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Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , there are allowable exclusions when calculating Total Measured Procurement Spend (TMPS) and one of those items include Imports. However, there are certain rules that need to be considered. Clause 6.5 under Statement 400 of the Amended General B-BBEE Codes of Good Practice states the following: 6.5 Imports: the following imported goods and services: 6.5.1 imported capital goods or components for value-added production in South Africa provided that: 6.5.1.1 there is no existing local production of such capital goods or components; and 6.5.1.2 importing those capital goods or components promotes further value-added production within South Africa; 6.5.2 imported goods and services other than those listed in paragraph 6.5.1 if there is no local production of those goods or services including, but not limited to, imported goods or services that – 6.5.2.1 carry a brand different to the locally produced goods or services; or 6.5.2.2 have different technical specifications to the locally produced goods or services. 6.5.3 The exclusion of imports listed under 6.5.2 are subject to them having developed and implemented an Enterprise Development and Supplier Development plan for imported goods and services. This plan should include: 6.5.3.1 Clear objectives 6.5.3.2 Priority interventions 6.5.3.3 Key performance indicators; and 6.5.3.4 A concise implementation plan with clearly articulated milestones 6.5.4 The Department of Trade and Industry will from time to time consult with the industry and issue practice notes with regard to the provisions on import exclusion. Enterprise & Supplier Development Services are available to assist Members meeting the requirements for Import Exclusions.

Under Statement 300 of the Amended General B-BBEE Codes of Good Practice , clause 6 lists various Legitimate Recognisable Training Expenses under the element of Skills Development. Clause 6 states the following: 6. LEGITIMATE RECOGNISABLE TRAINING EXPENSES 6.1.1 costs of training materials; 6.1.2 costs of trainers; 6.1.3 costs of training facilities including costs of catering; 6.1.4 scholarships and bursaries; 6.1.5 course fees; 6.1.6 accommodation and travel; and 6.1.7 Administration costs such as the organization of training including, where appropriate, the cost to the Measured Entity of employing a Skills Development facilitator or a training manager. Skills Development Services are available to assist members to ensure that they claim all Legitimate Recognisable Training Expenses under the element of Skills Development.

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , a “Start-up Enterprise” means a recently formed or incorporated Entity that has been in operation for less than 1 year. A start-up enterprise does not include any newly constituted enterprise which merely a continuation of a pre-existing enterprise. Further rules applicable to Start- Up Enterprises include: Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of Statement 000 of the Amended General B-BBEE Codes of Good Practice. a Start-up Enterprise may be measured in terms of the QSE scorecard or the Generic scorecard should they choose to. 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. Technical Services are on hand to assist with the understanding the requirements of Start-Up Enterprises.

Piet le Roux | 20 November 2023 Internal documentation obtained by Sakeliga indicates that the Department of Agriculture, Land Reform and Rural Development (DALRRD) has quietly developed and partially implemented an unlawful AgriBEE enforcement plan. The enforcement plan poses substantial medium-term risk to agricultural production, imports and exports, and food security in South Africa. As such, it disempowers, portends great harm, and is against the public interest. Sakeliga invites the Minister to withdraw DALRRD’s unlawful and confidentially classified AgriBEE enforcement plan, and we have instructed our attorneys to initiate formal correspondence with the Minister. Under the plan, DALRRD intends to eventually restrict agricultural and food-related import and export licenses, permits, quotas, and more based on companies’ racial characteristics. Fortunately, the implementation of the veiled plan over the last eight years has – like government plans generally – been sluggish and haphazard. The AgriBEE enforcement plan is unlawful because of its flagrant intention to redirect the majority of permit and licensing requirements in the agricultural sector from its initial regulatory objective to a race-based regulatory system. Under the plan, a business not even engaged in BEE (typically those outside the government tender value chain) is to be penalised in the allocation of quotas or permits, such as fishing and export licenses, or to be entirely precluded from acquiring a permit, as observed with the plan's handling of wine and liquor export licenses. Regulations aimed at maintaining food safety or access to water resources are transformed into political mechanisms for the government to enforce changes in the ownership structure of all participants, whether they are corporations, family farmers or sole proprietors. The plan