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Murray Swart | 16 August 2023 More than a quarter of a million new jobs were created in Cape Town over the last year, with 56 000 added in the last quarter alone. This is according to the latest Quarterly Labour Survey released by StatsSA, which noted a 7% year-on-year drop in the metro’s unemployment rate. This equates to 263 000 new employment opportunities in the city. ‘Cape Town has now had five straight quarters of positive jobs growth, with the lowest unemployment rate of the metros,’ said CoCT Mayor Geordin Hill-Lewis. ‘This is such encouraging progress and we take great heart from the fact that a quarter of a million more Capetonians have work today than just a year ago.’ Hill-Lewis explained that the improved unemployment rate is evidence of how the Cape Town economy is booming and is now the heart of national economic growth. ‘When we speak about being a City of Hope for all, this is what we mean: getting more people out of poverty and into work. And for five straight quarters, this is exactly what is happening in Cape Town.’ ‘Our city economy is growing faster and adding more jobs, primarily because our government is investing in infrastructure, focusing on beating loadshedding and working to be the easiest place to do business in Africa.’ ‘This attracts new investment, and investment brings new jobs.’ ‘More and more Capetonians are eager to be part of the workforce and have been able to find a place in it.’ He added that, in an effort to enable further job-creating economic growth, the CoCT is forging ahead with plans to end loadshedding over time alongside a record R43 billion infrastructure investment over three years. Importantly, Cape Town’s labour absorption rate (percentage of employed working-age population) has eclipsed the pre-Covid rate, indicating that the city’s labour market has well and truly recovered and is now back to positive growth. James Vos, the mayoral committee member for economic growth, said the City’s investment promotion and skills development programmes have spurred major gains across multiple industries. ‘Our projects have facilitated billions of rands in investments and led to the creation of thousands of jobs. Under the City’s Building Hope Budget, R41 million has been allocated for direct economic incentives to attract more investments and job opportunities to Cape Town.’ ‘We have also built a strong training support system for entrepreneurs, small business owners and employees so that they can gain the skills needed in emerging and high-growth industries such as the green economy, call centres, tourism, and clothing and textile,’ Vos said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.capetownetc.com/news/new-jobs-in-cape-town/

Staff Writer | 15 August 2023 Small business owners, aspiring entrepreneurs and stakeholders are invited to participate in the inaugural Vodacom Business small and medium enterprise (SME) summit. The SME Thrive Summit, a hybrid event, will take place on 18 August, from 9am to 2pm. In a statement, Vodacom Business says the SME Thrive Summit aims to provide small businesses with resources, knowledge and networking opportunities. The day will feature a series of informative sessions, exhibits by small business owners, keynote presentations, live master classes and panel discussions, it states. Topics to be covered include access to finance, how to leverage digital marketing tools, and tips on how businesses can protect themselves against cyber security threats. “SMEs remain a crucial foundation of the South African economy,” says Buhle Vilakazi, executive head of SME at Vodacom South Africa. “We recognise their vital contribution in fostering innovation, creating jobs and spurring economic growth throughout the country. “With the introduction of this summit, we are hoping to foster financial change and help SMEs grow their business, which will influence the country’s economic performance.” Data shows SMEs account for approximately 98% of South Africa’s business network. However, SME businesses continue to take strain and face challenges preventing them from fulfilling their potential. Expert speakers and industry leaders, including William Mzimba, outgoing Vodacom Business CEO; Mandisa Mpeko, supplier development manager of The Innovator Trust; and Nkgabesing Motau, co-founder of Think Creative Africa, will share their insights, experience and best practices to guide SMEs in overcoming challenges and seizing opportunities. By attending, two entrepreneurs will stand a chance to win a full-day business consultation with Vodacom South Africa CEO Sitho Mdlalose and other executives, as well as a cash prize of R50 000 towards expanding their business. Other prizes include business tech, digital marketing credits and point-of-sale devices. “We’d like to call on small business owners to collaborate with Vodacom to co-create the solutions required to address their business challenges,” states Vilakazi. The in-person event will take place at Vodacom World in Midrand. To participate in the online version of the event, register here. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/dgp45qaBZZ6vX9l8

