Tara Isaacs | 28 August 2024 A walk-in business and career training centre was launched in Dunoon last week to tackle unemployment. The Silulo Foundation Business and Career Centre is at the Roma Centre along Winning Way in Dunoon Racing Park. More than 40 people attended the ribbon-cutting ceremony, including ward councillor Meisie Makuwa as well as representatives from the founders of the project, Astron Energy Development Fund and the Silulo Foundation. Luvuyo Rani, who founded the Silulo Foundation in 2023, said the organisation was set on bringing digital transformation to disadvantaged communities around the City, with Dunoon being only one of many. The foundation’s programmes focused on entrepreneurship and training, he said. The head of AEDF, Debbie Parker, said the new centre would focus on training for unemployed youth and budding entrepreneurs. “This initiative will provide training for small businesses, allowing them to formalise and grow their businesses,” she said. The Silulo Foundation said it had identified 240 entrepreneurs who would be put through a 10-month training programme at the centre. Future plans, it added, included enrolling a further 600 unemployed people, especially youth, in a free six-month programme teaching digital skills. Dunoon community leader Lundi Wulana said the centre would serve as a beacon of hope for the community and surrounding areas. “We have so many young people who are willing to work but need the resources and training to equip them with the skills so that they can become economically active citizens,” she said. Ms Makuwa said she was excited to be part of the initiative and would support its plans. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.tabletalk.co.za/news/new-business-training-centre-for-dunoon-640c89a2-5c7a-486e-8b5c-22f3a46f409c

Eustace Mashimbye | 28 August 2024 As South Africans, we stand on the brink of significant economic change. The recent signing of the Public Procurement Act, 2024 (Act. No.24 of 2024) into law by President Cyril Ramaphosa is not just a legal milestone; it is a beacon of hope for our economy. The legislation, which reinstates crucial localisation efforts through mandatory local content requirements, comes at a time when South Africa desperately needs to boost job creation and sustain the livelihoods of millions. The Quarterly Labour Force Survey for Q2 2024, recently released by Statistics South Africa, paints a stark picture of our economic reality. With the unemployment rate standing at a staggering 33.5%, the implications are clear: our economy is in dire need of revitalisation. The youth unemployment rate is even more alarming – at 46.6% – highlighting the urgency of creating new job opportunities, especially for our young people who represent the future of this nation. One of the most effective ways to combat the challenges is by reinforcing the importance of buying local and seeing procurement decisions being made in favour of locally made products and services. Proudly South African has long advocated for this, and now, more than ever, our message must resonate across all sectors of society. The re-industrialisation drive embedded within the Public Procurement Bill offers a lifeline to our struggling industries, many of which have been severely impacted by the influx of imported goods. Before the court ruling on the Preferential Procurement Policy Framework Act, which questioned the constitutionality of previous preferential procurement regulations, we had seen meaningful progress in promoting local procurement. The initial designation of products and sectors for local procurement in the public sector had begun to bear fruit, with several industries showing signs of recovery and growth. However, the ruling introduced a level of uncertainty that allowed imported goods to reclaim significant market share, undermining our localisation efforts. The Public Procurement Act, with its firm localisation provisions, effectively restores the efforts and provides a framework for sustained economic growth. It mandates that all organs of the state must prioritise locally produced goods in their procurement processes when procuring designated items. This is not just a win for our industries; it is a win for every South African. When the government buys local, it sustains jobs and creates new ones, contributing to reducing the high unemployment rate. Consider this: if every government department, every state-owned enterprise and every municipality committed to buying locally, the ripple effect on our economy would be immense, as the cumulative spend by the public sector just on the previously designated sectors could make a big difference in the respective industries. We could see a significant reduction in unemployment as industries expand to meet the increased demand for locally produced goods. In turn, and as a result of the multiplier effect involved in the manufacturing of products locally, this would stimulate other sectors of the economy, creating a virtuous cycle of growth and job creation. The best thing that can happen to our economy after the promulgation of the Public Procurement Act, with clear local content provisions, is for the re-designation of sectors to happen quickly, as per the process outlined in the act, for all government entities to comply with the local procurement provisions when buying and for consequence management to be introduced and enforced against all non-complying accounting officers and their respective institutions. High levels of non-compliance were the biggest threat to the success of the previous local content regulations in the public sector. We hope to see better and stricter compliance levels from public sector procuring entities. But the government cannot do it alone. We, as South Africans, are the solution. Every purchase decision we make is a vote of confidence in our economy. By choosing to buy local, we are choosing to support local businesses, sustain jobs and invest in the future of our country. The statistics are clear: our economy needs this boost and it starts with each of us making a conscious decision to support local products and services. The Public Procurement Act is more than just legislation; it is a call to action for all South Africans. Let us rally behind the act and embrace the opportunity it presents to rebuild our economy. By buying local, we can create the jobs that are desperately needed and secure a brighter future for all. Together, we can turn the tide on unemployment and ensure that South Africa’s economic recovery is not just a hope, but a reality. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/buying-local-is-crucial-for-job-creation-and-economic-revival-3cfa4356-642f-4bb1-8c7a-c5af5042bc0f

