Organisations are encouraged to achieve Bonus Points by graduating an Enterprise Development Beneficiary to a Supplier Development one. Therefore, an organisation may enter into a Supplier Development Programme directly without first going through the Enterprise Development phase but will not earn the Bonus Points available. Statement 400, clause 3.8 of the Generic Codes of Good Practice highlights the rationale behind this: “A Supplier Development Beneficiary is a part of the Measured Entity's supply chain, whereas an Enterprise Development Beneficiary is not.” Enterprise & Supplier Development Services are available to guide members on Enterprise & Supplier Development Initiatives

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.

National Empowerment Fund | 29 August 2023 National Empowerment Fund leader Philisiwe Mthethwa steps down. The CEO of the National Empowerment Fund, Philisiwe Mthethwa, will be vacating the helm of the development financier when her contract comes to an end in December 2023, after having driven the growth and institutional maturity of the entity whose legislated mandate is to grow black economic participation across South Africa. “Looking back to our tenure in government, one of the decisions we took at the time was to recruit young black professionals into the public service. One of these was a young corporate finance and economics graduate with international experience, Philisiwe Buthelezi-Mthethwa, who was poached from Standard Corporate and Merchant Bank and went on to lead the quest for inclusive growth with passion and exceptional merit. The splendid achievements of the NEF today are testimony of that legacy,” says former South African Deputy President, Dr Phumzile Mlambo-Ngcuka, who is also past Executive Director of United Nations Women. Ndidi Mpye, the NEF Trustee and Chairperson of the Board Audit Committee, says: “Ms Mthethwa has been instrumental in driving the institutional maturity of the NEF. It is her diverse knowledge of banking, capital markets and international investment that helped grow the NEF into a high-performing organisation, one whose integrity is exemplified by 20 years of uninterrupted clean external audits. Today the NEF is an authority on the development of black industrialists, rural and township development, women empowerment, enterprise and supplier development, among others, which are some of the areas that the CEO has been passionate about.” Lucretia Khumalo, who is the Divisional Executive for Client Support and Growth at the Industrial Development Corporation (IDC), NEF Trustee and Chairperson of the Board Risk and Portfolio Management Committee, adds: “Part of Ms Mthethwa’s legacy is her commitment towards the advancement of black women professionals and entrepreneurs, whether in her role as a non-executive director at the IDC, or at the NEF. Her own accomplishments have served as an example and as an inspiration in our country’s quest for redress and growth, with women at the forefront.” In 2019 the Association of Black Securities and Investment Professionals (ABSIP) recognised Ms Mthethwa’s unique contribution to the business and transformation landscape in South Africa by honouring her as the CEO of the Decade. “In unanimously recommending her for the award, ABSIP considered the NEF’s role as a funder of black businesses with potential and its support for such businesses, as an important driver of transformation in the country,” says Polo Leteka, President of ABSIP. “Under Mthethwa’s leadership, the NEF punched above its weight as it found a way to creatively stretch its resources and widen the reach of businesses it could support. This is illustrated by the fact that when she was first appointed as the executive head of the NEF in July 2005, the institution had only approved transactions to the value of R35 million, a far cry from the sterling achievements that she has presided over since then. She joined the NEF after successfully leading the process of crafting the country’s Codes of Good Practice, the policy lodestar that precipitated transformation legislation over the past two decades in the quest to restore the economic citizenship of the black majority. She has inspired teams of A-grade black professionals who have facilitated innovative funding of sustainable businesses across various sectors of the economy,” adds Leteka, who is also co-founder and Chairperson of IDF Capital and a former Trustee of the NEF. Kganki Matabane, CEO of the Black Business Council says:“The narration of South Africa’s economic liberation struggle will be incomplete without the acknowledgment of Philisiwe Mthethwa. She is a pioneer and a thought leader of impeccable merit, passion and integrity whose many remarkable achievements place her alongside the architects of hope in our nation. It is for this reason that she was among the luminaries that were honoured this July by the BBC in recognition of her role as a game changer.” Says Buhle Hanise, President of the African Women Chartered Accountants (AWCA): “For many years the NEF has been a close partner of AWCA, actively supporting our skills development programme towards the education and training of African women CAs, especially from rural