Robin-Lee Francke | 12 September 2024 President Cyril Ramaphosa appeared before the National Council of Provinces (NCOP) on Thursday for an oral reply to questions posed by the delegates of the house. This was the President’s first session in the NCOP since the establishment of the seventh administration. During the briefing, a number of issues were highlighted. Presidential Health Compact Ramaphosa was asked to address the concerns of stakeholders regarding the signing of the second Presidential Health Compact. The Presidential Health Compact initiative was launched in 2019. It is a framework of cooperation between critical sectors in South Africa to improve health outcomes. Among the sectors involved in the Presidential Health Compact are the government, business, labour, civil society, academia, traditional health practitioners, allied health practitioners and patient user groups. “In 2023, we convened the second Presidential Health Summit and produced a second Presidential Health Compact for 2024 to 2029. “On August 22, Deputy President Paul Mashatile signed the compact on my behalf at a signing ceremony at the Union Buildings, together with signatories representing various sectors. The compact aims to ensure multisectoral involvement in health systems, strengthen the healthcare system and prepare it for the implementation of National Health Insurance. Some stakeholders – specifically from business – chose not to sign the second Presidential Health Compact. They cited their concerns with the National Health Insurance Act and references to NHI in the compact,” Ramaphosa said. He said they believe there is a good reason for these stakeholders to be involved in the work needed to achieve the aims of the compact. Through the compact, they aim to invest in a capable, compassionate, fit-for-purpose workforce in the health sector. “Importantly, the compact aims to ensure the NHI is implemented affordably, deriving value for money and eliminating corruption. These are objectives which all stakeholders can support and work towards. We therefore encourage all role players to be involved in pursuing these objectives even if they chose not to sign the compact. The implementation of the compact is overseen by a Joint Monitoring and Evaluation Steering Committee that brings together all the stakeholders. All those who attended the recent meeting of the committee agreed on its terms of reference, which includes strengthening the health system in preparation for NHI implementation,” Ramaphosa said. Poverty and unemployment Ramaphosa was asked whether the government was making progress in the fight against poverty and unemployment. “Much higher levels of inclusive growth are needed to achieve sustainable employment. That is why this seventh administration made up of the Government of National Unity (GNU) has placed inclusive economic growth as its apex priority. However, it will take time for such growth to meet the scale needed. This is why a range of complementary measures are required to address poverty and enable economic participation. “The Presidential Employment Stimulus enables support to public employment, livelihood support and enterprise development. The Presidential Employment Stimulus has contributed to over 2 million jobs and livelihood opportunities since its inception in 2020. The Social Employment Fund, which is implemented by the Industrial Development Corporation under the Department of Trade, Industry and Competition, has created over 100,000 jobs,” he responded. Government of National Unity Ramaphosa was asked to outline the key constitutive ideas for the Government of National Unity (GNU). “The key constitutive ideas of the Government of National Unity are set out in the Statement of Intent that was signed by all the constitutive parties. The 10 GNU parties agreed to certain basic principles, including a firm commitment to respect the Constitution and the rule of law. “The principles included a commitment to promote accountability, transparency, integrity and good governance. The parties agreed on a Minimum Programme as the foundation of the work of the Government of National Unity. These were developed into priority actions that will form the basis for the Medium-Term Development Plan of government,” he responded. As indicated in the Opening of Parliament Address, Ramaphosa said the GNU will dedicate the next five years to actions that advance three strategic priorities: “Firstly, to drive inclusive growth and job creation. Secondly, to reduce poverty and tackle the high cost of living. Thirdly, to build a capable, ethical and developmental state. We will pursue growth that is inclusive and transformational. We have said that inclusive growth must support the empowerment of black South Africans and women. “We will continue to pursue programmes that encourage broad-based black economic empowerment, employment equity and support to small- and medium-sized enterprises. We will continue to protect and uphold the hard-won rights of workers and continually strive to improve the conditions in which they work and live. In advancing our three strategic priorities, we will, among other things, massively increase the scale of investment in infrastructure,” he said. Extortion Ramaphosa was asked whether the government has considered the negative impact of the growing trend of protection fee and business extortion to the economy and the delivery of services such as schools and state infrastructure projects that has left many communities at the mercy of ruthless and unscrupulous gangs and criminals “The growth of criminal extortion in several parts of the country is contributing to a climate of lawlessness and fear. Extortion has a great economic cost, disrupting business activity, delaying or halting the construction of infrastructure, and generally raising the cost of doing business.The South African Police Service is directing its response to these crimes to areas where they are most prevalent,” Ramaphosa responded. The SAPS has established the Eastern Cape Provincial Extortion Forum specifically to address extortion-related issues in the province. An Organised Crime Task Team has also been established to investigate all extortion cases reported in the province. A multi-disciplinary approach has been adopted that includes Crime Intelligence and the Directorate for Priority Crime Investigation (known as Hawks). “A modus operandi and target analysis has been conducted. This has confirmed that the identified gangs are operating in syndicates to commit organised criminal activities. The cases are, therefore, being dealt with in terms of the Prevention of Organised Crime Act. This focuses on the identified gang leaders to neutralise the activities of the syndicates. The investigation is conducted in collaboration with the National Prosecuting Authority (NPA) and other relevant stakeholders,” Ramaphosa said. An Extortion Hotline has been established in the Eastern Cape and this will soon be rolled out nationally. “The hotline enables community members to report any form of crime or violence perpetrated by these criminal gangs to ensure a rapid and focused response. The Extortion Hotline has received approximately 1,300 calls. These calls have resulted in 36 cases and 11 enquiries being registered for investigation by the Organised Crime Task Team,” Ramaphosa said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/these-are-the-big-takeaways-from-ramaphosas-q-and-a-at-the-ncop-1c7b429b-1f78-48e7-8647-4223f93ec78a