SA News | 15 August 2023 BRICS countries have been urged to continue to support and invest in the township economy in an effort to reshape the perception of townships, and foster a brighter and inclusive future for all. The Minister in the Presidency for Planning, Monitoring and Evaluation (DPME), Maropene Ramokgopa, led a first of its kind Township Economy in BRICS Dialogue in Orlando West, Soweto, on Tuesday. Ramokgopa said that BRICS member countries have the capacity to leverage the combined resources, experiences and expertise to support each other in nurturing vibrant township economies. She said joint ventures, investment partnerships, and knowledge-sharing initiatives can bring a transformative impact. “As a BRICS nation, we must continue to support and invest in the township economy. By doing so we can rewrite the narrative of our township and create a brighter and more inclusive future for all. “Let us seize this moment to foster innovation, promote entrepreneurship and build a thriving township economy that stands as a beacon of hope both in South Africa and across the globe in particular BRICS countries,” Ramokgopa said. The inaugural dialogue was hosted by the Township Economic Commission of South Africa (TECSA) with the support of the Department of International Relations and Cooperation (DIRCO) BRICS Directorate. The dialogue is convened exactly a week before the commencement of the much-anticipated 15th BRICS Summit in Sandton, Johannesburg. Minister Ramokgopa emphasised the critical importance of implementing policies that promote and empower small enterprises in order to fully unlock the capabilities of the Township Economy. She highlighted that currently, the Department of Small Business Development and the National Planning Commission are collaborating with The Presidency Red Tape team to develop a targeted agenda for regulatory SMME reform in South Africa aimed at improving the business-enabling environment. “We are excited that this time around, we are involving the township economy in this particular summit, all this that we are doing here are going to culminate in what will be discussed in the summit,” she said. In order to ensure the sustained growth of the township economy, Ramokgopa said a multi-pronged approach is essential. Firstly, she highlighted that education and skills development must be prioritized. “Providing quality education and training equips township residents with the knowledge and skills necessary to build, expand and explore new economic sectors. By investing in a skilled workforce, we are in a better position to attract more investors to stimulate economic development,” the Minister said. Secondly, she said partnerships between the government, the private sector, and civil society are critical. She highlighted that through effective and targeted social compacts, government has the potential to remedy some of the challenges experienced by township entrepreneurs. “Government policies should be tailored to encourage investment, while private sector entities can offer mentorship, funding, and market access. Thirdly, we must leverage on our country’s enabling legislation to capacitate, support and accelerate township economies,” she said. Ramokgopa emphasised that townships remain the gateway to the economic participation of millions of our people adding that government must be deliberate about taking BRICS to townships and townships to BRICS. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/brics-countries-urged-support-township-economy

Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , clause 3.7 identifies the requirements for Enterprise and Supplier Development Beneficiaries. Clause 3.7 states the following: 3.7 Beneficiaries of Supplier Development or Enterprise Development are EMEs, QSEs or Generic Entities which are at least 51% Black Owned or at least 51% Black Women Owned utilizing the flow through principle. However, in terms of Generic Entities, this is based on the provision that at the first instance of receiving assistance from the Measured Entity, it was identified that such suppliers were EMEs or QSEs. This recognition for Generic Entities will only be allowed for 5 years from the first time of receiving assistance from the Measured Entity. Enterprise & Supplier Development Services are available to assist Members with understanding these requirements.

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.

Moneyweb | 15 August 2023 Insurer Sanlam has had to begin unwinding its failed R8 billion broad-based black economic empowerment (B-BBEE) transaction implemented in March 2019. The deal, which saw a 5% stake in the financial services group effectively issued to five new beneficiary trusts and existing empowerment partner Ubuntu-Botho, has been under water since early 2020, when the effects of the Covid-19 pandemic rattled through markets. The deal boosted Sanlam’s direct black shareholding to 18%, with black economic ownership (including indirect holdings) increasing to 35%. Of course, no one could’ve predicted a global pandemic, followed by Russia’s invasion of Ukraine and surging global inflation. The result is that the group’s share price has traded below the R70 issue price of the 111 million shares practically since just one year into the five-year deal. Sanlam provided half the funding of the transaction, with Standard Bank providing the other half via preference shares in the special purpose vehicle (SPV) and equity-secured funding. Or, as Sanlam describes the situation: “Due to the negative impacts on the Sanlam share price, the Funding SPV remains in a negative equity position, a situation which has existed since March 2020 and is likely to persist in the short-term until the repayment date of the funding in March 2024.” Sanlam’s problem is that the A preference shares held by Standard Bank are secured by Sanlam shares. Further declines in the group’s share price could see a breach of debt covenants which would force the disposal of a “large block of shares” which, it says, “is likely to negatively impact the Sanlam share price”. Sanlam admits there is “unlikely benefit” to any of the beneficiaries of the transaction, which include trusts for rural and urban poor black women, professional black women, black youth, black business partners and broad-based groups and group employees. To remedy this, Sanlam will purchase the A preference shares in the funding SPV from Standard Bank for R2.421 billion. It will fund this from existing cash resources, with a small adjustment for interest between the end of June and when it is finalised. (Even if the share price holds up, the second issue is that the subscription SPV is required to dispose of 85 million shares in Sanlam in the open market once redemptions occur in March next year. This