Parliament | 29 August 2025 The Portfolio Committee on Women Youth and Persons With Disabilities received a briefing today from the National Youth Development Agency (NYDA) on its annual performance plan (APP) and budget for the 2024/25 financial year. The committee heard that for the 2024/25 financial year, the budget allocation for the Department for Women, Youth and Persons with Disabilities is R791.3 million. The budget includes a significant portion earmarked for youth development programmes, although it reflects a decrease from the previous year’s budget. The APP outlines specific targets, including support of youth-owned enterprises, job creation and the facilitation of skills development programmes. The committee praised the comprehensive presentation provided by the NYDA and commended their ongoing efforts to address the challenges facing South Africa’s young people. Throughout the discussions during the meeting, several important themes emerged. Firstly, there was consensus among committee members about the urgent need to address the high levels of youth unemployment. Many members highlighted the importance of aligning education systems with the demands of the job market. The committee believes entrepreneurial skills should be integrated into the school curriculum to better prepare young people for future employment opportunities. The committee had concerns about the accessibility of NYDA services, particularly in rural areas. Committee members said it is crucial for the agency to enhance outreach efforts to ensure that young people, especially those from marginalised communities, have access to vital information and resources that the NYDA has to offer. Members suggested exploring partnerships with local organisations and using mobile units to reach young people who may face transportation barriers. Regarding the NYDA’s budget, members of the committee noted discrepancies between the agency’s reported allocations and the figures obtained from the National Treasury. This discrepancy warrants closer scrutiny to ensure transparency and accountability in the use of resources. Furthermore, the committee recognised the significant reduction in funding for various programmes and indicated that it is eager to understand how the NYDA plans to sustain its initiatives under these financial constraints. The committee noted in the presentation that the upcoming financial year marks the last for additional funding of R250 million for the National Youth Service programme, which raises questions about the long-term sustainability of such initiatives. The committee also inquired about the effectiveness of the NYDA’s programmes, specifically regarding the distinction between job opportunities created and actual long-term employment. The committee indicated that it is keen to understand the sectors that have benefited most from these opportunities and the sustainability of the jobs created. Additionally, the issue of inclusivity for persons with disabilities within the NYDA’s programmes was highlighted. While the NYDA has made strides in developing a disability strategy, the committee encourages further efforts to ensure that programmes cater to the diverse needs of all young people, including those with disabilities. Finally, the committee expressed a desire for more detailed reporting on the performance of board members and the mechanisms in place for evaluating their contributions. It is essential that we hold ourselves accountable and ensure that our leadership remains effective in driving the NYDA’s mission forward. The committee’s Chairperson, Ms Lindelwa Dunjwa, said: “The committee is committed to supporting the NYDA in its mandate to empower young people across South Africa. We look forward to continued engagements that will enhance our collective efforts to address youth unemployment and promote socio-economic development,” she said. ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON WOMEN YOUTH AND PERSONS WITH DISABILITIES, MS LINDELWA DUNJWA.  For media inquiries or interviews with the Chairperson, please contact the committee’s Media Officer: Name: Yoliswa Landu (Ms) Cell: 081 4974694 E-mail: ylandu@parliament.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.parliament.gov.za/press-releases/media-statement-committee-youth-and-persons-disabilities-engages-nyda-its-annual-perfomance-plan

