting the legislation was woefully inadequate and, by National Treasury’s own admission, did not consider all public input, nor was the public given all relevant information on which to engage.” The Western Cape government contends that the National Assembly and NCOP failed to meet their constitutional responsibilities by providing too short public comment periods, “ignoring” some public feedback, inadequately evaluating the bill’s financial impact, and adopting a version of the bill that significantly differed from what was presented to the public. They call for urgent consultations with provinces and municipalities to resolve concerns before implementation. The signing of the law has also drawn mixed reactions from the business sector. Business lobby group Sakeliga called the law “unconstitutional” and “a recipe for accelerated state failure.” They argue that it will “compel all state entities to pay exorbitant premiums for procurement, based on a tendering party’s race, nationality, and other criteria, instead of prioritising value for money for the public.” “Its complex array of preferential procurement prescriptions, including set-asides, pre-disqualification, sub-contracting conditions, local content requirements, and more will greatly diminish the pool of available suppliers, leading to spiralling costs and lower quality,” said Sakeliga. The group adds that they believe it is unconstitutional because “neither Parliament nor a Minister is empowered to bind an organ of state to specific preferential policies [as] section 217 of the Constitution assigns this discretion to organs of state themselves, and even then, subject always to getting value for money.” “Sakeliga will now scrutinise this Act to determine appropriate steps in countering it and retaining possibilities for normal, value-for-money procurement with taxpayer funds,” the group said. Meanwhile, the Black Business Council lauded the assent as a “historic moment in our democracy” and “the most important legislation, secondary only to the Constitution.” “Hopefully, the implementation of the Public Procurement Bill will trigger inclusive participation of the historical excluded individuals into the mainstream economy,” said the Black Business Council. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/784772/major-storm-brewing-over-south-africas-new-procurement-laws/

Natasha Odendaal | 1 August 2024 The Competition Commission on Thursday recommended, with conditions, the R6.75-billion sale of masts and towers business Swiftnet, a decision that JSE-listed Telkom has welcomed. Telkom obtained shareholder approval on May 24 for the sale to an infrastructure fund managed by a subsidiary of Actis LLP, with Royal Bafokeng Holdings as its broad-based black economic empowerment partner. Telkom obtained shareholder approval on May 24 for the sale to an infrastructure fund managed by a subsidiary of Actis LLP, with Royal Bafokeng Holdings as its broad-based black economic empowerment partner. “This decision remains pivotal to Telkom’s goal of unlocking shareholder value and streamlining our focus on core operations and strategic initiatives. The disposal is now being referred to the Competition Tribunal for their final decision,” the company said in a statement following the announcement of the approval. The Competition Commission said that it is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. However, it states that the key condition to address is the public interest concerns, with the merging parties committing to ensure continued procurement spend towards small- and medium-sized enterprises that are owned by historically disadvantaged persons for a period of five years from the merger implementation date. Telkom is “working diligently” to secure approvals for the main outstanding suspensive conditions precedent to close the transaction, namely the regulatory approvals required from the Independent Communications Authority of South Africa and the Competition Tribunal. “This decision marks a positive and significant step towards our journey to become a leading infrastructure company in South Africa ,” concluded Telkom Group CEO Serame Taukobong.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/competition-commission-gives-swiftnet-sale-green-light-2024-08-02