seeks to limit a person's ability to access and participate in the general agricultural sector based on the racial composition of their business undertaking, which is unlawful. Sakeliga obtained the information under PAIA requests filed between November 2021 and May 2022. At the time, we requested access to the policies under which the Perishable Products Export Control Board (PPECB) were requiring BEE certificates from companies exporting agricultural products. Considering the Department’s recent denials that businesses’ BEE compliance level could result in exclusions or penalisation, we now release two internal DALRRD documents classified ‘Confidential’, as well as two of its implementation letters: 1. The Department’s 2015 AgriBEE Plan: ‘A plan for the alignment of DAFF’s internal tools for the implementation of the AgriBEE Sector Code: Enforcement measures’ 2. The Department’s 2019 ‘AgriBEE Enforcement Guidelines’ 3. Implementation letter from Director-General M. M. Mlengana to the PPECB (27 July 2018) 4. Implementation letter from Director: BEE Charters Compliance Dr Madime Mokoena to the PPECB (12 June 2019) While far from fully executed, gradual implementation of the AgriBEE Plan and the AgriBEE Enforcement Guidelines remains an ongoing undertaking for DALLRD, as we shall point out below. The AgriBEE Plan seeks to 1. selectively restrict DALRRD’s activities in order ‘to enforce compliance of sector stakeholders to the transformation programme of the government and in particular the agreed agricultural sector transformation plan, i.e., AgriBEE Sector Code’; 2. ensure that ‘before applicants or clients receive a service from the line function directorates (such as inspections, licenses, permits, grants, subsidies and concessions), they must first be subjected to the pre-determined compliance criteria aligned to the AgriBEE Sector Code;’ and 3. convince other government departments, provinces, municipalities and state-owned entities to restrict their activities based on BEE levels as well, ‘amongst others but not limited to water licenses, fresh produce agents licenses, statutory levies, etc.’ The AgriBEE Enforcement Guidelines The Enforcement Guidelines refers to itself as the ‘teeth’ of the AgriBEE Sector Codes. It proposes delaying or withholding government ‘services’ (in most cases, government requirements) to businesses because of racial requirements. It envisages B-BBEE as ‘a qualification and legal requirement for Government to’, among other things: 1. issue new licenses and permits, as well as renewals; 2. grant concessions and rights (for example, water rights); 3. enter into partnership agreements with industries, investors, and other governments; and 4. dispose of state assets. DALRRD considers the Enforcement Guidelines to be applicable to the interpretation of at least 17 Acts, such as the Meat Safety Act and the Agricultural Products Standards Act. It identifies 24 ‘levers’ administered by the Department, 5 ‘levers’ administered by provincial executives, and 4 state-owned entities that should implement the guidelines. In all these cases, except for one (the PPECB), it is said that: 1. preference must be given to entities with a higher BEE level first and lower ones later; and 2. no certificates/permits/funding/support/granting of statutory measures/licenses ‘to be issued to non-compliant entities/contributors’. While the Enforcement Guidelines purports to offer “guidance”, it amounts, in reality, to instructions. This true nature of the Enforcement Guidelines is evident not only from its own text and its relation to the AgriBEE Plan, but also in several departmental letters. These letters include, for example, a “request” by the Director-General of the Department on 7 July 2018 to the PPECB to ensure that ‘administrators of levers … align their regulations and services in accordance with the approved AgriBEE Enforcement Guidelines’ for ‘implementation effective from 1st of April 2019.’ State of implementation of the Plan and the Enforcement Guidelines Fortunately, the Plan and Enforcement Guidelines have not nearly been successfully implemented everywhere and to their full extent. This much should be clear from the high degree of agricultural activity and trade in South Africa, which would otherwise have been impossible. It is (ironically) good news that state failure and inefficiency goes quite some way to preventing harmful policy implementation. Nevertheless, DALRRD remains actively guided by these strategic documents. We highlight three facts to underscore this: 1. DALRRD provided the documents to us within the last year, upon our insistence on receiving copies of the Plan and Enforcement Guidelines as approved and being used. 2. A PPECB media release from October 2021 states that the PPECB is being ‘compelled’ to implement the ‘AgriBEE Enforcement Guidelines’, and Sakeliga is in possession of PPECB documents that point to possible implementation of aspects of the policy in 2022. 3. Dr Madime Mokoena, Director for BEE Charters Compliance in DALRRD, is on record in July 2023 that ‘The goal [of the AgriBEE Enforcement Guidelines] is to enforce compliance by stipulating any business that isn’t BEE compliant will not receive certification to export its products.’ That at least some implementation is taking place is clear. For example, it is becoming standard practice for entities in the Departments’ sphere of influence to demand BEE certificates. Far from constituting a harmless statistics-gathering exercise, this in fact represents significant implementation on the part of DALRRD, as it lays the foundation in what is really a multi-phase BEE enforcement plan. In some instances, implementation has proceeded even further. For example, DALRRD lauds its Directorate Marketing for having already developed a BEE point system for the ‘allocation of agricultural trade permits’, based on ‘principle’ that ‘Black Economic Empowerment is the primary requirement for the allocation of marketing permits’. Thankfully, there are also welcome signs that at least some current administrators and state entities appear unwilling to accept all of the Department’s unlawful instructions, for now. Notably, section 5.4 of the Enforcement Guidelines appears to reflect concerns of the PPECB about the legality of requiring BEE certificates and, unlike elsewhere in the guidelines, contains no proposal to restrict ‘services’ based on BEE status. This could also help explain the apparent contradiction between the Department’s Plan and Enforcement Guidelines, and the PPECB’s public assurances in its 9 November 2021 media statement: ‘The PPECB would also like to clarify that it will not suspend or withhold service from its clients who are not B-BBEE compliant. Therefore, companies that do not comply can still export at this stage’ (emphasis added). Regarding the Departmental regulations on tariff rate quotas and otherwise Recently, public controversy arose around the Government Gazette notices on 31 October and 1 November, relating to tariff rate quotas for certain exports. Last week, the Department (correctly) pointed out that similar versions of these notices have been issued for several years now. It also assured the public and industry stakeholders that ‘there is no [BBBEE] threshold or level that an applicant must reach to be awarded a permit.’ While this may currently be the case for these specific permits, the confidential policy documents suggest that the Department would prefer otherwise. Until publicly retracted, we suggest that Government Gazette notices – and possibly every other regulation or statement DALRRD makes – should be interpreted with reference to the AgriBEE Plan and AgriBEE Enforcement Guidelines to discern their full potential meaning. This includes, but is not limited to, the notice published on 2 November (nr 4024) stipulating BEE conditions for certain preferential import quotas. Sakeliga invites the Minister of DALRRD to publicly: 1. acknowledge its AgriBEE Plan and AgriBEE Enforcement Guidelines, which propose to restrict the delivery of ‘services,’ such as the issuance of permits, licenses, and certificates, based on an applicant's race; 2. acknowledge that her department has applied pressure on the various state entities to impose BEE requirements on all permits and licences and to refuse ‘services’ to so-called ‘non-compliant’ businesses; 3. withdraw the AgriBEE Plan and the AgriBEE Enforcement Guidelines; alternatively, provide reasons as to why the Plan and Enforcement Guidelines should be deemed to be lawful (so that such reasons can be considered and potentially challenged); and 4. provide an undertaking that her department will not apply pressure on its internal divisions or other state entities to restrict their activities (such as the issuance of permits, licenses, etc.) based on a member of the public's race or ‘compliance’ with BEE thresholds. Statement issued by Piet le Roux, CEO: Sakeliga, 19 November 2023 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/documents/dept-of-agricultures-secret-plans-for-unlawful-bee

Edward West | 20 November 2023 The SA National Roads Agency Ltd (Sanral) yesterday said it might conclude an interim procurement policy in the next few days and it assured stakeholders of its commitment to expedite wealth creation among black business, and that every effort would be made to cut the construction cake more equitably. Sanral recently hosted the last of countrywide engagements on its proposed Interim Preferential Procurement Policy (PPP). The consultation engagements started in Cape Town on October 31 and concluded in Pretoria on Friday. Stakeholders also gathered at satellite venues in Ngwenya Lodge, Klerksdorp, and King’s Palace, Rustenburg in the North West. The objective was to inform stakeholders of the reasons for its withdrawal of the Preferential Procurement Policy, which was adopted in May 2023, and to consult stakeholders on the proposed Interim PPP, a statement said yesterday. “This will be used to adjudicate tenders until such time as a final policy is adopted,” a statement from Sanral said yesterday. Sanral CEO Reginald Demana said the roads agency hoped to conclude the Interim PPP “in the next few days”, so that work could be put out to market. “Our plan is that hopefully by the end of next week we will have consolidated all comment and input to conclude the interim policy. We are working hard, in parallel with our teams, to make sure we are able to get adverts