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Bonani Malgas | 31 July 2023 While there have been pockets of transformation in industry, there is still a long way to go, says Bonani Malgas, Procurement Manager at the Republic of Mozambique Pipeline Investments Company (ROMPCO). This is as South Africa celebrates and acknowledges the important role of women in industry, the economy, and in local communities and families on Women’s Day on 9 August. Commenting on the changes she would like to see materialise, Bonani explains that women bring different leadership skills to the table. Industry should celebrate the value of being different, break any biases and discrimination against women, address the gender gap, and increase the participation of women in top management positions and ensure they are retained. Bonani’s high-level role sees her attending to customer needs, sourcing the best suppliers, and building strong relationships. Her areas of responsibility include procurement lifecycle optimisation, category and Request for Proposal (RFP) management, supplier selection and management, and procurement data analysis. She is part of a two-person team dealing with all the company’s procurement requirements. “It has been exciting and challenging at the same time. The company is fairly new, therefore innovation, trying new things, and diversified duties are part of each working day. Working closely with the executives has afforded me the opportunity to learn many facets of the business,” says Bonani. Her career has progressed rapidly as a result, culminating in her role to bolster the procurement function across Mozambique and South Africa. Bonani has a National Diploma in Logistics Management from Nelson Mandela University, a BTech in Logistics Management, an Advanced Programme in Sourcing and Supply Chain, and a Master’s in Business Leadership, all from Unisa. ROMPCO recognises that its success relies on having a team of diverse people with extensive perspectives and experiences. The foundation blocks of its diversity and inclusion policy include creating a positive and inclusive working environment for employees and customers, protecting employees from discrimination, ensuring fairness and mutual respect, and creating a culture where diversity, equity, and inclusion in the workplace are respected and adopted as best practice. “The goal is to intentionally support transformation and empowerment in the gas distribution industry at a local and multinational level in both South Africa and Mozambique,” highlights Bonani. Her career highlights to date include successfully negotiating and implementing procurement principles for various major projects within the energy sector, drafting and implementing a supply chain policy, and establishing the procurement department. “Many perceive procurement as only a cost saver, but I see it as a strategic enabler that adds value to the company. It maximises value creation via supplier engagement and boosts competitiveness via supplier collaboration. This excites and drives me. It is also the change I want to see and push for,” comments Bonani. Her message to young women contemplating a similar career path is to understand the market you currently live in and to take chances. “Do not wait until you are 100% qualified for a job. Do your research, make that call, as uncomfortable as it may be, and apply for that position you have been eyeing. Talk to people in the profession and build networks. Lastly, overcome the pressure to be perfect at all times.” Bonani concludes that, as much as Women’s Day commemorates the 1956 march by women, it also means learning from those women who came before and continuing the good fight for everyone to be equal. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/rompco-supports-transformation-and-empowerment-in-the-gas-distribution-industry-2023-07-31

Marleny Arnoldi | 31 July 2023 Industry body Agri SA remains concerned about the draft Water Use Licence Applications, Amendment and Appeals Regulations published by the Department of Water and Sanitation (DWS) and believes these should not be enacted in the current form. Agri SA has noted its concerns in comments on the proposed regulations, saying that the regulations need to be reviewed and substantially amended, given the potential impact on food security. The draft regulations were published for public comment on May 19, proposing that certain enterprises applying for water-use licences to take or store water would in future have to allocate shares of up to 75% to black South Africans in order for the licence to be granted. Despite having received some clarification from the DWS in June, Agri SA says the draft regulations are misaligned with provisions in the National Water Act (NWA), the Equality Act and the Constitution. In its clarifications on the draft regulations, the DWS said the new transformation requirements proposed by the regulations would only apply to the 1.5% of water resources in South Africa that have not already been allocated. Additionally, the DWS said the regulations were not intended to apply to applications for the renewal of existing water-use licences, nor to the water-use licence applications which will arise out of compulsory licensing. Agri SA confirms that it has considered the clarifications received from the DWS in its parameters of the suggested reformulation of the regulations. The industry body explains that no provision in the NWA empowers the Minister to make regulations prescribing substantive requirements for licence applications or for the determination of licence applications. “Even if such power is inferred, the Act provides that, in issuing a licence, the responsible authority must take into account all relevant factors, including efficient and beneficial use of water in the public interest, the socioeconomic impact of the water use and investments already made by the water user.” Agri SA adds that the need to redress past racial and gender discrimination is one of the 11 factors that are taken into account when issuing water-use licences and that, by law, when determining an application for a water licence, the responsible authority must strike a reasonable balance between all the factors. The organisation states that the “arbitrary and therefore legally impermissible