Dr Linda Meyer | 1 September 2024 SOUTH Africa stands at a critical juncture, of grappling with the persistent and deep-rooted challenge of youth unemployment. Outcries from unemployed youth, and numerous opposition parties on the effectiveness of government’s initiatives in addressing this scourge have become a regular feature playing out within the media space. Addressing this challenge, however, needs to move past being a mere numbers game but rather a holistic approach that focuses on education, work experience, and regional disparities, if the country is to have any hopes of gradually turning the tide. The numbers speak volumes. As of the second quarter of 2024, the unemployment rate among young South Africans aged 15 to 34 has soared to an alarming 46.1%, starkly overshadowing the national unemployment rate of 33.5%. Unemployed South Africans increased by 158,00, reaching 8.4 million, marking the highest unemployment figure since 2008. I think this data does not just reflect economic hardship; it highlights a looming social crisis that threatens the fabric of our society. The exclusion of our youth from the labour market is not merely a statistic but a pressing call to action. The approach to resolving youth unemployment must be innovative and grounded in empirical evidence. The Labour Market Dynamics in South Africa (LMDSA) report for 2022 provides a crucial insight that should guide our strategies. It reveals a significant disparity in employment outcomes between youth with work experience and those without. Notably, persons with a higher level of education stand a better chance of being employed. I want to emphasise that education remains a key driver in curbing youth unemployment, as according to the Quarterly Labour Force Survey (QLFS) for the 2nd Quarter of 2024 and StatsSA, most unemployed individuals had an education level below grade 12, while those who had finished their grade 12 year represented around 34%. Graduates had the lowest share of unemployment at 10,7%. The implications of this data are profound. It underscores the critical need for experiential learning, leadership, internships, apprenticeships, and workplace exposure programmes. These interventions are not just beneficial—they are essential. The reality is that youth with experience are much more likely to secure employment than their inexperienced peers, making it evident that such programmes must be at the core of our efforts to combat youth unemployment. Transformative power of education Education is frequently hailed as the great equaliser, yet the current state of youth employment starkly reveals the substantial barriers to accessing higher education. These challenges are exacerbated by the limited availability of first-year spaces at public universities and the government's restrictions on NSFAS grants, which are only available to students who secure admission to a public university or TVET College. This is problematic, students should receive a bursary and be afforded the opportunity to select where and what they want to study. As graduates, no matter where students studied, they contribute knowledge and skills to the South African economy. The data further reveals that individuals with tertiary education are significantly more successful in transitioning from unemployment or inactivity into employment than those without a matric certificate. This highlights the transformative power of education in shaping employment outcomes. However, it is crucial to acknowledge that young women face additional, often insurmountable, barriers. The unemployment rate among young women reached 50.1% in the second quarter of 2024, exacerbating already existing gender disparities within the labour market. These challenges are not isolated; they are systemic. Young women are hindered by lower absorption rates and labour force participation due to additional family responsibilities, which limit their educational attainment and career progression. Addressing these disparities requires policy intervention and a cultural shift that values and supports the role of women in the workforce. A tale of two South Africas South Africa’s provinces present a mosaic of labour market dynamics, each telling its own story. Urban areas, by and large, offer better employment prospects than their rural counterparts. For example, the Western Cape outperforms provinces like KwaZulu-Natal and the Eastern Cape with higher absorption rates and lower unemployment levels. A critical and often overlooked aspect of this issue is the phenomenon of discouraged youth — those who are available for work but are not actively seeking it. The variation across provinces is striking. In 2024, only 2.8% of young people in the Western Cape were categorised as discouraged, compared to 14.5% in Limpopo. This disparity speaks to the uneven distribution of opportunities across our country, a challenge that requires localised, rather than blanket, solutions. Over the past two decades, we have seen a decline in the proportion of discouraged youth in most provinces, with the Northern Cape showing the most significant reduction. However, this progress has not been uniform. Provinces like the Northwest and KwaZulu-Natal have witnessed increased discouraged youth, underscoring the need for tailored, region-specific strategies. A collaborative path forward The youth unemployment crisis in South Africa is not just an economic issue but a moral one. It demands a comprehensive, multi-faceted approach, including education reform, skills development initiatives, and targeted employment programmes. But beyond these strategies, we must foster a collaborative environment where the government, private sector, and civil society work together to create sustainable employment opportunities for our youth. Policies that promote entrepreneurship and small business development are vital. They empower young people to take control of their destinies, reducing their reliance on traditional employment avenues. Moreover, these policies can drive innovation and economic growth, contributing to a more resilient economy. Addressing youth unemployment is about more than just numbers as we move forward. It is about building a society that values and invests in its future — its youth. By focusing on education, work experience, and regional disparities, we can unlock the potential of South Africa's next generation, ensuring a more inclusive and prosperous future for all. * Dr Linda Meyer is the managing director of the Independent Institute of Education’s Rosebank College. The views expressed here are her own. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/sundayindependent/analysis/youth-unemployment-sas-ongoing-crisis-and-the-path-forward-bb5001a7-8c88-411f-b94e-0e6aade10d22