into the market this year still,” he said. Issues raised by stakeholders included project participation opportunities for small, medium and micro enterprises (SMMEs), the need for more aggressive transformation of the construction industry, concerns about the so-called construction mafia and other organised crime formations, as well as skills development and training to allow SMMEs increased access to developmental opportunities. Demana said transformation was a contentious issue in the country, especially considering that the economy was not growing, which meant economic opportunities were limited, and competition for limited opportunities was very high. “Those who are already in the sector have built up their businesses and are doing very well, declaring massive dividends and making their shareholders very happy. But those who want to enter the sector, who see an opportunity and want to come in to participate are finding it hard. It’s a difficult balancing act but one which we cannot afford not to address head on, otherwise the sector will end up in trouble,” said Demana. He encouraged interested parties to submit written comments on the proposed Interim Preferential Procurement Policy by midday tomorrow. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/sanral-hopes-to-conclude-interim-procurement-policy-in-next-few-days-c88c4173-9435-4a76-9fe4-b4395aac9c70

Polity | 16 November 2023 The Portfolio Committee on Women, Youth and Persons with Disabilities voted in favour of the motion on the desirability of the National Youth Development Agency Amendment (NYDAA) Bill and adopted the public participation input report on the Bill. Some committee members rejected the motion on the desirability of the Bill on the basis of a particular clause related to employment equity, which these Members were not in agreement with. Notwithstanding that, they indicated that due process was followed in dealing with the Bill. The NYDAA Bill was introduced to Parliament by the Department of Women, Youth and Persons with Disabilities and referred to the Portfolio Committee on Women, Youth and Persons with Disabilities and the Joint Tagging Mechanism on 9 June 2022. The Bill seeks to amend the National Youth Development Agency Act, 2008 (Act No 54 of 2008) in order to insert new definitions; to amend the provisions relating to the objects of the agency; and to amend provisions relating to reporting by the agency. It also seeks to provide for organs of state to assist the agency; to provide for the governance responsibilities of the Board; to provide for additional Board members; to provide that a Board member may not be reappointed for more than two consecutive terms; and to provide that Board members must submit financial disclosures. In addition, the Bill seeks to amend matters pertaining to the meetings of the Board; to amend the funding of the agency; to authorise the Minister to make regulations; and to provide for matters connected therewith. The public participation process on the Bill began when the committee called for public submissions from 30 April 2023 until 6 June 2023. Twelve submissions were received by 6 June 2023 and two additional submissions were received after the closing date. Of the 14 written submissions received, the majority (85.7%) supported the Bill but indicated areas where provisions should be strengthened. The Department of Women, Youth and Peoples with Disabilities responded to the submissions made to the committee in November at which concerns raised were acknowledged and the Bill was amended accordingly. After due deliberation following the public participation process and based on all the input received and engagements on the NYDAA Bill, a motion of desirability on the subject matter was placed before the committee to vote on, as required by National Assembly Rule 286(4)(i). Eight committee members voted in favour of the motion on the desirability of the National Youth Development Agency Amendment Bill, while two members rejected it. The committee accordingly agreed that the Bill’s subject matter is desirable and should be further considered and processed by the committee. The committee will begin its clause-by-clause deliberation on the Bill on Tuesday, 21 November, during which the A- and B-list of the Bill will be presented. Issued by The Chairperson of The Portfolio Committee on Women. Youth and Persons with Disabilities, Nonhlanhla Ncube-Ndaba ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/committee-on-women-youth-and-pesrons-with-disabilities-votes-in-favour-of-motion-on-desirability-of-nydaa-bill-2023-11-16