nature of racial quotas” have already been established by court judgments. “As the draft regulations do not allow for any element of discretion, they are so rigid as to be indistinguishable from a quota and therefore invalid.” Another concern Agri SA points out is that the draft regulations reduce transformation to black ownership, whereas the Codes of Practice issued under the Broad-based Black Economic Empowerment Act uses a scorecard that comprises five elements, with ownership being only one. Agri SA says the other four scorecard elements of management control, skills development, enterprise and supplier development and socioeconomic development should also be taken into account by DWS when issuing water-use licences. Moreover, the organisation says the inclusion of women as a previously disadvantaged group should also be taken into account, since the draft regulations only include racial transformation goals. Agri SA says it is well aware of the historical imbalances that prevail in the agriculture sector, but the sector must achieve equality within the rule of law. Agri SA’s submission makes it clear that, were the draft regulations passed as published, they would have a potentially catastrophic impact on agriculture and the country’s food security. The organisation ultimately advocates for a water licensing regulatory framework that respects the Constitution and protects food security. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/agri-sa-warns-of-unconstitutionality-of-proposed-water-use-licence-regulation-2023-07-31

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Thabiso Mochiko | 30 July 2023 Most large farms in South Africa are well established, white-owned family businesses. The cost of funding transformation is prohibitive and there needs to be more co-ordination between stakeholders, say Agri SA, Nafu SA. The agricultural sector has posted mixed performance on black economic empowerment (BEE). Presenting the third Sanlam Transformation Gauge report, Lerato Ratsoma, MD at Empowerdex, said there were “a lot of improvements from last year. Ownership increased from 68% to 75%, but still below the 2021 figures. We are seeing an improvement in management and control, which must be commended.” Listed companies fared much better than their unlisted counterparts in areas such as ownership and skills development. However, in management and control, unlisted companies' performance was superior, while at listed companies it was below 50%, “which is an area of concern that should be delved into further to figure out why it's so low compared to everything else”, said Ratsoma. The Sanlam Transformation Gauge found a persistent challenge for the sector’s charter council was that few businesses reported on their broad-based black economic empowerment (B-BBEE) compliance. This year, only 57 businesses voluntarily submitted BEE certificates, according to Madime Mokoena, director at BBBEE Charters Compliance at the department of agriculture, land reform & rural development. The department managed to obtain an additional 21 certificates via desktop research and verification agencies, the report said. Mokoena said the data was inconclusive, making it a challenge to determine whether the sector was transformed. “There are more than 30,000 commercial farmers in South Africa, according to Stats SA, but only 57 submitted certificates.” Thapelo Machaba, agricultural economist and policy analyst at the Agricultural Business Chamber (Agbiz), said in the report that the nature of agriculture and the inherent flat structure of most primary agribusinesses deterred farmers’ participation in BEE. Motsepe Matlala, president of the National African Farmers Union of South Africa (Nafu SA) agreed, saying the country’s internal agricultural market was dominated by established, white-owned enterprises which are mainly “family businesses”. “You can’t come and tell me that I must come up with BEE in my family. It is not about the white farmers alone. Let’s be fair, it’s not easy to expect a family farmer to bring in a Motsepe Matlala to work in the family business,” he stated in the report. Nafu represents smallholders and commercial farmers with up to 20,000 hectares. Christo van der Rheede, CEO of Agri SA, said capital was needed to drive transformation. “[With the challenges farmers are facing, they are] not in a position to drive transformation on their farms because they just don’t have the capital.” Matlala agreed the cost of funding was prohibitive, saying during apartheid the Agricultural Credit Board funded white farmers and did not charge interest. “The government at that time truly wanted farmers to develop.” Van der Rheede and Matlala want transformation efforts to be consolidated. Van der Rheede said in the report there should be more co-ordination between stakeholders, with realistic goals to sustainably build and transform the sector. “The problem is we’ve got all these very good plans such as the National Development Plan and the Agriculture and Agro-processing Master Plan, but they are poorly executed, if at all.” Matlala said in the report that one national department and nine provincial departments acting independently made it difficult to deliver effective services to farmers. This had seen the proliferation of farmers’ unions and associations, leading to unnecessary contestation. “Farming is a business. Farming is a science. It should not be politicised or racialised,” he said. Ratsoma said there could be improvements and “I am hoping there will be as the economy improves and there are more available resources to fund different farming activities that fall under agri-BEE”. In forestry, while there had been some resistance to change, compliance had improved. According to the report, the sector achieved ownership targets of 92% from 72% last year, management was at 54% from 50%, skills development at 88% from 72%, and enterprise development was at 90% from 68%. Makhosazana Mavimbela, executive director of the Forest Sector Charter Council, stated in the report that big companies had been consistent with reporting and compliance. However, smaller businesses,, particularly those that did not do business with the government, needed to be persuaded to report. Forestry's management control stood at 54% behind the overall average of 67%. Mavimbela said companies were comfortable using the same faces on their boards because they were reliable. This often robbed them of an opportunity to give women a chance to contribute to diversity at board level. She acknowledged that while some companies were making progress, the sector continued to face migration and fewer numbers of women in science and technology. Commenting on skills, Mavimbela said work was under way to change the mindsets of young people who were not attracted by the rural locations of companies in forestry and also that the majority of roles were low-level — blue-collar work. “We are creating a database of women who are currently in training and also calculating how much the industry spends through bursary schemes and skills development, and how we can best maximise those resources,” said Ndlovu. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/sunday-times/business/business/2023-07-30-lack-of-capital-stymies-bee-in-agriculture--experts/

Sibongile Vilakazi | 31 July 2023 On the 20th of July 2023, the Black Management Forum (BMF) hosted a robust thinking session on reimagining Broad-Based Black Economic Empowerment (B-BBEE). We invited contributions from founding BMF President, Eric Mafuna; Economic analyst, Duma Gqubule; Business men, Dr Ruel Khoza, Mashudu Ramano and Sipho Nkosi to help unpack the issues surrounding B-BBEE in its current form and how we may want to proceed henceforth. As if telepathically, the speakers were aligned in their message that the time has come for black South Africans to explore who they are culturally and to explore their collective purpose in order to shape the kind of economic program that reflect their best interests. In his talk, Ramano articulated that the biggest success of colonialism and apartheid was its ability to convince Black Africans that they had no ability to produce anything for themselves and they had no culture of their own. That instead they were consumers of others’ cultures and ideas. This was of course not true because Africans have always had their own ways of living that were scientific. They produced everything from their own food, clothing, medicine and even permanent ink. They knew for instance that certain snake fat can heal burn wounds completely and they healed themselves by mixing plants and herbs and produced their own products by mixing elements of the earth or the “periodic table”. This was until they were convinced that they needed to stop and rather purchase everything produced by someone else. Khoza and Nkosi amplified this message by pointing out that we had believed what had been told about us as a people so much that we could not see the way out for ourselves. However, we had blamed colonialism and apartheid enough for our troubles. We needed to stop externalising the blame and take charge of our destiny. It was time we used the legislative environment appropriately. Introduce tighter legislation that is not open to interpretation and be clear that South Africa is not simply an ‘outpost of Europe’, existing for extraction to empower Europe or the West. The legislative framework must be conducive for the development and validation of Africans. We must partner in our own terms and not be price takers. Mafuna concluded the message by highlighting that we must stop undermining ourselves as a people because the world envies us. What makes South African talent attractive globally is our work ethic and creativity. We must know and believe that we are outliers as a country because we have achieved what many countries only dream of because we are able to rise from impossible conditions. Everyone in the room had come from a background that was meant to have broken them but had managed to get ourselves out of those backgrounds using whatever little resources were at our disposal. Therefore, we must be patient with ourselves because it takes generations to achieve what we are looking for. We must remove the notion that we are an incapable nation and continue to have conversations with ourselves. These are the frank conversations that are necessary and must happen at every corner to allow us to reflect about our own reflections and start moving in the direction of the desired economic emancipation. Gqubule used China as a case study to show what is possible when a people are clear about their own development. The fact that China had a 20-year vision and doubled the size of the economy every decade. The 20-year vision was broken down into 5-year plans with annual targets and adjusted tools of micro-economic policy accordingly to achieve the vision. Therefore, we must not reinvent the wheel but learn from those who had gotten it right. The thinking session was a first of many to come to drive these conversations with ourselves in order to reach consensus on the future we want to paint for the transformation agenda in the country. The current efforts at implementing B-BBEE and Employment Equity in particular have left a feeling of distrust amongst black professionals. The fact that 23 years of implementing Employment Equity Act has yielded 13.8% of Africans in top management versus 65.9% Whites in the Private sector and 20% Africans in senior management versus 55.1% Whites has shown that the transformation policies will not yield the desired results in the short-term and a different way of thinking must be introduced. The private sector is not willing to disrupt itself in favour of transformation and, therefore, black South Africans must start a process of disrupting themselves rather, to the benefit of their own economic emancipation. The time is now and we are ready! Dr Sibongile Vilakazi is the president of the Black Management Forum. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/companies/its-time-black-south-africans-had-a-conversation-with-themselves-to-drive-their-own-economic-emancipation-a40f3d0e-955f-4657-b2ea-b35ae1404878

