Bongani Hans | 14 October 2024 THE Free Market Foundation (FMF) has joined the chorus of critics who deem the Broad-Based Black Economic Empowerment (BEE) a failure, that has instead of empowering the majority of marginalised black people benefited only a few politically connected elites. Various civil society groups, including the Institute of Race Relations (IRR), have over the past few years warned that the BEE was marred with corruption and favouritism instead of transforming black people's economic status. In a piece published on the FMF website on Tuesday, FMF director Eustace Davie called for the scrapping of the policy, which then-president Thabo Mbeki signed into law in early 2004, as it had unintended consequences for the economy. “One of the most harmful outcomes of BEE is the culture of favouritism it has created. “The policy gives bureaucrats and government officials the power to hand out contracts and tenders based on BEE scores,” wrote Davie. Davie said the policy had achieved political goals that opened a door to corruption and favouritism. “BEE has done exactly that, leading to manipulation, political patronage, and massive corruption. “This has led to the rise of ‘tenderpreneurs’ - individuals who use their BEE status to secure lucrative government contracts, often without the necessary skills, qualifications or experience to carry out the work,” he said. Davie said well-established businesses were struggling to thrive and contribute to the country’s economy as they had to focus mostly on being BEE compliant. Davies said the policy had led to the collapse of service delivery as a result of contracts being awarded to unqualified and politically connected individuals. “This mismanagement has resulted in wasted resources, collapsing infrastructure and unending inefficiency,” said Davies. “This has resulted in businesses spending more time navigating regulations and seeking political connections than focusing on merit, innovation, and efficiency. “Businesses are no longer focused on improving their services or expanding their operations; instead, they are driven by the need to meet BEE requirements. “This diverts attention away from merit and competitiveness, reducing productivity and efficiency in the economy,” said Davies. Late last week six engineering firm directors accused of BEE-fronting and tender fraud to the tune of R400 million at Eskom and Sasol were arrested. IRR researcher Chris Patterson said early this month: “Policy must be judged on its outcome, not its intention, and it is crystal clear that the outcomes of BEE policies and legislation have been poor. “A ten-year analysis of the unemployment statistics shows that the unemployment level of black South Africans has increased from 28,1% in the third quarter of 2013 to 36% in the latest figures, a percentage point increase of 7.9%, said Patterson. Patterson established through the South African Social Security Agency (SASSA) that nearly 10 million have never been employed and most of them were unlikely to be ever employed. “This is another clear indication of BEE’s failure,” said Patterson. Perspectives on how to address the shortcomings vary. Although the Communist Party of South Africa (SACP) and Cosatu also held the view that the BEE had failed millions of black people, they differ from the IRR and MFM’s call for the policy to be discarded. “What we need is broad-based empowerment that will uplift and empower the formerly oppressed in economic ownership and management control terms. “To be broad-based, this must not be elitist, but it must target empowering the masses through the pursuit of large-scale employment towards the realisation of the right of all to work in practice, real worker ownership and management control,” said SACP spokesperson Alex Mashilo. Mashilo said those who were calling for the scrapping of the BEE were “racially biased think tanks and NGOs, who seek to preserve the advantages their population group inherited from the history of white privilege, which was anchored in capitalist super-exploitation of the formerly oppressed.” “South Africa is a single country but the legacy of the past racial, class and gender divisions persists. “The capitalist market is daily reproducing the inequalities handed over by that period,” said Mashilo. FMF Head of Policy, Martin van Staden said although it was unlikely that the the current parliament would undo the whole BEE framework, there were signs of “a more pragmatic approach developing.” “BEE is far more open to debate today than it was a decade ago, and its foundations will only continue to crumble in light of its unavoidable failures. “No country that has widely deregulated and liberalised its economic policy environment is poor – not one. The best replacement for BEE is an open economy with minimal government interference,” said van Staden. Cosatu spokesperson Zanele Sabela said because of the damage done to South Africa by 350 years of discrimination it was compelling that the legacies of the past should be addressed. “Yes it (BEE) has been abused at times and hence the government has fine-tuned criteria guiding it. “We cannot ignore the realities where the key levers of the economy or even senior management positions are still dominated by white males. “As a trade union federation, we are keen to see more done to roll out employee ownership schemes as a key way of de-racialising our economy and empowering and uplifting workers and unlocking the economy,” said Sabela. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/ios/news/sacpcosatu-oppose-mfmirrs-calls-for-bee-scrapping-fd339344-61da-4445-b2fa-e44cff24d2f8

With the release of the Legal B-BBEE Sector Codes of Good Practice  on Friday, 20 September 2024, many are still trying to unpack how implementation will take place. Below are some of the key high-level concepts / differences that were introduced under the Legal B-BBEE Sector Codes of Good Practice:   There are Three (3) Types of Scorecards – For Advocates, Attorneys and Specialised Entities (Organs of State and Public Entities). The element of Ownership excludes Net Value Points. A new concept of “Designated Categories” introduced which include “Black Women”. The term 51% Black Owned only relates to Economic Interest and Voting Rights. A new concept of “New Entrant” introduced and does not relate to the Ownership element. Attorneys Point Recognition – Level 8 from 35 Points and Level 1 equals to 100 Points. Advocates Point Recognition – Level 8 from 15 Points and Level 1 equals to 50 Points. Attorneys are measured on all Elements. Advocates measured only on Skills Development (50 points). Specialised Scorecard equals total of 45 points measuring Procurement, Enterprise & Supplier Development only. Targets for executive, senior, middle, and junior management in the management control scorecard are based on the national and regional demographic representation of Black people. Compliance targets in the skills development scorecard are based on the national and regional demographic representation of Black people. There is an introduction of a Legal Sector Transformation Fund. The Supplier Development element removed, and focus is on Enterprise Development – Specialised Scorecard still focuses on Supplier Development. The element of Socio-Economic Development is completely removed from the Scorecard. Considering the definition of “Black People” under the B-BBEE Act, the Term “White” is used throughout the Legal B-BBEE Sector Codes of Good Practice   Technical Compliance Services  are available to help members understand requirements under the Legal B-BBEE Sector Codes of Good Practice.