CBN | 16 November 2023 In celebration of South Africa’s innovators, start-ups and small businesses, Telkom, a leading technology company, recognised shining businesses that showed resilience, growth, and innovation, through FutureMakers, its flagship Enterprise and Supplier Development (ESD) Programme. The occasion was graced by the presence of the Telkom Group EXCO and various Enterprise and Supplier Development Ecosystem role players. Addressing the audience, Mr. Serame Taukobong, Telkom Group Chief Executive Officer, emphasised the important role the entrepreneurs and their businesses play in creating much needed jobs, alleviating poverty, and solving other societal challenges through innovation. “I am speaking to you as businesspeople, CEOs, Founders and Entrepreneurs, and not ‘Small Businesses,” said Mr Taukobong. Speaking at the inaugural Telkom Transformation and Innovation Awards, Dr Mmaki Jantjies, Telkom’s Group Executive for the Innovation and Transformation Office, said it was it important to recognise and encourage tech upstarts and SMEs. “The idea is to reward entrepreneurs who are using digital technology to provide solutions to social challenges and building strong resilient businesses. It’s also about recognising entrepreneurs, innovators and technology ambassadors who inspire others in the sector,” Jantjies added. There were 16 companies that received awards. These exceptional achievers were drawn from a cohort of businesses who are using digital technology to provide solutions to social challenges and building strong resilient businesses. These are also entrepreneurs, innovators and technology ambassadors who inspire others in the sector and are part of the Telkom FutureMakers Programme. The aim of FutureMakers is to grow the digital economy by developing and investing in black-owned, high-growth enterprises that create jobs and other socio-economic benefits. This is done through: Investing in and incubating ICT businesses; Providing access to the market through Telkom’s supply chain; Working with youth and female-owned businesses; Promoting inclusive innovation; Promoting localisation. he Telkom Transformation and Innovation Awards, to be held annually, serves as a platform to showcase the exceptional achievements of, highlighting the profound impact of these initiatives on the local business ecosystem. The awards are divided into three segments, each dedicated to honouring different facets of innovation and transformation within Telkom and its extended ecosystem: Segment 1 Winners- Enterprise Development AI Innovation of the Year: Atrybute Graphic E-commerce Innovation of the Year: Credipple EdTech Innovation of the Year: Space Salad Studios FinTech Innovation of the Year: Horizontal Gravity HealthTech Innovation of the Year: EMG Technologies Segment 2 Winner – Supplier Development Top Performance Award: Corridor Africa Technologies Most Jobs Created: Kandua Resilience Award: SweepSouth Openserve – People’s Choice Awards: Multiplek Networks Consumer Small Business – People’s Choice Awards: Gcwensa Telecoms Gyro – People’s Choice Awards: Siphilasonke Development Group Segment 3 Winners – Telkom Transformation Ambassadors and Ecosystem Partners Tech Woman of the Year: Ambani Africa Tech for Good Award: Jobox Tech Trailblazer of the Year: Advannotech The event also honoured various Telkom staff members as Transformation Ambassadors including Strategic Ecosystem Partners who enable a strong support network for FutureMakers entrepreneurs and support them tap into resources, skills, facilities, and technologies they need to innovate and grow their businesses. “We need innovators and entrepreneurs, who constantly come up with new ideas. And we need government, which enables the environment for us to work together developing small business, supporting economic growth and job creation,” concluded Dr Jantjies. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cbn.co.za/industry-news/digital-transformation-information-technology/top-tech-smes-recognised-at-the-inaugural-telkom-transformation-and-innovation-awards/

Government | 15 November 2023 A two-year research study from Harvard’s Growth Lab has taken a deep dive into why South Africa has gone backwards over the last 15 years – and a collapsing state is a big part of the answer. The study was led by Ricardo Hausmann, professor of public development at Harvard, and former Venezuelan Minister of Planning, who saw his own home country collapse after a new government took over in 1993 and implemented various anti-growth policies and made many economic missteps. Hausmann’s career has been built around development diagnostics and assessing the reasons why certain countries fail to live up to their economic potential. The new report, titled “Growth Through Inclusion in South Africa”, worked to understand why South Africa is struggling so badly to grow its economy three decades after the fall of apartheid, and offers some potential paths forward. However, before working to resolve a problem, it first needs to be diagnosed. “It is painfully clear that South Africa is performing poorly, exacerbating problems such as inequality and exclusion,” the researchers said. The study highlighted key problems holding South Africa back: The economy’s ability to create jobs is slowing, worsening South Africa’s extreme levels of unemployment and inequality. South Africans are deeply disappointed with social progress and dislike the direction where the country seems to be heading. Despite its enviable productive capabilities, the national economy is losing international competitiveness. As the economy staggers, South Africa faces deteriorating social indicators and declining levels of public satisfaction with the status quo. The underlying capabilities to achieve sustained growth by leveraging the full capability of its people, companies, assets, and know-how