wouldn’t be a problem if the price was, say, double the level it is currently. It is not.) This solves some of Sanlam’s headache, but not all of it. More issues … It is on the hook for the vendor funding provided via second ranking (‘B’) preference shares, which totals R3.7 billion (its 50% share of the funding). To date, it has impaired its holding in the B-BBEE SPV by a total of R2.923 billion (R1.673 billion in 2020, R145 million in 2021, and R1.105 billion in 2022). These are accounting entries necessitated by the group’s share price, among other factors, and the group has been clear that these “impairments can reverse in future periods based on the movement in the group’s share price”. The group says it anticipates that the funding SPV structure “may be unwound following its maturity in March 2024” and that it “will continue to consider alternatives in the best interest of stakeholders to implement the orderly unwinding” of it. This could include a possible repurchase of Sanlam shares from the Subscription SPV – in other words, the 26 million shares pledged to Standard Bank for R1.2 billion in collar funding. At the end of the first quarter this year, Sanlam reported “discretionary capital” of R3 billion. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/sanlam-forced-to-bail-out-failed-r8bn-bee-deal/

Opinion | 15 August 2023 In an economy where the job market is unable to fully absorb all citizens who are of working age, entrepreneurship and small businesses have widely been accepted in our country (and in many others) as an incredibly crucial component of job creation and economic growth. As successful small businesses grow and expand, they eventually become medium-sized and large companies, further contributing to much-needed job creation and economic development. Of course, more jobs mean more people with disposable income and the ability to take care of their households where the benefit at times extend to as many as five to six people per household. As they grow, small businesses employ locals who in turn will ideally spend their earnings within the local economy, thereby supporting other local businesses and creating a positive economic and job creation cycle. It is this localisation model that we believe can create the job opportunities our country so desperately needs - the model upon which Proudly South African is based. In his 2022 State of the Nation Address (Sona), President Cyril Ramaphosa clarified to the nation that role of government in economic growth is not necessarily to create jobs, but rather “to create the conditions that will enable the private sector — both big and small — to emerge, to grow, to access new markets, to create new products, and to hire more employees.” Government’s role, therefore, is to formulate and implement policies and programmes that help to industrialise various sectors, and to support local businesses while taking into account global trade policies and their implementation in other countries, as well as taking into account the cost of living for ordinary South African citizens. With the required development and growth of small, medium-and macro-sized enterprises (SMMEs) being the proverbial light at the end of the tunnel for our unemployment woes, there have been an array of challenges faced by entrepreneurs and investors. One persistent challenge that too often has come to my attention during my tenure at the helm of Proudly South African, having interacted with a significant number of our members (some of whom are indeed SMEs), is the difficulty for new entrants to enter the various markets that they are targeting. Taking into consideration the trajectory of our country from the dawn of democracy, South Africa’s economic composition includes an overwhelming majority of entrepreneurs and small businesses who are relatively inexperienced, with little to no business mentorship, and who have inherited a retail market saturated by business relationships and supplier-retail deals that are decades if not centuries old. Interlinked with these market access challenges is access to sufficient funding, an important element of starting or running a successful business. In this chicken-and-egg situation, SMMEs struggle to get funding without demonstrating that they have a market to sell to which will enable them to repay the loans secured for their businesses, and equally, they can’t access markets without the funding to get their businesses off the ground, or without having working capital to fulfil orders if they were to secure these. Recent history has shown the importance and efficiency of Public-Private Partnerships (PPPs) not only in solving and averting many socio-economic challenges and crises, but also to creating job opportunities in various sectors. An example is creation of the Riversands Incubation Hub in Diepsloot. The partnership between Century Property Developments and the National Treasury’s Jobs Fund, is now home to about 150 businesses and has created more than 1 000 permanent and 2 000 temporary jobs. Another PPP success story is the one that assisted in the prevention of some parts of the country reaching Day Zero – the point at which municipal water supply would be shut off due to water scarcity, back in 2018. The partnership between South African Breweries (SA Breweries) and the municipalities of Cape Town and Tshwane saw an additional 4.67 million litres of water per day being supplied for residents – a total of 1.7 billion litres per annum, thereby averting the crisis. The importance and role of the private sector in creating jobs as highlighted in President Ramaphosa’s 2018 Sona, therefore, cannot be overemphasized, and this includes big businesses working with and helping to develop small and medium sized businesses, as is often the case with SA Breweries. A few years ago, SA Breweries set their localisation target to 95%. This seeks to ensure that the entire value chain from production right through to consumption, is entrenched