Neesa Moodley | 24 September 2024 A new report shows that women need more support when establishing a business. Francinah Phalatsi recommends that women entrepreneurs should start with a simple business plan to use as a roadmap early on. Whether their aim is to attract funding or just to measure progress. The Global Entrepreneurship Monitor (GEM) South Africa Report 2023/2024 released by Stellenbosch Business School last month showed that women are more likely to need support in the initial phase of starting a business, that critical phase before they reach three and a half years. It also showed that only 4.9% of women entrepreneurs get to the point where they employ 20 or more people. Natanya Meyer, lead-author of the report, is associate professor in the Department of Business Management and chair for Entrepreneurship Education at the University of Johannesburg. She says the lack of business support tailored to women’s specific challenges and needs, puts South Africa’s women entrepreneurs on the back foot in realising their potential to make greater contributions to economic growth and job creation. “The data highlights gender disparities in business scaling, with men owning larger businesses at a disproportionately higher rate than women. This could reflect various obstacles women might encounter in business expansion, including limited access to funding, networks, mentorship support and resources,” Prof Meyer said. As personal assistant to the CEO of FNB’s business division, Francinah Phalatsi has helped thousands of business women in their entrepreneurship journeys. Daily Maverick tapped into her expert input at a recent Money Cents EmpowerHER webinar. Tips of the trade Phalatsi says she sees more women taking up opportunities as entrepreneurs, and going into industries previously viewed as male-dominant. “The starting point is a solid business plan. The old adage is that failing to plan is planning to fail. Just as you would map a road trip or plan a project, a business plan is a roadmap for your business that helps you to stay focused and to attract potential investors,” she says. Key components of a good business plan include: the executive summary, which provides an overall view of the business; a market analysis, which gives you the opportunity to identify the gap in the market; a description of your company; and an outline of your organisation and management structure. Phalatsi says the market analysis also helps you figure out what your customers need, what solutions you want to provide, and who your competitors are.  “Your business plan should also detail your actual product or the service you are offering, and what is your key differentiator? What is your angle or hook that would make a customer choose you as a supplier over another company offering a similar product or service? Then you want to include any potential funding requests, as well as financial projections and planning for the future,” she says. While this may sound intimidating for anyone just starting out in a business venture, Phalatsi advises starting with a one-pager business plan, and then expanding each section as you go along. Importance of a network The GEM researchers recommended that women-orientated business networks should be developed and promoted by local governments, business incubators and private sector initiatives. “Establishing small, women entrepreneurial groups led by successful women business owners can promote confidence and increase business growth,” the report says. Phalatsi agrees, pointing out that building a network is not just about identifying mentors who may be in the same industry or own their own businesses, can hold your hand and lead you, but includes other entrepreneurs who are likely facing very similar challenges to yours. Common entrepreneurship mistakes Some of the more common mistakes by potential entrepreneurs Phalatsi sees include: Failing to separate business and personal finances: Phalatsi says while many young businesses might not have audited financial statements, they can use their business bank statements as a record of their trading activity. “This means you need a separate business account, and this helps with credit applications as well,” she says. Maintaining a good credit record: Here you want to manage your business cash flow to ensure that there are sufficient funds to cover your debit orders and operating costs. “Cash flow is a magic term. With an entrepreneurship or any other business, ensure that your business income mentioned is in a separate business account. Take the time to understand the different solutions around debt management, so you don’t find yourself in a pickle,” Phalatsi says. This means understanding the difference between debt counselling, debt review, and how it impacts your credit score. If you are a sole proprietor then the bank will look at your personal credit record to assess how you manage your finances. Apply for the appropriate type of funding: Phalatsi recommends some homework or research to understand the different types of funding available so you can identify what is most suitable for your business at its particular growth stage. For example, funding could include a simple business credit card, an overdraft facility, asset-based funding, commercial property finance or even franchise financing. Lack of governance or basic admin: An example of this would be poor contracts or record-keeping. “Having poorly structured agreements in place could lead to some significant issues down the line, from flimsy or light contracts with your suppliers to not having proper contracts from an HR perspective. It’s very important to clearly outline terms and conditions to avoid any future disputes,” she says. Clear understanding of your business finances: Phalatsi says these mistakes range from inaccurate assumptions about your operating costs to over-investing in resources or equipment. “Good budgeting will make underestimating your operating costs less likely and also reduces the chances of you needing to tap into your cash flow,” she advises. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2024-09-24-support-your-women-owned-business-by-avoiding-these-key-entrepreneurship-mistakes/