Times Live | 31 July 2023 SA Inc’s efforts at transformation have improved, albeit slowly, according to the findings of this annual report Nearly 30 years since the dawn of democracy and more than 20 years after broad-based BEE (BBBEE) targets were introduced, the rate of transformation remains slow, according to the findings of the 2023 Sanlam Transformation Gauge report. The annual Sanlam Transformation Gauge, presented in partnership with the Sunday Times Business Times, is the only consolidated, sector-focused research report to take a holistic measurement of economic transformation in SA, accounting for all elements of BBBEE. In addition to providing a clear and accurate picture of the state of BBBEE and transformation in SA, the independent research carried out by Intellidex aims to ignite meaningful dialogue, shape policies and inspire actions that foster a more inclusive and prosperous future for all South Africans. “In SA, it is widely accepted that our challenges can be summarised in the triple challenges of poverty, inequality and unemployment, all of which can be resolved through the effective implementation BBBEE policy,” said Andile Khumalo, co-founder of the Sanlam Transformation Gauge report. The research is based on the BBBEE scores of 14,542 companies across 10 sectors of the BBBEE classifications system: Agri-BEE; Construction; Financial; Forestry; Information and communications technology (ICT); Integrated transport; Marketing, advertising and communication (MAC); Property; Tourism; and Generic, which includes all other sectors that do not have a gazetted BBBEE sector code, such as mining, manufacturing, wholesale and retail. The findings from this year's report were unpacked at the recent Sanlam Transformation Gauge Conference: watch the recording of this event below. Lerato Ratsoma, MD of Empowerdex, revealed that overall, SA Inc’s efforts at transformation have improved, albeit slowly. Overall, total scores improved to just above the level 3 threshold with a slight increase in black ownership from 75% of target in 2022 to 80.81%. Management control — traditionally a problem area — improved from 56% of target last year to just over 69% in 2023. Despite an expectation that enterprise supplier development (ESD) scores overall would see an uptick in 2023, this score has remained at a relatively low average of 75% of target. ESD is made up of procurement, enterprise development and supplier development. “Most companies get full points for enterprise and supplier development, but struggle with the procurement aspect because there are not always enough black suppliers to procure from,” said Ratsoma. The ESD pillar is regarded as one aspect of the BBBEE framework that could make a significant difference to SA’s economic trajectory if it was practised in the way that it was originally envisaged, to develop small and medium black-owned enterprises. Unfortunately, however, procurement practices have been subverted by corruption and the impact has been disappointing, according to the 2023 report. Newly appointed BBBEE commissioner Tshediso Matona, said when the BBBEE act came into effect, there may have been a naive belief that everyone would comply with the codes and act in good faith. It was not expected that people would want to “game the system” or that there would be “fronting and misrepresentation of BBBEE credentials”. Transformation not as advanced as BBEEE scorecards suggest This 2023 report included the findings of a Sanlam Transformation Gauge survey conducted among 42 BBBEE verification agencies. Though scores improved across the scorecard this year, except for socioeconomic development which remains well above target, the main theme emanating from the verification agency survey was that transformation is not as advanced as the scorecards suggest. More than half of verification agencies said management’s poor score was due to “resistance by corporate SA to seeing black people in leadership positions”. BBBEE participation is ostensibly still voluntary, even though it is legislated. However, in response to the slow pace of transformation, the government is pushing through a raft of legislation that attempts to enforce compliance in various ways. Matona believes there is a need to recalibrate the balance between incentives and penalties to improve compliance with BBBEE codes and targets given that businesses won’t be incentivised to ramp up their transformation efforts unless it has a measurable impact on their bottom line. There has long been an assumption that listed companies, which are required to submit their BBBEE compliance reports to the BBBEE commissioner, will have better results than unlisted companies. However, the 2023 Sanlam Transformation Gauge report found listed companies in the majority of sectors underperformed compared to their unlisted companies, in some sectors by a large margin. “While there is no apparent reason for this disparity, one possibility is that the balance sheets in the listed space are much larger than in the unlisted space, which in turn begs the question of how businesses are being funded,” said Sanlam chair Elias Masilela. Words need to be turned into action Previous Sanlam Transformation Gauge reports have highlighted BBBEE policy’s reliance on measuring inputs as opposed to outputs. In other words, it measures what a company spends on skills development, as one example, but does not measure the effectiveness of the skills training. In the absence of embedded monitoring and measurement mechanisms, it’s impossible to determine if the intended outcomes and impact are being achieved or not. This continues to be the case in 2023 with Matona conceding that these shortcomings are valid concerns. The unintended consequence of not measuring impact is that “these matters become relegated to a tick box exercise”, he said. This year's Sanlam Transformation Gauge Conference included a panel discussion on the “lived experience of BBBEE” vs the research findings. Panellists included Tabea Kabinde, chair of the Commission of Employment Equity, transformation consultant Litha Kutta, co-chair of the Enterprise & Supplier Development Community of Practice; Nozizwe Vundla, head of the Sanlam Foundation, Mamkeli Jim, a dealmaker in leveraged finance at RMB, and Disa Mpande, acting CEO at merSETA. They all agreed that the thinking regarding BBBEE needs to be reframed and more needs to be done to enable meaningful change. Other panel discussions at the event echoed a consistent theme: to enable real transformation, words need to be turned into action — with more opportunities for collaboration to be uncovered. “Collaboration is a key enabler in addressing some of the critical social ills that are facing our country,” says Ray-Ann Sedres, chief transformation officer at Sanlam. “We need to instil hope in our youth by working together to create more equitable opportunities to become economically active, thriving members of society.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/news/south-africa/2023-07-31-native-sanlam-transformation-gauge-survey-reveals-a-mismatch-between-bbbee-scorecards-and-reality/