Nomazizi Siphondo | 1 September 2024 This Women’s Month, we at the National Empowerment Fund (NEF) proudly commemorate a milestone that is a testament to progress and a beacon of commitment: the 10th anniversary of our Women Empowerment Fund. Since its inception in 2014, the WEF has been at the forefront of revolutionising economic opportunities for black female entrepreneurs across South Africa, blending financial and non-financial support to foster growth and innovation in their ventures. Over the past decade, the WEF has made an indelible mark, disbursing an impressive R4.5 billion. The substantial investment has provided vital capital and catalysed significant growth across diverse sectors including construction, student accommodation and service stations. Our journey has been one of supporting resilient and visionary women who are transforming entrepreneurial dreams into thriving realities. The WEF stands out not merely for its financial support but for its holistic approach to empowering woman entrepreneurs. We offer preferential pricing, reducing financing margins for businesses with female ownership. The concessionary pricing significantly lowers capital costs, easing the path to essential funding. Our goal is clear: to dismantle barriers and make financing more accessible for woman-led businesses. Beyond financial assistance, the WEF is committed to comprehensive support through mentorship, networking opportunities and tailored training. We understand that entrepreneurial success is often as much about guidance and connections as it is about funding. By connecting entrepreneurs with seasoned professionals and a robust network of industry contacts, we provide the tools necessary to navigate business challenges and seize new opportunities. Our commitment to supporting woman entrepreneurs remains steadfast, with a significant disbursement target of R675 million for the current financial year. Of this, 35% is earmarked specifically for the WEF, highlighting our dedication to empowering women and investing in their success. As of August 2024, our pipeline boasts R495m in potential approvals, underscoring the strong demand and vibrant opportunities for woman-led ventures. Among the WEF’s success stories is Smith Capital Equipment, a prime example of how our investment can transform businesses. In 2015, our R41m investment enabled Isipho Capital Engineering to acquire Smith Capital Equipment, leading to its majority black woman ownership. Under CEO Fortunate Mdanda, Smith Capital has become a leader in manufacturing aerial platforms and drilling rigs, supporting 75 jobs and reinforcing local manufacturing capabilities. Despite challenges, such as the disruptions caused by the Covid-19 pandemic, our impact remains robust. In the financial year 2024, 37% of NEF’s disbursements were allocated to woman-empowered businesses, demonstrating our unwavering commitment to advancing female entrepreneurship. However, we acknowledge that woman entrepreneurs face significant barriers, including limited management skills, inadequate access to affordable capital and market entry challenges. Addressing the issues is central to our mission. Our concessionary funding approach, coupled with targeted investor education and strategic partnerships, aims to overcome the obstacles and enhance market access. As we celebrate the 10th anniversary of the Women Empowerment Fund, we reaffirm our commitment to supporting woman-led enterprises across various sectors, including property, tourism, manufacturing and energy. The diverse potential within the industries reflects the growing ambition and resilience of South Africa’s woman entrepreneurs. The WEF’s 10-year milestone is a celebration of our achievements and a call to action. As we honour Women’s Month, we remain dedicated to advancing the success and empowerment of woman entrepreneurs, driving economic growth and contributing to a more inclusive and equitable future for all. Nomazizi Siphondo, the head of the Women Empowerment Fund and Acting uMnotho Fund Manager, National Empowerment Fund. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/celebrating-a-decade-the-women-empowerment-funds-impact-on-entrepreneurs-7a83ef9e-4a9f-4f5d-972b-c09a075a87d7

Sheetal Bhoola | 2 September 2024 In recent years, we have become accustomed to hearing about the brain drain and South Africans who attain skills and qualifications at home and then leave our country to earn a livelihood abroad. Some patriotic South Africans return home at some stage, and many do not. So many debates are focused on whether life is better in other countries and the varying socio-economic challenges no longer unique to South Africa. Then, there are the students who seek to study abroad for various reasons. For many, it is classified as a life lesson coupled with qualifications endorsed by institutions abroad. Skills attained abroad are the keys and entry card to becoming employed, and hopefully, a citizen in another country is specific to qualifications, skills, market demand and location. Yet, so many South African school-leavers opt to study abroad if they are given the opportunity. The motivations are varied, but a central goal is to experience life abroad and attain an internationally recognised qualification that can facilitate emigration. The emigration process can be assisted through the development and structuring of a global network, which is attainable if one is a student abroad. In addition, potential employees with international experience tend to be more likely to be employed than their South African counterparts who have not had the opportunity to study or live abroad. These experiences are expensive, and scholarships to study abroad are not plentiful. South Africans are often categorically pooled