remain underutilized. “After 15 years, attempts to stimulate the economy through fiscal policy and to address exclusion through social grants have failed to achieve their goals. “Instead, they have sacrificed the country’s investment grade, increasing the cost of capital to the whole economy, with little social progress to show for it,” the researchers said. “Three decades after the end of apartheid, the economy is defined by stagnation and exclusion, and current strategies are not achieving inclusion and empowerment in practice.” The big question, then – is why? State collapse The study identified two key problems with South Africa, driving this stagnation and deterioration: a collapsing state and spacial exclusion. Over the last 15 years, South Africa has seen a broad-based state collapse across critical public goods and services, the researchers said. There has been a deterioration in the provision of electricity, freight rail, ports, roads, water, and passenger rail. At a local government level, municipalities have been given big budgets and even bigger responsibilities but are largely ill-equipped to actually perform their duties. The paper argues that the collapse in state capacity can be traced to recurring issues of gridlock, ideology, overburdening of public organizations, and political patronage. Gridlock within the legislative process and leadership of government has prevented critical decisions from being made in time to address system breakdowns. This has happened repeatedly in both electricity and rail. Ideology has prevented the full capabilities of society from contributing to address supply needs, for example, by limiting private, provincial, and municipal power generation or devolution of the management of urban passenger rail to capable city governments. Things have been made worse by a mistaken belief that preferential procurement rules could be imposed on complex organizations, such as the network industries, at little cost. Rather, these rules have overburdened critical public organizations by adding financial costs, reducing effectiveness, and expanding space for patronage systems to take hold. Political patronage has been a widespread problem, as well documented by South Africa’s Judicial Commission of Inquiry into allegations of State Capture, Corruption and Fraud in the Public Sector including Organs of State, better known as the Zondo Commission. “While it can be easy to place the blame of state collapse on corruption and patronage, this would overlook the direct ways that gridlock, ideology, and overburdening have contributed to struggling and failing public systems,” the researchers said. “Overall, these causes have resulted in a continued loss of technical capacity and competent management across public organizations, making capacity loss harder to overcome.” These failings of the state bleed into all sectors of society, and attempts to counteract them have largely failed. Because the state cannot run effectively and takes ideological and legislative pathways that block growth, it has attempted to uplift the disenfranchised through social transfers. However, the researchers said that these transfers are more about redistribution than inclusion – “palliative, rather than curative”. “They merely compensate people and companies for their exclusion, rather than include them in the productive economy. They do not create the basis to increase sustainable employment in South Africa,” the researchers said. How to fix it There is no simple fix for South Africa’s problems; however, if the country is to arrest the collapse of the state, it needs to urgently start building state capacity. This would entail completely rethinking policies like preferential procurement and decentralisation. “Instead of helping to address spatial inequalities, the current system has exacerbated them,” the researchers said. Instead of splitting resources and sending them off to be devoured by the black hole of local government, they would be better distributed towards strategies that tackle the cause of state collapse, rather than its symptoms. Broadly, the researchers suggest tackling the problem in three key ways: Unburdening capacity – by relaxing the secondary and tertiary goals that have been layered onto state companies and public entities; locally and nationally. Build up and protect capacity – by getting rid of cadre deployment and transition to merit-based systems of employment. This will build a system that attracts and retains talent over time. Leverage existing capacity – by pulling in society at large to help fix struggling systems, especially in network industries. Positively, in some respects, the government is moving towards meeting at least some of these goals. In the midst of the ongoing energy and logistics crisis, the state has reached out to the private sector for assistance in rebuilding key networks. With a few policy moves, the government is also working towards professionalising the public service – while the courts and opposition parties are challenging the ANC’s long-held practice of deploying cadres. However, state-owned companies remain a massive thorn in the side of a capable state, with decades of rot and mismanagement still sapping the state’s coffers through debt and bailouts. While some steps are being taken to mitigate this – like rolling some entities into one – the state insists on creating new SOEs, while pushing ahead with other massive systems like the NHI that have the potential to falter like almost every other entity that has come before. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/731413/south-africas-broken-state/

