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Infrastructure News | 1 November 2023 South Africa’s construction industry is facing a mounting crisis as organised crime wreaks havoc on construction sites across the country. Armed groups, commonly referred to as ‘construction mafias,’ are routinely targeting these sites, intimidating workers, and demanding a share of project profits or jobs, often resorting to threats of violence. Morag Evans, the CEO of Databuild, has sounded the alarm, emphasising the need for contractors to resist these so-called ‘business forums.’ She warns that if left unchecked, this menace is poised to escalate. What initially emerged in KwaZulu-Natal has now spread into Gauteng, the Eastern Cape, Mpumalanga, and beyond. The origins of this crisis can be traced back to regulatory changes in 2017 when new regulations to the Preferential Procurement Policy Framework Act (PPPFA) mandated that 30% of the contract value on state construction contracts be allocated to designated groups, including black South Africans, women, and people with disabilities. Unfortunately, these regulations have been misunderstood and exploited by the construction mafia, causing widespread disruption even on private sector sites. These criminal groups demand either a 30% stake in the project or 30% of the total contract value in cash as “protection” against violent disruptions and work stoppages. These demands not only disrupt construction activities but also result in severe financial consequences for businesses, including black-owned small and medium-sized enterprises (SMEs). Projects often experience months-long delays, leading to skyrocketing costs. Notably, construction insurance policies do not always cover the damage or loss caused by these disruptions, resulting in financial ruin for many. Euan Massey, a construction attorney, shed light on the severity of the situation in a recent interview, describing the modus operandi of these criminal elements. He explained, “At the outset of a project, they invade the construction site, walk into site offices heavily armed and threaten individuals or their families. No progress can take place until their demands are dealt with. This can also extend to violence and, in the worst cases, has resulted in murders.” In response to the crisis, Cape Town launched a campaign in October to combat related crimes in the construction sector. Cape Town Mayor Geordin Hill-Lewis revealed that the city is allocating R55 million in 2023 for additional security to protect targeted sites, allowing construction to proceed. The local government has also amended its contracts with contractors, stipulating that they may not claim compensation for construction delays unless they report extortion to the police. Apart from the menace of construction mafias, the construction sector faces additional challenges, such as disruptions caused by the COVID-19 pandemic, rising unemployment, and business liquidations. These challenges could exacerbate illegal site invasions as the unemployed labor force becomes increasingly desperate to secure work. Massey pointed out that legal measures can be taken to address the situation, as various Acts address the prevention of organized crime and intimidation. However, one major obstacle is that individuals threatened by these mafias are often intimidated and reluctant to approach the police. Amid these daunting challenges, Morag Evans has highlighted the potential of technology as a powerful tool against construction mafia invasions. Strategies involving the use of webcams, drone surveillance, robot guards, and GPS technology can significantly enhance site security, ensuring continuous monitoring and swift detection of any unauthorized access or activity. Emphasising the importance of cooperation between contractors, law enforcement, and politicians to safeguard workers and the success of construction projects, Evans urged the demarcation of sites with access-controlled entry and exit points, robust safety measures, and the utilization of legal avenues to mitigate violence and disruptions. “Harassment, violence, and extortion are not the means to achieve transformation in the construction industry. Such actions are criminal in every sense of the word and cause more harm than good,” said Evans. Reflecting on the economic impact of these criminal activities, Massey estimated, “Approximately R68 billion has been lost due to the construction mafia, but the cost to society is even greater. For example, a school not being built means children lack education.” He stressed the need for a holistic approach involving all stakeholders, rather than a reactive response through the police. The government must identify projects where the 30% target is achievable and designate groups that can help achieve that goal. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://infrastructurenews.co.za/2023/11/01/organised-crime-threatens-south-africas-construction-sector/

Dr Rejoice Shumba | 2 November 2023 Keiskammahoek (a combination of Dutch and Khoikhoi literally meaning ‘corner of shining waters’) is a small town in the Eastern Cape, resting at the foot of the Amatola Mountains. Keiskammahoek is also the birthplace of the Siyakholwa Development Foundation, a social enterprise focussing on addressing critical social issues like poverty, education, maternal health and child welfare, early childhood development, youth unemployment, and food security. Much like other small rural Eastern Cape towns, Keiskammahoek is poor, with little infrastructure, investment or opportunity. The crucible of unemployment: a call for innovation South Africa’s stubbornly high unemployment rate has long been a dark cloud looming over our dreams for prosperity and equality. In a nation where the private sector is unable to absorb those looking for work, 34% of our population remains jobless, so addressing this crisis has become paramount. Traditional approaches have yielded limited success, and it is clear that bold, innovative and scalable solutions are required. Enter social employment, a paradigm that transcends the boundaries of traditional job creation. It is not just about filling vacancies; it is about reshaping the very fabric of our society. Social employment programmes are not a