locally. Included in the list of beneficiaries of their target are the farms that grow the barley, hops, and the maize required; the packaging of the product, the crowns (tops), labelling and bottling, as well as logistics and transportation, all contributing immensely to job creation. Their impressive localisation target coupled with their procurement target of supporting historically disadvantaged groups and individuals has helped support new entrants and transformed entities. One such example is iSanti Glass based in Roodekop, Germiston, the first ever majority black-owned glass container manufacturer in South Africa. At an event I recently attended celebrating a successful three-year partnership between SA Breweries and the iSanti Glass, I learned that the former played a significant role in funding the purchase of this Roodekop factory from packaging giant, Nampak. Furthermore, SA Breweries committed to a 10-year agreement with iSanti Glass, and in so doing further securing funding for the glass manufacturer from potential funders including those linked and associated with the Black Industrial programme (such as the Department of Trade, Industry and Competition through the Industrial Development Corporation). Through this agreement, SA Breweries solved the chicken-and-egg paradox for iSanti Glass – a great story to tell. It was heart-warming to hear the iSanti Glass chairman and co-founder also make a commitment that in turn they will also buy their raw materials locally, ensuring that their entire value chain is also entrenched locally, thereby opening other opportunities for other new entrants, as well possibly transformed entities, that stand to benefit from this localisation commitment. Through them giving long-term offtake agreements to other emerging businesses, they will have enabled an entrepreneur to enter an industry that was previously closed off to new entrants and transformed entities. It is as clear as glass, therefore, that the more businesses commit to localisation throughout their processes and value chains, the more direct and indirect job opportunities emerge and the more our country’s economy stands to benefit and grow. SA Breweries can confidently proclaim that “a’vulekile amasango” (the doors are wide open), like Ismail said in his hit song from the early 2000s, as they have surely opened doors for a multitude of farmers, industrialists, new entrants and transformed entities through their combined localisation and transformation (access to market) agenda. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/localisation-public-private-partnerships-play-vital-role-adfb271c-6bce-417e-8f89-55f4e4f6b49e

Eduardo Urzagasti | 14 August 2023 The South African agency also reported that the number of salaried employees increased by 258,000 people, reaching a total of 16.2 million workers between January and March 2023. BUSINESS NEWS - The unemployment rate in South Africa increased in the first quarter reaching 32,9%. The lack of formal employment is a problem that currently affects a vast number of people worldwide. Unfortunately, the situation in South Africa regarding this matter is concerning, and the future ahead does not appear very encouraging. The latest national unemployment rate presented by the National Statistics Agency of South Africa (Stats SA) was based on the first quarter of 2023. The report indicated that the rate reached 32.9%, showing a 0.2% increase compared to the fourth quarter of 2022. "The number of unemployed people increased by 179,000 individuals, reaching 7.9 million during this quarter, compared to the 7.8 million registered at the previous one," stated the agency in a press release. Moreover, they highlighted that this rise occurred after four consecutive quarters of decline in 2022. The South African agency also reported that the number of salaried employees increased by 258,000 people, reaching a total of 16.2 million workers between January and March 2023. In this respect, the sectors with the highest levels of new hires were finance, community and social services, and agriculture. Regarding job seekers, there was a decline of 87,000 applicants compared to the fourth quarter of 2022, resulting in a net decrease of 296,000 people in the country's inactive population. Additionally, some companies also lost workers, especially those related to trade, mining, construction, and manufacturing industries. Finally, the official Statistics South Africa also drew attention to the vulnerability of young people in the labor market, considering there was an increase of 241,000 unemployed youth, reaching 4.9 million. In that vein Nedbank, considered one of the main South African banks, stated that the total employment rate remains below pre-Covid-19 levels but has gradually increased. It's worth noting that official statistics have been published quarterly since 2008. Moreover, the International Monetary Fund (IMF) also carried out an analysis of unemployment and presented its forecasts for 2023, considering rising inflation, increased interest rates, and economic slowdown. In this context, they indicated that these factors would cause an increase in the unemployment rate, especially in industrialised countries undergoing drastic structural changes. Unfortunately, South Africa reappears in this IMF analysis, and in a rather negative light. Specifically, it is projected that the country's unemployment rate would reach 35.6% in 2023, a consequence of slow economic growth and strict labor laws hindering worker hiring. In addition to the unemployment issue, South Africa's population is also experiencing high inflation levels. Although inflation has been decreasing in recent months -reaching 5.9% in May - it still affects millions of workers and further harms the poor. Abigail Moyo, spokesperson for the trade union United Association of South Africa (UASA), said in an interview: "For years, workers have been facing economic pressures beyond their control. With items like maize flour