together with other candidates from African countries when opportunities for Africans are available. Some European countries, for instance, indicate very particular criteria and regulations for applicants. Often, eligible candidates must be of a specific nationality, meet high academic benchmarks, fit into a particular age group, and be available to travel within the timetable of International Communication. Some scholarships have also been earmarked to specifically support African women or African “black” women globally, which leaves no room for others to apply. The stakes are high, and South African school-leavers, undergraduates and post-graduate students are competing with individuals from around the world for those spaces. There are a variety of international exchange scholarships available, but the keys to meeting eligibility are excellent academic performance and meeting the other necessary criteria. A common question any candidate asks is, “How will you benefit from this opportunity?” The German Academic Exchange Service (DAAD) has a range of scholarships on offer for South Africans, however, their selection process is rigorous and rigid. In 2004, DAAD funded me to complete an international co-badged Master’s degree in Germany and India. The hosting institutions were the University of Freiburg, Germany and Jawaharlal Nehru University, New Delhi, India. The Indian Council for Cultural Relations funded the selected students from South Africa and other institutions. The funding included all travel and living expenses and tuition fees. I experienced student life in a developing and developed country that could not be compared geographically, culturally and educationally. The experience strengthened my personality by taking me out of my comfort zone, developing my communication and social skills further, and allowing me to learn much more and become an aspiring global South African citizen. More importantly, I learned to live in another country, with a new culture, and learn new languages. South Africa’s Daily News Editor, Ayanda Mdluli, is aspiring to learn Mandarin. He was selected to attend a four-month journalism training program hosted by the China Communications Press Centre in Beijing. Internships such as these provide great value in international experience, personality strengthening, skills and knowledge building, and networking. Editor Mdluli is among 100 other journalists from around the world, which will allow him to consolidate professional relationships with journalists and media houses worldwide. In addition, he can be recognised for his skills in China. Similar internship programs are also facilitated by many other international institutions, although not all are funded. The key is to look at the fee structure and identify at the outset if it is an affordable option for yourself. Some South Africans have indicated that the tuition abroad at certain institutions in China is far cheaper than in South Africa. Tuition fees at a Chinese public university can be as little as $2000, depending on which institution and the location of the institution. Tuition fees in the United Kingdom are expensive in comparison. Tuition fees and regulations abroad vary depending on region, country, and institution. Norway and Germany are among the few countries that permit free tertiary education at state-funded institutions. Some state universities located in specific regions, like the Baden-Württemberg area, charge between 1500 and 2000 euros per semester per student, whereas the fees at private universities are higher. Other European state universities offer free tuition to European Union citizens only, and international students are forced to pay hefty fees, sometimes more than the citizens of that country. These options predominantly attract elite international students. Besides the cost of institutions, one has to consider the living expenses and travel to and from South Africa, especially if there is no scholarship. Depending on where a non-EU student is located in Norway, they may be able to access free tertiary education. Countries like Finland offer free tuition to European Union citizens only. The Nations Category list, which is applied globally, also impacts the tuition fee that a South African student may be liable for while studying abroad. South Africa is listed as Category C, which is a grouping that comprises of nations that have different infrastructure, natural resources, and economic development compared to countries in Category A and B. However, international bilateral agreements with other countries have encouraged affordable educational opportunities abroad for South Africans. Universities in Denmark facilitate free tuition for international students who attend a state university within an official exchange program. Still, students not belonging to an exchange program cannot access that benefit. American University tuition fees are among the world’s highest, although public universities are cheaper than private institutions. The exchange rate of the rand versus other currencies has to be considered when one decides where to apply. The educational ties between India and South Africa have strengthened in recent years, and their India-Africa Maitri Scholarship Scheme is developed specifically for South Africans. Candidates can select five preferred institutions they want to study at for a qualification. This is a great benefit, as many other scholarships are less inclusive. This opportunity stipulates any South African is legible to apply as long as the age restriction is adhered to and the necessary academic indicators are met. The scholarship includes living facilities as well as the travel fare. In addition, the continual bilateral agreements have also encouraged the structuring of scholarships, especially for Indian South Africans. To be eligible, one has to be of Indian descent. South Africans recently embraced