areas. Mthethwa’s leadership, personal involvement and commitment to this strategic objective has been phenomenal. This is one of the many reasons why AWCA has awarded and recognised Mthethwa as a Woman of Substance and as Luminary in advancing entrepreneurship, transformation, skills development and the economic empowerment of black women.” “Since operational inception in 2005 the NEF has used its original R2.5 billion capitalisation from the government to approve funding in excess of R13 billion for over 1 500 black-owned and managed enterprises, whose collective value is in excess of R23 billion. This includes R10.12 billion from third-party funders such as commercial banks, corporates, DFIs as well as the public sector. To date over R9.3 billion has been disbursed to investees across the country, supporting in excess of 124 000 jobs. Before the advent of the Covid-19 pandemic, 70% of the funded portfolios were still active. As I serve out the final phase of my stewardship as CEO of the NEF, we look back with a degree of contentment over the many milestones we have spearheaded across different sectors of the economy, and with great hope for the period ahead,” says Mthethwa. “I am humbled to be handing over an organisation that has secured clean external audit opinions for 20 consecutive years, attesting to the NEF’s integrity and commitment to good governance. It has been a privilege to play a part in providing investor education, business planning support, entrepreneurial training, incubation support, mentorship and funding to black youth, women, SMEs and black industrialists in villages, townships and peri-urban localities.” The 2022-23 financial year saw the NEF achieving some of the highest results in its 20-year operational history, having approved transactions valued at R1.2 billion for black entrepreneurs. Commitments reached R939 million against a target of R750 million, outperforming the target by R189 million. Deployment of capital into the domestic economy reached R692 million against a target of R675 million, exceeding the target by R17 million. A total of 4 598 job opportunities were supported against a target of 4 154. Support to black women entrepreneurs comprised 37% of all disbursements against a target of 35%, because the NEF prioritises the empowerment of black women, explains Mthethwa. She says credit for this performance goes to the management and staff of the NEF “They are game changers who comprise young black engineers, chartered accountants, corporate lawyers, investment professionals and specialists from various backgrounds. They are young, driven and dynamic. Over 60% of the management cohort comprises women professionals. These are the patriots who have left the private sector to serve the public service with diligence and dedication. The NEF stands on their shoulders. I also owe a huge debt of gratitude to our government, including past and present ministers of trade, industry and competition as well as deputy ministers; the portfolio, select and standing committees at parliament; co-investors in the public and private sectors, the empowerment fraternity as well as our current and past Trustees at the NEF, for their faith in my vocation,” adds Mthethwa. She says the Minister of Trade, Industry and Competition, Hon. Ebrahim Patel, Hon. Deputy Minister Nomalungelo Gina and Hon. Deputy Minister Fikile Majola as well as the dtic leadership have been instrumental in unlocking resources for the NEF, allocating in excess of R1.4 billion to the entity for the Black Business Covid-19 Fund, the Women Empowerment Fund, Economic Recovery Fund, Economic Distress Fund and the Black Business Manufacturing Enhancement. Also significant was the allocation of R273 million by the Solidarity Fund to the NEF in September 2021 for a financial relief programme to support the recovery of small, medium and micro enterprises from the devastating effects of the riots in KwaZulu-Natal and some parts of Gauteng. A dynamic leader of vast and diverse achievements, Mthethwa is a Non-Executive Director of the Industrial Development Corporation, where she serves in the Board Investment Committee and the Board Risk and Sustainability Committee. Prior to joining the NEF, she worked in London for Banque Nationale de Paris as a Planning Analyst and was later responsible for risk management control at the South African Reserve Bank, before working in the Treasury division at Standard Corporate and Merchant Bank. As a former economic diplomat she was responsible for trade and investment promotion among eight European countries, specifically Germany, France, Italy, Switzerland, Spain, Austria, Czech Republic and Poland. Fluent in French, in 2011 she was awarded the Chevalier de la Légion d’Honneur (Knight of the National Order of Merit) by the then President of the French Republic, Nicolas Sarkozy. The 2012 BusinessWoman of the Year, Mthethwa holds an MBA in Corporate Finance from the University of Sheffield and read for the Maîtrise en science économique, equivalent of MSc in Economics, at the University of Paris 2, Sorbonne (thesis not defended). Mthethwa has not revealed her future plans, preferring to “dedicate my last remaining months to help the organisation find a leader of the future so that the NEF may continue to light the path in the quest for inclusive growth and economic justice”. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/partner-content/2023-08-29-end-of-an-era-as-empowerment-icon-hands-over-the-reins-of-the-nef/