rising 36.5% since last year’s January, onions 48.7%, shampoo 29.6%, and instant coffee 26.4%, it's clear that tough times are not over for households." This year, the International Labour Organization (ILO) Director-General, Gilbert F. Houngbo, made his first official visit to South Africa, emphasizing the need to work towards greater social justice in the country. He also assured that this would contribute to reducing and preventing inequalities and that he would seek to promote the formulation of national and global policies and activities for this purpose. "We owe it to our future generations to coordinate efforts to realize a fair and safe working environment that leaves no one behind, and that is what social justice is all about... Social justice helps societies, economies, and households become more resilient to socioeconomic, environmental, geopolitical instability, and global health crises," said Houngbo. It is essential to note that the ILO asserted that the number of unemployed people worldwide would decrease during 2023. "According to projections based on the most recent ILO estimates, the global unemployment rate will decline by 0.1 percentage point in 2023 to reach a 5.3% rate," revealed the organisation based in Geneva. There were 192 million people without formal employment worldwide in 2022, a number that would decrease to 191 million in 2023. The report from the international body shows that Latin America and the Caribbean belong to the group of regions that managed to reduce their unemployment rates below pre-Covid-19 levels. This situation is also observed in Northern, Western, and Southern Europe, as well as in Central and Western Asia. However, in other regions such as North Africa, Sub-Saharan Africa, and some Arab states, the reality is different, as they have not yet returned to pre-pandemic levels. Given all these circumstances, South Africa needs to take actions that promote both formal employment and job seeking, as the lack of opportunities leads many to opt for informality, another difficult problem to eradicate. All this aside from how the lack of decent work affects the quality of life for countless families, who struggle to subsist with very little or seek alternatives like loans to cope with certain situations. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.georgeherald.com/News/Article/Business/a-third-of-employable-south-africans-without-a-job-202308130555

Smart Worx | 14 August 2023 A more gradual integration is necessary for budding professionals to gain the essential skills and experience to thrive. Unemployed youth face a well-known conundrum: they can’t find a job without experience, and it’s almost impossible to gain experience without a job. Mindworx, a South African talent and solutions agency, believes it has come up with a solution with its “Digital Pods”. It reports seeing outstanding results, with more than 90% of learners finding permanent employment at the end of the programme. Mindworx launched its Digital Pods a year ago to bridge the divide between youth unemployment and organisational staffing needs for scarce digital skills, while providing a managed service to assist clients with critical digital projects. The Mindworx team maps the project, determines its clear outcomes and deliverables, and then configures a team of unemployed digital graduates, sourced through the Mindworx Academy, with the exact skills required for the task. Dedicated senior managers and functional experts guide, mentor and manage each Pod; with a focus on return on investment for the client, while providing young jobseekers with much-needed work experience. Entry-level candidates often lack the necessary skills to navigate the rapidly changing digital landscape. At the same time, many businesses are stretched too thin to provide extensive mentoring and coaching for them to take on inexperienced digital talent. Thus, a more gradual integration is necessary for these budding professionals to gain the essential skills and experience to thrive. Besides the necessary technical skills, learners are also taught the personal and professional 21st-century skills needed for succeeding in the workplace, including curiosity, grit, complex problem-solving, collaboration, empathy and networking. "The key to the success of the programme is the unique blend of relevant learning experiences, clear expectations, a steadfast commitment to delivery, opportunities for real-world work, the courage to embrace mistakes, and an emphasis on personal development", says Visagan Naidoo, Mindworx’s consulting business head. He also noted that measuring the success of the initiative is vital. In addition to delivering a project within precise guidelines, Mindworx has implemented effective systems to track metrics such as retention rates, career progression, employment rates, and participation satisfaction. "This data-driven approach enables us to continuously improve our offerings, meeting the evolving needs of both the participants and the industry," Naidoo adds. Clients can also benefit from building a pipeline of digital talent that can be retained at the end of the project at no additional recruitment cost to the client. According to Naidoo, currently 90% of learners are employed full-time by the clients for whom a Pod was deployed, including large financial services and insurance brands. Combined, Mindworx and the Mindworx Academy have placed almost 3 000 young people into first-time employment, with 60% hailing from rural areas. Together, these jobs are estimated to have injected R500 million annually into the South African economy. “Mindworx is looking to train and place at least 5 000 learners and positively impact 25 000 lives by 2028 as it continues to forge a workforce ready to excel in the digital era,” Naidoo concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/careers/bridging-the-digital-skills-gap-between-youth-unemployment-and-organisational-staffing-3a0cb74d-ad32-4be1-97b8-be3cb5ad9fad