fix-all, but rather a strategy to complement the private sector’s initiatives of promoting economic growth and enterprise development. The idea behind social employment is simple yet profound. It looks to provide opportunities for those who have been marginalised by barriers such as lack of education, skills, or access to resources. It is about opening doors that were once firmly shut, ensuring that more South Africans have a chance to contribute to and participate in the economy. The Social Employment Fund The Social Employment Fund (SEF) is a social employment programme that seeks to create 65 000 temporary jobs for previously unemployed people. It is based upon ‘working for the common good’ by remunerating activities that contribute to community upliftment in areas like education, health, food security and nutrition. Participants earn a stipend while acquiring valuable on-the-job skills that helps prepare them for the workplace. It is administered by the Industrial Development Corporation (IDC), and implemented by 35 civil society organisations across the country, of which Siyakholwa is one. Siyakholwa has been an implementing partner of the SEF for the past 18 months and the highlight of our journey has been to provide work opportunities for the most desperate people, some who have no work experience at all. The majority are young people – many without matric – with hopes and dreams of being independent, to earn their own income and provide for their own families. The SEF has given them hope. At least for now, they have two days of work and can earn a predictable and stable income which can be used to start other income generating activities, or apply for long-term work. The SEF offers so much more than temporary work and skills, it also offers its participants an opportunity to gain confidence and dignity. Thabo is a young man who joined the SEF programme with no skills at all. Through one of Siyakholwa’s development programmes he’s had the opportunity to learn basic electrical skills like repairing wiring systems, and installing electrical conduits, cables and tubing. These skills have taught him to fix broken and disused electrical appliances, which he now sells for a nominal fee in the community. The SEF has given him a sense of purpose and pride, the chance to start his own micro enterprise from which the Keiskammahoek community also benefits. When social employment initiatives are created, pathways to a better life are established. Community members gain skills on the job, and a newfound sense of agency takes root. Families experience an uptick in their economic circumstances, which leads to increased access to basics like education and health care. This, in turn, nurtures the community, who collectively benefit from the skills acquired and from additional economic stimulation. South Africa is at a crossroads. A point where innovation and inclusivity must converge to pave the way for a better future. Amid the complexities of economic challenges and social disparities, the concept of social employment hovers as a guiding light, offering not just temporary relief, but a profound and sustainable opportunity for systemic change. It is time for us to recognise the transformative potential of social employment as a way to promote job continuity and sustained impact. Beyond immediate gains: a catalyst for sustainable change There is an elderly gentleman living in Keiskammahoek. Well-respected, he lives a simple life, relying on a small grant and the goodwill of community members to make ends meet. Having never had the opportunity to study, acquire skills or build a career, I wonder how different his life may have been had he been able to benefit from a programme like SEF. Perhaps he would have started his own small fresh produce business, employing and upskilling other community members. Perhaps he would have studied teaching and become a principal, guiding and mentoring today’s youth. While the immediate impact of social employment cannot be understated – providing jobs, income, and a sense of purpose to countless people – it’s true power lies in the domino effect it can trigger. By institutionalising social employment, we catalyse a chain reaction of positive change that ripples through communities, positively impacting generations to come. There’s also a knock-on effect to youth, who are better equipped to tackle the challenges of the modern world with a sense of purpose and belonging. The cycle continues as these young people get the opportunity to curate their own futures, perpetuating a virtuous cycle of progress. From exclusion to empowerment: bridging socio-economic divides One of the most compelling reasons to institutionalise social employment lies in its ability to address the deeply ingrained disparities that persist within our society. The scars of our historical injustices, compounded by current challenges, have left many South Africans in desperate need. Social employment becomes a bridge that connects these marginalised communities with the promise of hope. Driving economic resilience: a win-win proposition Critics may argue that institutionalising social employment poses fiscal challenges. However, a closer examination reveals that the benefits far outweigh the costs. A workforce that is gainfully employed contributes not only to individual livelihoods but to the overall resilience of the economy. Reduced dependency on social welfare programmes, increased consumer spending, and a more skilled workforce can serve as catalysts for economic growth – something South Africa sorely needs. Moreover, the spirit of entrepreneurship flourishes when individuals have access to resources, skills, and a supportive environment. By institutionalising social employment, we provide the fertile ground from which innovative ventures can sprout, adding new dimensions to our economic landscape. A vision realised: the path forward Institutionalising social employment is not a mere policy prescription; it is a manifestation of our collective vision for a more just and equitable South Africa. It is a commitment to breaking down the barriers that hinder progress and creating an environment where every citizen can contribute to the country’s success. To embark on this journey, we must first recognise that the