SA News | 13 September 2024 Trade, Industry and Competition Minister, Parks Tau, has approved the Legal Sector Code in terms of section 9(1) of the B-BBEE Act which aims to accelerate the transformation of the legal sector. “This administration has committed itself to accelerating transformation, guided by the preamble of the Constitution of the Republic of South Africa which emphasises the need to correct the injustices of the past. This is captured in the statement of intent of the Government of National Unity (GNU),” Tau said. Tau said the process of drafting the Legal Sector Code commenced in the previous administration led by the Minister of Justice and Constitutional Development, together with the Legal Practice Council. The process has paved the way for the sector to achieve its Broad-based Black Economic Empowerment (B-BBEE) objectives of the following: an ownership target of 50% and black women ownership of 25% over 5 years. a management control (executive and board participation) target of 50% representation of black practitioners and a target of 25% for black women practitioners, particularly as equity partners and associates. a skills development target of 3.5% expenditure on training programmes for black candidates. The aim is also to ensure training in specialised skills for black legal practitioners, candidate legal practitioners, candidate legal practitioners and black junior advocates within the following designated categories: black women, black youth, black people with disabilities and black people from rural areas. a procurement target of 60% by the private sector, and there is a target of 80 % to be achieved through the specialised procurement scorecard applicable to the public sector. This will ensure fair and equitable access to specialised areas of law and complex matters when the state procures legal services from black Legal Sector Measured Entities (LSMEs) and ensure the sustainability of LSMEs. “The implementation of the Legal Sector Code is in line with the objectives of B-BBEE and will enhance inclusive growth in line with the transformation objectives of the Government of National Unity (GNU). “There is strong evidence to support the transformation of the legal sector which this sector code will help accelerate. We look forward to the speedy implementation of the Legal Sector Code,” Tau said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/minister-approves-legal-sector-code

Shawn Hagedorn | 16 September 2024 If we don’t integrate our young adults into global supply chains, South Africa’s potential will remain largely unemployed. Peter Drucker, the legendary management guru, is credited with coining the adage, “You can’t manage what you can’t measure.” Quite possibly the best measure of a country’s economic dynamism in today’s rapidly evolving and highly integrated global economy is the portion of its young adults who add value to exports.  The nature of their jobs is also telling. The value added by employees tends to be quite modest with tourism jobs and lower still with commodity exports. South Africa’s manufacturing export jobs are concentrated in the sectors most distorted by government policies, such as automotive, pharmaceutical, steel and aluminium production.    South Africans steadily spurring innovations creates the impression that our economy is dynamic. Yet, alongside our having entrenched the world’s most severe youth unemployment crisis, hardly any of our twentysomethings add meaningful value to exports destined for first-tier markets on terms which haven’t been influenced by commercially distorting government interventions.  Innovate and integrate As a vanishingly small portion of our young adults adds value to exports on purely commercial terms, we mustn’t delude ourselves into thinking we have a dynamic economy. That isn’t to say that we don’t have innovative people and companies. But our leading companies that have successfully expanded internationally, such as Investec, Discovery and Nandos, serve foreign markets by employing people in those markets. We don’t innovate while integrating globally in ways which propel growth and employment in South Africa. The Cold War ended amid advances in communication and transport technologies that encouraged extraordinary expansion of global supply chains largely indifferent to national borders. This unleashed the extraordinary global upliftment of many hundreds of millions of previously disadvantaged people. Meanwhile, our ruling elites steered us from externally imposed sanctions to domestically enforced localisation regulations.  Africa is the least developed region due to geography, geology and domestic politics. Transportation costs would be sharply lower if this region had Europe’s, let alone North America’s, network of navigable waterways. Rather, Africa is cursed by geological riches wreaking domestic political havoc in an economic era increasingly dominated by digital services and international trade. Most commodity-dependent nations are poor and most poor countries are commodity dependent. Geological wealth mixed with geographic isolation invites predatory politics − as we know well. Sub Saharan Africa is, by far, the least lucrative regional market. South Africa’s long-stagnating economy largely reflects combining localisation policies with meagre discretionary income. This won’t be remedied by exporting to neighbours with faster growth rates but extremely low per capita incomes. Our extreme levels of unemployment and poverty trace to localisation policies amid an era of intense globalisation and rapid-paced innovation. South Africa lacks sufficient consumer spending power to employ a healthy majority of school leavers and the region is even worse off in this regard.  Self-imposed barriers Formation of our government of national unity (GNU) presents an opportunity to overcome the self-imposed barriers which have constrained our economy. But, as this happened swiftly and unexpectedly, our national dialogue hasn’t yet caught up. Our public discourse is slowly acknowledging that we have two overarching economic goals: reducing unemployment and growing GDP. However, we have not begun to acknowledge the fact that GDP cannot grow fast enough to adequately reduce unemployment. Nor are we confronting the reality that reducing unemployment is actually far more important than growing GDP.  