Datacentrix Holdings | 15 November 2023 Datacentrix, which positions itself as a leading hybrid ICT systems integrator and managed services provider, is pleased to announce it has maintained its level one broad-based black economic empowerment (B-BBEE) rating for the seventh consecutive year, achieving a total score of just over 127 out of a possible 130 points on its most recent scorecard – one of the highest for the local industry. According to Datacentrix Chief Financial and Risk Officer, Elizabeth Naidoo, the organisation's consistent approach to transformation has been a critical factor in this achievement. “For Datacentrix, the topic of transformation – and sustained transformation most importantly – is very close to our hearts. Kenny Nkosi, Datacentrix’s Divisional Managing Director: Public Sector and Commercial Sales and Chairperson of the Employment Equity Committee, says: “Based on our current economic climate, the only way that we will be able to build South Africa into the powerhouse it has the potential to be is to ensure that this type of positive change is ongoing. And this is through sustained efforts around creating direct employment opportunities, supporting the growth of smaller local businesses, enabling the training and mentoring of individuals, building employment equity and more.” Nkosi notes with pride that the engagement of SME partners is an important accomplishment for Datacentrix. “Datacentrix has engaged with many SMEs over time, with some partnerships spanning more than 20 years. We have seen several partners transform from exempted micro enterprises (EMEs) to qualifying small enterprises (QSEs) – or even generic entities with revenue exceeding R50 million per year in some cases – which is a significant achievement in terms of business growth. “Most of these companies have successfully navigated a path that has allowed them to grow in both revenue and staff complement. As an excellent example, one of our SME partners that has engaged with Datacentrix since 2008 has grown their revenue by approximately 295% over the past 15 years. This type of development is vital to stimulating South Africa's economy and ensuring that it grows and thrives.” When it comes to skills development, Datacentrix has shown long-term commitment to supporting learners and graduates. The organisation established its learnership and internship programmes in 2008, welcoming hundreds of learners and graduate interns into the programmes with the aim of combining theoretical knowledge with on-the-job skills training. Most recently, the company instituted a bursary scheme with Wits University, and has already seen two of its graduates join the workforce to start their formal workplace training. Datacentrix spent over R8 million on training during the past financial year, a praiseworthy achievement in upskilling initiatives, adds Naidoo. Datacentrix continues to prioritise skills development in pursuit of its educational transformation goals. Nkosi further points out that: “Employment equity is another area on which Datacentrix has been assiduously focused over time, and our positive work here is apparent. Our most recent B-BBEE verification certificate shows employment equity of 70%, indicating significant progress in this area since our 59% score in 2020.” “Datacentrix has long recognised the importance of levelling the playing field and reducing inequality within the workplace, and so has placed long-term commitment to its development initiatives,” Naidoo concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/8OKdWqDXQpXqbznQ

SDGTalks | 15 November 2023 Young people aged 15 to 34 years had an unemployment rate of 43.4% in the third quarter, compared with 45.3% in the second, according to Statistics SA. The decline mimicked the drop in the country's overall unemployment rate, but the figures still show that close to half of the young people who should be economically active are jobless. "South Africa's high youth unemployment rate has significant economic and social implications. The lack of job opportunities for young people not only affects their individual prospects but also limits the country's potential to harness their skills, creativity, and innovation," Angelika Goliger, EY Africa's chief economist, said. Youth aged 15 to 24 years and 25 to 34 years continue to have the highest unemployment rates at 58% and 38.3% respectively. About 3.3-million, or 32.7%, out of 10.2-million young people aged 15 to 24 years were not in employment, education or training and "the youth remain vulnerable in the labour market," Stats SA said when it presented its Quarterly Labour Force Survey for the three months to September. For a financially secure population and a fiscally stable state, it's those early years that count. It's when people usually begin to build a pension, invest