Creamer Media | 25 September 2024 Leading manufacturer and supplier FUCHS LUBRICANTS SOUTH AFRICA is not only committed to local innovation , but also has extensive training initiatives in place to foster youth development. By aligning closely with industry trends and technological advancements, the FUCHS training programmes enhance overall employability and add to the industry’s skills base, comments HR Executive Annelia Tshabalala. FUCHS contributes to youth development through internships and learnerships, bursaries, and vacation employment, among others. Its internship programme enhances theoretical skills obtained from higher education by means of practical work exposure in chosen fields, with guidance from mentors and managers. “Most interns who have completed the programmes successfully have obtained permanent employment either at FUCHS or other companies,” reveals Tshabalala. Youth who have completed Grade 12 and progressed to an institution of higher learning are also eligible for bursary sponsorship. Such students are afforded the opportunity for vacation employment at the FUCHS Isando head office during the June and December school holidays. While the criteria for the various initiatives include youth from diverse backgrounds, preference is given to economically disadvantaged high school learners. Maths4All and MATHAMIND advance mathematics skills so as to increase the overall pass rate and encourage learners to opt for the maths and science stream to be able to venture into various STEM careers. Looking ahead, Tshabalala says FUCHS has plans to participate in various career exhibitions at different institutions of higher learning to raise awareness about the diverse career opportunities in the lubricants industry. “The practical use of technology in our training programmes not only enhances learning effectiveness and efficiency , but it also ensures learners are equipped with the skills and knowledge demanded in today’s ever-evolving industry,” highlights Tshabalala. Online platforms deliver content efficiently through online modules that include quizzes based on the content, affording learners added flexibility. In addition, participants are trained using modern machinery equipment and software relevant to their respective fields. “This on-hands experience with advanced equipment and software thus prepares them to meet industry standards and operate efficiently in a real-world setting,” concludes Tshabalala.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/fuchs-training-initiatives-foster-youth-development-and-employability-2024-09-25

Dominic Naidoo | 27 September 2024 As South Africa continues to shift towards a low-carbon economy, youth across the country are calling for increased involvement in the Just Energy Transition (JET), highlighting the critical role they play in securing a sustainable future. The recent National Youth Statement compiled at the Local Conference of Youth South Africa in August 2024, referencing the JET Implementation Plan 2023–2027, criticises the government for not adequately centring their voices in the process, despite being among the most vulnerable to climate change. In the "Youth Statement" young people argue that they will be the most affected by the ongoing climate crisis. They reference the IPCC AR6 Synthesis Report, which states that youth, especially from marginalised communities, will face disproportionate impacts from climate change. Despite this, the JET Implementation Plan only mentions youth 17 times, with little emphasis on their role in shaping the transition. "We cannot afford to be sidelined in a process that will determine our futures," the statement declares. The statement also touched on the lingering impacts of apartheid-era spatial planning that continue to exacerbate environmental injustices. Under apartheid, black and brown communities were systematically relocated to areas with heavy polluting industries, resulting in poor living conditions and significant health risks. These areas still suffer from inadequate infrastructure, insufficient waste management, and poor access to clean water. The youth highlight the need for the Just Transition to address these historical inequalities. "The Just Transition must focus on restorative justice, ensuring that the mistakes of the past are not repeated," the statement reads. Without targeted interventions, the risks posed by climate change, such as water scarcity and food insecurity, will continue to disproportionately affect vulnerable communities. Youth unemployment remains a significant barrier to meaningful participation in climate action. With an unemployment rate of 33.5% and many young people lacking the necessary skills to thrive in the green economy, there are concerns that the Just Transition may deepen existing inequalities if educational and capacity-building programs are not prioritised. "Young people in many communities face dire socio-economic conditions, which makes it difficult to engage with climate issues meaningfully," the Youth Statement notes. In addition, there is a general lack of awareness around climate change in low-income communities, with many perceiving it as an issue for the affluent. This has led to low public participation in climate-related initiatives. The youth are calling for enhanced stakeholder engagement to ensure that their voices are not only heard but also integrated into decision-making processes. In line with Decision 1/CMA.4 from COP27, the youth demand mechanisms to support their participation in national and international forums on climate change. "We urge the state to establish synergy between the JET Implementation Plan and the Just Transition Framework, ensuring distributive, restorative, and procedural justice," they assert. The statement further calls for comprehensive social protection measures to support communities affected by the transition, particularly those reliant on industries like coal. It stresses the importance of creating employment opportunities in green sectors and supporting small and medium-sized enterprises (SMEs) in driving innovation within the green economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/environment/youth-statement-calls-for-inclusion-in-south-africas-just-transition-afdbbdc8-0f98-4fd7-8b4d-25198bcdf964