Bizcommunity | 31 July 2024 The upcoming changes in B-BBEE rules from the Property Practitioners Regulatory Authority (PPRA), which require all non-exempt businesses (over R2.5 million turnover) to achieve at least 40 BEE points for a valid Fidelity Fund Certificate (FFC), highlight the importance of understanding and improving B-BBEE compliance. The B-BBEE scorecard, which assesses performance across various categories with specific weightings, plays a crucial role in determining these scores. Therefore, enhancing preferential procurement practices can significantly impact and improve a company's B-BBEE scorecard results. One of these categories is preferential procurement. Preferential procurement scoring is based on the B-BBEE status of the suppliers from which a company procures goods and services, taking into consideration the amount of money an entity spends with these suppliers. The amount a company spends on B-BBEE compliant suppliers will result in higher points on the Preferential Procurement Scorecard. For example, procuring from a supplier with, for example, a level 6 B-BBEE certificate will only result in 60% of the rand value-spend with this supplier counting towards the Preferential Procurement Scorecard, while procuring from a level 2 supplier will result in 125% of the rand value counting towards the scorecard. The better the B-BBEE level of the supplier, the more recognition the firm gets for the same amount of expenditure. Supporting transformation and compliance As the PPRA considers enforcing these new requirements, estate agents will need to prioritise how they procure suppliers and with whom they spend. Choosing a supplier like Lightstone - a provider of property data and analytics that has consistently achieved a Level 2 B-BBEE status for the past few years, ensuring their compliance and enabling them to maintain their FFCs. In so doing, estate agents will not only enhance their B-BBEE scores and meet regulatory demands, but also contribute to meaningful change in the industry by committing to transformation and inclusivity in South Africa. "This proactive approach allows our clients to focus on what they do best—serving their clients and growing their businesses,” says Hayley Ivins-Downes, managing executive of Lightstone’s real estate cluster. “We invite estate agents to leverage Lightstone’s Level 2 B-BBEE status to meet regulatory demands and contribute to the broader goal of economic transformation in South Africa. By partnering with Lightstone, estate agents can ensure their business remains compliant, competitive, and aligned with the country’s empowerment objectives." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/estate-agents-face-new-b-bbee-hurdles-816743a

SA News | 2 August 2024 Youth empowerment will be one of the apex priorities of the seventh administration, says North West Premier Lazarus Mokgosi. He announced on Friday that the provincial government was working towards implementing the Labour Activation Plan that will result in 27 000 work opportunities and training to unemployed people with the focus being the youth.  “Through the National Youth Service Fund, we will implement training and skills development opportunities that will benefit over 1 200 young people at the Departments of Public Works and Roads, Social Development, Human Settlement as well as Arts, Culture Sports, and Recreation,” he told the media.  Mokgosi was speaking during the Provincial Annual Media Day launch in Mahikeng. Currently, he said, the administration is investigating a new model for the Expanded Public Works Programme (EPWP) to ensure that this programme assists young people with various skills. The Victor Thebe Sifora Provincial Bursary Scheme will also be resuscitated and that the grant will fund no less than 100 students for the 2025 academic year. Service delivery The Premier acknowledged that the province was confronted with many challenges and said they would work hard to “speedily” resolve them. Mokgosi highlighted the Accelerated Service Delivery Programme - Thuntsha Lerole - which he believes has proven to be an important instrument in expediting the provision of services in municipalities. “We are ramping up the programme with the implementation of phase four whose focus will be on accountability to allow members of the public to give feedback and report cases of bad or lack of service delivery. “As mentioned during the address last week, the Executive Council will not hesitate to intervene in any municipality if the situation requires such intervention. There are promising signs of improvements in several interventions already being implemented across municipalities,” he explained. The province was also working around the clock to create economic opportunities for its citizens as they attend to service delivery concerns.  Through the Special Economic Zone (SEZ), they have so far garnered investment commitments to the tune of R164 billion that will create over 5 000 jobs.  He said they will be rolling out three mega infrastructure projects in water, sanitation, and road infrastructure in the City of Matlosana, J.B Marks and Maquassi Hills local municipalities.  These projects will cost R19 billion and are expected to create over 60 000 work opportunities targeted at the youth and women. In addition, through the Growth and Developmental Strategy (GDS), Mokgosi said they will initiate the North West Development Fund (NWDF) in partnership with the private sector. “The setting up of the fund will be arranged in a way that will ensure good governance principles are adhered to whilst ensuring that there are as few impediments as possible to ensure seamless delivery of programmes and projects.”  He announced that the fund will help resuscitate the province’s ailing tourism sector particularly, provincial parks as well as the refurbishment of the George Dick Montshioa and Pilanesberg Airports.  Media Day The Premier announced that a Media Day will be held annually after the Premier’s State of the Province Address (SOPA) to communicate developmental initiatives of the administration as well as interventions on various socio-economic challenges such as unemployment, poverty and income inequalities afflicting our communities. His Office will also hold quarterly media sessions to report progress registered in attending to several challenges, remedial action plans and achievements. “The media plays an important role in keeping our communities abreast of key government programmes that are primarily aimed at changing the lives of our people for the better. “We affirm and fully support the independence of the media to hold government accountable as enshrined in our Constitution.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/work-opportunities-and-training-unemployed-people-says-north-west-premier