SA Gov | 13 June 2023 “Ensure the implementation of the affirmative action to ensure an equitable workplace representation” – organised labour told. The Department of Employment and Labour has today encouraged the trade union federations to cascade communication on the Employment Equity (EE) amendments and the Affirmative Action to the workers on the ground. The Department of Employment and Labour today (13 June 2023) hosted a well engaging and fruitful Workshop with the trade union representatives to capacitate them on their roles and responsibilities as members of the Employment Equity (EE) consultative forums and in the implementation of the EE plans in the workplace to align with EE amendments and EE sector targets. The Department of Employment and Labour’s Deputy Director: Employment Equity, Mr Niresh Singh, told the union member representatives at the Manhattan Hotel in Pretoria to “ensure the implementation of the affirmative action to ensure an equitable workplace representation”. “Workplace activism is where unions are important to play a critical role and the fact that we have consultative forums, it means that all of us have the responsibility in implementing the Employment Equity Act and including the Affirmative Action,” said Mr Singh. He added that there must be consultations between the employers and the trade unions, and that this is required in line with the law concerning designated areas to protect the interests of persons living with disabilities and the interests of women inclusively. “This is where we find a shortcoming, where the unions are not involved and the law has clarified even more that the employer must consult with the representative trade unions or if there is no trade unions, employers must consult with the employees representing the workforce (or the employees at the various occupational levels). “But dealing with representative trade unions, although the law allows for the consultation of the representative trade union, the good practice is inclusiveness and try to include everybody as long as it is for the good reasons and the right focus area,” said Mr Singh. He said unions must also include the non-designated group in the consultative forums, because the non-designated group can hear the challenges faced by the designated group and vice-versa. “Because all of us want to move forward as South Africans want to do and in an inclusive society that is growth orientated. So these are the things that one needs to reflect,” said Mr Singh. The trade union federations’ leadership was also informed that every designated employer must: “Conduct an analysis of the workforce profile to determine the degree of under-representation of the various groups in terms of race and gender and per occupational level. Conduct an analysis of its employment policies, practices, procedures and the working environment to identify employment barriers.” The Department’s Deputy Director has further emphatically explained the Employment Equity Act that it is not about race. “Remember, a lot of the times when we are looking at the Affirmative Action or the Employment Equity Act in our country, people only take one small issue, but change it into a big issue. They think the Employment Equity is only about race and that is not true. Employment Equity is also about including people with disabilities, Coloured people, Indian people, White women and so forth. So that is what we need to be thinking about. Nobody is saying you can occupy a job if you cannot do it,” said Mr Singh. The trade union federations have welcomed the launch of the Commission of Employment Equity Report launch, which is scheduled to take place next week (23 June 2023). For more information contact: Teboho Thejane Departmental Spokesperson Cell: 082 697 0694 Email: Teboho.Thejane@labour.gov.za(link sends e-mail) Issued by: Department of Employment and Labour ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/%E2%80%9Censure-implementation-affirmative-action-ensure-equitable-workplace-representation%E2%80%9D-%E2%80%93

Although all parties entering into a 12-month Youth Employment Service (Y.E.S) Employee contract do it with the best intentions, a Y.E.S Employee may drop out of the programme, which is by the nature of any employment. If this happens before a Y.E.S Employee fulfils eight months of the contract, an organisation can replace the Y.E.S Employee. However, when replacing a Y.E.S Employee, an organisation must enter into a new 12-month employment contract and not just the remainder of the initial contract. For example: Y.E.S Employee 1 has a 12-month contract from 1st January until 31st December 2023, but drops out of the programme in June 2023. Y.E.S Employee 2 replaces YES Employee 1 and begins work on 1st July 2023. The contract for this employee must run from 1st July 2023 to 30th June 2024. Y.E.S Services are available to guide Members on replacement of Y.E.S. Employee Contracts.