Statement 000, Clause 7 of the General Amended B-BBEE Codes of Good Practice  makes the following references:   “7. Eligibility of Joint Ventures and Start-up Enterprises   7.1 The measurement of Unincorporated Joint Ventures will be done as follows:   7.2 Unincorporated Joint Ventures are required to compile a consolidated verification certificate.  A consolidated verification certificate will consolidate the verified compliance data of joint venture partners, in accordance with paragraph 7.3 below, as if those Measured Entities were a single Measured Entity.   7.3 The consolidation of compliance data shall be based on a weighting in accordance with the joint venture agreement relevant to the specific joint venture. Therefore, should two companies enter into an Unincorporated Joint Venture, their respective scores in terms of the relevant Code of Good Practice will be weighted according to their proportionate share in the joint venture and added together for a combined score out of 100.   7.3.1     Should a company qualify in terms of the Qualifying Small Enterprise Scorecard, its B-BBEE score out of 100 must be used to calculate the consolidated score.   7.3.2     51% Black Owned EMEs and 51% Black Owned QSEs will qualify for a score of 95 points, while 100% Black Owned EMEs and 100% Black Owned QSEs will qualify for a score of 100 Points.   7.3.3     EME’s other than those in paragraph 7.3.2 above will qualify for a score of 85 Points.   7.3.4     The JV B-BBEE Certificate is valid for 12 Months and only applicable to a specific Project.   7.3.5     Notwithstanding the B-BBEE Status Level attributed to the JV in terms of the above mechanism, the black Ownership of the respective partners may be flowed through to the JV in proportion with the respective JV partners’ economic interest and voting rights in the JV as determined by the JV agreement.   7.4 Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of this Statement.   7.5 Despite paragraph 7.4, a Start-up Enterprise may be measured in terms of the QSE scorecard or the Generic scorecard should they choose to.   7.6 Despite paragraph 7.4, a Start-up Enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.”     An Incorporated Joint Venture means establishing a new company with representative shareholders to obtain a B-BBEE status.  As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice, an Unincorporated Joint Venture means a joint venture between two or more Measured Entities affected by agreement without incorporation. Requirements between each Sector Code may differ.   Technical Compliance Services  are available to help members understand requirements for Unincorporated Joint Ventures.

Opinion | 13 January 2024 The challenging socio-economic factors prevailing in 2023 set the stage for a difficult year for small businesses in South Africa. Executive General Manager for Impact Investing at Business Partners Limited, David Morobe, highlights some of the key findings from the latest quarterly SME Confidence Index, and how despite the numerous challenges faced by entrepreneurs, small business owners are gaining confidence in public and private sector initiatives aimed at creating a more enabling and supportive business environment. In particular, the latest results revealed that confidence in government support for SME development increased by 12 percentage points from the previous quarter, while confidence in the private sector increased by seven percentage points quarter-on-quarter. Tough socio-economic conditions in South Africa heading into 2023 were indicators that the previous year would be an exceptionally difficult one for small businesses. Now, as we kickstart the new year, the impact of load shedding and low growth economic trajectory on small and medium enterprises’ (SME) confidence is apparent. SME confidence that their businesses will grow in the next 12 months went down by 5 percentage points in Q2 of 2023 from the previous quarter and by four percentage points year-on-year. Fears that clients will pay within stipulated time remained stable at 65%, down by one percentage point both year-on-year and quarter-on-quarter. Despite the very evident dampening of spirits with regards to the ability to grow, survey respondents reported confidence levels of 62 % that the local economy will be conducive for business growth in the next 12 months, a seven percentage point increase from the previous quarter. Even amid mounting pressure, SMEs around the country have reported feeling more confident in several key areas. Overall, the latest survey results paint a picture of an SME community that is gaining some confidence in initiatives implemented by both the public and private sectors during the period to create a more enabling business environment. As always, these results illustrate the sector’s unwavering resilience and the determination of local entrepreneurs to push through whatever challenges they encounter. SMEs’ confidence levels that Government is doing enough to foster SME development increased. At confidence levels of 59 percent, this area saw a significant 12 percentage point increase from the previous quarter, and a 4 percentage point increase year-on-year. Aligned to this, SME confidence that the private sector is doing enough to foster SME development went up by 7 percentage points quarter-to-quarter and up by 3 percentage points year-on-year to 62%. The positive sentiments regarding Government may very well be linked to the introduction of the National Small Enterprise Amendment Bill (the Bill), announced earlier on in 2023 by Minister of Small Business Development, Stella Ndabeni. Amongst other regulatory changes, the Bill proposes that a dedicated ombud for small businesses be established to help SMEs resolve issues at an expedited rate without the need to incur exorbitant legal fees. The new Bill should go a long way in addressing the regulatory improvements that SMEs are yearning for. The call for a more enabling regulatory environment for SMEs has long been on the wish list for local businesses. In Q2 of 2023, the need for greater access to funding dropped out of the top three challenges facing local SMEs. Instead, the need for regulatory change and support entered the top three list of challenges for the first time in several years – a significant shift for the SME Index. The Bill will also disestablish the Small Enterprise Financing Agency and the Co-operative Banks Development Agency, as well as the Small Enterprise Development Agency. In their place, the Small Enterprise Development Finance Agency (SEDFA) will ensure that the consolidated entity will be better positioned to offer a one-stop service comprising of finance, business advice, development services, business facilitation and incubator support. This development is a promising indication that the government is consolidating its initiatives to bolster the sector and provide it with much-needed support. The state has a vested interest in ensuring that small businesses have the resources they need to thrive. As key enablers of economic growth, the state of the SME community in South Africa is one of the most effective yardsticks for measuring what is, and predicting what is to come. It is therefore encouraging to see these movements in the SME landscape. We anticipate that with