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Brandstories | 5 October 2023 The ERWIC (Empowerment and Recognition of Women in Construction) Awards encompass various categories that recognise women mentors, women-led projects, and youth ownership among women. These accolades celebrate women across various disciplines and skills within the construction arena; with the goal of supporting, inspiring and uplifting extraordinary women who are dedicated to building the nation. “Entering the construction industry is not easy”, explains Mafani Nelly Dasheka, a previous cidb ERWIC Awards winner who started her construction business in the Free State in 2002. “People often ask how you moved from living in an informal settlement in Botshabelo in the Free State to where you are now. “It’s an evolutionary journey that starts with the realisation that life doesn’t have to be this way and that you must have the commitment and drive to turn dreams into a reality; to have the desire and burning ambition to want to be part of building a great nation by recognising opportunities that come your way, and not be blinded by the stereotypical view of the construction industry.” Being an ERWIC Awards winner brings more than just a glow of satisfaction from being recognised for excellence by peers in the industry, she added. “This award has further built our business confidence to undertake more complex projects - and like a wave, carries likeminded colleagues along with it – all striving to do better. It’s contagious!” Bongani Dladla, CEO of the cidb, expressed his enthusiasm for the ERWIC Awards. “Our aim is to use the awards to encourage the empowerment of women and transformation of businesses in the construction industry. The first awards ceremony was held in August 2020 to draw attention to gender empowerment in transformation by recognising excellence among women in construction. We are just as excited to witnessing who the winners will be this year.” Distinguished leaders within the construction sector will serve as judges for these prestigious awards, which will take place on Thursday, August 24, in Fourways, north of Johannesburg. As the construction industry regulator, the cidb firmly believes that this year’s awards process will once again raise the bar; showcasing the quality projects completed within the previous year as well as their positive impact on the industry. The cidb’s vision reflects the importance of the organisation as a catalyst for economic growth and job creation in South Africa. The emphasis is to build an industry that is inclusive and reputable, while promoting gender equality, where all participants can equally drive the construction industry – and it believes that the ERWIC Awards do just this. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/careers/empowering-women-in-construction-a478e925-91fe-43d0-89c9-980b6d62a0b0