this opportunity, and approximately 30 students were selected to study in India in 2025. Many embassies, South African Research Institutions such as the National Institute of Humanities and Social Sciences, the National Research Foundation as well as the Erasmus Program and the Boren Awards for International Study - fund short and long term development learning programs and the opportunity to acquire a qualification abroad. Universities and national international relations offices around the globe play a pivotal role in career development and providing opportunities to youth. South Africans have to be dedicated and display academic excellence to be selected to participate in an internship or scholarship program abroad. The opportunity can only facilitate the process of South African youths aiming to become global citizens. Dr Sheetal Bhoola is a lecturer and researcher at the University of Zululand, and the director at StellarMaths (Phoenix & Sunningdale). ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/opinion/considering-studying-abroad-the-benefits-can-be-lasting-03a26c59-c255-473a-bc47-e86c11e345dd

Hope Mafu | 2 September 2024 MTN Foundation launched its 2024 edition of Women in Digital Business Challenge on Monday to tackle the weary presence of women in the information, communication and technology (ICT) industry. The challenge aims to foster the participation of women in South Africa’s ICT sector. After vetting and shortlisting 20 applicants, the challenge absorbed a cohort of 10 women who are small business owners, where R1 million was invested. Each contestant received R100K towards developing their businesses. According to MTN South Africa Foundation general manager, Arthur Mukhuvha, the challenge is set to run for six months, offering participants an opportunity to strengthen and grow their small businesses into sustainable and thriving enterprises. “The prize money will be used for working capital, business development, purchasing tangible assets, investing in business technology hardware, software or intellectual property (IP), and technical and soft skills training,” said Mukhuvha. Partnering with the National Youth Development Agency (NYDA), the challenge is expected to play a pivotal role by ensuring the entrepreneurs reach the pinnacle of their ICT businesses, or preside over executive positions. “This showcases the commitment of the public and private sector institutions to work together, develop and empower the youth and henceforth create opportunities for our youth and women to be able to participate in the mainstream economy,” said Mukhuvha. According to Mukhuvha, this aligned with the Department of Higher Education and Training research in 2022, showing only 13% of women graduated with science and technology qualifications, while 2% entered the ICT industry. “We believe that science, technology, engineering and mathematics (STEM) qualified women can excel within the science and tech sectors. By supporting talented women through the Women in Digital Business Challenge, we believe that we will be empowering women to play more leading roles in the economy. In addition, because many of these businesses are focused on meeting community needs, women can play a vital role in helping address the skills and employment issues that our nation faces,” said Mukhuvha. The ten entrepreneurs will be mentored for four months by experts and business coaches to help grow their business acumen, marketing strategies, financial and management skills. “We are confident that, as previous finalists have shown, the ten graduates of the 2024 Challenge will use their skills and entrepreneurial flair to build their businesses and assist others in achieving their technical ambitions,” said Mukhuvha. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/news/mtn-invests-r1m-in-developing-womens-smmes-and-ict-skills-db05fffa-4334-443a-9068-a962c93fa0bf

Ismail Joosub | 2 September 2024 In pursuit of a more just and equitable society, South Africa’s Black Economic Empowerment (“BEE”) policies – now known as Broad-Based Black Economic Empowerment (“BBBEE”) – were introduced with the noble aim of correcting the injustices of the apartheid era. The policies were designed to ensure that previously disadvantaged individuals could participate more fully in the economic life of the nation. However, as we examine the effects of the policies, it becomes clear that there are significant constitutional and economic questions that need to be addressed. The Constitution is a beacon of hope and fairness, enshrining principles of equality and non-racialism. Section 9 is the cornerstone of our equality framework. It asserts that, “ everyone is equal before the law and has the right to equal protection and benefit of the law “. This section not only prohibits discrimination, but also allows for affirmative action measures to be implemented to promote equality. Specifically, section 9(2) provides that, “ to promote or achieve equality, legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination may be taken “. The intention behind this provision is clear: To ensure that those who have been historically marginalised have the opportunity to succeed and participate fully in society. However, the application of this principle through BBBEE policies has raised significant questions about whether these measures are achieving their intended goals without conflicting with other constitutional principles. BBBEE, established through the Broad-Based Black Economic Empowerment Act of 2003 and its 2013 iteration, seeks to promote economic inclusion by improving black ownership, management control, skills development and preferential procurement. At its core, BBBEE aims to address economic disparities by integrating black South Africans into the mainstream economy. Yet, despite its intentions, BBBEE has sparked debate about its alignment with constitutional