success of social employment hinges on a multilateral approach. Government entities, private sector players, civil society organisations, and local communities must collaborate to bring this vision to fruition. Through strategic partnerships, sustainable funding mechanisms, and a shared dedication to change, we can lay the foundation for a future where social employment is not an exception but a rule. As we contemplate the road ahead, let us dare to dream of a South Africa where social employment is deeply ingrained in our ethos – a beacon of hope, a catalyst for progress, and a testament to our unwavering commitment to the principles of inclusivity and empowerment. By institutionalising social employment, we carve a path toward a nation that thrives on the strength of its people, ensuring that no one is left behind on our journey to a better tomorrow. Dr Rejoice Shumba is the CEO of social enterprise Siyakholwa Development Foundation. | Helping build stronger communities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/opinion/the-transformative-imperative-institutionalising-social-employment-in-south-africa-e105e66e-a9e4-45e4-8883-94cf8bffe895

The following rules apply when calculating Mandated Investments for under Statement 100 of the Amended General B-BBEE Codes of Good Practice : "Mandated Investments means any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds, pursuant to a mandate given by the owner to a third party, which mandate is governed by that legislation. Some examples of domestic mandated investments and the portions of those investments subject to the Exclusion Principle are contained in Annexe 100A attached to statement 100." Furthermore, as per clause 3.7 of Statement 100 of the Amended Codes of Good Practice, the following is stated: "3.7 Mandated Investments 3.7.1 When determining Ownership in a Measured Entity, Rights of Ownership of Mandated Investments may be excluded. 3.7.2 The maximum percentage of the Ownership of any Measured Entity that may be so excluded is 40%. 3.7.3 A Measured Entity electing not to exclude Mandated Investments when it is entitled to do so may either treat all of that Ownership as non-Black or obtain a competent person's report estimating the extent of Black rights of Ownership measurable in the Measured Entity and originating from that Mandated Investments. 3.7.4 A Measured Entity cannot selectively include or exclude Mandated Investments and therefore an election to exclude one Mandated Investment is an election to exclude all Mandated Investments and visa versa. 3.7.5 A Measured Entity applying the Exclusion Principle to Mandated Investments cannot benefit from the Modified Flow-Through Principle." Ownership Services are available to members with any queries relating to the Ownership Scorecard.

Enterprise Development and Supplier Development were designed to complement one another. Under the General Amended B-BBEE Codes of Good Practice, the aim is for an organisation to develop a Beneficiary through Enterprise Development, then procure a good or service from them, and then elevate them to a Supplier Development Beneficiary. Bonus Points are available for such a successful elevation. To achieve the Bonus Points on offer, organisations must ensure that all these sub-elements are claimed in the same Measurement Period. Technical Compliance Services are available to help members determine how to claim these Bonus Points.

Parliament | 29 October 2023 The majority of Pixley Ka Seme District Municipality residents supported the National Small Enterprise Amendment Bill during the second public hearings that were conducted by a delegation of the Portfolio Committee on Small Business Development on the Bill in the Northern Cape Province at Braaipal Community Hall in Douglas yesterday. Chapter 3 of the Bill on the establishment of Small Enterprise Development Finance Agency attracted the eyes of the participants and they expressed their hope that the Bill will push back the frontiers of poverty in their district. In supporting the Bill, however, they highlighted, among other things, its silence on the provision of start-up grants for Small Medium-Sized Enterprises (SMMEs). The participants applauded the establishment of the Small Enterprise Development Finance Agency. They highlighted that Section 15 (1) which covers “The fund of Agency” including “grants, donations and bequests made to the Agency” was also silent on the funding provision for SMMEs. They made an appeal for a provision to be made for subsidies that will enable a start-up for immediate funds to be available for SMMEs in order to achieve the objectives of the Bill. SMMEs informed the delegation about their ambition to grow and become well developed business people who can compete at all levels of business. They complained that Sub-Section 13 of the Bill is silent on the location of the offices for easy access by the SMMEs. The Sub-Section covers the “Agency’s powers and functions” providing for “design and implement small enterprise development support programmes in order to… ‘facilitate the promotion of entrepreneurship’”. Participants submitted that although there are provincial and district offices, provision should be made in the Bill for dedicated satellite offices within the municipalities so that services can be brought closer to the SMMEs and for the field workers to be able to attend to the challenges and needs of the small businesses. The residents welcomed the proposed establishment of the Office of the Small Enterprise Ombud Service and expressed their hope that it will assist in curbing the use of service providers from other cities when there are events held in their areas. They reiterated their desire for the creation of economic opportunities in their area hence they wholeheartedly support the Bill. They called for the prioritisation of rural communities on the grounds that the impoverished rural areas are historically marginalised. Those who rejected the Bill indicated that it does not make provision for financial support and empowerment for SMMEs, which enable them to develop. They want their businesses to grow, but the Bill does not express an intention to see small businesses grow into bigger businesses. They stated that previously disadvantaged SMMEs do not meet the