Clayson Monyela | 5 October 2023 Bloc partners have been useful in terms of finding ways of linking young people with potential employers and investors. Africa’s large and burgeoning youth population is considered one of this continent’s greatest assets, with a central role to play in shaping development. The AU’s Agenda 2063 states that: “The creativity, energy and innovation of Africa’s youth shall be the driving force behind the continent’s political transformation.” Multilateral platforms such as the AU, through its African Continental Free Trade Area (AfCFTA), and the Brics bloc have what it takes to tackle the challenges faced by the continent’s youth by creating more jobs and entrepreneurship opportunities. Youth unemployment is central in Brics engagements and discussions this year, when SA occupies the Brics chair. Brics countries have continued to strengthen their presence on the continent, and as such have increased opportunities for trade and industrial development. As a result they have created employment opportunities for the youth. Our Brics partners have been particularly useful in terms of finding innovative ways of linking SA youths with potential employers and investors. For example, through the Brics employment working group initiative a number of Indian companies operating in SA have taken concrete steps to transfer skills to our youth. India has been taking unemployed IT graduates from SA to India for six-month internships, thereby giving them international work experience. There are also initiatives between China and SA to cultivate future leading scientists through exchanges with research institutes and universities in China. The National Research Foundation runs the China-SA Young Scientist Exchange Programme in the areas of biotechnology, ICT, space science, astronomy and transport technology. China has also hosted an SA-China job fair to connect unemployed SA youths with Chinese companies such as Air China, Huawei and Hisense. Within the context of the Brics memorandum of understanding on co-operation in science, technology and innovation, SA organised the 11th Brics science, technology and innovation ministerial meeting under the theme “Brics and Africa: enabling inclusive and sustainable development in a changing world through knowledge partnerships”, held on August 4. This was preceded by the eighth Brics young scientist forum, which debated the role of science in responding to climate change and environmental sustainability. SA also organised the sixth Brics young innovator prize under the theme “modernising the manufacturing, agriculture and mining industries and exploiting the circular economy.” The young scientist forum and the young innovator prize provided a valuable platform for the development of scientific, innovative, educational, cultural and friendship links. There is a strong correlation between youth unemployment, the SA education system and the lack of skills development. We are working to reform our education system to prepare our young people for the jobs of the future. Through Brics initiatives SA has benefited from investment in education, intra-Brics exchange programmes, job creation, foreign investment and increased trade relations. Brics has been working with the International Labour Organisation on improving skills for workers in the informal economy to promote decent work. The full implementation of the Brics action plan for innovation co-operation (2021-24) is pivotal to promote technology transfer, innovation and entrepreneurship. Progress has been made by the Brics science, technology & innovation entrepreneurship partnership working group to provide support for the Brics incubation training & network, the Brics technology transfer training programme, and the Brics start-up forum. As part of the deliverables of SA’s chairship, a Brics centre of excellence in Africa will be established, which will evolve into a Brics energy agency. The agency will drive increased collaboration, enhanced research and innovation in energy, the provision of skill development and capacity building, the tracking of energy trends, and collaboration with international organisations. Today African youths make up about 60% of the continent’s population, and by 2030 they are expected to make up 42% of the world’s youth population. Sixty-five percent of the continent’s population is under the age of 25. Yet Africa’s largest demographic remains one of the most underrepresented in decision-making roles in governance. For leadership to thrive and be responsive in a democracy, the inclusion of our youth is non-negotiable. It is for this reason that during our chairship we have prioritised representation and participation of young people in the Brics structures by ensuring that youth from the SA Youth Council and the National Youth Development Agency addressed the Brics leaders at the summit to share their perspectives. Furthermore, one of the critical outcomes of the summit was the endorsement of the establishment of the Brics Youth Council, a structure that aims to formalise youth participation across all three pillars. This builds on the success of the annual Brics youth summit, which reports to the ministers of youth. Our youth must be sensitised to the opportunities the AfCFTA offers, and we must fortify youth networks and business support organisations, while boosting investments in education and skills development. African governments need to improve access to finance for young entrepreneurs so that we can grow and develop the small, medium and micro enterprises’ sector. Increased capital investment towards youth development programmes can be used to create platforms to identify possible market linkages between young people and potential investors in the form of internships and jobs. The AfCFTA promises to be a game-changer for the continent’s economic and employment creation prospects, but its success and legacy will depend on across-the-board participation by the continent’s youth. Manufacturing stands to benefit the most under the AfCFTA, creating up to 16-million new jobs, according to the Brookings Institution. Young Africans will benefit as growth in this sector will help bridge the youth unemployment gap. SA is participating in the work on the finalisation of the protocol on women and youth in trade, aimed at integrating these demographics into the African market and realising their financial and economic inclusion, in line with the spirit and the aspirations of the Agenda 2063. Youth have a great deal to say and contribute in terms of finding solutions to the challenges they face, including lack of access to finance, barriers for small businesses, and tensions arising from intraregional and international migration. It is imperative that our youth participate in such discussions and drive the agenda for the future. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-10-05-clayson-monyela-brics-opening-opportunities-for-africas-youth/

Partner | 5 October 2023 A highlight of Nedbank’s purpose-led transformation approach is its commitment to the Youth Employment Service (YES) initiative. This national initiative, supported by over 1 500 companies, is a business-led collaboration with the government, and aimed at addressing one of South Africa’s most urgent challenges: unemployment. This year, Nedbank empowered another 2 800 young people as part of the 2023 YES cohort. This brings the total number of youths touched by this impactful initiative to almost 10 000, with a larger footprint for the initiative in light of many YES youths who look after dependents or support their household incomes. In 2023, the YES initiative reported that Nedbank and partnering organisations have already injected R6 billion into the economy through salaries earned by the youth who have participated in the initiative since its launch. To date, Nedbank is still the largest bank to contribute to the YES initiative, which also resonates strongly with Nedbank’s purpose of using its financial expertise to do good for individuals, families, businesses and society. ‘We continue to see great value in the ability of the YES initiative to uncover extraordinary young talent and positively contribute to a more inclusive country.’ ‘YES remains a highlight among Nedbank’s purpose-led transformation initiatives,’ says Kershini Govender, Nedbank’s Executive Head of Transformation and Strategy. 2023 Nedbank YES initiative This year, Nedbank’s YES youths have been assigned to roles both in the bank and with implementation partners like Afrika Tikkun ZA, Africa Foundation, GWK, KP Cares, and WILDTRUST. ‘We have seen the far-reaching spin-offs that the programme has. Approximately 61% of YES youths come from homes that rely on social grants and 77% of YES youths support others with their income,’ adds Govender. ‘More than two-thirds of the work experience opportunities created through the Nedbank-YES partnership have been taken up by women, and several were placed in provinces with unemployment rates that are higher than the official national average of 33,9%.’ ‘These provinces include Mpumalanga with an unemployment rate of 36,1%, Limpopo with 36,3% and the Eastern Cape with 42,8%.’ Nedbank’s success with the YES initiative It is estimated that 46% of those who have completed the 2023 YES initiative are now employed. According to Govender, the initiative is a sterling example of what partnerships between government and the private sector can achieve. At Nedbank, the initiative also boasts an absorption rate of over 60%, which is higher than the average. ‘We are extremely proud of this impactful initiative. Our young people are not only obtaining crucial skills and job experience, but the initiative also contributes to the economic upliftment of the communities and households in which these YES youths live,’ says Govender. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/industry-news/722880/nedbank-empowers-almost-10-000-youths-through-the-yes-initiative/