Dineo Faku | 30 July 2023 Transforming the “C-suite” in South African companies to reflect the country's demographics continues to lag, according to the latest Sanlam Transformation Gauge released last week. The report was produced by financial advisory firm Intellidex and sponsored by Sanlam in conjunction with Business Times and Andile Khumalo. The third edition of the report looked at B-BBEE scorecards of 14,542 companies in 10 sectors focusing on black ownership, management control, skills development, enterprise and supplier development, and socioeconomic development. The report said despite the improvement to 69% in 2023 from last year's 56%, management control had been the worst-performing segment since the report was established three years ago. More than half of the B-BBEE verification agencies that responded to the survey said racism was the reason corporate South Africa resisting appointing black people to management positions, while 23% flagged skills as a hurdle. In his message in the report, Bonang Mohale, president of Business Unity South Africa, said economic justice and fairness were required to boost economic growth. “Asking for a hand up is not the same as asking for a handout. B-BBEE is not a permanent crutch on which black people want to lean for the rest of their lives.” He said succession planning was key in transforming top management. “When you have black people and women in the C-suite, they will find other competent, professional and experienced black people. They will also enrich our collective culture, thought processes, strategies and priorities.” “C-suite” refers to senior executives whose titles often start with the letter “C”, such as chief executive officer, chief information officer and chief financial officer. Speaking at the launch of the report, Sanlam chair Elias Masilela said attitudes had not changed and corporate South Africa was paying lip service to transformation. “Why is BEE so elusive when we believe it is relevant to change our futures? It is not the policy, it is incumbents' attitudes, it is racism and corruption.” Masilela said South Africa needed to look at the underlying reasons why B-BEE had not worked. “Let us not deal with the symptoms, let us deal with the causes or the sources of the problems that bring us to where we are. Let us not blame the design, but the manner in which we implement and the conviction with which we implement. “Do not throw out the baby with the bath water. Replace the water and make sure it is cleaner and properly soaked.” Litha Kutta, co-chair of the Enterprise and Supplier Development Community of Practice, said South Africa needs to implement punitive measures by imposing fines of 10% of revenue on companies that fail to comply with codes. “For me it is the punitive side that is lacking. We can talk until we are blue, but until we fine people nothing is going to happen. We can have discussions and change the codes; absolutely nothing is going to happen.” The Employment Equity Amendment Act became law in April, giving the minister of employment and labour powers to impose targets in each sector for companies with 50 or more employees. Kutta said patronage undermined enterprise and supplier development. “Protecting the patronage system is fundamental to not dismantling the supply chain by bringing in people you do not know.” Tabea Kabinde, chair of the Commission of Employment Equity, said legislation for foreign nationals at top management should be scrutinised. “They are given work permits that are supposed to last for a certain period, but the reality is it keeps getting extended and my question is, why? “Why is it that as a country we are not getting to a place where we say skills development has got to work for us? ... We need you as much as you need us. Therefore, we are both going to make it work. I think we need to get to a point where we take the bull by the horns.” Disa Mpande, acting CEO of merSETA, said the report showed that skills training was a box-ticking exercise. “The critical skills needed to drive the economy — we are not training on them. We do skills development needs of each province and we were shocked that North West does not have engineers. How does it make sense when North West is the mining belt?” Mamkeli Jim, dealmaker for leveraged finance at RMB, said that despite challenges, B-BBEE had created monetary value for black entities 30 years into democracy. “There is probably northwards of R100bn that is sitting within black investment holding companies. You can look at that and say it is still small relative to the bigger pie, you can look at it and say it is a smaller grouping relative to the population of black people or you can say at least we are lucky there has been value and money sitting in black hands. There is a lot of value here that without BEE would not be happening; there are businesses that are started,” Jim said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/sunday-times/business/business/2023-07-30-racism-behind-lack-of-diversity/