Our households are many decades away from being able to spend enough to support a healthy level of workforce participation. The only way we can achieve that is to follow the lead of the dozens of emerging economies which have integrated extensively into global supply chains by carving out small niches which they can defend. SA-based companies are constrained from doing this by a slew of anti-business regulations. China fervently pursued this path and yet, after four decades of roughly 10 percent annual growth, that country’s domestic spend remains woefully inadequate to support full employment. The ANC can be persuaded to provide special exemptions from such anti-competitive regulations for value-added exporters, as this costs them nothing and our obscene level of unemployment threatens the party. But the ANC isn’t going to initiate such an effort. The impetus must come from within the GNU or from a focused public outcry. The next step hinges on identifying niches for South Africans to add value within global supply chains. This is the central component of 21st century economics which we have ignored. As most people are restrained by outdated notions and focus excessively on obstacles, it is essential that entrepreneurs lead the charge by ferreting out myriad international opportunities of all shapes and sizes. This very special role explains why entrepreneurs are revered. To create a dynamic economy we must integrate many of our young adults into global supply chains. This is also the only way to overcome our unemployment crisis. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://dailyfriend.co.za/2024/09/16/creating-a-dynamic-economy/

The Minister of Trade, Industry and Competition ( the dtic ), Mr Parks Tau has approved the Legal Sector Code in terms of section 9 (1) of the B-BBEE Act. This was stated in a Media Release published on 12 September 2024.   The Media Release further stated that this administration has committed itself to accelerate transformation guided by the preamble of the Constitution of the Republic of South Africa which emphasises the need to correct the injustices of the past. This is captured in the statement of intent of the Government of National Unity (GNU).   The BEE Chamber is looking forward to reviewing the final published Gazette once released.   Technical Services  are available for Members who need assistance with understanding B-BBEE Sector Codes of Good Practice.

Many organisations choose third party facilitators to distribute their Socio-Economic Development (SED) contributions, which B-BBEE Legislation allows for. However, organisations must note that, according to B-BBEE Legislation, the ultimate benefit needs to flow to the intended Black Beneficiaries.   The B-BBEE Commission’s SED Brochure , published in September 2019, addresses third-party facilitation of such contributions. Third party facilitators for SED contributions are usually Non-Profit Organisations (NPOs) or Public Benefit Organisations (PBOs), including Non-Profit Companies (NPCs).   NPOs, PBOs and NPCs are Specialised Enterprises for purposes of B-BBEE measurement. Their B-BBEE compliance is measured in terms of Statement 004 – otherwise known as a Specialised Scorecard.   Socio-Economic Development Services  are available to guide organisations in facilitating SED contributions in line with the requirements.

Denise van Huyssteen | 18 September 2024 Chronically high unemployment in our country, among the highest levels in the world; unemployed graduates of tertiary education, while employers struggle to fill skilled positions — what is wrong with this picture? We have a youthful, and growing, population, but they are not being sufficiently absorbed into the workforce — more than 50% of Eastern Cape youth (aged 25-34) are unemployed. This points to a deep gap between the skills available in the local economy and the skills actually required by business. The extent of SA’s skills mismatch was estimated in 2019 at 50% — in other words, half of prospective employees don’t have the skills needed in the job market.  The skills gap was starkly captured in the 2023 Global Talent Competitiveness Index, which measures countries’ capacity to develop, attract and retain relevant skills. SA ranked 68th overall out of 134 countries, but even more worryingly, came in 131st on the metric of employability of local technical and vocational skills, as rated by employers. The index highlights the country’s weak pool of technical and vocational skills (we rate 115th on “ease of finding skilled employees”) and notes that, to improve our overall competitiveness, SA “must make the education system more relevant to the economy” (currently ranked 100/134). This is deeply concerning for our economic growth prospects, as the availability of an appropriately skilled talent pool is a key factor for new investors.  Skills shortages hamper productivity and the ability of a business to take up expansion opportunities, and limit capacity for the innovation that drives global competitiveness. The wide skills gap is a key contributor to unacceptably high unemployment and sluggish economic growth, and in turn to our country’s high levels of poverty and inequality. Unpacking the detail in the Stats SA Quarterly Labour Force Surveys (QLFS) reveals not only the importance of education and training in general for improving individuals’ employment prospects, but also the importance of matching post-school qualifications and skills development to where the job opportunities are. Unemployment rates for graduates with degrees and other tertiary qualifications are relatively low, 10% and 20% respectively, but they are a small part of the population. Three-quarters of SA adults have only matric or lower levels of education, and at a matric level, it is concerning to note the low overall percentage pass rates and the extent to which students are substituting “real” mathematics for maths literacy. Businesses who are for example looking to hire operators on a production line, as an entry requirement seek “real” mathematics at a matric level. Pointing to the importance of technical skills in the job market, the “technician” occupational category was a key driver of gains in employment in the Q2: 2024 QLFS, with the number of people employed growing by 20% over the past year. Meanwhile, the categories of sales and services, professional, and clerical jobs recorded the greatest losses. The shortage of technical skills is also clear in the critical skills list published by the department of home affairs, which lists the occupational categories most in demand and is used to assess applications by foreign workers for work visas. The list is dominated by high-level technical skills, including engineers and engineering technologists across all disciplines, various types of ICT specialists from multimedia designers to programmers, analysts and developers, specialist technicians and mechanics, and scientists. In the Nelson Mandela Bay economy, anchored by manufacturing, advanced technical skills and qualifications are critically important as manufacturing becomes increasingly sophisticated, digital and technology-driven. The Bay is also home to two of the country’s biggest industrial automation and software specialists, Jendamark and S4 Integration, servicing global customers and requiring highly technical skills such as engineers and programmers. To realise our vision of the “Bay of Opportunity”, to grow our manufacturing sector and complete globally in the digitally-driven economy of the future, in turn driving investment and job creation, we must take action to close the skills gap, and focus particularly on growing our pool of technical skills. As a key intervention to put our Bay of Opportunity vision into action, the Nelson Mandela Bay Business Chamber is establishing a skills development desk, with the support of the Eastern Cape Development Corporation and Harambee Youth Employment Accelerator. The first step, to be undertaken in the last quarter of this year into early 2025, is to undertake an audit of local industry’s current and future skills requirements and gaps, and then to develop and implement targeted interventions to bridge the divide.  