requirements when they apply for funding. In addition, local businesses expressed that they are expected to comply with strict regulations, but the Bill is silent on why foreign nationals are not adhering to the regulations, which are forced on the local small businesses. The SMMEs indicated that the Bill, as it stands is just a piece of paper. They argued strongly against the merger of the entities stating that they displayed sheer incompetence. They don't see how the integration will assist them as entrepreneurs. Furthermore, they highlighted a litany of socio-economic and service delivery challenges they encounter in their areas, challenges which include increasing crime and youth unemployment, deepening poverty, prevalence of drug and alcohol abuse among youth, crumbling road infrastructure, crumbling healthcare centres, scarcity of water and non-availability of ambulances during emergencies. The leader of the delegation, Mr Faiez Jacobs thanked the participants for their attendance and the contributions they made on the Bill, which he described as meaningful and overwhelming. He said: “As public representatives, we listened to your plight, concerns and issues you have raised. You have empowered us as members of the committee and we will make sure that your inputs are considered.” The committee will today hold public hearings on the Bill at Francis Baard District Municipality from 11:00 to 14:00 in Kimberley at Kimberley City Hall. The delegation invited all the interested individuals and organisations to attend to express their views on the Bill. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.parliament.gov.za/press-releases/media-statement-national-small-enterprise-amendment-bill-receives-majority-support-pixley-ka-seme-district-northern-cape

Daily News Reporter | 28 October 2023 Durban — The Construction Education and Training Authority (Ceta) is celebrating a significant turnaround in its performance, according to a recent report by the organisation. Marking an 82% achievement against its 2022/23 Annual Performance Plan (APP) targets, Ceta has shown a substantial 32% improvement from the previous year’s performance, which stood at 62%. “This 32% upward shift in overall performance underpins the commitment of the Ceta leadership to transform into a high-performing, sustainable, and fit-for-purpose one,” the statement reads. While the organisation is still on its journey towards achieving a clean audit, the Auditor-General South Africa (AGSA) gave it an “Except For” audit opinion for the year ending March 31, 2023. Importantly, the AGSA noted that the financial statements were largely free from material errors, except for the DG Commitments item. Furthermore, Ceta has made strides in addressing governance issues, reducing the overall number of audit findings from 82 to 53. The management and staff are said to be “making significant strides in remediating the issues raised by the Auditor-General and implementing the Audit Turnaround Strategy as approved by the Audit and Risk Committee.” On the financial front, Ceta has shown a remarkable 10% increase in revenue, resulting in a surplus of R10.6 million, a significant improvement from last year’s R249 million deficit. This marks the first time the organisation has reported a surplus since the 2018/19 financial year, owing to effective cost-containment measures implemented. Alongside this, there was a 57% increase in the submission of Workplace Skills Plans and Annual Training Reports, signalling a concerted focus on skills development. Adding to its list of achievements, Ceta has concluded a critical research project in partnership with the University of Johannesburg, aimed at evaluating the effectiveness of its training programmes. The organisation stated it continues “to provide skills development services by implementing the objectives of the National Development Plan (NSDP 2023) with an aim to increase the number of people that obtain critical or scarce skills needed and to build the capacity of the construction sector to be economically sustainable and globally competitive.” On Friday, Ceta chairperson Thabo Masombuka and CEO Malusi Shezi handed over the Anene Booysen skills development centre in Bredasdorp, Western Cape. Anene was murdered in 2013 after being gang raped, and Ceta intervened with a skills facility in that community to ensure that the vulnerable youth is protected through skills advancement to improve lives and live for a meaningful future. Ceta has indicated that it will be leading a further investment to build a skills simulation and trade test centre in the same community to be part of the Anene Booysen Skills and Training Academy or Institute. The development will ensure that this remote area, far from bigger cities and towns, is put on a development pedestal to tackle future world challenges. Under the leadership of CEO Mr Shezi, Ceta is confident of maintaining this upward trajectory. The statement concluded with an optimistic outlook, stating that the Ceta “is confident that it will continue to attain its goals and achieve higher heights.” For a sector often marred by challenges ranging from governance issues to skills gaps, Ceta’s latest performance is a significant sign of progress and more positive developments. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/news/construction-education-and-training-authority-celebrates-significant-turnaround-in-its-performance-bbbeb0c7-207a-4e0c-b851-97a9845f8895