this more consolidated approach to fostering SME growth, private sector players and other industry stakeholders will have a better sense of direction, and a clearer blueprint on how they can contribute towards a pro-growth economic environment. The framework for a more empowering regulatory landscape will undoubtedly be shaped by the forthcoming Bill, as well as the outcomes of the BRICS Summit, hosted in August 2023. Leading up to the Summit, a series of events, forums and conferences provided an important starting point for discussion, debate and cooperation amongst key industry players including SMEs. One of the most pressing issues addressed at the Summit included how to ensure that intra-market laws and regulations between BRICS nations work together to promote a thriving import-export environment. In tandem with matters relating to the regulation of the sector, investigating the ways in which SMEs are obtaining funding also topped the agenda at the Summit. As one of the most established small business financiers, we have a detailed overview and an in-depth understanding of the SME ecosystem’s needs. The expansion of funding opportunities for SMEs based on BRICS trade agreements is a welcome development and for us, a positive indicator that despite many obvious hurdles, the sector is set to surge forward positively into 2024. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/saturday-star/opinion/small-business-owners-are-more-confident-5b076d09-fd2f-497b-ac87-e7f1d87a9e29

25 April 2023 - Creamer Media The CEO of the South African Institute of Black Property Practitioners (SAIBPP), Kululwa Muthwa, says that South African property stakeholders need to collaborate more in order to drive meaningful transformation of the country’s residential property sector. “To make the residential property market reflective of the demographic of South Africa , we need more platforms that bring relevant stakeholders together to engage meaningfully and to decisively agree on the elements required to drive inclusive participation and transformation,” Muthwa says. To this end, the SAIBPP is supporting and participating in the upcoming inaugural Residential Investment & Development (RESIDE) Conference. The event takes place on the 12th and 13th of July 2023 and will see government agencies, asset managers, operating entities, investors, brokers, banks, consultants, and service providers come together to unpack new opportunities in the social and affordable housing , student, retirement, co-living and multi-family residential spaces. Hosted by SmartXchange (a division of Commerce Edge South Africa ), this is South Africa ’s first and only multisector residential investment and development conference and exhibition. It has been launched in response to the country’s massive housing shortage and high urbanisation rate, according to the organisers. According to the Parliamentary Monitoring Group, South Africa is urbanising rapidly. Already, 63% of the population lives in urban centers, and the figure is expected to rise to 71% by 2023. There is an urgent need to find solutions to the issue of housing shortage. This event will engage key stakeholders in both government and private sectors to come together and create tangible solutions . “As SAIBPP we believe that a platform of this nature will contribute to the broader conversation of creating a successful and inclusive residential property market for all South Africans Existing barriers such as financing, regulation, affordability of housing and the cost of doing business in the sector continue to slow down the pace of transformation and they need to be addressed,” asserts Muthwa. The RESIDE Conference will feature practical case studies, roundtable discussions and keynote presentations from global and local experts and thought leaders. SmartXchange chairperson and CEO Debbie Tagg explains that the event’s objectives include enabling private players to achieve ' Housing for All’; reducing development costs in the South African economy; capacitating the state for faster project approvals and policy implementation; formalising the industry value chain and ecosystem; and unlocking equity and debt funding. By bringing together the entire residential value chain to share knowledge, collaborate and do business , the event aims to mitigate risk. “Pricing models will be unpacked and experts will share their experiences and insights with attendees,” Tagg says. The industry leaders that will be speaking at the ReSiDe Conference include Alison Tshangana, head of research and market intelligence at the Centre for Affordable Housing Finance; Bruce Gordon, CFO of the National Housing Finance Corporation; Africrest Properties director Grant Friedman; Erwin Rode, CEO of Rode Property Consultants and Valuers; Busi Nzo, chairperson of the Social Housing Regulatory Authority (SHRA); Chris Campbell, CEO of Consulting Engineers South Africa (CESA) and SAIBPP president Sylvester Martin. The compelling presentations on the programme include one focusing on the state's plans to enable and facilitate housing for all, and to attract capital and investment into housing development. This presentation will examine whether policy, investment and collaboration are the answer to closing the housing gap, and whether housing for all is just a pipe dream. The government has in the past committed to building five million houses for the underprivileged, as a way to provide housing for all. However, it is yet to be seen if this can be achieved. The transformation of the housing market through innovation , technology and sustainable living is also in the spotlight at the RESIDE Conference. With 61% of buildings in South Africa being green, we are seeing more and more residential developers going the sustainability route. Modern construction methods and technologies, and innovative, sustainable building materials and techniques are on the agenda, with experts discussing whether they are viable or just “sexy”. Mitigating logistics and supplier challenges will also be addressed. In a not to be missed panel discussion, industry specialists will discuss the sectors that are proving to be the rising stars in housing and investment. The panelists will share their insights and advice for investors seeking to untap the residential sector as a viable asset class. Investors, financiers, private and public sector role players will have the opportunity to learn and share knowledge on profitability and risk, and to look at how bankable housing projects can be accelerated through innovative partnerships and incentive schemes. The RESIDE Conference takes place at Sandton Convention Centre, Johannesburg. The industry leaders that have partnered with SmartXchange as event partners include SHRA, National Housing Finance Corporation (NHFC), CESA, SAIBPP, the South African Association of Consulting Professional Planners (SAACPP) and the South African Insurance Association (SAIA). https://www.engineeringnews.co.za/article/groundbreaking-event-will-drive-meaningful-transformation-of-south-africas-residential-property-market-2023-04-25/rep_id:4136 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’