Salmah Brown | 4 October 2023 The Youth Employment Service is making huge strides in bringing down SA’s unemployment rate. The Youth Employment Service (YES) is a private sector-funded talent pipeline for youth from disadvantaged households. Their focus is to enable talented young people to become the next generation of professionals and entrepreneurs, who will not just develop their own careers, but go on to develop their communities and transform the country as a whole. Ravi Naidoo, the CEO of YES, explains: “YES is a non-profit organisation that receives no government funding. We work with leading businesses in various sectors to provide 12-month quality work experiences for unemployed young people to gain the critical experience, social networks, and skills that they need to develop their careers and become future leaders.” The YES impact YES is the highest impact private sector youth employment programme in South Africa. In the four years since it was established, YES has signed on over 1 500 sponsoring businesses to create more than 118 000 work experiences–with 61% of these youth coming from grant-recipient households. Research conducted by YES shows that 42% of YES alumni are employed soon after they complete the programme, while 15% of all alumni are involved in entrepreneurial activity, from side hustles to running fully-fledged businesses. In a major win for women empowerment, 57% of YES youth are women. “Beyond the direct jobs created, YES also has a catalytic impact on the economy through channelling youth talent into future-facing sectors such as tourism, global business services, technology, and the green economy, which in turn lays the basis for future economic development,” Naidoo states. An example of YES’s impact is 31-year-old Mawanda Faniso, who formed part of the first YES Drone Academy programme at the Genesis Hub in Saldanha in 2021. He left the academy with a remote pilot’s licence (RPL), which allows him to fly, fix, and work on drones. Mawanda is now an employed drone pilot working in the security sector. You can get involved Given that supporting youth employment is hugely beneficial to social mobility and economic transformation, businesses receive one or two levels up on their B-BBEE scorecard. In addition, many businesses join to integrate YES into their ESG strategies, while mining companies, for example, can use YES for their Social and Labour Plans. Naidoo expands: “Companies also join YES to bring on young talent, test for fit, and then employ a de-risked pipeline of youth as part of a five-year strategy to achieve employment equity targets. While these are all clear value propositions for companies, businesses that join YES have the underlying understanding that broad-based transformation fosters national socio-economic stability and prosperity, and want to be a part of creating a better legacy. The future of YES With its focus on monitoring and evaluation, YES conducts the biggest youth survey in the country. The survey, which involves roughly 38 000 youths every quarter, helps YES to understand how to better curate successful programmes that ensure they develop successful careers. “Thousands of YES youth are being placed in future-facing positions such as data capturers, business process outsourcing roles, cybersecurity agents, digital artisans, drone pilots, content creators, and software developers. Many of them will become professionals in these sectors and help SA emerge as a leading nation,” Naidoo explains. “Also critical is the need to support and expand the informal economy and small businesses. While township economies are largely informal, they’re also far bigger than many people realise. Starting a micro-business can be the first step to getting into the mainstream economy.” The effects of creating youth jobs ripple more broadly than we realise. About 62% of all YES youths have children or family that depend on them financially–the average number of dependents per YES youth is two, and more than 60% come from grant-recipient households. “Every youth job we can create today uplifts a family and a community in some way. It is more important now than ever to create opportunities for young people who have the potential to forge successful careers and advance socio-economic development, start businesses and fill the socio-economic gaps in communities, Naidoo concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://bbqonline.co.za/2023/10/04/say-yes-to-youth-empowerment/