Stuart Theobald | 30 September 2024 Incentives should be linked to defined outcomes rather than to inputs. There is no shortage of critics of BEE, from across the political spectrum. But what is to be done? That is where agreement is hard to find. Last week Broad-based BEE Commission head Tshediso Matona made some interesting comments on potential reforms in an interview with Reuters. He talked of increasing the priority of skills and enterprise development, relative to ownership. While he did not provide any specifics, these hint in the right direction.  While many critics want to see BEE scrapped, that is the wrong answer. Racial inequality remains a serious and present danger to social stability (the unemployment rate among black South Africans is 35%, but 8% among whites; whites earn about three times more than black South Africans). That background is a tinderbox that easily enables major social disruption. The 2021 riots in KwaZulu-Natal and Gauteng was the world’s most expensive social disaster that year. Sasria had R32bn in claims, almost all of which were paid out. Some businesses have not reopened. A study in 2022 found that losses by Durban businesses alone were R70bn. That shows just how serious a risk inequality is to investors and one they should have a significant interest in resolving.  Some describe BEE as a “failure”. I don’t agree. In fact, BEE had a significant impact in the black middle class, thanks to empowerment deals and employment equity. BEE deals created R317bn of net value for black beneficiaries, though by 2017 most deals had matured. This spurred the creation of a black capitalist class that has been critical to building black-owned businesses. The shift in the demographics of the leadership in the formal sector is clear even if there is still some way to go. In the banks, 90% of junior management is now black, though this falls to 48% at executive committee level. Still, even at executive committee level, that can be compared with 36% four years ago. I doubt these changes would have been achieved, at least as quickly, without BEE.  Wealth creation Of course it has had problems, and those change over time. Matona’s de-emphasis on ownership is interesting. Ownership faces a chicken-and-egg problem: black share ownership is the result of wealth as black savers would naturally end up holding shares, but the accumulation of wealth largely depends on having equity, that is the highest yielding financial asset. We’ve been putting the emphasis in the wrong place, on ownership of large, listed, companies, instead of small entrepreneurial owner-managed companies, in which serious wealth creation is possible. Large companies have highly dispersed ownership, dominated by institutions such as insurers and asset managers. These are where the country’s savings are invested, but they are not vehicles for accelerated wealth creation the way entrepreneurship is.  A shift in focus towards skills and enterprise development could address this weakness. But, and here is the rub, the way we measure these is wrong. Ownership, at least, is a clear outcome. If people hold unencumbered shares, they are the owners. But what is the outcome we want from skills development and enterprise development? It is surely black people who are highly employable thanks to the marketable skills they have, and successful black businesses. Key driver Yet what we measure is neither of those things — instead we measure how much is spent on skills and enterprise development. We measure the inputs, not the outputs. So, a company can spend 6% of its payroll on skills development, getting maximum points, and yet have not a single black person with marketable skills at the end of it. There are some marginal qualifications — you do get extra points for internships and learnerships, and bonus points if they lead to employment, but the bonus points can only add 20% of the total. This is similar for enterprise and supplier development. The key driver is how much a company spends on supplier and enterprise development out of after-tax profit (3% gets you maximum points). Whether this is spent on companies that go on to become major successes or failures doesn’t matter. This means BEE has a major case of “inputitis” when it comes to skills and enterprise development. We need to turn this around and focus on outputs. Our measure of success should be the outcomes we desire, not the inputs.  For BEE this means we must define the outcomes we want and determine how we link incentives to those, instead of linking incentives to inputs. This also encourages innovation and efficiency in how we achieve those outcomes. If a company can spend less to achieve the same outcomes, that is a good thing. It means we are being more efficient. These definitions and incentives are feasible — we’re already doing it for youth skills by recognising only jobs that are created, not the inputs. As we think about how to make BEE more effective, let’s cure it of the disease of inputitis. • Theobald is chair of research-led consulting firm Krutham. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/columnists/2024-09-30-stuart-theobald-bee-needs-cure-for-inputitis-over-skills-and-enterprise-development/