Simnikiwe Mzekandaba | 7 September 2023 Business process outsourcing (BPO) organisation CCI South Africa plans an additional 2 500 jobs for its operations in the 2023 financial year, says CEO Peter Andrew. This, as more unemployed local graduates turn to the BPO sector − sometimes referred to as the global business services (GBS) sector − for employment opportunities. South Africa’s joblessness has escalated at alarming rates in recent years, and youth remain vulnerable in the labour market. The official unemployment rate was 32.9%, as at the first quarter of 2023, according to Statistics South Africa, with unemployed youth (15-34 years) at 46.5%. The BPO industry, which is targeting 500 000 new jobs by 2030, has been pinned as the green shoot that can help overcome the country’s unemployment challenge. “I think the BPO industry is one that will carry South Africa and Africa forward,” said Andrew yesterday, during a media tour of the CCI South Africa and CareerBox operations in Durban. “2022 was a record year for CCI South Africa and things are certainly not slowing down in 2023,” he said, noting the new jobs have mainly been created in Johannesburg and Cape Town. “Twelve new client campaigns have launched across a range of industries, including airlines, gaming, car rental, business insurance and financial services. These campaigns have helped us create 2 458 new jobs, with an additional 253 management and support roles, so far this year. “By the end of 2023, we are hoping to double that, creating a total of 5 000 additional jobs in one company alone. “The other beauty of this industry is that you rise with the business. You start as an agent and with experience, you become a team leader, and then an operations manager. We’ve got programmes that we’ve built in order to achieve that – there’s real career projection.” According to Andrew, the global BPO market was valued at $261.9 billion in 2022. South Africa accounted for 1% of global revenues during the same period, with estimates indicating this will grow to 4% by 2030. He added that SA’s BPO sector witnessed a 25% compound annual growth rate (CAGR) from 2015 to 2021, with an expected 9.4% CAGR from 2023 to 2030. On the employment front, the BPO sector was said to have created more than 50 000 cumulative new jobs from January 2018, to the second quarter of 2021. CCI South Africa accounts for 8 500 of the BPO sector staff, Andrew noted, saying it is looking to expand that figure. “Our goal is to create 20 000 jobs within the sector. We’ve got sites in Durban, Cape Town and Johannesburg. We also have sites in Kenya, Ethiopia, Rwanda and Uganda, so it’s really a scalable proposition that the BPO industry offers.” Changing landscape While ICT has long been regarded a male-dominated industry, youth and women lead when it comes to the composition of SA’s BPO sector. BPO industry body Business Process Enabling South Africa previously revealed the country’s youth accounted for 89% of the new jobs in the sector from January to June 2022. Andrew said CCI South Africa is a 67% female organisation, with a 52% female leadership team. In addition, 76% of the employees are from low-income households. “When we started, we were pretty much 90% Indian male, and that was because it was an outbound call centre. The logic at the time was that India was good at it, so Indian males in South Africa should be good at it,” he explained. “This has now changed to a customer service environment and African females are the predominant staff members. There is no doubt there is better performance as a result of that.” CCI South Africa works with CareerBox on skills development for the BPO sector. Established in 2013, CareerBox offers career development training and work readiness programmes to unemployed young adults who wish to enter the GBS and contact centre industry. Additionally, youth are provided with technical and soft skills for the workplace, including critical thinking and problem-solving skills, according to the company. Successful youth that go through CareerBox training are absorbed by CCI South Africa. The partnership, the companies say, has resulted in 98.5% of CCI staff being candidates who were trained and placed through CareerBox. “Demand-led training and fast-tracked employment opportunities are an important step towards achieving sustainable economic growth. By partnering with CareerBox, it has developed a market-driven education and training model, designed to empower youth and uplift communities through the multiplier of employment and compensation. “We believe the youth of South Africa are uniquely equipped to deliver this through their inherent capacity for empathy and creating human connection,” added Andrew. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/LPwQ57lbmVWqNgkj

News Desk | 17 January 2023 South Africa’s young graduates are struggling to find jobs. According to Statistics South Africa, the youth unemployment rate, measuring jobseekers between 15 and 24 years old, fell to a two-year low of 59.6% in the third quarter of 2022. Skills shortages are linked to the high unemployment rate because many job seekers lack the experience and skills needed by the job sector. Three proactive University of Cape Town graduates started a business to solve the graduates’ skills gap and to help their clients digitise their workflow. Unemployed graduates started a business In 2020, Thando Shabalala, Aleya Ramparsad Banwari and Devlin Sooful started a business called Grab A Grad; the business help graduates like themselves gain skills to help them get employed or start their own business. All three of the co-founders knew each other from university and their unemployment woes inspired them to start a business. One was retrenched, the other one was freelancing and the other was looking for a job. The trio wanted to find solutions as a response to their unemployment woes as graduates, particularly during the lockdown. They started a business that provides training for graduates to turn their theoretical knowledge into practical skills needed by South Africa’s job market. Another major key focus for the business is digital consulting, Grab A Grad also specialises in business automation, web development, marketing, and design. “We build applications and processes that will bridge the skills gap,” explained Shabalala. Addressing skills gap challenge When they were looking for jobs, they realised they didn’t have the practical skills needed by rapidly evolving workplace needs. Thousands of graduates face the same challenge and they decided to implement solutions to help themselves and other graduates. Their strategy is to leverage graduates’ knowledge earned in higher education institutions and to place them in an environment with real challenges. The key is for them to use their problem-solving skills to provide solutions in an African context. Through their business, they run a graduate-focused consulting firm that empowers graduates with a variety of critical skills. Their business model is largely about empowering graduates and creating employment for young people. They do this by filtering their graduate intakes to assess their abilities. “Our network of graduates is our cooperative arm, we train them, and some are now our core team members,” said Shabalala. Technological innovations in workplaces have led to the rapid evolution of skills needed in the workplace. The co-founders have seen that fewer companies want to invest in training people. By having a trusted network of upskilled and well-trained graduates, the business empowers graduates and helps bridge the skills gap in the workplace. Long-term solutions are needed The business hopes to continue empowering graduates with practical skills and to provide digital solutions for its clients. Considering that tertiary institutions focus more on theoretical knowledge, the work done by Grab A Grad will ensure that graduates have practical skills to help them become employable. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://yiba.co.za/graduates-business-addresses-skills-gap/