Shona Buhr | 30th July 2023 NTGR Engineering, a local engineering company, was recently crowned the fastest growing black-owned small, micro and medium enterprise (SMME) of the year during the 2023 Netbank Top Empowerment awards at the Indaba Hotel, Sandton. NTGR Engineering collected multiple awards for 2023, including a Mining Equipment Manufacturers SA (Memsa)award for Excellence in Digitised Services. Memsa awarded NTGR Engineering the award for adopting technological solutions for improved value-added services to clients. The awards have now hit their 22nd instalment in honour of outstanding leaders and companies in South Africa which have demonstrated a remarkable commitment to empowerment and transformation. These awards have become the pinnacle of recognition for the country’s business elite, celebrating their inspiration, vision, innovation, leadership and action in driving empowerment and transformation. Sponsored by Pepsico, the fastest growing black-owned SMME of the year award recognises companies that have demonstrated remarkable growth and have a strong commitment to empowerment. The category highlights businesses that have shown a year-on-year turnover growth of 20% in the last financial year, with a turnover ranging from R5-million to R35-million. Finalists are required to have at least a Level 1–4 B-BBEE scorecard or 50.1% black ownership, along with a minimum operational period of two years. In competition for the same category were 13 other companies such as Y-Brand, ProcureSense, Woodtech Concepts and Basadi Group. Other companies honoured during the awards include African Bank, Coca Cola Beverages SA, Sasol, Nestle and Sun International. Managing director of NTGR Engineering Abednico Mkhari said: “This award is truly affirming to us as a company and it tells a story of the hard work, commitment and determination of our team who work tirelessly to implement our growth strategy across our divisions. “As a business, we are committed to creating value for our clients, making a real impact in the communities we serve and contribute immensely to the socioeconomic growth of our country. “In 2022, we embarked on a momentous journey to penetrate the SADC region and are pleased to announce that we have made inroads in the DRC, Botswana and Mozambique through strategic partnerships and collaborations.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/ntgr-wins-fastest-growing-smme-2023-award/

Goitsemang Matlhabe | 27 July 2023 Johannesburg - The face of unemployment in South Africa is – according to the 2022 National Human Development report – young, black females. The report detailed that during the third quarter of 2021, South African blacks in comparison to other race groups were standing at an unemployment rate of 39%. This was at least 9% higher than that of coloured South Africans and 30% higher than that of white people. It further indicated that youth unemployment in the country was, however, also correlated with the educational levels of the youth. It revealed that a staggering 40% of unemployed youth did not possess a matric certificate, while that figure was 37% for youth with a certificate. In comparison, it added that the number of young unemployed graduates stood at 13%, which was 22% lower than the national average. The report was officially released by the Human Sciences Research Council (HSRC) alongside the UN Development Programme (UNDP) under the guidance of the country’s Deputy President Paul Mashatile and Social Development Minister Lindiwe Zulu in Tshwane. “Prolonged joblessness can lead to a lost generation through the erosion of skills and human capital. We need to wean the youth from dependence on social grants to productive employment, and entrepreneurship is critical to addressing this crisis,” said UNDP resident representative, Dr Ayodele Odusolaa. In officiating the report, Mashatile said he agreed with the UNDP that the high unemployment rate in the country was a “ticking time bomb” waiting to happen. He said it was for this reason that the country would simultaneously address poverty and income equality alongside youth joblessness as a developmental imperative. “To compete among the BRICS nations and the world on a sustained and sustainable basis, we cannot but empower the youth to acquire the skills of the 21st century.” He added that government efforts to empower young people had to be premised on a growing and inclusive economy; hence, it was crucial for stakeholders to act in unison to re-industrialise and grow the country’s economy. Although the report found that South Africa faced the triple threat of slow growth, deep poverty, inequalities, and high levels of joblessness, the country still had the capability to overcome the challenge of youth unemployment. Some suggestions were for the country to be ready to seize the opportunities while minimising the associated risks. And to learn from the youth employability experiences of other countries, and most importantly, to draw on the policy options available. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/news/young-black-females-are-most-unemployed-in-sa-2e9bc7da-a6f6-4853-b82b-aff9714bcc55

Rudolf Rautenbach | 26 July 2023 Service delivery is a problem in almost every municipality, but some elements could be outsourced to small black-owned enterprises. Councils can use elements of the scorecard to develop the skills they need and support local businesses. Many businesses that service local municipalities are probably aware of a black economic empowerment (BEE) requirement to do business with that municipality. Typically this means the submission of a BEE scorecard or affidavit along with the bid. Unfortunately, this aspect of BEE is often the only thing that the municipality itself is aware of. Most municipalities are unaware that they are, in fact, legally obligated to not only measure their procurement spend but implement an entire BEE scorecard for their municipality. The uptake of BEE compliance in organs of state (including municipalities) is so dire that the BEE Commission, in its National Status and Trends on Broad-based BEE Transformation Report 2021, observed that of the 326 organs of state, only 82 submitted BEE reports to the commission, something that the BEE Act compels them to do. Interestingly of these 82 entities, one-third were non-compliant. The BEE Commission might not appear to carry much weight in this process, but the auditor-general may flag this as non-compliance in that entity’s overall governance, which may impact a municipality’s clean audit status. Many municipalities are far behind on service delivery and need to show their constituents that they are making progress towards a good governance track record. Most people think about black ownership as being the most important element of BEE compliance. But in the case of municipalities, ownership isn’t a consideration at all. Municipalities are, after all, ‘owned’ by the government and hence are exempt from the ownership element. They are, however, required to implement programmes and measure their performance each year in the form of a BEE scorecard. Creating cohesion This article is not about