values. While the policy has undeniably made strides in opening doors for some previously marginalised individuals, it has also faced criticism for its execution. The concept of demographic representivity – ensuring that business and public sector employment mirror national demographics – has led to complex and often contentious practices. The Employment Equity Act (“EEA”) of 1998, a precursor to BBBEE, mandates that employers achieve racial representivity at all organisational levels. While this aim is rooted in the desire to promote inclusivity, the practical application has sometimes resulted in unrealistic targets. The pressure to meet these targets can lead to appointments based more on race than on merit or qualifications. This has occasionally undermined organisational efficiency and service delivery, particularly in the public sector where competence and skill should be paramount. Impact of BBBEE on private sector In the private sector, BBBEE’s impact is equally profound. The policy’s stringent requirements and frequent amendments have created a challenging environment for businesses. Companies are required to demonstrate compliance with various criteria related to ownership, management control and procurement. For multinational corporations and family-owned businesses with existing structures, these requirements often necessitate complex restructuring. This can be particularly burdensome and may deter investment, as investors seek stable and predictable environments for their capital. Moreover, the frequent changes in BBBEE regulations contribute to an environment of uncertainty. Each update can alter compliance requirements and impact business strategies, leading to hesitation among potential investors. The European Union Chamber of Commerce has highlighted these challenges, noting that the ambiguous application of BBBEE criteria poses significant hurdles for foreign investors. The economic ramifications of BBBEE cannot be ignored. Economic growth is essential for national prosperity, particularly for improving living standards and reducing poverty. The Fraser Institute’s 2023 Annual Report underscores the correlation between economic freedom and growth rates. Nations that embrace free markets and minimise government intervention typically experience higher growth and better living standards. In contrast, BBBEE’s rigid quotas and compliance requirements have led to inefficiencies and reduced economic dynamism. The EEA and BBBEE policies have been linked to increased unemployment and reduced state efficiency. The mandate for demographic representivity has, in some cases, led to higher operational costs and reduced competitiveness for businesses. In the public sector, the focus on meeting demographic targets has sometimes overshadowed the need for efficiency and competency, resulting in decreased service delivery and increased corruption. The legal background to BBBEE policies underscores their constitutional complexities, particularly when examined through the lens of the Constitutional Court’s ruling in the  Van Heerden  case. In  The Minister of Finance and Another v Frederik Jacobus Van Heerden,  the Court addressed the constitutional validity of measures under section 9(2) of the Constitution, which permits differentiation to promote equality. The judgment emphasised that affirmative action measures must not only target disadvantaged groups, but also genuinely advance their position and foster  substantive equality . This entails that such measures should rectify systemic inequalities and provide meaningful benefits to those historically marginalised. Despite this framework, BBBEE policies often fall short of these constitutional criteria. Criticism of BBBEE The  Zondo Commission  highlighted that BBBEE has been manipulated to advance the interests of a select few, rather than addressing broader economic disparities.  Harvard’s Growth Lab and the Institute of Race Relations have similarly criticised BBBEE, arguing that its continuation hampers economic growth and fails to benefit the broader disadvantaged population. Instead of broadly advancing economic equality, BBBEE has sometimes benefited a narrow elite, leaving many disadvantaged individuals with limited gains. This disparity underscores a significant constitutional tension: While BBBEE aims to address historical injustices, its implementation has not fully achieved its goals of poverty reduction and equality enhancement. The persistence of high levels of inequality suggests that BBBEE has not sufficiently met the criteria of advancing substantive equality as envisioned by section 9(2) and the  Van Heerden  judgment. Additionally, section 195 of the Constitution emphasises “broad representivity” in public administration, but differentiates it from strict quotas. This suggests that while diversity is important, it should not come at the expense of efficiency and merit. The rigid racial targets imposed by BBBEE policies often conflict with this principle, as they enforce quotas that may not align with the functional needs of various sectors. In light of these challenges, it is crucial to explore alternative approaches that are more in line with Section 9’s principles of equality and fairness. Rather than relying solely on racial quotas, a model that addresses socio-economic disadvantage more broadly could better align with the Constitution’s commitment to substantive equality. This approach would focus on alleviating poverty and providing opportunities based on need, rather than race alone. Aligning empowerment policies with the Constitution’s principle of equality (Section 9) and the foundational value of non-racialism (Section 1) is essential. By creating a more conducive environment for growth that balances social objectives with economic efficiency, South Africa can work towards a more equitable and prosperous future for all its citizens. The road ahead requires a commitment to reevaluating and reforming policies to ensure they serve the broader goals of justice and economic development, in true alignment with the values enshrined in our Constitution. Ismail Joosub is the manager of constitutional advancement at the FW de Klerk Foundation. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/thought-leader/2024-09-02-from-empowerment-to-elitism-the-bbbee-dilemma-and-constitutional-tensions/