Staff Writer | 30 October 2023 As young people exit the formal training programme at YES, they will have not only an awareness of how AI can improve how they work and how this could become a career or profession moving forward. Microsoft South Africa and the Youth Employment Service (YES) have teamed up to offer innovative Artificial Intelligence (AI) training to empower 300,000 young South Africans with essential digital skills, paving the way for future innovation, employability, and economic growth. This collaboration has resulted in the creation of the AI Youth Training Platform, an initiative celebrated at Microsoft South Africa’s A New Era with AI event in Sandton. Attended by over 1,000 IT professionals and developers driving AI transformation in the country, this platform is a crucial step towards bridging the gap in AI knowledge among the youth. Together, YES and Microsoft have developed tailored training materials, establishing a comprehensive learning path that caters to varying levels of exposure to AI and computer science. The platform is inclusive, designed to provide all young individuals with access to and awareness of AI, allowing them to develop skills from novice to expert levels. Recognising the unfamiliarity many young people have with AI, the introductory module focuses on providing a foundational understanding of AI’s purpose and value in a practical and accessible manner, ensuring that AI becomes a familiar and empowering tool for the youth. “This collaborative effort with Microsoft is a testament to our ongoing commitment to equipping the youth with the digital skills for future-facing sectors and careers. The significant number of beneficiaries underscores the scale of impact we want to achieve through this partnership,” says Ravi Naidoo, CEO of YES. From a practical level, this partnership is geared towards creating a surge in job creation and enhanced employability to make significant strides for the country to put in place a more digitally inclusive economy. “Together with YES, we are not only addressing the pressing issue of youth unemployment but also helping create a culture of innovation and employability through digital capability building. Microsoft’s approach to AI is based on meaningful innovation, empowering people, and responsibility. This partnership delivers on these three pillars as the means to grow a new talent pool for digital businesses to tap into not only in South Africa, but the rest of the world,” says Lillian Barnard, president for Microsoft Africa. As young people exit the formal training programme at YES, they will have not only an awareness of how AI can improve how they work and how this could become a career or profession moving forward. Participants who complete the AI Expert Module and who meet key criteria, will be eligible for certification. YES, a South African not-for-profit company (NPC), born out of the CEO Initiative, is a joint national initiative between business, government and labour that aims to address the youth unemployment crisis in South Africa by providing 12-month quality work experiences to unemployed youth. It is estimated that more than seven million young people under the age of 35 in South Africa are unemployed or are discouraged from seeking work. The YES programme is a collaborative effort to address the scourge of youth unemployment in South Africa, addressing those between the ages of 18 and 34 who are South African citizens, notwithstanding their educational nor professional backgrounds. A national programme, it benefits both the companies that subscribe to it, as well as the country’s economic base by creating social impact through youth job creation. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2023/10/30/microsoft-and-yes-to-offer-ai-training-to-300000-young-south-africans/

Staff Reporter | 30 October 2023 Johannesburg - Nelson Mandela University’s pioneering initiative, the Tangible Africa programme, which began as a mobile app developed by Byron Batteson for his honours project in computer science, is transforming the educational landscape, while empowering disadvantaged students, visually impaired learners, and those with special needs for successful careers in coding. In today's increasingly digital world, coding plays a central role in our lives. The Covid-19 pandemic highlighted the importance of software development as the demand for online solutions, applications, and digital innovations skyrocketed. Software development ranks as the second most critical skill on the South African Government Gazette list. Professor Jean Greyling, head of the Department of Computing Sciences at Nelson Mandela University and the Tangible Africa Programme founder, says: “While technologies like Chat GPT and AI are enhancing productivity, they will never replace the problem-solving abilities of skilled software developers. Software development offers lucrative careers, with graduates in high demand in South Africa, Europe, and North America. It's a field where entrepreneurial opportunities abound, and even students in their second and third years can start their own businesses.” Coding skills are not limited to software developers. Greyling says people in any discipline can benefit from a basic understanding of coding, as it enhances efficiency and creativity in their work. Software development is essential for a nation's innovation capacity, with many South African software companies exporting their products to Europe and America. However, South Africa faces several challenges in promoting coding education. Over 16 000 schools lack computer laboratories, and many of the existing labs are non-functional. The shortage of qualified coding teachers compounds the issue, and there is a diminishing pool of matric learners with strong mathematical abilities – a prerequisite for coding. Becoming a software developer typically requires a degree in computer science, information systems, or computer engineering, along with strong problem-solving skills. The demand for software developers continues to rise, and graduates enjoy a high employment rate. Nelson Mandela University, through its Tangible Africa Programme, is addressing these challenges head-on. Launched in 2017, this initiative uses innovative methods to teach coding concepts, even in settings without access to computers, the internet, or electricity. Learners work collaboratively, solving challenges using physical puzzle pieces, thereby developing critical problem-solving skills. The programme provides coding kits and training to teachers from disadvantaged schools, with over 100 000 learners benefiting from the programme. A collaboration between Nelson Mandela University and the Leva Foundation, a non-profit organisation, has turned Tangible Africa into a global project that not only addresses educational gaps but also fosters job creation and entrepreneurship. “We are changing the African narrative. A product made in Africa for Africa is now being used in Africa and beyond,” says Greyling. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/saturday-star/news/coding-empowering-students-for-the-digital-age-dad40e09-0a9b-4f70-9bd1-60e4a1f1549f