Opinion | 14 February 2023 Dr Sheetal Bhoola IN RECENT years we have witnessed a global emphasis on gender equity and the progression of women within socio-economic and political spaces aligned to the 5th global sustainable development goal. The South African government has prioritised this goal too. Our Constitution has been deemed as one of the most inclusive and progressive globally, and it clearly articulates the principles to sustain and protect women’s rights, and forbids discrimination based on gender. Within our spaces, we have witnessed the surge of many more women joining the workforce and climbing the corporate ladder. Women are working hard, but at the same time on a daily basis they struggle to maintain work life balance, as within their homes they still remain the primary parents, caregivers and household managers. Despite this, women in South Africa and abroad are still earning less than their male counter-parts. It has been established by the United Association South Africa (UASA), that South African women earn up to 35% less than their male colleagues, despite the positions they hold and their qualifications. South African women are not isolated in this challenge. Women of other nationalities too earn less than their male counterparts. In addition, women don’t ascend to higher positions than men within corporate spaces. Observations and personal narratives affirm that perhaps equal access do not necessarily equate to equal opportunities. Often the promotion structures and stratification systems within companies are based on traditional patriarchal normative performance benchmarks. Therefore, women are now forced to meet promotion criteria that were initially structured for the male. Is it reasonable and fair to the women that do not always have the liberty of putting in additional hours of work because of domestic and or family responsibilities? Having equal access for many women is a policy that is not effective as the opportunities are not really deemed equal. How do we go and create equal opportunities for women? Gender equity needs to be prioritised at every level and to be fair, the life path of women needs to be considered. Therefore, promotion criteria for women within corporate spaces should be sensitive to patriarchal socio-cultural influences and pressures that exist in contemporary African and Indian societies. In this way, the female is recognised fully as a pertinent contributor to the functionality of a society and the criteria developed for the promotion of women should be isolated from the benchmarks created for men. Can we say that women have equal opportunities when they are continually compared and weighted against in the fight to ascend her career? As much as we try to align ourselves with global gender equality ideologies, it remains difficult in a country, where many South African women are still primary parents in their households. We also fail to (take into) account the number of women who are formerly employed and are single parents. Many of these single parents, are full time employees and continue to engage in further tertiary educational qualifications on a part-time basis, with an aim to reach management levels of employment. Some women explain that being a girl child within the African context has its own challenges. Therefore, the need to advance themselves academically later in life than their male counterparts. Central to this is the fact that the girl child from an impoverished background is often not at school, because of the lack of access to basic necessities such as sanitary towels when she is on her monthly reproductive cycle. The continual pattern of missing school can be a detrimental cycle but has also been normalised within poor communities in South Africa. How widespread and well managed have the government initiatives been to distribute sanitary towels for the girl child from impoverished backgrounds? Is this not a fundamental step in ensuring the female has an equal opportunity to education? The lack of intervention or minimal focus on these steps towards supporting the girl child has a negative long term impact. Therefore to support and sustain gender equality within our society, the needs of the female learners must be prioritised, so that they can have equal access to education at varying levels. There are perceptions that inadequate educational levels and the lack of work experience delay the ascension of the female employee in the workplace. Therefore, the delayed ascension of women is justified. Many choose not to fully acknowledge the journey of a girl child within the South African context. Other common perceptions adopted by senior employers are that females do not have the capacity to be dedicated employees in senior management or leadership positions, because of family and domestic responsibilities. If these perceptions dominate, how do we inculcate a society that allows equal opportunities for women, and not just access? Women are still largely under-represented in positions of power and authority across the globe. The responsibility lies with all of us within our society to be as inclusive and progressive as possible to sustain the gender equality fight in South Africa. The policy needs to be implemented and not just admired. The concept that equal access for women means that women have equal opportunities needs to questioned and reassessed. The woman needs to be recognised as her own being, and should be valued independently from her male counterparts. Amidst their strides to ascend the career ladder, most women are committed to raising the future generation of our society to the best of their capacity. She does deserve an equal opportunity to progress. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/thepost/opinion/do-equal-job-opportunities-and-access-for-women-really-exist-fb0a5845-cbcd-45e1-b06b-0daa53a021df