in other savings programmes, buy their first house, take out insurance and get themselves into a position to either help support a young family or look after older relatives. With so many of the people who were meant to be the future breadwinners of SA unable to find work, the longer-term economic outlook darkens. A queue that could span half of the continent Stats SA's data is a "bouquet of bad news for South Africa's young people", Mmusi Maimane, leader of the political party Build One South Africa, said in a statement, adding: At least 4.5-million young people are now unemployed. If every young, unemployed South African stood in a single file queue, it would stretch for almost 2 500 km. The queue would run from Johannesburg to Mombasa, Kenya. One of the contributing factors to job losses in critical industries is Eskom and its loadshedding. Although the official overall unemployment rate dropped 0.7 of a percentage point to 31.9% and, according to the expanded definition, it decreased 0.9 of a percentage point to 41.2%, the biggest employment losses were recorded in manufacturing. Frequent power outages have forced some factories to either close or scale back, but this was one area where a young person, who may not have a matric or a tertiary qualification, might have once been able to find a job. "The lower-than-expected overall unemployment rate despite the challenges faced by the economy is yet another data point that speaks to some resilience to the load shedding. That said, 50 000 manufacturing jobs were lost in the third quarter and the hope is that this can be reversed as power availability increases," said Razia Khan, Standard Chartered's managing director and chief economist for Africa and the Middle East. The terrible trend is clear Even if Eskom is able to ease power outages, the high levels of youth unemployment isn't a new trend. Ten years ago, the unemployment rate for those aged 15 to 34 was an already ugly 35% and the numbers have steadily worsened. The country's financial forecasts aren't offering much hope either. "Gross domestic product growth is projected to slow from 1.9% in 2022 to 0.8 per cent in 2023. Since the 2023 Budget, the economic growth outlook has weakened in line with changes in the world economy, and continued energy and logistics constraints," National Treasury said when it presented the medium-term budget on 1 November. With a national election looming, further declines in the jobless rate may help the ANC win votes, but as young, poor people age and become old, poor people the need for social grants and state care may increase, hampering growth in what then becomes a chicken-and-egg scenario. "South Africa's unemployment crisis is an outcome of our poor showing from an economic growth perspective," EY's Goliger said. A long way out The way out of unsustainably high levels of unemployment includes addressing Eskom's load shedding and Transnet's logistics challenges, implementing business-friendly policies to attract local and foreign investment, creating an enabling environment for entrepreneurship and small and medium-sized enterprise, she said. "A longer-term - but no-regrets - option is to continue prioritising and investing in high-quality education and skills development at all levels." ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/sa-sees-job-growth-but-its-cold-comfort-for-millions-of-unemployed-youth-left-behind-2023-11-15/searchString:sa+sees+job+growth+but+its+cold

Clause 2.4.2 of statement 400 of the Amended General B-BBEE Codes of Good Practice allocates Bonus Points for creating one or more jobs as a direct result of a Supplier Development or Enterprise Development intervention. The necessary evidence varies between B-BBEE Rating Agencies. Generally, however, a letter confirming job creation from the Beneficiary will serve as such evidence or a Signed Employee contract. The letter of confirmation must affirm that the intervention created at least one new job. Some confirmations may include being administered by a Commissioner of Oaths. This must be undertaken by the Beneficiary and must include An organisation’s full name, physical address, postal address and registration number; A Beneficiary’s full company name, physical address, postal address, and registration number; The Enterprise Development or Supplier Development commenced; The date of the contribution; The number of new positions due to the intervention; and The names of the new employees; Enterprise & Supplier Development Services are available to assist Members meeting requirements for Job Creation.

Schedule 1 defines a ‘Voting Right’ as a Voting Right attaching to an Equity Instrument owned by or held for a participant,measured using the Flow-through Principle or the Control Principle. An ‘Exercisable Voting Right’ is a Voting Right of a Participant that is not subject to any limit. Therefore, an ‘Exercisable Voting Right’ is not a ‘Voting Right’. The difference between the definitions is that ‘Exercisable Voting Rights’ refer to ‘Voting Rights’ that are not subject to any limitations. Technical Compliance Services are available to help members understand the difference between ‘Voting Right’ & ‘Exercisable Voting Right’ under B-BBEE legislation.