Ina Opperman | 12 August 2023 According to Statistics SA data released in May, the youth unemployment rate was estimated to be 62.1% in the first quarter of 2023. South Africa’s growing youth skills and unemployment divide can be bridged by employability and SME incubator initiatives, but we need more corporate and government programmes that provide school leavers with a platform to learn, make mistakes and grow. South Africa can improve its youth unemployment crisis by creating awareness of available employability training opportunities and educating SMEs on their crucial role in empowering youth while growing the economy, Shawn Theunissen, founder of Property Point, says. Some initiatives, particularly the collaborative partnerships between government and business are promising, such as the Youth Employment Service (YES) and National Business Initiative (NBI). These programmes equip young people with in-demand skills, soft skills and job readiness training, as well as mentorship and job placement to promote the growth and progression of our economy, he says. “Another bright light has been that SMEs also have a significant role where they contribute to local economies by bringing growth and innovation to the communities where they operate. They also stimulate economic growth by providing employment opportunities to people who may need to be more employable by larger corporations. Therefore, SMEs can be the perfect hosts for youth employability programmes.” The Statistics SA data implies that 12.7 million young people between the ages of 15 and 35 are unemployed, the highest globally. The new ‘economic pandemic’ is manifested in our energy crisis, fuel cost, inflation, high-interest rate and volatile currency, Theunissen says. Economy struggling to create opportunities “While these factors are out of our control, they contributed to our slow-growing economy, which is struggling to create opportunities for those looking to break into the labour market. This situation harms individuals, their families and the broader community through severe economic and social consequences, including economic welfare, erosion of human capital, social exclusion, crime and social instability.” He points out that the labour market has become increasingly skills intensive. “For example, the pandemic revealed a global and domestic need for digital and information technology skills. With a deteriorating education system, which continues to churn out unskilled youth, there needs to be more alignment between labour supply and demand.” There is also an issue around gender parity regarding the technical skills available for youth and specific sectors, such as mining, construction and manufacturing, are still relatively insensitive to women. HR specialists suggest there are skills shortages in every sector and that the information technology and finance sectors have the most shortages, although the deficits are felt almost across the board, including in medical and health, marketing design, media and arts, business and management and engineering. “For unskilled young people, the hurdle is so much more significant as they need more theoretical knowledge and technical skills for in-demand jobs and services that would enable them to enter the job market or set up their enterprises.” Theunissen says a basic framework, language and practical experience is also necessary to develop their professional behavioural competencies and the soft skills needed to prepare them for work. “Notably, soft skills are also in short supply among the youth. Soft skills include many abilities, including communication, teamwork, problem-solving, adaptability, time management, leadership, critical thinking, empathy and emotional intelligence. Soft skills are crucial for young people entering the job market and can determine whether they are employed.” Many not aware of in-demand skills There are very few 15 to 18-year-olds who know which careers they would want to pursue and without career guidance and counselling coupled with aptitude and personality psychometric testing, they will not be aware of which skills are in demand, understand their style and inclination to a specific scope of operation or discipline and make the correct subject choices, especially if they aspire of attending tertiary institutions, Theunissen says. He highlights that there are also generational issues that the youth need to contend with in the workplace, which often diminishes the prospects of an intern’s integration and absorption by a host company. “The organisational culture may not be conducive for people of different generations to work together and there is a chance for conflict due to other age groups’ attitudes, values and beliefs. As a result, stereotypes are common.” However, Theunissen says, we can solve the skills gap and unemployment conundrum. “For example, Property Point implemented employability programmes in the built environment with partners. With substantial experience recruiting young people for training and placement into B-BBEE SMEs, we have identified many pressure points, challenges and solutions to fulfil their mandate.” He says solving this problem requires collaboration among various sectors which could complement each other’s efforts. It starts with committed funders deploying grants to support skills development and placement initiatives. “Invariably, the skills gap challenge is just one side of the coin. On the flip side is identifying “super hosts”, companies that exhibit the ethos of empowerment and skills development. The absorption of our youth has as much to do with their attitude, willingness and ability to learn when afforded the opportunities to be placed at host companies to obtain work experience, as the host’s attitude and commitment to the employability programmes and initiatives.” Government and private sector programmes for youth Government has incentivised large companies to take calculated risks and accommodate youth through learnership