Dr Sello Mokoena | 24 January 2023 There is sufficient respectable evidence to support the idea that quality ECD services play a critical role during a child’s early developmental stages, says the writer. Picture: Bongiwe Mchunu/African News Agency (ANA) Archives As we start the new academic year with special emphasis on the matric results it is of paramount importance not to forget the crucial role played by quality Early Childhood Development (ECD) in children’s life long before they reach Grade R and beyond this stage; and to reflect on the usefulness of this programme as it serves as a stepping stone to a brighter future. As there is sufficient respectable evidence to support the idea that quality ECD services play a critical role during a child’s early developmental stages as they offer better life prospects that enable critical stakeholders such as parents, government and civil society organisations to prepare children for a future with dignity, productivity and fulfilling lives. As Statistics South Africa’s Quarterly Labour Survey, released during the second quarter of 2018, showed, although joblessness had increased to 27.7% up from 26.7% compared with the first quarter, unemployment levels decreased as the level of education increased. Evidently, giving vulnerable children an integrated package of education and social services is one of the most effective and efficient steps we can take to give them a head-start in life. It is against this background that as we begin the new academic year, we should focus on the crucial role played by the ECD Centres. This begs the question what is an ECD service or programme? Official documents state that these programmes offer “early learning opportunities and support to children from birth until the year before they enter formal school”. They include, but are not limited to: Community-based play groups operating for specific hours; Outreach and support programmes for young children and their families/ caregivers, at a household level; Parenting support and enrichment programmes; support for the psychosocial needs of young children and their families; ECD programmes provided at partial-care facilities and at child and youth-care facilities, as contemplated in section 93(5) of the Children’s Act. These could be toy libraries or mobile ECD programmes, play groups, child minders or crèches. The programme adopts a more holistic approach to early learning. It is aimed at promoting social protection and ensuring reduced vulnerability. Official policy documents further state that the purpose of this programme is to ensure that children’s cognitive and effective skills, as well as psycho-motor skills are fully developed within conducive learning settings from an early age. The programme seeks to instil positive societal values and to improve children’s lives in meaningful ways. The major intention is to provide every child with the basic skills of reading, writing and elementary numeracy, as well as basic digital literacy skills essential for learning that will serve as they continue with their education and grow older in life. The programme seeks to enhance the quality of human capital; that is, individual’s competencies and skills for participating in society and workforce. This vital bridge demonstrates the interdependence between better scholastic performance and a better life. These are critical skills at the foundation phase of a child and they are requisite necessities for the creation and cross-fertilisation of mental, physical and emotional well-being including academic and recreational spheres, central to increasing young people’s abilities to participate in societal empowering activities known to be “an avenue for improving all people’s lifestyles”. They enrich the changes of children participating ECD centres in relation to positive societal values and democratic practices. As I reflect on the role of ECD I concluded that the provision of appropriate ECD services will not only enable us to serve the educational needs of children from an early age, but it will also allow us to equip them with requisite cognitive and affective skills required for successful learning throughout a person’s life. As Kierstead and Bowman put it: “There is a need to establish concise, cognitive skills that can be measured. “Reading, writing, mathematics and computer skills can be measured, and they are examples of necessary prerequisites for an educated society. “But it is also necessary to provide affective education pursuant to self-esteem, self-confidence and moral conscience. It is appropriate to teach social (sharing) cooperation and trust, which shape appropriate interpersonal skills.” These are the skills essential for the economic challenges of the 21st century and beyond. The 2012 Child Gauge report published by the Children’s Institute at UCT argues that “early childhood development services not only support children’s health, well-being and early learning, they are increasingly recognised as a sound economic investment and a key strategy in reducing inequality”. This reinforces the notion that investing in early childhood development is not only a means of preparing children to perform better in school and giving children a head start in life, but also of contributing to the socio-economic development of the country and of ensuring that our children are fully prepared for the school system as we face new educational challenges. Research conducted by the Gauteng Department of Social Development in 2016 to evaluate the status of the Social Development Prototype ECD centres revealed that while the presence of the centres was found to improve community pride as well as community’s confidence in the government and, stakeholders’ perceptions of the impact of the ECD programme implemented at the prototype centres was favourable several stakeholders suggested that there was a need for a standardised curriculum. This would serve to ensure the quality of the programme, as well as to enable standardised assessment across the centres. This would, in turn, enable better monitoring of the impact of the programme as this evaluation research revealed that many of the centres were identified as not being accessible for disabled users due to the absence of ramps, handrails and age appropriate ablution facilities for children with disabilities. Furthermore, educators were not capacitated to teach intellectually and physically disabled children. This requires the initiation of a broad network of processes comprising a range of activities undertaken by primary stakeholders such as academics, NPO representatives, parents, business, faith-based and political organisations from all walks of life, among others. This requires people with the ability to influence educational policy and educational practices at various levels, including curriculum experts who understand that education is primarily concerned with the development of different types of skills and values. * Mokoena is an applied broadcasting, educational media, international communications, policy and development studies expert. He is head of research and policy at the Gauteng Department of Social Development. He writes in his personal capacity. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/politics/opinion/government-investment-in-early-childhood-development-is-essential-ae308a0a-b36a-4685-b5ec-83e86ac41966