Liesl Peyper | 4 October 2023 BETWEEN 2014 and 2020 alone, South Africa’s mining sector generated some R160bn in transformation initiatives in South Africa, making it one of the greatest transformation successes in the economy, said Themba Mkhwanazi, Anglo American’s regional director for Africa and Australia. He was speaking at a mining conference in Johannesburg on whether South Africa’s principal mining law – the Mineral and Petroleum Resources Development Act (MPRDA) – delivered results since its inception two decades ago. Mkhwanazi said the mining sector spent billions of rands targeting changes in ownership, employment equity, human resources development, inclusive procurement, enterprise and supplier development, and making a positive contribution to building infrastructure in the communities in which mining companies operate, such as schools, housing and clinics. But more needs to be done to make sure there’s meaningful participation and inclusion in the economy for black South Africans. “Not [with] more regulation that demand transformation through targets, but rather through collaborative and effective relationships between stakeholders,” said Mkhwanazi. (South Africa’s MPRDA also makes provision for an empowerment charter – known as the Mining Charter – which sets ownership targets, such as a 30% shareholding of previously disadvantaged groups.) In the spirit of collaboration, Mkwanazi said business, and government need to partner at “unprecedented levels”. “In the face of prolonged social and economic decline, we must focus now on doing … one of the criticisms that we should take seriously as a country is that we’re good at planning, but often lack the brilliance in execution.” Mkhwanazi said he was heartened by so-called “green shoots of action and delivery” which are already evident from interventions, such as the recently established crisis committees to address the shortage in electricity, logistical issues mainly at Transnet, and crime fighting initiatives. “For South Africa to raise investment and compete for capital, we need to get the basics right, and these partnerships are a step in the right direction.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.miningmx.com/top-story/54603-anglos-mkhwanazi-says-sa-must-move-on-from-regulated-bee/

SUSE: 4 October 2023 South Africa faces a persistent shortage of IT skills, which hinders the country's technological progress and the associated socio-economic benefits. SUSE, a renowned global provider of reliable and secure enterprise-grade open source solutions, and Axiz, a leading South African technology solutions provider, have joined forces to launch the “2023 SUSE Graduate Programme”. This initiative is part of a broader skills and development effort by the South African government aimed at equipping young graduates with specialised IT expertise and bridging the skills gap. “South Africa’s economic welfare depends on empowering young people with the right skills for the global digital economy,” explains Robert Nkuna, Group Human Capital Director for Alviva Holdings. “SUSE and Axiz are partnering to provide expert knowledge on the latest open source technology to young graduates. The programme is a win-win for graduates, who gain expertise in the latest cloud-native technology, and for employers, who need skilled employees.” First launched in 2018, the SUSE Graduate Programme offers comprehensive technical training and immersive exposure to SUSE's innovative technology. “Open source is where innovation is happening today, knowledge-sharing and open collaboration with others is key to its persistent huge success,” explains Magda Hanekom, Partner Executive Sub-Saharan Africa at SUSE in South Africa, who initiated the programme. “Together with Axiz and our SUSE channel partners, we are able to offer young graduates a training programme that combines theory and hands-on experience as well as worldwide accredited certifications.” Throughout the programme, graduates are placed with SUSE partners, allowing them to gain practical experience beyond technical skills. Emphasis is placed on developing essential soft skills necessary for success in the IT industry, including effective communication, teamwork and problem-solving abilities. This integrated approach ensures that graduates possess a well-rounded set of skills. Dikeledi Langa, a young graduate in the programme, an intern with Azul Consulting, confirms: “My experience with the SUSE internship programme so far is excellent. Having the opportunity to learn new skills, this provides me with firsthand work experience in this field. The training programme is comprehensive and well-paced, and the instructors are knowledgeable and experienced. And I am glad that I have Azul Consulting as my host company.” He talks about his initial insecurity, and how his first encounter with Azul Consulting was “nerve-racking, but it turns out that was all just my head. I have got to see how they worked, how they dealt with clients, and more especially, how they treated me not as an intern but as their equal.” Gavin McLean, Technical Support Manager at LSD Open, another SUSE partner participating in the programme and providing real-life job experience for the graduates, adds: “The SUSE Graduate Programme South Africa 2023 is a fantastic initiative to address the cloud skills gap and LSD Open is privileged to play a role in it. The four young professionals under our guidance are showing incredible growth, hunger and passion, and it is a pleasure to help accelerate their development in a niche technological environment,” he says. The success of the SUSE skills initiative highlights the significance of collaborative efforts between industry leaders and educational institutions in addressing the IT skills gap. By providing industry-aligned training and fostering partnerships, this collaboration strengthens the pool of IT professionals, driving technological progress and contributing to economic growth in South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/j5alrMQAeVPMpYQk