Nkhensani Nkuna | 3 September 2024 THE construction of the R250 million Mahumani High-Tech Skills Development Centre started on Monday. This comes after the acting premier of Limpopo Province, Basikopo Makamu, led the sod turning and site handover ceremony of the project at Nkomo Village outside Giyani in Limpopo Province on Saturday, August 31. The project is an initiative of the Construction Education and Training Authority (CETA) in partnership with training centres – AgriSETA, FP&M SETA and MerSETA –who are collaborating with the Department of Higher Education. Hosi Mahumani has provided 12.3-hectares of land to build the state of the art centre. The first phase is expected to be completed over two years. This phase will include the development of an administration block, two libraries, acultural centre, a farming model, a farming field, a piggery, and a chicken coop, among other facilities. Notably, 30 percent of the construction budget will be allocated to local small, medium, and micro enterprises and the construction phase is expected to create over 250 jobs. This is a five-year development plan and upon completion the centre is expected to form part of the Letaba Technical Vocational Education and Training (TVET) College, which currently has three colleges in the Mopani District Municipality. The Board chairperson of CETA, Thabo Masombuko, said: “This significant initiative is focused on enhancing rural skills within the district and the Greater Giyani Local Municipality. The initiative is structured to train more than 700 learners every year, offering them valuable skills to enable their participation in the economy.” The Letaba TVET College acting Principal, Benjamin Moshoma, said the college was committed to working with the Mahumani Traditional Authority to uplift theyoung with skills development. “By equipping individuals with futuristic skills, the centre will play a pivotal role in unlocking innovation, entrepreneurship, and sustainable growth, ultimately contributing to a more prosperous and equitable society,” said Moshoma. Meanwhile, Makamu warned local companies about jeopardizing the project, simply because they did not get a tender. “The 30 percent share is allocated to local businesses, but not everyone is going to get the job, so don’t cause destruction, because you did not get the job. This project is going to change the lives of so many young people, so please don’t be selfish and want to stop a project which will help the next generation,” he said. Makamu was appointed acting premier of the province effective last Thursday until September 9, when Dr Phophi Ramathuba returns from the Forum on China-Africa Cooperation in Beijing, China. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cajnewsafrica.com/2024/09/03/r250m-high-skills-centre-for-limpopo-youth/

On 01 September 2024, the Department of Employment & Labour has opened up for Employment Equity Reporting. The deadline will close on 15 January 2025.   Who must Report  in 2024:   All designated employers with 50 or more employees must report every year. Employers with fewer than 50 employees who are designated in terms of the turnover threshold applicable to designated employers (Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013). Employers who became newly  designated  on or after the first working day of April 2024, but before the first working day of October 2024, must only submit their first report on the first working day of October 2024. Employers who voluntarily wish to comply in terms of section 14 of the EE Act.   We encourage all Members to take note of the above and ensure that all Reporting is complete before the deadline date.    Human Capital Services  are available for Members who need assistance with submissions

Ethics, skills & competence are at the top of the due diligence list when selecting a B-BBEE Rating Agency. Firstly, an organisation must ensure that they engage the services of a B-BBEE Rating Agency in line with the SANAS R47-03   document that does not allow B-BBEE Rating Agencies to provide B-BBEE Consulting services.   Secondly, organisations must ensure that their chosen B-BBEE Rating Agency allocates a team with the technical expertise to ensure the B-BBEE Verification process is smooth. Remember, an organisation is within their rights to request CVs about the team undertaking their B-BBEE Verification.   It is encouraged that Members adopt a Due Diligence process when selecting a B-BBEE Rating Agency.   Verification Preparation Services   are available to Members to assist with planning for the B-BBEE Verification process.

Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend and can be a complex calculation. The formula is (A – B = TMPS) broken down as (Not Limited to):    A |        Cost of sales- adjusted for opening and closing stock; Operating expenses; Other expenses; and Capital Expenditure   B |        Salaries, wages, remunerations and emoluments; Empowerment-related procurement; Supplier-specific exclusions: o   Taxes and levies; o   Imports, providing they meet the criteria; o   Organ of state / public entity that enjoys a statutory/regulated monopoly in the supply of such goods or services; o   Pass through third-party procurement; Accounting-related exclusions: o   Depreciation and amortisation; o   Fair value adjustments; and o   Forex transactions.   Enterprise & Supplier Development Services are available to assist members with understanding the TMPS calculation.