what is required for a municipality to comply with a scorecard. Instead, we have chosen to look at how the implementation of a BEE programme can create greater cohesion within a community. To illustrate, we have only focused on three of the four elements. The first one is the skills development of black people. Some of the budget can be used on internal staff, but a lot of the money could be used for the development of core and critical skills in the community that could lead to better service delivery and more efficient governance. We have come across bursary schemes in local communities that aim to develop young people in competencies that strive toward better service delivery. All of these programmes contribute to the skills development scorecard. In one rather unique situation, a municipality paid for the education of one individual while that person was undergoing an internship in a local business. Procurement of local goods and services does not have to be concentrated on black-owned businesses exclusively. Any business with a turnover of less than R10 million need only complete an affidavit, and they are automatically BEE compliant. By supporting these types of businesses as well as black-owned businesses, municipalities are encouraging local employment. These companies can talk to municipalities about the skills they require so the municipality can start working on the development of those skills and prioritising them in their skills development programme. Service delivery is a problem in almost every municipality. Some of that service delivery can be outsourced to small black-owned businesses. This needs to be tied into the skills development programme that we discussed above to achieve a sustainable service delivery programme. These small businesses will need equipment, raw materials and other goods and services, all of which can be sourced from the businesses in the community. And finally, a municipality-driven programme that focuses on programmes like early childhood development will pay dividends for the next generation to come. Each of these programmes contributes to an ultimate BEE level in the municipality’s BEE scorecard. Not only has the municipality complied with the law, but it has made a positive difference in its communities. It has created the necessary skills, developed small businesses, purchased from those small businesses as well as many of the other small businesses in its communities and, on top of that, invested in the future of its ratepayers. In other words, they’ve delivered on their mandate and coincidentally complied with a BEE scorecard which, at the outset, seemed so complex. Rudolf Rautenbach is a chartered accountant. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/moneyweb-opinion/soapbox/municipal-bee-compliance-could-lead-to-better-service-delivery/

The Star : 27 July 2023 Johannesburg - On the evening of July 20, 2023, at the Indaba Hotel in Johannesburg, Topco Media and Impumelelo Top Empowerment Companies presented the 22nd annual Top Empowerment Awards Ceremony. The awards ceremony highlighted and celebrated South Africa's purpose-led transformers, highlighting their responsibility and dedication to ensuring a transformed and empowered future for the country. Alan Committie, a gifted actor and comedian, emceed the event and set the tone for an evening of acknowledgement and inspiration. Distinguished guests, transformation captains, and business leaders gathered to celebrate the significant strides organisations and individuals have made in promoting black-owned businesses and empowering people from all walks of life. ‘’I am immensely proud to extend my heartfelt congratulations to all the winners and runners-up of the Top Empowerment Awards 2023,’’ Ralf Fletcher, CEO of Top Media, said. ‘’Their remarkable achievements and unwavering commitment to transformation have made an indelible impact on South Africa's economy and society. As we celebrate the 22nd annual Top Empowerment Awards, it is evident that each of them is a catalyst for positive change, driving us towards a more inclusive and prosperous future.’’ ‘’This prestigious event brought together industry leaders, trailblazers, and visionaries who exemplify the true spirit of empowerment. Their dedication and hard work inspire us all, and I am truly honoured to witness the exceptional strides they have taken in advancing our nation.’’ The top winners of the evening include: 1. Top Empowered Company: Fast Growth Black-Owned SMME of the Year Award Winner: NTGR Engineering Representative: Abednico Mkhari, Director, NTGR Engineering Runner-up: Y-BRAND 2. Top Empowered Company: Sustainable Business of the Year Award Winner: Sun International Representative: Anthony Leeming, Chief Executive, Sun International Runner-up: Coca-Cola Beverages South Africa 3. Top Empowered Company: Diversity, Equity, and Inclusion in the Workplace of the Year Award Winner: Exxaro Recipient: Dr. Nombasa Tsengwa, CEO, Exxaro 4. Top Empowered Company: Digital Transformation of the Year Award Winner: Liquid Intelligent Technologies Recipient: Trishen Moodley, Head of Information Technology, Liquid Intelligent Technologies 5. Top Empowered Company: Public Sector of the Year Award Winner: CEF Group Recipient: Dr. Tshepo Mokoka, Chairperson, CEF Group 6. Top Empowered Company: Education and Skills Development of the Year Award Winner: BP South Africa Recipient: Taelo Mojapelo, CEO, BP Southern Africa 7. Top Empowered Company: Enterprise and Supplier Development of the Year Award Winner: African Bank Recipient: Edna Montse, Group Executive Transformation and Sustainability, African Bank Runner-up: Rennies BCD Travel 8. Top Empowered Company: Socio-Economic Development of the Year Award Winner: Sasol Recipient: Brenda Nkosi-Bakare, Head Governance, Compliance, Planning, and Management, Sasol Runner-up: Oceana Group Limited 9. Top Empowered Company: Job Creation Award of the Year Winner: Schneider Electric Recipient: Kim Naidoo, HR Lead, Schneider Electric Runner-up: Exponant 10. Top Empowered Company: Youth Development of the Year Award Winner: Nestlé Recipient: Nicole Roos, Managing Director, Nestlé 11. Top Empowered Company: Public Sector Leader of the Year Award Winner: CEF Group, Zinhle Thupana Recipient: Zinhle Thupana, Group Executive Corporate Service, CEF