programmes. Training providers can, therefore, focus on developing skills programmes that include job-readiness skills, demand-driven training, and entrepreneurship. Theunissen says programmes must provide psycho-social support that promotes social inclusion, tenacity and resilience. “Business needs to create opportunities for youth through workplace skills placements and job opportunities. Finally, young people must have the right attitude, be motivated and committed to the programmes.” While the YES programme, as a collaboration between government, business and labour, has offered opportunities for paid (stipend) work experience for our unemployed youth, the skills gap remains a critical risk for companies most impacted, Theunissen warns. “Organisations must develop their labour planning strategies to prepare for the future workforce to maintain their growth plans. Irrespective of the successes achieved to date, more collaboration is needed if employment outcomes are to be improved. SMEs in particular must support the young people they host. “Without this, we will see an increasing sense of exclusion among young people. Frustration levels will be heightened and physical and mental well-being will be lower, which will feed the cycle of unemployment and poverty.” Theunissen says many young people leaving school and even tertiary institutions still need to be ideally skilled or competent to enter the workforce and they need opportunities to experience the world of work and earn their stripes. “The collaborative employability initiatives have laid the foundation to build bridges to overcome the skills gap and youth unemployment crisis. Now our efforts must move beyond regulation and compliance and all stakeholders must demonstrate a passion and commitment to be the difference we need to see.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/business/personal-finance/bridge-sas-growing-youth-skills-and-unemployment-divide/

Success Mthombeni | 13 August 2023 Special Needs School applauds the Commission for Employment Equity's commitment to workplace transformation. Unity College applauds the Commission for Employment Equity’s commitment to workplace transformation. Unity College is a special needs school that offers therapy and extra murals for kids aged 3 to 23 years old. The school aims to realise the full potential of children and young adults with special educational needs through the provision of high-quality education in order to prepare them with skills to become productive, independent members of society. The school’s comment came after the chairperson of the Commission for Employment Equity (CEE), Tabea Kabinde lamented the slow pace of transformation in the workplace for designated groups, especially for people with disabilities. Kabinde addressed employment equity on their roadshow under the theme, ‘Real transformation makes business sense’. The roadshows were to create awareness of the recently promulgated employment equity amendments, sector targets, and regulations, while it deals with the impact of employment equity in the labour market by sharing the results of the 23rd CEE Annual Report. “Out of 27 532 reports received, covering a total of 7 215 960 employees, only 1.2% are persons with disabilities. We are now stretching it to only 2% as a proposed target. Please do not overlook people with disabilities,” Kabinde said. Unity College principal Jeanine Kerr applauded the commission’s radical steps to encourage employers to afford everyone equal opportunities. “As part of the special needs sector, we applaud the state’s effort to encourage the employment of people with disabilities. The private sector is quick to employ people with physical disabilities where accommodations are easily made. “People with visual and auditory impairments are also employed by the private sector, ahead of persons with special needs as physical visual and hearing impaired people have the full cognitive ability. “Adults with special needs have lower cognitive ability and are therefore overlooked despite what they can bring to the workplace. There are many opportunities to employ these people because of their willingness to learn a simple task well and repeated it accurately with pride and dignity. We thank companies who have seen the value of adults with special needs in the workplace and encourage the private sector to have an open mind and invest in these valuable individuals and what they have to offer.” Kabinde also highlighted that even though there are employers who are transforming their workplaces in terms of hiring people with disabilities, very few go beyond the 1.2%. He urged employers to be part of the transformation as anyone can have disabilities due to an accident or illness. The national series of workshops and roadshows started on July 18, and will conclude on August 29, as it aims to reach more people and address all issues related to employment equity. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://fourwaysreview.co.za/410477/employers-encouraged-to-transform/

Vanashree Govender | 11 August 2023 For every young person that is enabled by digital skills, there is an opportunity for real social impact, writes Vanashree Govender, as the world marks International Youth Skills Day under the theme: Green Skills for Youth: Towards a Sustainable World. Governments and businesses around the world recognise the need to create strong talent pipelines to support growth and development in a globalised and digitalised economy. This is essential to secure economic growth and sustainability while promoting employment, especially among the young people on whom our future depends. In economies driven by the ability to gather, analyse, protect and apply knowledge, digital competency is as important as literacy was at the time when the world first embarked on the industrialisation journey. The challenge of creating and securing these talent pipelines is multifaceted, especially in Africa, where the digital divide is still