Thabo Mosia | 28 Septeber 2024 Limpopo Premier Dr. Phophi Ramathuba has delivered a stern ultimatum to her Executive Council, threatening to reshuffle or dismiss any Member of the Executive Council (MEC) who fails to create jobs in the key sectors of agriculture, mining, and tourism. Speaking at a press conference following the signing of performance agreements with her MECs, Premier Ramathuba made it clear that job creation is a top priority for her administration. She emphasised that each MEC would be held accountable for the growth and development of their respective departments, with performance evaluations to be conducted every quarter. This bold move underscores Ramathuba’s determination to address the high unemployment rates in Limpopo, a province rich in natural resources and tourism potential but plagued by economic challenges. Her no-nonsense approach sends a message that the time for complacency is over, and concrete action is required to revitalise the province’s economy. Focus on Agriculture, Mining, and Tourism: Premier Ramathuba has identified agriculture, mining, and tourism as the cornerstone sectors for economic growth and job creation in Limpopo. These industries are vital to the province’s development, given its abundant natural resources and favourable climate for agricultural activities. Limpopo is home to some of South Africa’s largest mineral reserves and offers unparalleled opportunities for agricultural expansion and tourism, particularly eco-tourism and cultural tourism. In her address, Ramathuba highlighted the potential of these sectors to absorb unemployed youth and stimulate small business growth, calling on her MECs to tap into this potential and deliver tangible results. “We cannot afford to sit back while the people of Limpopo continue to struggle with poverty and unemployment. Our focus must be on driving economic growth in key sectors, and this is a responsibility that lies squarely on the shoulders of each MEC,” she said. The signing of the performance agreements between Premier Ramathuba and her MECs is a direct response to the pressing need for transparency, accountability, and measurable progress in government service delivery. Each MEC is tasked with specific targets for job creation, service delivery, and economic development within their department. The agreements will be reviewed quarterly, allowing the Premier to assess the progress of each department and make adjustments where necessary. “Every quarter, we will sit down and review the performance of each department. If an MEC is not meeting their targets, there will be consequences. I am not afraid to reshuffle the Executive Council or even fire underperforming MECs,” Ramathuba warned. Her statement demonstrates her commitment to ensuring that provincial government departments are not only responsive to the needs of the people but are also driving significant economic progress. The Current State of Limpopo’s Economy: Limpopo, despite its vast wealth in minerals and agricultural resources, faces some of the highest levels of unemployment in South Africa. The latest unemployment figures place the province’s unemployment rate at around 27%, with youth unemployment being even more alarming. Agriculture, which should be a pillar of the economy, has not been fully leveraged due to issues such as lack of access to markets, infrastructure deficiencies, and insufficient support for emerging farmers. Mining, which contributes significantly to the provincial GDP, has also faced challenges related to community unrest, regulatory hurdles, and environmental concerns. The tourism sector, another area with immense potential, has been underdeveloped due to inadequate investment in infrastructure and limited marketing of the province’s cultural and natural attractions. Unlocking the Potential of Agriculture: Agriculture has long been seen as the backbone of Limpopo’s economy, with vast tracts of arable land and a climate conducive to a variety of crops, including fruits, vegetables, and livestock farming. However, small-scale and emerging farmers continue to struggle with access to markets, capital, and the necessary infrastructure to expand their operations. Ramathuba has called on the MEC for Agriculture to ensure that these barriers are addressed and that agriculture becomes a viable source of employment for Limpopo’s rural communities. In her address, Ramathuba spoke passionately about the need for the agricultural sector to absorb more unemployed youth. She urged her MECs to invest in training and development programmes that would equip young people with the skills needed to participate in agriculture. “We need to see our young people working in the fields, contributing to food security, and creating livelihoods for themselves and their families. This is where the future of Limpopo lies,” she said. To achieve this, the Premier’s office has identified key areas for agricultural investment, including agro-processing, livestock farming, and the expansion of high-value crops like avocados and macadamia nuts. The provincial government will also work to improve access to water for irrigation, as well as roads and transportation networks to facilitate the movement of goods to markets. Mining as an Economic Driver: Limpopo is home to some of the richest mineral deposits in South Africa, including platinum, chrome, and diamonds. The mining industry, therefore, plays a crucial role in the province’s economy, contributing to job creation and infrastructure development. However, the sector has been marred by challenges such as community protests, calls for improved working conditions, and concerns over environmental degradation. Premier Ramathuba has made it clear that mining must become a greater driver of local employment and economic empowerment. She has tasked the MEC for Mineral Resources with ensuring that mining companies operating in Limpopo adhere to strict guidelines on local procurement and job creation. “Our people must benefit from the resources that are being extracted from our land. It is not enough for these companies to extract minerals and leave. They must invest in our communities, create jobs, and ensure that they leave a lasting impact on the province’s economy,” she said. Tourism: A Sleeping Giant: Limpopo’s tourism sector is often referred to as a “sleeping giant,” with its unique combination of wildlife, cultural heritage, and natural beauty. From the world-renowned Kruger National Park to the scenic landscapes of the Waterberg, the province has the