Thabiso Goba | 16 October 2024 Minister of Public Works Dean Macpherson said that this policy, which stipulates that 30% of large contracts must go to small BEE companies, has been exploited by construction mafias. JOHANNESBURG - Minister of Public Works Dean Macpherson said that government may need to reconsider its tender policy, which stipulates that 30% of large contracts must go to small Black Economic Empowerment (BEE) companies. Macpherson said that this policy had been exploited by the construction mafia. The minister spoke on Tuesday at the launch of Infrastructure South Africa's multi-million rand fund, which is aimed at assisting government entities with project preparation. It has been widely reported that when construction mafias approach contractors, they demand 30% of the tender. The 30% rule comes from the Preferential Procurement Policy Framework Act, which mandates that tenders worth over R50 million must be subcontracted to a company owned by a person from a historically disadvantaged group. Macpherson said that the construction mafia had misrepresented this to the detriment of all business owners. "So, the question we need to contemplate at the summit is how do we bring back into construction projects, small and medium-sized businesses that legitimately deserve to participate in government's infrastructure plan, instead of just putting a monetised number that the mafia looks for." Macpherson said that an inter-ministerial summit on how to address the construction mafia would take place in November in Durban. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/2024/10/16/public-works-macpherson-says-govt-may-need-to-reconsider-tender-policy-around-bee-companies

Paul Janisch | 16 October 2024 It’s too early to celebrate the possible relaxation of empowerment regulations for multinationals, but extending the concept of equity equivalents to providers of network services will be a move in the right direction. A hard-and-fast rule that must be adhered to when applying for an Electronic Communications Network Services (ECNS) licence through the Independent Communications Authority of SA (Icasa) is that 30% of the shareholding must be held by historically disadvantaged groups (HDGs). The simplest definition of an HDG is black. Black is broadly defined as an African, coloured or Indian person born in South Africa with at least one SA-born parent. This requirement has been part of South African telecommunications policy for at least two decades – but many multinationals are reluctant to extend their shareholding to any minority shareholder, specifically in the information communications technology (ICT) sector. To address these concerns, the Department of Trade, Industry and Competition (dtic) provided an alternative to actual local ownership. This alternative is known as an equity equivalent project (EEP) and is only open to multinationals. There have been a number of extremely successful projects implemented by the larger ICT companies in the country, namely IBM, Hewlett-Packard and Microsoft. The equity equivalent projects are a substitute for ownership where the ownership points are awarded without ownership changing hands. Announcement … and Starlink Minister of Communications and Digital Technologies Solly Malatsi has now announced that his department will look at extending the concept of equity equivalents to multinationals applying for an ECNS licence. It’s likely that this came as a result of President Cyril Ramaphosa meeting with Elon Musk recently. Musk owns Starlink, a service that provides super-fast satellite internet connectivity all over the planet, almost everywhere. It’s not available in South Africa, but is available to our closest neighbours. We must recognise that this suggestion by the minister is a move in the right direction. The government may deny this, but our employment and empowerment policies have proven to be a major deterrent to foreign-owned companies operating in South Africa. The question is – will offering an equity equivalent be a viable incentive for foreign-owned investment, specifically in the ICT space? What exactly is an equity equivalent project? Before this answer is tackled it’s important to understand what an EEP is, how long it takes to implement, what the actual cost is, and anything else that might be worthy of consideration in embarking on one. The first requirement is that the multinational must have a global policy of not selling shares in a local entity. This is a difficult one for South Africa because some very large countries, like China, have this requirement but the markets are so big that companies wanting to operate there comply. South Africa has a very small economy, and it’s likely that this requirement is overlooked. The next thing is the project that needs to be undertaken. The Black Economic Empowerment (BEE) Code covering this offers an idea of the types of projects that are acceptable. These range from entrepreneurial and education to agricultural projects. An amount of money needs to be invested in these projects over a two- to 10-year period. To describe the investment values as costly would be an understatement. The investment can either be 25% of the value of the local entity or 4% of total revenue each year. The amount invested will determine how long the programme will last. The waiting game If the cost is palatable, then the company applying for the EEP had better be prepared to wait for at least two years and deal with an all-powerful