The desk will work closely with local industry, education institutions, business organisations, technology incubators and agencies in skills development and youth development to develop collaborative solutions and strengthen each other’s efforts. We also foresee equipping unemployed youth and graduates so that they can be matched with opportunities in industry.  The desk will integrate with the chamber’s other action arms such as the trade and investment desk and the entrepreneurship desk, supporting skills development that will enable businesses to take advantage of market opportunities and grow localisation of manufacturing. The ties in with the work of our Local Economy Reinvention Think Tank that focuses on developing viable opportunities to take advantage of our manufacturing strengths in the green and digital future economy.  If we are to leverage our strengths and build a stronger, diversified economy that employs more people and builds greater prosperity for all, developing the skills that industry needs to grow is a critical component. Denise van Huyssteen is CEO of the Nelson Mandela Bay Business Chamber ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.heraldlive.co.za/opinion/2024-09-18-taking-action-to-close-the-skills-gap/

Vernon Pillay | 20 October 2024 With many South Africans being forced back into the office the worrying issue of workplace bullying has raised its head and is a real issue for not only employees but also the employer. Recent attention has also been placed on bullying in the hospitality industry after whistleblower and social media influencer Mihlali Nobavu drew attention to the toxic culture and exploitation that she experienced at Babel Restaurant. Nobavu’s story resonated with thousands of South Africans and created a firestorm that led to the Labour and Home Affairs Department getting involved. Nobavu’s first-hand account of the bullying she experienced at Babel via her superiors on her hair choices and what she wore was something that several other waitresses have experienced. Her comments section on her TikTok account was flooded with messages of support but also fellow workers commiserated with her on their shared experience. How to know if you are being bullied? Anja van Beek, a talent strategist, and Human Resources (HR) expert said that bullying isn't just about aggressive behaviour; it is about power dynamics. “In South Africa, workplace bullying often goes unreported because of fear of retaliation or disbelief,” she explained. Van Beek noted that, unlike more explicit forms of workplace misconduct, bullying is often insidious , taking the form of subtle behaviours that, over time, can erode an individual’s confidence, wellbeing, and professional performance. The HR expert explained that workplace bullying can be defined as repeated, and unreasonable behaviour directed towards a worker or a group of workers that creates a risk to health and safety. “Workplace bullying is usually seen as acts or verbal comments that could psychologically or 'mentally' hurt or isolate a person in the workplace,” she added. Behind closed doors Van Beek noted that bullying is something that is difficult to stop. She noted that one of the main reasons for this is that it is difficult to prove as it often takes place behind closed doors or in subtle ways that leave little evidence. “Additionally, the lines between firm management and bullying can be blurred, leaving employees confused about whether their experience qualifies as bullying,” Van Beek acknowledged. It is important to note that South Africa’s legal framework for addressing bullying is still evolving. “While the Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace provides some guidelines, there is still a lack of clear legal philosophy on corporate bullying. This leaves many employees without a clear path to seek justice, especially when the bullying is more subtle,” Van Beek said. Types of bullying Workplace bullying can manifest in a number of ways and Van Beek provides a few scenarios: The excluder: When a supervisor routinely excludes you from important meetings or key decisions that impacts you work. You therefore feel isolated and undervalued. The micro-manager: When your manager scrutinises every tiny detail of your work, making you redo tasks unnecessarily and frequently criticising you in front of others. The constant micromanagement can cause you stress and anxiety, and impedes your work quality. The hindrance manager: A scenario not uncommon in workplaces involves supervisors deliberately changing work arrangements, such as rosters and leave schedules, to inconvenience a particular employee. This kind of targeted behaviour forces a worker into a stressful position where they have to choose between their job and their personal commitments. The task over loader: This is when you are given tasks that are unreasonably beyond your skill level, without the necessary support or guidance. Simultaneously, you could also be assigned menial tasks that are far below your capabilities. This inconsistent workload creates confusion, frustration, and a sense of inadequacy, making it impossible for you to find your footing or showcase your true potential. What can be done? Celesté Snyders, a lawyer at Schoeman Law Inc specialising in commercial law and intellectual property law noted that under South Africa’s Employment Equity Act 55 of 1998 (EEA), bullying in the workplace is considered a form of unfair discrimination and is strictly prohibited. Snyders added that employers should implement an anti-bullying policy within their organisations. “Such a policy educates employees about what constitutes bullying . It establishes clear, consistent procedures for addressing bullying incidents. It aims to prevent the recurrence of bullying and ensures that employers take proactive steps to create a safe and healthy workplace,” she explained. You are entitled to compensation Snyders said that if an employer fails