potential to attract millions of local and international tourists. Yet, the sector has been underdeveloped, with insufficient infrastructure and marketing preventing it from realising its full potential. Premier Ramathuba has tasked the MEC for Tourism with revitalising the sector and attracting significant investments to improve infrastructure, such as hotels, lodges, and transportation. “Tourism has the potential to create thousands of jobs in Limpopo, particularly for young people. We need to capitalise on our natural resources and cultural heritage to attract more tourists to the province. This will create new opportunities for businesses, entrepreneurs, and local communities,” she said. As part of the provincial government’s tourism strategy, efforts will be made to promote eco-tourism, adventure tourism, and cultural experiences that celebrate the rich heritage of Limpopo’s diverse communities. Ramathuba has also highlighted the need for better marketing of the province’s attractions, both domestically and internationally, to ensure that Limpopo becomes a top destination for tourists. A Commitment to Accountability and Results: Ramathuba’s ultimatum to her MECs reflects a broader shift towards accountability and results-driven governance in Limpopo. The Premier is determined to ensure that government departments are not only responsive to the needs of the people but are also actively working to create jobs, reduce poverty, and improve service delivery. The quarterly performance reviews will serve as a mechanism to assess progress, identify areas of concern, and take corrective action where necessary. Ramathuba’s tough stance on performance is likely to resonate with residents of Limpopo, many of whom have grown frustrated with the slow pace of economic development and job creation. Her message to the MECs is clear: failure is not an option, and those who do not deliver will face consequences. The Role of the Private Sector: While the provincial government has a key role to play in job creation and economic development, Premier Ramathuba has also called on the private sector to do its part. She emphasised that collaboration between government and business is essential for unlocking the full potential of Limpopo’s economy. The Premier has committed to creating a business-friendly environment, with incentives for companies that invest in the province and contribute to local employment. “We are open for business. We want to work with the private sector to create jobs, build infrastructure, and grow the economy. But this must be a partnership where everyone benefits—especially the people of Limpopo,” Ramathuba said. The provincial government has already begun engaging with mining companies, agricultural enterprises, and tourism operators to explore new investment opportunities and ensure that local communities are the primary beneficiaries of economic development. Challenges Ahead: While Premier Ramathuba’s vision for job creation and economic growth is ambitious, she faces several challenges in achieving her goals. The province’s infrastructure, particularly in rural areas, remains underdeveloped, and access to capital for small businesses and emerging farmers is limited. Moreover, regulatory hurdles in the mining sector and concerns over environmental sustainability could complicate efforts to drive economic growth. Nevertheless, Ramathuba remains optimistic about the future of Limpopo. She has expressed confidence in her MECs’ ability to deliver on their performance agreements and has committed to providing the necessary support to ensure that they succeed. “We have no time to waste. Our people are counting on us to deliver results, and we will not let them down,” she concluded. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://centralnews.co.za/limpopo-premier-phophi-ramathuba-issues-stern-warning-to-mecs-on-job-creation-in-agriculture-mining-and-tourism/

The below Q & A was published on the dtic  Website under the B-BBEE FAQs regarding B-BBEE Sworn Affidavits for EMEs and QSEs with more than 51% Black Ownership in a complex ownership structure involving Black private equity.   Q |   Can an organisation apply enhanced recognition for ‘Black’ private equity fund managers, in other words recognise it as true ‘Black’ Ownership?   A |   Statement 100 point 3.10.1 allows an organisation to treat ownership arising from private equity funds as if that ownership is held by 'Black' People, where the private equity fund meets specific criteria points 3.10.1.1 through to 3.10.1.3 stipulate.   Ownership Services  are available to assist members in implementing complex Ownership transactions.

The rule of thumb in claiming B-BBEE points is to follow the money directly to the end Beneficiary. Therefore, incorporating a third party between an organisation and a Beneficiary will not warrant a claim. The valid B-BBEE credentials of the end Beneficiary will be needed in order to validate the claim as well as confirmation from the end Beneficiary that the benefit has flowed to them.   Technical Compliance Services  are available to advise how members in relation to Third Party interventions.

A B-BBEE Verification is based on the evidence presented. Therefore, when entering into an agreement with a Beneficiary, a contract must incorporate all evidential requirements. Although parties do not enter into an agreement with the mindset that things will go wrong, the mitigation of risk must drive such an agreement. Consequently, generic Beneficiary contracts do not apply to all.   It is vital that an organisation highlights all the benefits in the agreement as well as how evidence is presented for a B-BBEE Verification at the date of signature. Challenges often occur when an organisation identifies benefits by default, following the signing of a contract. One may not synchronise the date of agreement to suit a benefit later revealed but rather confirm the substance of past events.   B-BBEE Verification Services  are available to members in understanding evidence requirements for all B-BBEE initiatives.