Staff Writer | 23 August 2023 The Department of Employment and Labour (DEL) says that it is giving businesses in South Africa a “weapon” to defend themselves against new employment equity laws which aim to speed up transformation in every major sector in the country. Speaking at the latest national workshop on the new laws, the department conceded that it was putting pressure on businesses with the new laws but at the same time, was giving them an ‘out’. “The proposed amendments to the employment equity (EE) laws will provide double-pronged flexibility in that they will allow employers to consult and self-regulate their equity targets while also allowing employers to raise justifiable reasons for non-compliance with the law,” the department said. Putting it more plainly, DEL Deputy Director of Employment Equity, Masilo Lefika said: “We are giving you the law and, at the same time, giving you a weapon to defend yourselves.” According to the amended EE legislation and Regulations, while businesses are expected to develop five-year plans to meet the EE targets as determined by the minister, they are also allowed to flout these targets on “justifiable reasons or grounds”. Some of the justifiable grounds listed to be considered for failure to comply with the annual EE targets include: Insufficient promotion opportunities; Insufficient recruitment opportunities; Insufficient target individuals from the designated groups with the relevant qualifications, skills and experience; CCMA/Court Order; Transfer of business; Merger/ acquisitions; and Impact on business economic circumstances such as the impact of the Covid pandemic on business, load-shedding, etc. Lefika said the justifiable reason for non-compliance were not “thumb-sucked” and came as a result of engagement with Nedlac and social partners. The list also got the nod from one of the biggest critics of the new laws, trade union Solidarity. However, while these grounds should equip businesses with sufficient “flexibility” around the controversial targets, the onus is still on the businesses to prove their case to the department, adding further administrative and legislative burdens on operations. The department reiterated that the objective of the amendments is to effectively reduce the regulatory burden for small employers while also empowering the minister to regulate sector-specific numerical EE targets. It will also look to strengthen compliance through the issuing of EE compliance certificates. Under the regulations, all businesses in South Africa that employ more than 50 people will have to comply with the targets and EE requirements set out by the department – regardless of whether they do business with the state or note. Failure to comply could result in steep fines and penalties. The department said that the state has been forced to get tougher on transformation in the country due to the slow pace of progress in uplifting previously disadvantaged workers and reshaping companies – particularly at the senior and top management level – to reflect the demographics of the country. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/713090/government-giving-businesses-a-weapon-to-defend-against-new-bee-laws/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

Daniel Orelowitz | 23 March 2023 When starting a learnership or training programme in South Africa, several crucial steps must be taken to ensure that the programme is compliant and that learners receive the appropriate certification upon completion. Such administrative steps are extensive and can get complicated quickly - from registering the learnership programme and obtaining the approval of the relevant Sector Education and Training Authority (SETA) to ensuring that the training programme meets the requirements of the National Qualifications Framework (NQF) and Quality Council for Trades and Occupations (QCTO). From a people perspective, accredited facilitators and assessors must be engaged, and learners must be recruited, on-boarded and managed, while regular progress reports must be submitted to the SETA. All of which adds up to an unreasonable amount of work to expect a company to handle in-house. The overwhelming business of learnerships Companies undertaking such programmes must also be prepared to tackle immense administrative burdens such as manual document collection and quality checks, recruitment of learner candidates and suitable hosting, as well as lengthy and time-consuming programme registrations. Then comes the need to oversee portfolios of evidence along with internal and external moderation, all of which demand constant follow-up with the various SETAs that are all severely understaffed. Frustration and extensive paperwork One of the biggest sources of frustration is dealing with SETAs, whose approval processes can take up to eight months, causing unnecessary delays. Unfortunately, there are no shortcuts, and learners and businesses must wait for the approval. This cycle of constant following-up and continuous waiting is taxing on internal resources and their time and can become extremely discouraging. The challenges of dealing with the various SETAs can be tough concerning disabled learners, or learnership outside the company's sector. In addition, running learnership programmes requires a lot of technical paperwork, and each SETA has its strict submission requirements and format preferences. This causes a huge headache for both learnership participants and the organisation responsible for managing the programme. If training is not the organisation’s core business, it can be exhausting for employees to handle the extra workload. Hiring additional full-time staff might seem cheaper at first, but the costs can add up quickly, and managing these new employees is simply another problem for someone else to deal with. Learnerships: whose burden is it, anyway? Considering the value of learnership programmes in addressing our country’s skills and unemployment crisis, businesses should not have to face these bureaucratic hurdles unassisted. Nor is it logical for them to handle the stresses and headaches of learnership programmes alone. Instead, businesses should focus on their core revenue-generating activities and delegate the responsibility to training experts. By partnering with an accredited, reputable, and experienced training provider, the immense pressure of learnerships can be greatly reduced. This is because training partners have established relationships with the SETAs and are familiar with their specific regulations and procedures. Outsourcing efficiency and results A worthy training partner will have honed