to take the necessary steps to eliminate bullying, employees have legal recourse. Employers have a duty and are legally responsible for maintaining a safe and healthy work environment. “Failure to fulfil this obligation constitutes an infringement. As a result, the employer may be liable to pay damages or compensation to the victim of bullying,” Snyders added. As an employee, you have the right to refer the matter to the Commission for Conciliation, Mediation, and Arbitration (CCMA) if you feel that your voice has not been heard and that your employer has failed to take action. “Unsatisfied employees can refer unfair discrimination disputes to the CCMA. This provides a formal avenue for resolving issues when employers do not adequately address bullying,” she said. Mkhize vs Dube Transport Bradley Workman-Davies, a Director at Werksmans Attorneys said that in 2019 a landmark case was taken to the CCMA. The case of Mkhize and Dube Transport was a case whereby an employee referred a complaint for bullying to the CCMA as an unfair dismissal claim. Workman-Davies noted that the CCMA exercised its discretion to assess the real reason for the employee’s referral, and determined that although the employee had referred a dispute for unfair dismissal, the true complaint was about victimisation in the workplace. “The employee had alleged that the HR manager of the employer was bullying and victimising her, both inside and outside of the workplace, and that although she had ultimately been dismissed for medical incapacity, the employer had actually sought to use this as a convenient method to get rid of her after having lodged a grievance about the bullying allegations,” he explained. “Although the CCMA didn’t have to contend with the facts of the matter, it confirmed that where an employee has a dispute about bullying, victimisation or harassment, although the CCMA can always conciliate the dispute if the parties fail to agree on a resolution, the next step (arbitration) must be at the Labour Court, as the dismissal then could be an automatically unfair dismissal, which the Labour Court has exclusive jurisdiction to determine.” The CCMA commissioner found that where the true reason for the dismissal was bullying and victimisation. The dismissal would then be referred to the Labour Court as an automatically unfair dismissal. Workman-Davies noted that bullying is a form of harassment, and can be dealt with in terms of the EEA as unfair discrimination. He said that bullying has also been confirmed in the Private Sector Workers Trade Union. Lastly, Workman-Davies said that employers should be aware that instances of workplace bullying should be dealt with in an expedient fashion. He noted that you as an employee can be entitled to as much as 24 months of remuneration and more if your case is ruled favourably by the CMMA. “Employers should be aware that instances of workplace bullying should be dealt with quickly and decisively and that bullying should not be tolerated in the workplace, as a failure to do so may expose the employer to up to 24 months remuneration if the employee is found to have been dismissed due to the bullying, and unlimited compensation claims if the employee is found to have been the victim of unfair discrimination due to the bullying,” Workman-Davies explained. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business/advice/are-you-being-bullied-at-work-you-are-entitled-to-compensation-1070f93f-035d-4cef-af70-4a7342a98587

Staff Writer | 18 September 2024 THE Chemical Industries Education and Training Authority (Chieta) has welcomed the Auditor-General of South Africa’s findings of a clean audit and its achievement of 100 percent of its organisational goals. “Chieta is satisfied that our commitment to sustainable livelihoods through good governance and impactful delivery on skills development has been acknowledged by the country’s foremost authority on compliance,” said Chieta CEO Yershen Pillay. He said the clean audit in the 2023/2024 continues the same trajectory achieved in the previous financial year. It was a testament to the highly motivated team at Chieta, led by outstanding executives and guided by an engaged and committed board and its various committees. Pillay said the country’s chemical sector contributes massively to the economy and that Chieta is mindful of impacting skills development and job creation in South Africa. In the 2023/2024 financial year, 7,4742 individuals benefited from skills training programmes through Chieta. Furthermore, mindful of the country’s unemployment challenge, Pillay was pleased that Chieta initiatives created 7893 jobs. Pillay said Chieta’s impact on the country was further boosted by the establishment of SMART Skills Centres in rural areas in six provinces throughout the country. To date, these centres have attracted more than 12,000 individuals who use the hi-tech facilities to learn or apply for bursaries or jobs. “Our mission is to bridge the digital divide and provide equitable skills development opportunities. This centre will empower our youth with the digital skills essential for thriving in today’s job market,” Pillay said. Wezi Khoza, the chairperson of Chieta, remarked that Chieta’s achievement was pleasing because as a board they wanted the highest ethical standards and are satisfied to have achieved a clean audit for the second year. “In achieving the clean audit and 100 percent of targets met, we are pleased Chieta is doing its bit to ensure sustainable livelihoods through skills development, job creation and the SMART Skills centres, which ensure nobody is left behind in the Fourth Industrial Revolution,” Khoza concluded. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://kznindustrialnews.co.za/chemical-industries-authority-welcomes-the-ags-findings/

Nozizwe Vundla | 19 September 2024 Sanlam’s Enterprise and Supplier Development initiatives aim to empower entrepreneurs and SMEs The unsung heroes of SA's economy are our entrepreneurs, who drive growth and innovation through their small and medium enterprises (SMEs). These businesses comprise 98.5% of formal businesses in the country (Stats SA, 2022) and account for 34% of the GDP.  Despite its importance, SA's SME sector growth remains slow. Early-stage entrepreneurship rates are 3.5 times lower than the global average, according to the Global Entrepreneurship Monitor (2022). Furthermore, SMEs face significant challenges including limited access to funding, with 70% struggling to access credit (FinMark Trust, 2022). Skills development is another major barrier, with 45% of SMEs citing a lack of skills as a huge constraint (SEFA, 2022). To address these challenges, Sanlam is committed to championing SMEs through its Enterprise and Supplier Development (ESD) initiatives. The goal of the Sanlam Foundation ESD programmes is to empower SMEs to drive economic growth, job creation and financial inclusion.  