Hollard | 21 October 2024 The insurance industry can drive sustainable and enduring socio-economic development in Africa if the sector can closely align its growth aspirations with the developmental needs of the markets in which it operates, says Arshad Gardee, Managing Executive for Life at Hollard International. Gardee made these observations against the backdrop of the heightened levels of poverty that continue to impact many countries in the region. According to a 2024 report from Statista, around 429 million Africans are living in extreme poverty, with the threshold standing at 2.15 US dollars per day. Gardee says the social and economic challenges that the continent faces make Hollard’s shared value strategy ever more pertinent. The company defines shared value as a win-win business strategy where business opportunity and commercial success intersect with social impact. Shared value forms the cornerstone of Hollard’s growth strategy, and it implies that organisations can be commercially successful while also making an impactful contribution on the social and economic challenges facing the communities in which they operate. “While corporate social responsibility plays a valuable role in supporting communities, shared value takes this a step further by integrating positive social impact directly into the core business strategy. Rather than focusing solely on profit and then distributing a portion to communities, shared value creates a sustainable and long-term approach to addressing societal challenges, aligning the success of the business with the well-being of the communities it serves,” says Gardee. Putting this into practise, Gardee explains that Hollard consistently strives to gain a deeper understanding of the unique social challenges each market faces before identifying where the biggest opportunities lie. “We deliberately prioritise the ‘elephants’ over the ‘mice’ — focusing on larger systemic issues that can have a significant impact,” says Gardee. He says that Hollard’s approach is rooted in understanding the unique challenges faced by each market and tailoring our solutions accordingly. Most notably facilitating financial inclusion for underserved communities, promoting environmental sustainability, providing agricultural insurance for smallholder farmers, granting microinsurance for unbanked individuals, and affording tailored and bespoke products for small, medium, and micro businesses (SMMEs). “The solutions that we offer to our diverse client base are designed to be affordable, accessible, and responsive to the risks that confront customers. By providing customised cover, we not only provide a safety net for customers, but we also play a part towards stimulating local economies,” he says. He adds that Hollard is playing an active role in the renewable energy space, where the insurer has been at the forefront of driving strategic partnerships with industry leaders in this area, such as Renew Risk Africa, to underwrite non-fossil-based energy projects which address energy shortages, create jobs and support local economies. Gardee believes that incorporating shared value principles has far-reaching social and economic spin-offs. “It drives sustainable economic growth by providing vulnerable communities with access to essential financial services, building resilience against unforeseen risks. This, in turn, strengthens local economies, promotes financial independence, and creates a foundation for long-term development. It also helps build trust in the insurance sector, as individuals and businesses gain access to protection that supports their livelihoods and growth.” Gardee emphasises that the long-term sustainability of any company is closely tied to how well they integrate shared value into their business model, especially in Africa, where over 60% of the population is under the age of 25. With this large youth demographic comes a growing expectation for businesses to be purpose-driven and socially responsible. “Millennials and Gen Z are increasingly conscientious consumers. They expect companies to go beyond offering products; they want businesses to actively address critical issues such as climate change, inequality, and poverty,'” he says. Looking ahead, several interventions need to be put in place to scale up the adoption of shared value principles across Africa. Partnerships between insurance companies, governments, NGOs, and community organisations need to be built and strengthened to tackle large-scale social issues. Insurance companies should use the available technology and digital platforms such as mobile apps, online platforms, and digital applications to make insurance products more accessible, especially in remote areas. Insurance companies should invest in training to build expertise in creating and managing shared value initiatives. They should support local entrepreneurs and small businesses. Finally, insurance companies should align their growth blueprints with national and regional strategies. That means working closely with governments and regulatory bodies. “At Hollard, we believe that businesses cannot thrive in isolation from the communities and the environment in which they operate. Shared value is at the core of our identity and shapes everything we do. By embracing this approach, we can play a significant role in driving sustainable development across the continent, while also humanising the insurance industry. This, in turn, can foster stronger connections between people and the broader insurance industry.” Gardee concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.fanews.co.za/article/company-news-results/1/hollard/1301/how-hollard-leverages-shared-value-principles-to-drive-sustainable-development-in-africa/40417

IT-Online | 22 October 2024 Standards improve structure, governance and assurance, while business owners can tap into useful SEDA and enterprise supplier programme funding grants, writes Muhammad Ali, MD of World Wide Industrial & Systems Engineers (WWISE) Broad-Based Black Economic Empowerment (B-BBEE) will always be a topic of hot debate in South Africa. Depending on an individual or organisation’s political leanings, it is viewed either as a positive or negative, with few grey areas in-between. Though BEE compliance is not compulsory for private businesses, the government’s transformation policy makes it near impossible for firms to obtain licensing or bid for tenders without meeting stipulated BEE requirements. Yet what many private sector companies – particularly those falling into the Qualifying Small Enterprises (QSEs) category – fail to recognise, is that complying with transformation targets can be achieved through effective implementation of standardisation policies and practices. QSEs are businesses with an annual turnover of between R10-million and R50-million and are scored on the B-BBEE elements of ownership, skills development, management control, enterprise and supplier development, and socio-economic Development. Should they meet certain transformation targets, they are eligible to qualify for grants from the Small Enterprise Development Agency (SEDA) of up to R100 000, as well as other