their efficiency at tackling every aspect and detail of training and learnership programmes, assuming total responsibility thereof for their client companies. By partnering with a specialist training provider (rather than keeping it in-house) companies can outsource their headaches and ensure that their budget and resources allocated to training are efficiently utilised, without the need to manage the performance of internal resources. Furthermore, an experienced training partner makes possible learnerships and training programmes beyond the scope of the company’s focus or industry. Practically speaking, if a company handled learnerships in-house, they’d only be able to offer three or four learnerships, but by joining forces with a training provider, they gain efficiency and cost-effectiveness on an unimaginable scale - with immediate access to up to 42 different learnerships and all the necessary trainers and materials required for each certification. More skills, more jobs A reliable training services provider will help businesses create clarity from confusion by taking responsibility for the administrative burden of learnerships, and setting up and running critical programmes that are compliant and recognised by the necessary skills development authorities. Not only will this help learners obtain their certifications as quickly and effectively as possible, but it also helps companies to achieve their training and skills development goals effectively. In so doing, this can open funding and Broad-Based Black Economic Empowerment (B-BBEE) opportunities for companies that can make learnerships a mutually beneficial process that is instrumental to filling educational gaps and increasing skills levels in South Africa. In turn, this will aid in critically addressing unemployment by creating the skills needed to fill the jobs that feed and grow our economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/from-confusion-to-clarity-how-a-reliable-training-partner-can-simplify-learnership-administration-2023-03-23/rep_id:4136

Piet le Roux | 20 October 2024 Sakeliga has requested Minister John Steenhuisen to withdraw the Department of Agriculture’s recently promulgated BEE criteria for reduced-duty imports and exports as well as the Department’s official plans to make BEE compulsory. On 3, 4, and 7 October 2024, Mr Mooketsa Ramasodi, Director-General of the Department of Agriculture, renewed three regulations subjecting reduced-duty imports and exports of agricultural products to BEE criteria. The regulations affect reduced-duty exports totalling up to 200 000 tonnes of agricultural products and 190 million litres of wine to the EU and the UK and Northern Ireland; and imports totalling up to 500 000 tonnes of agricultural products and 9.5 million litres of wine from World Trade Organisation member countries. These constitute a minor yet meaningful portion of the total volume and value of South African agricultural trade. The regulations are in step with the Department’s official and initially confidential policies called the AgriBEE Plan and the AgriBEE Enforcement Guidelines, which Sakeliga obtained and released publicly last year. The purpose of these standing policies are to “enforce compliance of sector stakeholders to the transformation programme of the government” by making B-BBEE “a qualification and legal requirement for Government” when issuing licences and permits, water rights and other concessions, and disposing of state assets. The original regulations and the AgriBEE plans predate the tenure of the current minister. In our letter requesting the minister to withdraw the regulations and the BEE policies, we informed him of the engagement by Sakeliga and our lawyers with the Department and his predecessors. Persistence by the Department with its course of action would lead to litigation and engagement with international role-players, which Sakeliga would prefer to avoid. We have therefore requested a meeting with the minister to discuss an acceptable solution to the regulations, the AgriBEE Plan, and the AgriBEE Enforcement Guidelines. The Department’s regulations and its official BEE policies are harmful, unlawful, and in violation of South Africa’s international trade obligations. Instead of honouring the agreements to lower trade restrictions with the EU, the UK and Northern Ireland, and World Trade Organisation members as intended, the South African government is abusing its administrative obligations to erect race-based trade restrictions. Fortunately, the Plan and Enforcement Guidelines have not yet been successfully implemented everywhere and to their full extent. Agricultural economic activity in South Africa remains robust and can be kept this way by firm resistance to this kind of harmful government interference currently being attempted. 16 October 2024 John Steenhuisen The Minister of Agriculture Dear Minister Steenhuisen BEE criteria for reduced-duty exports and imports, and the Department of Agriculture’s BEE plans On 3, 4 and 7 October 2024, Mr Mooketsa Ramasodi, Director-General of the Department of Agriculture, published three regulations subjecting reduced-duty imports and exports of agricultural products to BEE criteria. This is harmful, unlawful, and in violation of South Africa’s international trade obligations. We require that the BEE criteria for issuing permits, as well as the Department’s AgriBEE Plan and AgriBEE Enforcement Guidelines which inform the regulations, be withdrawn. The regulations The regulations concern the Department’s allocation of quotas for reduced-duty agricultural exports and imports under preferential market access schemes, also known as tariff rate quota schemes. In the published regulations, BEE is the first among five criteria to be applied by the Department in awarding: 1. Reduced-duty export quotas for a total of up to 200 000 tonnes of agricultural products and 190 million litres of wine to the United Kingdom and Northern Ireland as well as the European Union. a. Government Gazette 51345; no. 5251: concerning the economic partnership agreement with the European Union. b. Government Gazette 51351; no. 5253: concerning the economic partnership agreement with the United Kingdom and Northern Ireland. 