Entrepreneurship is crucial for unlocking SA’s demographic dividend potential and addressing socioeconomic disparities. The ESD programmes aim to create lasting economic sustainability, helping entrepreneurs thrive and contribute to the National Development Plan’s vision of amplifying SMEs’ impact on the economy. Purpose-driven programmes Sanlam Group ESD Programme: This programme seeks to provide support to high potential black-owned businesses to ensure equitable participation of black-owned SMEs in the supply chain of the Sanlam Group. The 2023 cohort saw a 33% growth in revenue in the below programme streams: Project Accelerator: Provides business development support to 14 SMEs, focusing on market access, funding, and skills.  Project Elevate: Targeting 24 financial planning firms, this programme provides specialist training within Sanlam’s BlueStar network of financial planners. Project Migrate: This programme provides business development support to 11 financial planning businesses. Black women-owned SME Programme:   This is the first-ever ESD programme at Sanlam that focuses solely on women SME owners. The programme is delivered virtually, and the 2024 cohort consists of 29 businesses across SA.  There are three programme streams, focusing on SMEs in different stages of the business life cycle: Masakhe is a six-month programme targeting early-stage businesses for entrepreneurs in the ideation, pre-revenue or start-up phase of development or establishment.  Siyakhula is an eight-month programme that is designed to help owners of established businesses identify growth opportunities and overcome current business challenges.  Asindize is a 12-month programme that aims to propel high growth potential businesses forward by connecting them to the right funding and market access opportunities. Sanlam Leruo Stokvel Programme is dedicated to formalising stokvels into viable businesses. With more than 800,000 stokvels in SA managing R50bn annually, this sector plays an important role in improving the national savings rate, now at a low 16% of the GDP. The initial impact has already been felt with five stokvels supported, translating to 152 members empowered to take control of their financial futures and contribute to the country's economic growth. SMEs — SA’s hope Supporting SMEs is vital for fostering financial inclusion and unlocking opportunities for all. This country’s greatest strength is its people, who have grit, humour and the indomitable drive to change their fortunes. Sanlam is determined to help them do this.  Download the 2024 Sanlam ESG Barometer report Now in its second edition, this annual report — researched by Krutham and published in partnership with Business Day — examines evolving ESG dynamics and how listed companies in SA and Kenya are enhancing environmental and social outcomes through their operations.  Click here to download it. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/companies/2024-09-19-native-the-unsung-heroes-driving-sas-economic-growth-and-innovation/

With the introduction of the Legal B-BBEE Sector Codes Of Good Practice , there are a few key concepts to take note of that differ from the Amended General B-BBEE Codes of Good Practice. These concepts apply strictly to the Legal B-BBEE Sector Codes Of Good Practice. A few of those key concepts identified are as follows:   Advocate means a legal practitioner who is admitted and enrolled as such in terms of the LPA;   Associate means an attorney employed in such a capacity by an LSME in terms of an employment agreement concluded by these parties;  Attorney means a legal practitioner who is admitted and enrolled as such in terms of the LPA;   51% black owned means an LSME in which: black people hold at least 51% of the exercisable voting rights; and black people hold at least 51% of the economic interest;   51% black women owned means an LSME in which: black women hold at least 51% of the exercisable voting rights; and black women hold at least 51% of the economic interest; Board of directors means, in respect of an incorporated LSME, a body that is constituted by the directors of such LSME, and in respect of a partnership, a body which is constituted by the partners of such an LSME, which, in each event, is responsible for the executive management decisions and/or strategic direction of such an LSME;   Designated categories means black women, black youth, black people with disabilities and black people from the rural areas, as contemplated in this LSC;   ELE means an exempted law firm which generates annual revenue of not more than R5 million or an advocate who generates annual revenue of not more than R3 million and is exempted from measurement as contemplated n this LSC respectively;   Equity partner/director means a partner or a director, the latter notwithstanding the definition ascribed to that term in the Companies Act, who has an ownership interest in an LSME and shares in the profits of that LSME and is liable for the expenses and liabilities of such an LSME;   Executive management for the purposes of this LSC, means executive management shall be constituted by members of the various sub-committees established by the board including any executive committee, or in the case of a partnership, an equivalent structure to carry out and implement specific functions and/or duties, as may be delegated to such sub-committees by the board, from time to time. Such members may include without limitation, managing partners, chairpersons and chief executive persons who are attorneys;   Incorporated LSME means an LSME constituted, organised, and incorporated by one or more attorneys in accordance with the provisions of the Companies Act, and registered and established as a law firm with the LPC in terms of the provisions of the LPA;   Large LSME means an LSME which generates a total revenue of more than R25 million per annum in the case of a law firm and more than R15 million in the case of an advocate;   Law firm means an LSME which has been established by one or more attorneys and is duly registered with the LPC, in terms of the provisions of the LPA, for the purposes of engaging in the business and practice of law in South Africa;   Legal practitioner shall bear the meaning ascribed to that term in the LPA, but for the purposes of the LSC, it shall include only: attorneys registered with the LPC and practicing as such; and advocates, registered with the LPC and practicing as such;   LPA means the Legal Practice Act No. 28 of 2014, as amended;   LPC means the Legal Practice Council, which is a national statutory body established in terms of section 4 of the LPA. The LPC and its provincial councils regulate the affairs of and exercise jurisdiction over all legal practitioners (attorneys and advocates) and candidate attorneys and pupils;   LSC means this Legal Sector Code, gazetted in terms of section 9(1) of the B-BBEE Act;   LSME means a Legal Sector Measured Entity in the form of a law firm in the case of attorneys whether as sole practitioner, in a partnership, an incorporated legal entity or an individual advocate;   LSTF means the Legal