enterprise funding programmes in the country. QSEs are highly prevalent in manufacturing and engineering, ICT and telecommunications, as well as construction and real estate, and can benefit greatly from standards set out by the International Organisation for Standardisation (ISO), the international body responsible for setting uniform standards for companies and organisations across the world. ISO standards help these industries meet regulatory requirements, improve governance, and assure clients of their commitment to quality and safety – all key factors in securing BEE-qualifying work. Government frequently needs construction firms and subcontractors on its projects that adhere to safety, environmental and quality standards, or automative, food processing and packaging suppliers and manufacturers that demonstrate the ability to deliver quality and safety through ISO certification. Similarly, ICT service providers highly skilled in data protection have a fantastic opportunity to win contracts from corporate and government clients. There are several key ISO standards that businesses should look to implement if they wish to qualify for BEE work. These include: Quality Management (ISO 9001): Ensures that products and services consistently meet customer and regulatory expectations. Risk Management and Compliance (ISO 31000): Helps businesses manage and mitigate operational risks effectively. Health and Safety (ISO 45001): Critical for industries where workplace safety and compliance with labour laws are key concerns. Environmental Management (ISO 14001): Necessary for businesses looking to manage their environmental impact and comply with sustainability regulations. Data Security (ISO/IEC 27001): Essential for IT companies and other sectors handling sensitive information that need to protect client data. QSEs should begin implementing ISO standards as soon as possible, particularly if they aim to pursue government or large corporate contracts, as early adoption positions businesses to meet BEE tender requirements. Since the ISO implementation process can take anywhere between three and six months, it is essential to start during expansion planning or as part of a long-term growth strategy. The process begins with an initial assessment (gap analysis), followed by planning and resource allocation and actual implementation. During these phases, the necessary policies, procedures and systems that emerged from the gap analysis are put in place. Among these are process mapping, staff training, infrastructure upgrades and internal audits. Once the QSE is confident that all processes comply with the ISO standard, an accredited certification body needs to be engaged to conduct a formal audit. The certification body will assess compliance, issue the ISO certification, and provide recommendations for continuous improvement. It stands to reason that many internal changes will occur within the QSE as the standard is implemented, but all will put the company on firmer footing to bid for BEE-qualifying work. Inevitably there will be improved documentation, detailed record-keeping and enhanced staff training on the new procedures, especially in areas of quality control, safety and risk management. However, it is vital that an organisation’s management team actively drives a culture of continuous improvement, with regular internal and external audits becoming ingrained in the business routine to maintain ISO certification. These changes will help ensure the business stays structured, accountable, and compliant, which is crucial for securing BEE-qualifying work and long-term sustainability. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2024/10/22/better-iso-standardisation-could-win-qses-more-bee-qualifying-work/

DA | 30 September 2024 The Democratic Alliance (DA) has submitted comments to the National Minimum Wage Committee opposing any proposed increases to South Africa’s National Minimum Wage (NMW), in response to the Department of Employment and Labour’s Gazetted invitation for written representations . While the DA recognises the good intentions behind raising the minimum wage, the DA believes it will serve only to worsen the country’s already extremely high unemployment rate. Instead, the DA suggests keeping the current minimum wage unchanged. South Africa’s labour market is constrained by multiple factors, especially the impact of the minimum wage on employment opportunities. The current NMW creates barriers for the unemployed, particularly young people and low-skilled workers, by setting a wage threshold that businesses may not be able to afford. Many companies are unable to hire new employees unless their productivity exceeds the mandated minimum wage. As a result, the most vulnerable segments of the population are locked out of the job market, perpetuating a cycle of poverty and dependency on social grants. The National Minimum Wage Commission’s approach to link future increases to inflation and other economic indicators does not adequately consider the country’s severe unemployment crisis. Although protecting the purchasing power of existing workers is important, the unintended consequence of further increases will be to reduce the willingness of employers to hire. The DA believes that maintaining the current minimum wage level strikes a necessary balance between protecting existing workers and opening the doors to employment for those who are currently excluded from the workforce. While the NMW may reduce inequality among those already employed, it exacerbates inequality between the employed and the unemployed. Those without jobs remain trapped in poverty, unable to gain skills, build work experience, or earn any income at all. Even a modest wage would significantly improve the livelihoods of those currently relying on the Social Relief of Distress Grant, allowing them to build towards better opportunities over time. The DA’s policy position is to freeze the NMW at its current level. Additionally, we propose labour reforms that will expand job opportunities, particularly for the youth, such as a Youth Employment Opportunity Certificate and amending existing collective bargaining structures to benefit small businesses. These measures aim to create a more flexible, inclusive labour market to address South Africa’s unemployment crisis head-on. The DA believes that halting further increases to the minimum wage is a necessary step to make South Africa’s labour market more accessible, reduce unemployment, and restore dignity through work. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.da.org.za/2024/09/a-national-minimum-wage-hike-will-deepen-south-africas-unemployment-crisis