a significant factor. This means the pressure is on to support digital learning and digital skills at all stages of education, right from the primary phase. Simply put, engaging with digital technology has to become as seamless as switching on a light for everyone entering into or engaged in the economy, whether in the formal or informal sectors. In fact, access to technology and digital competency is as important to young people and SMMEs as it is to corporates and the public sector, especially as job creation all over the world is most vigorous in entrepreneurial enterprises. This access, however, cannot be viewed in isolation or as just a benefit to the economies of many countries on the continent. For every young person that is enabled by digital skills, there is an opportunity for real social impact in solving some of the continent’s biggest social and environmental ills, answering calls for the development and growth of ‘the good economy’. With louder calls for a bigger focus on environmental, social and governance principles in business, there is an even bigger play for the good economy and technology as an enabler to intersect. What does this mean in practice? On the ground, this means that government and commerce have to adopt an entirely new mindset that supports integrated action between the education system and the public and private sectors to create sustainability in the true form of the word. We can no longer see the education system as separate from the working economy and need to apply the same principles of backward integration that we apply in business to the talent pipeline and building youth skills as a whole. The challenge is nothing less than one of having to secure our knowledge supply chain. In practice, we need to create talent pathways that begin at the time children enter the education system and support them right through the secondary and tertiary stages of learning. And, whatever their ultimate field of expertise, they need a solid grounding in the science, technology, engineering and maths (STEM) disciplines. This creates opportunities to formulate pathways to developing ICT talent through various programmes like Huawei’s Seeds for the Future, which exposes learners to courses on the latest technologies like 5G, Cloud, AI and IoT. The programme has found the tech and sustainability intersection sweet spot by layering a secondary programme Tech4Good, which is focused on getting students, our future leaders, to think about how to use technology to address social and environmental issues. Taking the next step Building these pathways is an undertaking we can’t afford to delay, and that means we need to roll up our sleeves and get started. Both the public and private sectors need to be actively engaged in empowering young people with the skills they need to contribute to – and benefit from – the global digital economy. Huawei’s Seeds for the Future programme is just one example. The global CSR skills development programme is driven by the principle of lifelong learning and development; its mission is to ensure that tech-savvy and change-resilient young talents have the mindset and skill sets to participate fully in a fast-changing world which is also embarking on a green transition. According to the United Nations, the shift towards an environmentally sustainable and climate-friendly world is critical not only for responding to the global climate crisis but also for achieving the Sustainable Development Goals (SDGs). Both of which Huawei achieves through the Seeds of the Future programme and its sustainability strategy that focuses on digital inclusion, security and trustworthiness, environmental protection and health and harmonious ecosystems. The incorporation of Tech4Good into the Seeds for the Future programme is a natural progression to raise students’ awareness of challenges to sustainable development and to encourage them on how to use the ICT skills they learn to explore solutions that are both technically and commercially viable, while also solving for a sustainable and resource-efficient society. The South African Seeds for the Future programme has been running since 2016 in partnership with the Department of Communications and Digital Technologies. In 2021, the syllabus was enhanced to place added emphasis on technology as a means to address social and environmental issues. Win-win Initiatives like these deliver the ultimate win-win solution; a talent pipeline of skilled and innovative employees and ultimately leaders for government and business to draw on and, in turn, opportunities for learning, development and employment for Africa’s large population of young people. At graduate level, internship programmes also give graduates a gateway into the world of work and help them to secure long-term, fulfilling and well-paid work. Other opportunities expose them to different cultures, markets and opportunities. For example, three of the Seeds for the Future students and graduates were recently taken to the largest mobile technology show in the world, the Mobile World Congress, in Barcelona. There, they were exposed to all of Huawei’s latest technology developments as well as those of other industry players. This kind of exposure not only builds capacity, it also enhances employee value. Seeds for the Future is designed to contribute to the creation of a new digital ecosystem, building both hard and soft skills. Using models like these, we can secure full and meaningful youth participation in the digital economy as well as long-term growth and sustainability. In short, what we need to turn the tide within the context of a low-growth economy facing multiple challenges is broad-based collaboration intended to develop and sustain a new generation of digitally enabled citizens. Vanashree Govender Media and Communications Manager, Huawei South Africa ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2023/08/11/creating-a-sustainable-youth-talent-pipeline-for-the-digital-economy/