Sector Transformation Fund to be established in terms of paragraph 37 of this LSC, by the Charter Council, for the purpose of receiving and administering contributions made by qualifying LSMEs and advocates and any ELEs seeking enhanced recognition in terms of this LSC, to provide financial assistance and support to black legal practitioners and for transformation-related purposes as may be determined by the Charter Council from time to time;   Partner means an attorney who has been employed in such capacity by an LSME who is entitled to the profits of such LSME and is liable for its expenses and liabilities;   Partnership means an LSME, other than an incorporated LSME established and constituted by two or more attorneys, registered with the LPC in accordance with relevant provisions of the LPA, to manage and oversee the business operations of such LSME and share the profits and liabilities of such LSME;   PGL means Practice Group Leaders, who are generally equivalent and have the same rank as the heads of departments within the LSME, and carry out the same mandate and/or functions, as heads of departments, as the case may be, within an LSME;   Salaried Director for the purposes of this LSC means, notwithstanding the definition ascribed to that term in the Companies Act, an attorney employed in that capacity by an LSME who does not participate in the profits of the LSME nor has a legal entitlement to such profits and is not liable for the expenses and liabilities of such LSME;   Sole Practitioner means an LSME, which, in the case of attorneys, a firm which has been established and is operated by a single attorney as a law firm and registered with the LPC in terms of the provisions of the LPA;   Technical Services  are available to guide Members in understanding the new requirements of the Legal B-BBEE Sector Codes of Good Practice

Tamu Dutuma | 24 September 2024 Three decades into democracy SA continues to face runaway youth unemployment. About 27.3-million young people were unemployed as of the beginning of 2024, making the unemployment rate of youths aged 15-34 frighteningly high at 45.5% in the first quarter of 2024. This is a significant increase from the 32.9% recorded in the same period last year. This problem is prevalent throughout Africa, where the average incidence of youth unemployment is close to 12%. With the youth population expected to grow from 1.3-billion to 2.5-billion by 2050, the need for effective solutions is more urgent than ever for Africa to fully take advantage of the future benefits of being the world’s youngest and majority working-age population.  The Global Employment Trends for Youth 2024 report projects that 72.6-million young people will enter the labour market between 2023 and 2050. The report further highlights that nearly three in four working young adults in Sub-Saharan Africa are in insecure forms of work, with over 50% of these young workers employed in the agricultural sector, often earning less than the median wage and without job security.  As millions of young Africans enter the labour force a pivotal question arises: how can we sustainably generate meaningful employment for this emerging generation? While traditional job creation remains important, entrepreneurship offers a path to economic empowerment, especially in SA’s economy. We are far from achieving the average GDP growth rate of more than 5% necessary to sustainably create the job pipeline needed to meaningfully reduce unemployment. The spotlight has been placed on small and medium enterprises (SMEs) to help in addressing youth unemployment in SA. Entrepreneurs stand a better chance of practically reducing the overall unemployment rates.  According to McKinsey, SMEs constitute over 98% of SA businesses and employ 50%-60% of the workforce. Despite their crucial role in the economy they face significant hurdles, particularly in securing adequate and timely financing. A lack of formality, poor financial record-keeping and inadequate business plans often deter financial institutions from providing the necessary funding. This obstacle is especially difficult for fledgling and expanding companies.  What becomes clear in SA, where just 9.8% of employed youth are graduates, and 49.4% of young women are unemployed (significantly higher than the 31.9% rate for young men), is that ours is a multifaceted challenge and one that requires a strong and proactive state-business rendezvous of minds, to drive common interest in societal development. Inaction would be the greatest dereliction of duty in this regard and a missed opportunity to reshape the country’s future. We are a nation standing on the cusp of transformation — the time has come for businesses to see beyond philanthropy and engage in strategic partnerships that promise not just social good but substantial economic returns.  To find ways to support youth-owned businesses we need not only accelerate current efforts, but to look outside the box for new funding sources. Addressing this challenge requires a concerted effort from both the public and private sectors. Financial institutions, especially banks, are pivotal in providing traditional funding. They can also channel their resources to promote entrepreneurship by way of programmes such as the Allan Gray Orbis Foundation, which focuses on holistic funding and mentorship for entrepreneurs. Complementing these private sector efforts the government can look after regulations and infrastructure to foster a financially inclusive society. Government-backed loan programmes can also be instrumental in supporting emerging and growing enterprises.  To encourage youth-owned businesses, we should look at other funding opportunities rather than depending only on traditional ones. One such avenue is community-based savings groups, known as stokvels. With millions of participants and billions of rand managed annually, stokvels serve as vehicles for financial inclusion and economic development. In recent years we have witnessed the emergence of some successful businesses that are founded through stokvels, demonstrating their potential to drive entrepreneurship and economic growth. Crowdfunding platforms offer another exciting avenue and are changing the game, as evident in the case of Lula, an SA mobility-as-a-service company, which successfully raised capital through a crowdfunding platform. These alternative funding models are becoming essential tools for navigating SA’s evolving economic landscape. While microfinance options provide critical support for SMEs, true financial inclusion requires more than just access to credit or capital. It involves a transformative shift in mindset that empowers young entrepreneurs to thrive. To ensure their long-term success we must offer robust mentorship, incubation programmes and comprehensive business development support. Equally important is strategic coaching, which helps entrepreneurs develop resilient business strategies and adapt to the ever-changing market landscape. Platforms where entrepreneurs can showcase their propositions for exposure to a network of catalytic capital and value-add support play a critical role. Various models such as Mastercard-backed 54 Collective’s are making positive strides being the nexus between capital and potential.  