department within the dtic that may or may not approve the project. Stories abound as to how this department has been known to reject a project because it feels that a project of its choosing is better; the fees-must-fall project was very popular about five years ago. They’ll also have to deal with a change in dtic staff members who come in with their own ideas when the project is quite far down the line. It doesn’t seem someone like Musk is going to demonstrate the necessary patience to handle unnecessary bureaucracy. It’s too early to celebrate this perceived relaxation of South Africa’s empowerment regulations for multinationals. The proof lies in how the dtic and the Department of Communications and Digital Technologies approach the application of an equity equivalent programme. If it’s anything like the past programmes, we won’t expect Starlink to provide connectivity in those South African areas where broadband will never reach. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/moneyweb-opinion/soapbox/icasa-licences-an-alternative-to-the-30-black-ownership-rule/

Q | In 2022, ABC Traders had an unemployed Learner enrolled in an NQF 4 Learnership. In 2023 the same Learner was enrolled in an NQF 5 Learnership. Does a continued Learnership constitute Absorption? A | Schedule 1 of the Amended General B-BBEE Codes of Good Practice defines Absorption as: “…Measured Entity’s ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice.” Furthermore, “long-term contract of employment” means a legal agreement between an individual and an entity that this individual would work for until his or her mandatory date of retirement; As the Learner was unemployed and thus did not have a long-term contract of employment before the Learnerships, the Skills Development Scorecard does not recognise Absorption. The only exception is if a B-BBEE Sector Code of Good Practice defines Absorption differently. Skills Development Services are available for Members with regards to the concept of Absorption.

Cape Chamber | 15 October 2024 South Africa has less than 7.5 million personal income taxpayers who collectively support about 28 million grant recipients.  That’s according to recent media reports that juxtapose grant figures contained in the South African Social Security Agency’s (SASSA) latest annual report, against income tax figures from National Treasury’s 2024 Budget Review. Comparing the two sets of figures provides a sobering reminder of the urgency required to grow the economy should government hope to fulfill its many social development promises.  Of the 7,4 million people who pay tax, less than 200 000 – those who earn more than R1,5million a year or about 2,7% of taxpayers – account for more than 30% of tax revenue.  In other words we have a remarkably thin tax base underpinning an enormous dependency on social grants.  And that dependency is growing, rather than shrinking. SASSA figures presented to parliament earlier this month show that 19 million South Africans receive social grants, while an additional nine million receive social relief distress grants which started during the Covid-19 pandemic.  In other words almost half the South African population receives some form of social grant. We have an alarming level of dependency, with the lives of millions largely determined by taxpayers who themselves are hostage to the economy. These latest figures clearly show how to a large extent social grants underpin South African social security. They also demonstrate the vital importance of growing the country’s taxpayer base. Social development already consumes R387 billion of the national budget – the third largest item – and is unsustainable without a concomitant growth in tax revenue. But as important as growing the number of taxpayers via economic growth is reducing dependency by growing South Africa’s skills base. The greater the skills base, the greater the chance of employment, the less dependency on social grants.  We as the Cape Chamber therefore believe most social grants should require skills training and public work, thereby shifting the culture of handouts. If people have skills they are empowered to seek gainful employment and join the labour force, rather than adding to the ranks of the unemployed and those too demoralised to look for work.  Linking social grants to skills and public work would address the twin epidemic of unemployment and the national skills deficit, while bolstering GDP and making citizens employable.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://capechamber.co.za/latest-news/sa-has-less-75m-personal-income-taxpayers-collectively-supporting-28-million-grant

17 February 2023 Whilst making a financial contribution to an Enterprise Development or Supplier Development Beneficiary is deemed a contribution, it does not always constitute a sustainable claim. A claim for each of these sub-elements needs evidence that demonstrates an organisation’s intervention has contributed to growth, sustainability, as well as operational and financial independence. The monetary route is one contribution option. However, other avenues are contributing an asset or upgrading equipment. In such a case, the value of the asset or the upgrade will determine the claim. It is important to note that only the asset or upgrade is a claim. A B-BBEE Rating Agency will not recognise other line items on an invoice that do not relate to the initiative. When submitting a claim for granting an asset, it is irrelevant whether it is new or pre-owned, imported or locally produced. The Enterprise & Supplier Development Services are available to help members ascertain that their investment is an authentic contribution.