Kelebogile Choko | 2 October 2023 Youth encouraged to research potential employers. Kwa-Thema – Kristo Inkosi Catholic Church hosted a youth empowerment programme at the church last Friday. The programme was to assist and equip the youth with job-hunting skills, business set-up coaching and financial education. The church invited speakers from different sectors including CV Desk, Nedbank, IEC and more. During the presentation, Maggie Mboyani from CV Desk said most young people are unemployable because of unpresentable CVs. She also advised that job seekers should follow up on their applications and ask who their interviewers will be after scoring an interview. Sakhile Mkhatshwa, an IEC representative, said there will be three ballot papers in next year’s provincial and national elections. She said the third ballot paper will be for independent candidates, which will be a first in South Africa. Kgomotso Ndlovu, a justice and peace member at the church and also one of the event’s organisers, said they realised the challenges faced by the youth of being unemployed and not knowing where to go to get information. Hence they came up with the programme. “During weekdays, you’ll see young people in the township going to Wi-Fi hotspots to research, apply for jobs and seek information. Today we brought the information to them,” she said. Ndlovu added that for those in matric, the organisers didn’t want to wait till January to find them help on what to do after school but opted to offer them information now. Parish priest Chaka Motanyane said they brought the speakers to talk on employability and starting their businesses. He said people make mistakes when writing their CVs and don’t take time to correct them. He added that people should do research on companies where they are invited to interviews. They should also know that being asked about yourself doesn’t mean speaking of your talents but it’s an opportunity to sell yourself and what you bring to the company. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://africanreporter.co.za/199034/kristo-inkosi-hosts-empowerment-programme/

The Bulrushes - 3 October 2023 On Wednesday, (4 October 2023), Kagiso Capital in collaboration with Kagiso Trust and the FirstRand Empowerment Foundation will host a seminar on the efficacy of Broad-Based Black Economic Empowerment (B-BBEE). The seminar in Sandton will held under the theme “Beyond the Façade – The Bittersweet Reality of Broad-Based Black Economic Empowerment”. B-BBEE has been a pivotal policy instrument in addressing historical inequalities and the transformation of black ownership and participation in the economy. Organisers said the challenge was the discussion on B-BBEE impact, progress, and potential improvement remains a polarising issue. The seminar will provide a platform for open, data insights-driven discussion on ownership, and significant transactions to date and unpack the complexities of structuring policy-aligned transactions in a dynamic ever-shifting socio-economic environment. The seminar will feature a dynamic line-up of speakers and panellists to mainstream discussions that often happen in isolation and to present a diverse range of views. Speakers include Kgolo Qwelane (RMB), Duma Gqubule (Financial Analyst), Tshediso Matona (BEE Commissioner), Polo Leteka (Identity Fund Capital), Ernst van Zyl (Afriforum) and Kganki Matabane (CEO Black Business Council. Other speakers and key stakeholders representing a broad spectrum of perspectives and expertise are lined up to contribute. These speakers are from the government, regulatory bodies such as the B-BBEE Commission, business forums, private sector leaders, entrepreneurs, broad-based organisations/NGOs, and civil rights organisations. The others are corporate financial lawyers. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2023/10/03/sa-industry-leaders-and-business-take-on-elephant-in-the-room-b-bbee/