Darren Parker | 30 October 2023 South Africa's economic growth is projected to decelerate from 1.9% in 2022 to 0.4% this year, before picking up to 1.3% in 2024, according to data and analytics company GlobalData. This comes as the South African economy grapples with several challenges, including severe power disruptions, unstable commodity prices, a high unemployment rate and a variety of external issues. GlobalData’s recently published ‘Macroeconomic Outlook Report: South Africa’ underscores the ongoing concern of a notably high unemployment rate that is significantly affecting domestic demand conditions. The unemployment rate, which maintained an average of 33.9% in 2021 and 2022, is expected to widen to an average of 34.7% for 2023 and 2024. Moreover, the youth unemployment rate in the country stayed above 60% from the beginning of this year until July. Further, real household consumption expenditure, which exhibited an average yearly growth rate of 3.9% in 2021 and 2022, is expected to decelerate to an average of 0.9% in 2023 and 2024. Meanwhile, Statistics South Africa’s data reveals that, in the second quarter, the South African economy experienced significant year-on-year growth, reaching 1.6%. This expansion was notably higher than the modest 0.2% increase observed in the previous quarter and marked the strongest growth seen since the third quarter of 2022. GlobalData says this improved economic performance can be linked, at least in part, to a reduction in power outages and a reduced dependence on State-owned power utility Eskom for electricity demand in sectors such as manufacturing and mining. “Looking at the positive aspects, the inflation rate has been on a downward trajectory since March, stabilising at 4.8% in August, falling within the central bank's target range of 3% to 6%. This has had a slight uplifting effect on consumer sentiment, leading to a four-month consecutive rise in the consumer confidence index, extending up to September. “Business confidence has also seen continuous improvement, climbing from 98.6 in June to 99 in September. These gradual improvements in macroeconomic indicators offer a glimmer of hope for a more favourable economic outlook for South Africa in 2024,” GlobalData economic research analyst Puja Tiwari says. GlobalData estimates reveal that mining, manufacturing and utilities contributed 24.8% to South Africa’s gross value added (GVA) in 2022, followed by financial intermediation, real estate and business activities at 23.7%, as well as wholesale, retail and hotels business activities at 13.5%. In nominal terms, these three sectors are forecast to grow this year by 5.4%, 5% and 5%, respectively, compared with a growth rate of 6.9%, 6.2% and 6.5%, respectively, in 2022. In April, the Department of Public Works and Infrastructure unveiled plans for the country's public sector to allocate R903-billion towards infrastructure projects, expected to stimulate growth in the construction and related sectors. According to GlobalData's projections, the construction sector's GVA is expected to experience an average yearly growth rate of 5.5% between now and 2025. GlobalData also noted that South Africa's economy heavily depends on the export of commodities, including minerals, coal, iron-ore, agricultural products and diamonds, leaving it susceptible to global price fluctuations and demand variations. Given the uncertainties in commodity prices and weaker international demand this year, the country’s trade prospects are expected to be adversely affected. According to International Monetary Fund forecasts, South Africa is projected to experience a slower export growth rate this year at about 3.6%, compared to 7.4% growth last year. In terms of risk, South Africa is categorised as one of the manageable-risk nations and ranked sixty-ninth out of 153 nations in GlobalData Country Risk Index for the second quarter. The country’s risk score on various parameters, namely macroeconomic, demographic and social structure, technology and infrastructure, and environment was higher than the risk score of the rest of the world in the second quarter. “Given the energy crisis and the uncertain commodity price environment, South Africa's economic growth confronts substantial hurdles. To address these concerns and invigorate the economy, the government should emphasise investments in renewable energy, promote diversification of resources, and champion innovation to bolster economic resilience and long-term sustainability,” Tiwari says. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/south-african-economy-to-slow-down-this-year-before-stabilising-in-2024-2023-10-30

Ivan Israelstam | 29 October 2023 The law defines what constitutes unfair discrimination in differentiating between the terms and conditions of employment of employees. The amended section to 6(4) of the Employment Equity Act provides that it is unfair discrimination for an employer to differentiate between the terms and conditions of employment of its employees if these differences are based on unfair discrimination grounds listed in the act and the employees affected are doing work of equal value. The act’s requirement is fleshed out in a code of good practice that, read with section 6(4) of the act, requires all employers including the state to implement specific measures to achieve fairness in employment conditions, including job grading, pay comparison and explanation of pay differentials. The act amendment has been in effect for several years, and noncompliant employers are liable for prosecution at the CCMA. What does the act mean by “work of equal value”? It refers to two or more jobs that may be entirely different but have the same rating value as each other. For example, it is possible that the job of a sales representative and that of a machine operator could be at the same grade level in terms of job evaluation criteria that cut across different jobs. It is the job and not the incumbent that is graded. What is remuneration and how must its fairness be monitored? “Remuneration” as defined in the act and other labour legislation includes any payment in money or in kind, or both, made or owing to any person in return for working for another