2. Reduced-duty import quotas for a total of up to 500 000 tonnes of agricultural products and 9,5 million litres of wine to importers in South Africa importing from World Trade Organisation (WTO) member countries. a. Government Gazette 51357; no. 5390: concerning the WTO: Marrakesh Agreement. These trades constitute a minor yet meaningful portion of the total volume and value of South African agricultural exports and imports. The economic partnership agreements with the EU and the UK and Northern Ireland and the WTO: Marrakesh agreements provide for the removal of trade barriers between signatories, not for South Africa to abuse its administrative obligations as an opportunity to erect race-based import and export restrictions. The regulations in context of the Department’s AgriBEE plans The regulations are not your innovation and in fact amount to a renewal of those in place under your predecessor, Minister Thoko Didiza. We therefore believe it necessary to inform you of engagement by Sakeliga and our lawyers with the Department and your predecessor since November 2023. In November last year, significant public alarm arose following media reports highlighting the regulations. The Department was quick to dismiss concerns and conveniently seized on some ambiguities in media reports to pretend that it had not made—and had no intention of making—BEE a condition for licences and permits in agriculture. However, several of the denials and statements by the Department were inaccurate or false and failed to acknowledge the existence and contents of its official policies. In response to the Department’s denials, Sakeliga then released two official policies of the Department that were at that stage not publicly known, called the AgriBEE Plan and the AgriBEE Enforcement Guidelines. The Department had marked these documents “confidential” and did not publish them on its website, yet after we became aware of their existence we were ultimately able to obtain them through a PAIA request. In its AgriBEE Plan and AgriBEE Enforcement Guidelines, the Department explicitly lays out its plans to make BEE compulsory. It seeks to: - “enforce compliance of sector stakeholders to the transformation programme of the government” by making B-BBEE “a qualification and legal requirement for Government” when issuing licences and permits, water rights and other concessions, and disposing of state assets, etc.; and - ensure that “before applicants or clients receive a service from the line function directorates (such as inspections, licences, permits, grants, subsidies and concessions), they must first be subjected to the predetermined compliance criteria aligned to the AgriBEE Sector Code.” Our engagement with the Department concerns therefore not only the regulations now renewed, but also the Department’s standing AgriBEE Plan and AgriBEE Enforcement Guidelines. Fortunately, the Plan and Enforcement Guidelines have not yet been successfully implemented everywhere and to their full extent. Agricultural economic activity in South Africa remains robust. However, at this point it is evident that the Department has not heeded Sakeliga’s warnings, requests, and demands, opting instead to renew the regulations to which we had objected. This necessitates that we escalate our intervention, which is likely to include litigation as well as engagement with affected local and international parties. As always we would prefer to resolve the matter without litigation. To this end we request a meeting with you to discuss an acceptable solution to the regulations, the AgriBEE Plan, and the AgriBEE Enforcement Guidelines. Please find attached for your information: 1. 19 Nov 2023: Statement by Sakeliga setting out the problems with the regulations and the AgriBEE plans https://sakeliga.co.za/en/sakeliga-releases-department-of-agricultures-confident ial-plans-for-unlawful-bee-enforcement/ 2. 24 Nov 2023: Letter by Sakeliga’s lawyers to Minister of Agriculture, Thoko Didiza https://sakeliga.co.za/wp-content/uploads/2023/11/2023-11-24-KWV-aan-Minist er-Landbou.pdf ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/documents/steenhuisen-should-withdraw-his-depts-agribee-rule

Richard Anthony Chemaly | 23 April 2023 Giving ministers more power is a lousy idea when you still haven't defined exactly what new laws should achieve and how. Groovy. The power just came on and I can finally write this column. But first, let me read about 10 people killed in Maritzburg, the dropped Nulane charges, and how we’re no closer to finding out who killed AKA. At least Uncle Waffles jammed at Coachella but the thing is, even under decades of apparently transformative laws, most South Africans won’t be able to afford to buy a boerie roll outside an Uncle Waffles show in Soweto, let alone the States. Is all this BEE really worth it? Sure, we see what could be dubbed transformation in many a sector, and the emergence of growing black middle class is something that is promising. Is that as a result of the BEE? If so, why do we need more of it? If not, why do we want more of it? The problem with these laws is that they create great divisive fodder and political appeasement in the social media spaces, but the workarounds will always be there, through trusts and corporate structures and, and, and… I’ve never met a BEE consultant who couldn’t get creative for a fee, no matter how robust the laws. These laws still make provisions for case-by-case reviews in front of the Labour Court, and all that will do is hamper profits and efficiency as resources are dedicated to court battles rather than getting on with business. But how can we tell whether these new laws are going to be effective and whether we can hold the minister to any form of account? It will be easy to just say that we’ve strengthened transformation laws but we’ve been strengthening corruption, crime, and whistleblowing laws for years and what a big help those have been – said in my best sarcastic tone. Laws without plans are pointless Without some form of target for the law, we neither know whether the law is worth it nor whether it will be effective. We’re basically shooting in the dark with a big gun, hoping it will get the killshot and not hurt anybody else. It’s not a smart way to run policy. You want no whities, some whities, all whities? Too many whities? Want to write a Dischem letter? Is looking at it from a white perspective too much though? Should we go with how many black people do you want at the top? Is it only the top that matters? How is workforce down the line impacted, and how do you want them impacted? These laws don’t give us any indication of those goals or ambitions. They merely transfer power from Parliament to the executive through the minister. Law should be worth the curtailment of freedom We have a powerful phrase in legal philosophy: Whenever a new law is passed a freedom is limited. Often that’s a justifiable transaction – I lose my freedom to rob you, you lose your freedom to rob me, we make robbing a crime, and everybody feels a bit safer. In this case you’re taking existing freedoms to hire whoever I want and shrinking them more, while placing the extent and the cost in the hands of one person. I mean, I don’t mind that limitation actually, though it feels very much like taking apartheid’s strategy of parliamentary sovereignty and shoving in a steroid suppository, but just tell me what it’s supposed to do! It’s not enough anymore to say “more transformation” because that doesn’t mean anything. It’s not good enough that we’re handing power to fix a problem from elected representatives to the president’s buddy, and we haven’t even decided on how the problem solved will look. Doing whatever you want in the name of transformation is all good and well if we know what transformation is, but since we don’t, giving a person more power and a master key rationale sounds like a lousy idea. I think most South Africans would rather have access to the internet before they care about whether X percentage of Starlink’s staff are of a designated group. Thank goodness our ministers follow through with their ideas, like the 10 free gigabytes for every household we were promised early last year. We should totally give ministers more power to control and fine us. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/news/opinion/fancy-new-bee-law-likely-to-produce-the-same-old-failures/