Daniel Orelowitz | 4 June 2024 In SA, businesses are required to contribute to the social and economic development by the Broad-Based Black Economic Empowerment Act of 2003. This legislation stipulates the assessment of social and economic development performance through a scorecard covering enterprise development, skills training, job creation, socioeconomic projects and preferential procurement. Companies have the option to fulfil social and economic development obligations through various means like investing in small enterprises, offering training, creating jobs, supporting socioeconomic projects and practising preferential procurement. Although obligations vary based on size, industry and location, all businesses are expected to contribute to social and economic development. However, they often struggle to make a meaningful and sustainable impact. Traditional approaches to social and economic development often involve investing in physical assets like buildings or equipment. While these contributions are important, they may fall short of creating lasting change. The shift towards a more purposeful approach, centred around skills development programmes, presents a powerful strategy for businesses with the potential to reshape both social and economic landscapes. Consider this: a business can purchase and donate the most advanced equipment, but without skilled individuals to operate and maintain the investment, its true potential remains untapped by the recipient. The analogy holds true for social and economic development contributions. The conventional practice of allocating funds to equipment and training suppliers, while beneficial, is unlikely to maximise the impact of social and economic development contributions. In this respect, businesses should consider shifting their approach toward skills development programme partnerships. A well-designed and well-implemented skills development strategy becomes the bedrock of a meaningful approach to social and economic development. In such a model, businesses earn social and economic development points not just by monetary contributions but by actively investing in training programmes. Skills development programmes have various purposes, including enhancing employability, improving productivity in existing employees, supporting career advancement and fostering lifelong learning. They encompass diverse types, including vocational training for practical occupations, technical training for specific technologies, business and management training, soft skills development for interpersonal skills and computer literacy training covering basic computer skills and software applications. The benefits of such initiatives extend beyond mere box-ticking corporate social responsibility obligations. Skills development programmes play a decisive role in advancing social and economic development by equipping individuals and their communities with essential skills that enhance employability, entrepreneurial potential, and overall quality of life. These programmes yield individual benefits such as improved employability, increased earning potential, the cultivation of entrepreneurial spirit and personal development by fostering self-confidence and overall wellbeing. Societal benefits include economic stimulation through an expanded pool of skilled workers, reduced unemployment, financial participation and poverty reduction. Skills development programmes are powerful tools for socioeconomic development, providing a pathway to empowerment, economic growth and a more inclusive and prosperous future. But why should businesses embrace this approach? Beyond humanitarian reasons, there are practical financial incentives. Every company with a turnover exceeding R15m is mandated to contribute a percentage of its net profit after tax to social and economic development. Investing in skills development not only fulfils this requirement while contributing to the B-BBEE scorecard, but can also lead to tax incentives, especially if the education programmes align with sustainability and income-generating goals. With skills development programmes as an alternative to physical investments or direct monetary contributions, sustainability becomes a fundamental theme, emphasising the importance of initiatives that outlast the initial investment. As such, the key to a successful skills development programme lies in sustainability and empowerment because it is not just about imparting skills; it is about providing individuals and communities with the means to become self-sufficient. It is also essential for businesses to grasp the importance of skills development within their context of corporate social responsibility goals. It is not just about ticking boxes or generating feel-good content for the annual report, it is about making a meaningful impact on communities and contributing to societal wellbeing. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/columnists/2024-06-04-daniel-orelowitz-skills-development-a-bedrock-of-thriving-businesses/