We must also support young entrepreneurs by addressing essential business needs, such as reliable internet connectivity and access to office space. Networking is crucial, and both the public and private sectors should facilitate more impactful events to connect entrepreneurs with potential investors, customers and partners. We also need to provide our youth with training in specific skills relevant to entrepreneurship, such as financial management, digital marketing, customer service and negotiation.  Cultivating an entrepreneurial attitude from an early age is crucial for both solving for the future and developing an entrepreneurial mindset. This requires integrating financial literacy into the school curriculum and offering specialised courses at various education levels. Investing in our youth and adopting an holistic approach will ensure we help entrepreneurs fill in the gaps and set them on a path to success. In a country where youth with experience transition to employment four times more effectively than those without, the adage “teach a man to fish and you feed him for a lifetime” underscores the importance of empowering young people with the skills and resources they need to become self-sufficient and create their own opportunities. The choices we make today will determine whether we harness the potential of our youth or risk leaving millions behind, and ultimately miss out on young people’s potential, which is the key to Africa’s sustainable development.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2024-09-24-tamu-dutuma-unlocking-economic-opportunities-for-our-youth/

Michael Bagraim | 24 September 2024 The Department of Labour was eventually reconfigured into the Department of Employment and Labour. This was after a long and tedious discussion that first started from a draft discussion paper in October 2019. Eventually, in May 2023, the government’s technical advisory centre was appointed to analyse it in order to understand its ability, implement the employment mandate optimally and help implement the restructuring of the Department of Employment and Labour. The reasoning behind this was the fact that unemployment had become one of the most destructive issues faced by the government. The advisory centre completed its analysis and presented it to the department in November 2023. Employment creation and its functions were to be moved to the top of the agenda. Many observations were made about service delivery, organisational structure, financial resources, ICT systems and governance. Much talking and many reports flowed like water under a bridge. Many flow charts and reports were generated. Much hot air and fanfare followed. Experts and academics worked hours to produce hundreds of pages of theory. Despite all this, the government seems to labour under the misconception that it must be at the centre of job creation. Throughout the world over the past 30 years, we have seen a move away from governments creating jobs towards governments creating the environment for the private sector to create jobs. Unfortunately, in 2023 and the beginning stages of 2024, the government still believes employment equity and negative onerous regulatory systems are needed. A large amount of money has been spent on entities known as the Public Employment Services and even the Department of Employment and Labour Administration. We still have a service delivery model built on the old style of government. The top-down approach doesn’t work and many thousands of South Africans can tell us how the Department of Employment and Labour has failed them. The labour policy and industrial relations programme of the department has to analyse and report on the labour market trends annually and research reports developed on the impact of labour legislation on the labour market. The programme is vital and needs to be given adequate resources to fulfil the mandate. My understanding is that Nedlac, which is the debating chamber for labour policy, has made various proposals about amendments to our labour laws. Hopefully, the proposals will see the way forward to follow up on the expanded mandate of employment policy. Over the past few years, President Cyril Ramaphosa has made a heartfelt plea to his ministers to analyse their laws and regulations to ascertain which ones stand in the way of job creation. The newly structured Department of Employment and Labour holds the final mandate to ensure that the government is creating an environment to assist the private sector to create jobs. We are all aware that the Unemployment Insurance Fund and the Compensation Fund are not performing and have issues relating to service delivery. The two entities are juristic creatures of the statute in that they have powers conferred upon them by the enabling legislation. The entities and their boards should be advising the minister of employment and labour on the amendments to legislation. Both of them are Schedule 3A entities and should be moved from the director-general of the department to a board. The funds should be capacitated into more traditional 3A public entities with appropriate governance and accountability. There is a requirement for legislative amendments to create a formal board as accounting authority, own fund staff complement and associated ICT and other infrastructure arrangements. We need to also recognise that Productivity SA should not be undertaking employment creation itself but should look at the structuring of its function to help the business community. It is recommended that Productivity SA downgrades many of its functions and restructures itself to be able to advise small businesses on how to not just survive but thrive. Likewise, Public Employment Services, which is an entity within the department, needs an urgent restructuring and redesign. The outputs are not in any way aligned with the needs of the economy. We don’t have enough inspectors or enough oversight over the business community, thereby failing the employees of South Africa. One of the most disastrous areas of the department is the computer systems and that, in particular, the SAP implementation has been extremely slow, expensive and not delivered. The department has spent almost R1 billion over the past few years on computerisation and has little value to show for it. At least now it is recognised and understood. This recognition means that we are on the road to stabilisation. Much of the work done by the department should be unbundling, moving from the public sector to the private sector. This will, however, mean staff reduction and retraining, but it is about time. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capeargus/opinion/many-changes-are-needed-to-get-nation-working-f3bd801d-c822-4d0b-a2e9-aa3539bf96bb