Sibongile Vilakazi | 4 October 2023 ORGANISATIONS go through their own natural cycles and changes where key decisions, such as who leads the organisation, are made in the interest of the organisation. These are always important decisions for the organisation as they determine the direction and posture both inside among staff members and outside to external stakeholders. One always assumes that based on all probabilities and calculations, the decision is always taken in the best interest of the organisation. When it comes to state owned entities, the decision must also take national interests into cognisance. The decision ought not to only be in the best interest of the organisation but it must also drive specific national agendas. One of the national agendas for South Africa that is supposed to be a non-negotiable is the transformation of socio-economic dynamics and opportunity distribution to reflect the population of the country. This is all forms of economic opportunities including decisions about who leads at the helm of both public and private entities. These decisions send a message that the country is on track in implementing its own interests and agendas to the benefit of all citizens. You can therefore imagine the concern when on the same day two big public entities made announcements on leadership changes that seem to be regressing the agenda of transformation. On September 29 2023 the Industrial Development Corporation (IDC) announced that Mr David Jarvis will be the interim chief executive officer (CEO) with effect from October 1, 2023, following the announcement on March 3, 2023, that Mr Tshokolo Nchoncho was stepping down as CEO. The IDC reported that the process of identifying Mr. Nchoncho’s successor was under way and to allow for a seamless transition. Mr Jarvis, who’s been with the organisation since 2013 and been in executive management since 2015 as Divisional Executive for Strategy, would take the role of acting interim CEO. While we were still following the IDC announcement, Transnet announced that both the CEO, Portia Derby, and the Chief Financial Officer (CFO), Nonkululeko Dlamini, resigned, leaving the entity rudderless as the two most senior positions immediately became vacant although both executives would be available for the handover. Ms Derby has been under increasing pressure from industry bodies to resign after what was seen as worsening operational performance under her watch. To manage the potential instability, the board appointed Michelle Phillips as CEO on an acting basis until the process of identifying the next CEO is concluded. Ms Phillips is the current CEO of Transnet Pipelines and has been with the organisation for 21 years. At face value the decisions are reasonable and are in the best interest of the organisation. However, in the case of the IDC, being a white male, the decision on Mr Jarvis communicates that on the national agenda of ensuring that the senior echelons of public entities in particular are transformed, there may be a relaxed view in the board of the IDC on who leads the IDC. Transformation may be negotiable when it is supposed to be a non-negotiable. This may not be true of course but it’s an impression nonetheless and impressions may be reality to onlookers. The issue at Transnet is even more troublesome when we consider black women leadership. It appears that Portia Derby was brought in to Transnet with a clear mandate to turn around the ailing entity, yet she was not given the support and opportunity to do what she was brought in to do. The turnaround strategy that the board had approved included significant actions and milestones that could not possibly take a year or even three years to achieve. The issues of corruption and its impact on productivity at Transnet are well documented and slow procurement processes in the public sector would have meant that all initiatives that required procurement would have at least needed a year before those initiatives were implemented. Therefore, the pressure put on Ms Derby to magically improve performance was unwarranted and creates the impression that she was never brought in to succeed and turn around the entity. It appears she was set up and it’s understandable that she eventually decided after three years at the helm that it was too exhausting and resigned. This case is worrisome if as a nation we claim that we want positions at top management to reflect the demographics of the country and we value women leadership. Without the necessary supportive environment, transformation efforts will remain lip service. It’s important to back our transformation intent and agenda as a country with tangible actions. Otherwise, what has happened to Ms Derby has sent the message that women should fear such positions because they are simply a trap. In actual fact, women leaders are not wanted. Why would despondency not set in after this? ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/opinion/despondency-sets-in-when-transformation-is-seen-to-be-regressing-89eda703-7fbb-44c7-96af-879c96d1e16f

The core aim of Socio-Economic Project Contributions is to support income generation. Therefore, any contributions must pass the income generation test at the time of an organisation’s B-BBEE Verification. Schedule 1 of the Generic Codes of Good Practice defines Socio-Economic Project Contributions, which must be pre-approved by organs of state or a sector as: “Socio-Economic Project Contributions means monetary or non-monetary contributions carried out for the benefit of any projects approved for this purpose by any organ of state or sectors including without limitation: Projects focusing on environmental conservation, awareness, education and waste management; and Projects targeting infrastructural development or reconstruction in underdeveloped areas; rural communities or geographic areas identified in the government’s integrated sustainable rural development or urban renewal programmes; New projects promoting beneficiation.” Socio-Economic Development Services are available to Members to assist meeting requirements under the element of Socio-Economic Development.

Although entering into an Enterprise or Supplier Development loan contract is generally done with the best intentions, some loans issued will inevitably be defaulted on or, in the worst case, a Beneficiary will refuse to repay it. When giving a loan, an organisation has the full rights of recovery; however, this has to be clear in the terms and conditions. First and foremost, a loan must take the form of a debt instrument; thus, it must never be a grant disguised as a loan. Any loan made with the intention of not receiving repayment of the capital amount is not a loan but a grant and must be claimed as such. Consequently, claiming a loan under Enterprise or Supplier Development instead of a grant may be deemed as a Fronting Practice. Enterprise & Supplier Development Services are available to Members in assisting with developing sound Loan initiatives.

At times, merely making a financial contribution to an Enterprise Development or Supplier Development Beneficiary does not 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 is not to the benefit of the Beneficiary. When submitting a claim when granting an asset, it is irrelevant whether it is new or pre-owned, imported or locally produced. Enterprise & Supplier Development Services are available to Members in assisting with impactful initiatives.