person, including the state. The statutory concept of remuneration includes deferred remuneration, commission and other forms of variable compensation or pay. Employers must therefore, examine all their policies, procedures and practices relating to remuneration, benefits and other employment conditions to ensure compliance with the principle of equal remuneration for work of equal value. Practical necessity requires that, to satisfy these requirements, all employers establish remuneration committees that should annually review all remuneration and benefits received by employees to ascertain whether they are legally compliant, appropriate and competitive. The committees should also assist senior management in setting up and administering a remuneration policy. What are the necessary steps to determine compliance with section 6(4)? The first step requires a determination of whether the jobs being compared are the same, substantially the same or of equal value in terms of an objective assessment. This means that the code does not prescribe which job grading system is used but only that an objective measure is required. The code provides for the following criteria to be used to assess and compare the value of different jobs: The responsibility demanded by the work; the skills and qualifications required for the work; and the physical, mental and emotional effort required to perform the work. The weighting attached to each of these criteria may vary depending on the sector, employer and the job concerned. The second step requires a determination of whether there are any differences in terms and conditions of employment, including remuneration of the employees in the jobs that have to be graded and compared. The final step requires the employer to determine whether the differences identified are justifiable on fair and rational grounds. Differences are justifiable if they are based on the individual’s seniority or length of service; the individual’s qualifications, ability or competence; the individual’s performance or quality of work; whether the employee has been demoted for any legitimate reason but draws a salary still fixed at a higher level than employees in his/her new job category until their remuneration reaches that level, where an individual is temporarily in a position for the purpose of gaining experience or training or a difference in terms and conditions due to the existence of a shortage of relevant skill in a particular job classification. It is essential for every employer to appreciate the size and complexity of the task at hand. Success in completing this major change in a practical, operationally effective and legally compliant manner will therefore require the use of an expert who is versed in labour law and, at the same time, skilled in the implementation of job grading systems. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-10-29-ivan-israelstam-employment-equity-act-and-equal-work-for-equal-pay/

30 October 2023 | Duma Cqubule, Kristal Duncan-Williams and Clotilde Angelucci Our population is mainly young. One in two young South Africans is unemployed. As the medium-term budget policy statement approaches, the call for economic growth has never been more pressing, but we can do more with what we have. With less than 1% GDP growth expected this year, SA teeters between economic recovery and stagnation. While the Covid-19 pandemic exposed the deep inequalities permeating our society, it also showed our nation’s ability to roll out a mix of interventions that can revitalise our economy while providing dignity to our citizens. It is against this backdrop that we must look at our potential. SA is a youthful country, with 42.3% of the population younger than 25. But half of young South Africans are unemployed, and their lived experiences reflect systemic barriers that keep them locked out of the economy. Data shows that SA struggles to create jobs for young people. Of the 784,000 jobs created over the past year only 45,000 went to those younger than 25. Because of the positive correlation between GDP and employment, there is critical urgency to rethink government spending and realign our potential with the right resources, to promote growth. We must do so by retaining and strengthening our basket of interventions to build a scaffold of support that enables young people to engage with and contribute to the labour market — the social relief of distress (SRD) grant and presidential employment stimulus (PES) — while increasing investment spending, which can increase GDP growth. SA is the most unequal country in the world, with half the population living in poverty. This has an economic effect. A 2022 survey by Youth Capital exposed the reality that eight in 10 young people must choose between buying food and looking for work. However, international research reveals that social protection and targeted cash transfers play a key role in reducing inequality and alleviating poverty while promoting labour market participation. The SRD grant can therefore play a key role in promoting social stability. The grant was launched in March 2022 at the onset of the Covid-19 lockdowns, and initial evidence shows it is an investment in our social fabric, supporting families to put food on the table. In SA the SRD grant has enabled individuals to engage in economic activities by subsidising job-seeking, providing capital to grow side hustles, and even helping informal trader businesses survive. Dividends from such support ripple throughout our society, reducing poverty and boosting consumer spending in local economies. These are essential ingredients that ultimately stimulate economic growth. Building on the evidence and lessons of the employment programmes under the Expanded Public Works Programme, the PES was established in response to the recession after the lockdowns. The scale of the programme is unprecedented, with the stimulus creating more than 1-million short-term opportunities from the end of 2020 to October 2022. The stimulus involved a broad list of government departments, with sectors from education to social employment, agriculture and the creative sector. It was bold in targeting young people, for the majority of whom the programme constituted their first-ever work experience. The programmes were