Gabriel Crouse | 30 September 2024 A massive new effort at racial inspection is afoot. In a country with far too few jobs, is this where money should be spent? And who will pay the price? Labour Minister Nomakhosazana Meth has told Parliament that her department was “busy with reinforcing the capacity of the [labour] inspectorate” to make “physical visits” to businesses around the country as part of her pledge that BEE is here to stay. “We are going to be reinforcing that [BEE compliance] by appointing more than 20,000 interns to be able to access and be able to be available to all those places that we need to get to.” How much will that cost? At the private sector minimum wage, that would add an annual wage bill of over R5-billion. However, the government is allowed to pay workers less than everyone else; at the “public works” minimum the additional cost would be around R2.8-billion. But the real cost of the 20,000 “interns” could be much higher, since that many people will need tiers of managers to coordinate effective racial inspection of businesses across the country. The cost might be much lower, if the interns do not work all year round, but it is worth recalling that there are more than 10 million formally employed South Africans and about 80% of them are expected to be in the kinds of medium and large businesses that are covered by the Employment Equity Act (EEA, including last year’s amendment). So those 20,000 might have to work year round, every year, after all. Historical race inspectors? The other terrible question is what will these 20,000 people be asked to do? If a company says that its managers are all black, and an inspector comes along, by what standard will they check if that is true? In order to think about that question, or those 20,000 questions, it helps to look back at history, and perhaps the most sympathetic character to also be an apartheid-era race inspector, Frederik van Zyl Slabbert. Slabbert recounts in his book The Last White Parliament that in his official duties he occasionally had to make race “inspections in loco ”, going off to people’s businesses or homes to see if they were racially what they claimed to be. He opposed the whole apartheid scheme, and so was sometimes asked to do this by people who knew they were breaking the law by claiming to legally be a different race. In one particularly moving instance that is worth recalling, a white man married a coloured woman in 1952, illegally. “Law cannot stop people from loving one another.” With love came children. Some of their birth certificates had to be forged to keep the family together, but by the time his grandchildren came along, the school inspectors found that some were white, others coloured, and so they could not be admitted to the same school. It is, in some ways, an almost unspeakably bizarre fact of apartheid that siblings were legally defined as being of different races. But the record shows it happened, and not just once. In this particular instance, Slabbert saved the family and reclassified them all as white so that the children could go to better-funded schools, through a mechanism of the Population Registration Act. Three factors matter, especially here. One, racial classification was forced. Two, the mechanism for testing race was absurd. Slabbert did not use an actual “pencil test”; his accounts and various other sources show that while this did happen, it was much less common than some younger, literal-minded people sometimes suppose. However, the legal requirements to try to stop people from lying were highly invasive, bizarre and necessary precisely to the extent that people were incentivised to lie about their race. Three, the stakes of racial classification were life-changing. People were willing, even desperate, to lie. A proud grandfather could be brought to his knees, literally, weeping and begging, because one grandchild’s hair was curlier than another’s – and that could make a shocking difference to his life chances. Is there anything like that in the work those 20,000 inspectors will have to do? Will there be any begging at their feet? Will there be any high stakes in whether they accept one classification over another? Those are difficult questions that I will come to next. What is not difficult to answer is: “How will the inspectors know whether someone is telling the truth about their race?” The answer is, they will not. There is no workable legal standard. The notion that any department can simply say “whatever your apartheid classification was, or would have been, that is what it is for us, too”, does not work, because in the apartheid system it was legally possible to reclassify – and thousands upon thousands of people did so. The stakes The EEA, since 1998, has provided that a “labour inspector … has the authority to enter” businesses, and “question and inspect” employers and employees, pursuant to the law. The EEA in its amended form, provides for fines for repeated non-compliance with these inspections, and the race targets they aim at, of 10% of annual turnover. That would drive most businesses bankrupt. So, the stakes are high. This is not the same as the original form of apartheid. No one is inspecting six-year-olds to stop them from starting school at the same place. However, labour inspectors will be visiting businesses around the country with the potential consequence of driving people out of business. Unemployment This is worse than a waste of money. Hiring 20,000 interns to walk in circles would be a waste of money, but at least it would do no more harm than that. The EEA is poised for worse. The argument is quite simple: anyone who pulls their money, or talent, out of South Africa rather than submit to the labour race inspectors will have reduced the economy’s capacity to add jobs. Anyone who stays, but dedicates their money, or talent, to complying with the race inspectors (or bribing the race inspectors) rather than adding valuable goods and services to the marketplace, is also adding to joblessness. Economic growth and job growth are pedals on the same bicycle. Labour inspections put a very thick pencil through the spokes of the wheel. Rebuttal “Minister, how do you intend to deal with the further exodus of skills from South Africa, and the large amount of unnecessary red tape for employers forced by race-based classifications, considering that both are contributing towards further stagnation of our economy?” This was asked by DA MP Desiree van der Walt. “The aim of this act is to ensure that we address injustices of the past,” answered Minister Meth, who went on to talk about the EEA’s “intention”, without directly addressing Van der Walt’s questions about skills flight and red-tape costs. “Would the minister please share the thought processes behind the belief that no current legislation or regulations are counterproductive to job creation?” came the follow up from Van der Walt. To her credit, Meth acknowledged that compelling new companies to comply with expensive collective labour bargaining agreements had been found to be counterproductive, but on the matter of red tape to do with race, again there was no comment. But the toughest question from Van der Walt was this: “Has the minister considered using the UN’s Social Development Goals as an indicator of redress and development instead of race? If not, why not?” Meth: “No, I haven’t investigated that particular approach.” Will there be 20,000 race inspectors, but not one investigation into real social development? ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/opinionista/2024-09-30-will-sas-20000-new-race-inspectors-have-to-reinvent-the-pencil-test/