paid at national minimum wage and included on-the-job training and skills transfer; some participants reported using the experience to fund their side hustle, while others leveraged work experience for their next steps. Youth Capital’s analysis confirms that future versions of the programme need to include design improvements such as monitoring and evaluation, increased access to training and diversified exit pathways. Despite these recommendations the PES is a step in the right direction. SA’s infrastructure is in dire need of repair. Every day, young people share the challenges they face due to poor infrastructure — geographically and digitally cut off from economic opportunities and struggling to earn an income. Because of the link between economic infrastructure and economic growth, we urgently need to divert funds to improve this. Gross fixed capital formation, a measure of investment in the economy, collapsed to 14% of GDP in 2022, far below the National Development Plan (NDP) target of 30%. Public investment by the government and state-owned companies was 4% of GDP in 2022, also far below the NDP target of 10%. The government must increase its investment in infrastructure, for the social value it can create and its high GDP and employment multipliers. Such spending creates jobs for many people with relatively low levels of education and supports the private sector with resources to grow their business and create employment. SA is at the crossroads. Growth, not debt consolidation, must be considered the national priority. Public sector expenditure can unlock our potential by enabling economic and socioeconomic development, subsidising individuals’ transitions into the labour market while stimulating economic demand and bolstering community development. Prosperity in SA is within reach, but to achieve it we need to relook the role that debt consolidation plays. If our economy doesn’t grow, the future of our country is at stake. • Gqubule is research associate at the Social Policy Initiative, while Duncan-Williams and Angelucci are project lead and communication & network lead respectively at Youth Capital. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-10-30-from-austerity-to-prosperity-rethinking-spending-for-growth/

Myles Illidge | 26 October 2023 The Department of Home Affairs (DHA) project to hire 10,000 IT graduates to assist with digitising civil documents is far behind schedule, with only 1,146 positions filled. This is according to Aaron Motsoaledi, South Africa’s Home Affairs minister, who revealed the initiative’s progress in response to parliamentary questions from DA MP Adrian Roos. “The first phase of the project recruited a total of 2,000 youth. Of these, some have received other appointments, and the number has reduced to 1,146,” said Motsoaledi. “The Department is filling the vacancies. The second phase is to recruit 4,000 youth, and this recruitment is underway.” This means the project is far behind schedule, with Motsoaledi having previously indicated that recruits for the second phase were meant to start work in January 2023. Moreover, the third cohort was scheduled to begin its duties in April 2023. In August 2022, the minister revealed further details about the initiative, including salary and qualification details, and a breakdown of the recruitment process: Phase 1 — intake of 2,000 unemployed youth graduates, for which listings were made available in August 2022. The cohort was scheduled to begin their duties on 1 November 2022. Phase 2 — intake of a further 4,000 unemployed youth graduates will begin, with advertisements scheduled to be published in October 2022. The cohort was scheduled to begin their duties in January 2023. Phase 3 — the final round of recruitment includes the intake of a further 4,000 unemployed graduates. Adverts were supposed to go live in December 2022 and January 2023. The cohort was scheduled to begin their duties in April 2023. Job listings for the first phase went live in August 2022, and Motsoaledi’s response suggests that adverts for the second phase have also gone live. However, it is unclear whether job listings for the third phase of recruitment have been posted. Advertisements for the first phase specified that positions are subject to fixed-term contracts from 1 November 2022 to 31 October 2025. The listings are aimed at unemployed South African graduates between 18 and 35 and people with disabilities. The positions pay R5,000 to R14,250 per month. “During the tenure of the contract, the youth will receive continuous learning and development interventions to improve their skills for optimal performance and to equip them for future employment and/or entrepreneurial opportunities,” the advert said. Motsoaledi also said the project would prioritise hiring unemployed women in South Africa. Available positions include: Jogger and Prepper — monthly salary of R5,000 (320 posts) Re-assembler — monthly salary of R5,000 (200 posts) Receiving Clerk — monthly salary of R5,000 (50 posts) Driver — monthly salary of R5,000 (8 posts) Indexer — monthly salary of R5,000 (800 posts) Scanner — monthly salary of R5,000 (400 posts) Quality Controller — monthly salary of R6,000 (100 posts) Group Leader — monthly salary of R6,500 (104 posts) Technical Support — monthly salary of R9,500 (12 posts) Manager — monthly salary of R14,250 (6 posts) Upon releasing its first job listings, the DHA received a massive influx of applications, with 85,820 people applying for the various positions. Of these, 23,374 (27%) qualified for assessments and interviews.. The recruitment drive aims to employ up to 10,000 unemployed graduates to digitise more than 350 paper records of birth, marriages, deaths, and amendments, most of which are in Gauteng, the North West, and the Western Cape. While the DHA began the digitisation process in 2016, the recruitment drive was first announced by President Cyril Ramaphosa during his State of the Nation address in February 2022. Part of the Presidential Employment Stimulus Programme, Ramaphosa said the project will improve young graduates’ skills while accelerating the modernisation of DHA services. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/government/512704-major-problem-with-home-affairs-10000-it-graduate-hiring-project.html