Group 12. Top Empowered Entrepreneur of the Year Award Winner: TakeNote IT, Mamela Luthuli Recipient: Mamela Luthuli, Director and CEO, TakeNote IT Runner-up: Mandate Molefi, Nene Molefi 13. Top Empowered Young Achiever of the Year Award Winner: Dimension Data, Natalie Musonda Recipient: Natalie Musonda, Head of Diversity and Sustainability, Dimension Data Runner-up: AfroCentric Health, Dr. Abongile Qamata 14. Top Empowered Business Leader of the Year Award Winner: Methano Group, Sereme Joel Maphaka Recipient: Sereme Maphaka, CEO, Methano Group 15. Top Empowered Business of the Year Award Winner: Merchants Recipient: Sydwell Shikweni, Vice President of Transformation, Merchants Nedbank, Inseta, Amis, SAB, Bathu Shoes, and PWC were among the Legends of Empowerment who received special attention at the event. The Lifetime Achiever Award, the greatest honour of the illustrious occasion, is given to a person who has made a lasting contribution to Africa's transformation. Velaphi Ratshefola, the managing director of Coca-Cola Beverages South Africa, received this honour. After being named managing director of Coca-Cola Beverages South Africa in 2016, Velaphi Ratshefola oversaw the consolidation of six distinct organisations to create CCBSA. Velaphi's outstanding management has brought CCBSA numerous supplier and global honours. But his dedication to elevating women doesn't stop there; it also shows in the Women@CCBSA programme, which develops female talent and promotes representation in leadership. Beyond only making money, Velaphi's goal is to have a lasting constructive influence on society by providing economic, social, and environmental benefits. Transforming South Africa: Celebrating the Visionaries Distinguished judges who were instrumental in choosing the winners were present for the event, including Tshepo Ncube, Head of International Coverage at Absa, and Noah Debeila, President and CEO of the SMME Chamber of Commerce. ‘’Together, we will continue to push boundaries, break barriers, and shape a future where equality and opportunity flourish. I have every confidence that the impact of the awards will resonate far beyond the evening, inspiring countless others to join the movement towards a more connected, inclusive, and prosperous South Africa,’’ Fletcher said. ‘’Congratulations, once again, to all the winners and runners-up. Your passion and dedication to transformation have set an example for us all. Thank you for being the driving force behind change, and I eagerly look forward to witnessing your continued success and impact on our beloved nation.’’ The Star ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/partnered/the-top-empowerment-awards-2023-celebrate-transformation-pioneers-7cd76534-0268-43e8-85e6-4f7164cdae1e

Justin Chadwick | 25 July 2023 In 2019 the Citrus Growers Association (CGA) launched a R307 million Economic Transformation of Black Citrus Growers (ETBCG) Programme in partnership with the Jobs Fund, Land Bank, Department of Agriculture, AGRISETA, the LIMA Rural Development Foundation and FNB. We are proud to announce that over the past 3 years just over R161.3 million of this funding has been approved and R78.9 million disbursed to support black grower citrus operations, creating 78 permanent and 625 seasonal jobs in total, and enabling 208 hectares of new trees to be planted. The ETBCG Programme was launched following the CGA applying to the Jobs Fund for a project that would make funding and technical support available to black citrus growers for orchard establishment, expansion and rehabilitation, as well as on-farm development of various infrastructure including packhouses, bulk-water supply and irrigation systems. The Jobs Fund committed R118 million to the project, with the Land Bank agreeing to contribute an additional R116 million in loan funding. The CGA contributed R24 million, while the Department of Agriculture and AGRISETA pledged R34 million and R12 million respectively. The LIMA Rural Development Foundation was engaged as project manager and FNB was appointed the commercial-funding partner following a tender process. What has made the ETBCG Programme unique, when compared to other transformation programmes, is the way the funding has been structured. Beneficiaries have received 36% of their funding as a pure grant, which has helped reduce their debt levels and assisted them in being able to make repayments. The remaining 64% has been structured as a blended loan at lower than prime interest rates. Another major focus area has been skills development of beneficiaries to make them self-reliant as well as training in surrounding communities so they can be employed by these farming operations. To qualify for funding, growers have to have a minimum of 60% black ownership (of both assets and operations) as defined by the B-BBEE Act of 2013, while priority has also been given to enterprises with 100% black ownership. Most importantly, applicants also needed to demonstrate that they would create permanent and seasonal job opportunities with the development funding. While the ETBCG Programme was launched in 2020, the COVID-19 pandemic impacted its roll-out, as well as a number of new challenges faced by the local citrus industry over the past three years, which has threatened the sustainability and profitability of farming operations. These include a major hike in farming input costs and freight rates as well as load shedding and operational issues at ports. Despite these challenges, we are pleased that the programme has disbursed R78.9 million to eight successful black farming operations across the country, with these funds being used towards access roads, land preparation, irrigation infrastructure, farm equipment, vehicles, fencing, packhouse equipment, a de-greening room, generators, a solar system, and a substation. Farmer Buyiswa Ndyenga from Sikhula Sonke Enterprises near Addo in the Eastern Cape says the programme helped considerably on their five farms. “The money came at the right time," she said. "The price of everything went up and citrus farmers were struggling. But the Programme's money helped us plant new orchards and erect a 9 km fence to stop the stealing of fruit." Luthando Farms near Kirkwood in the Eastern Cape was also a beneficiary of the programme. Farmer Nonkwanele Mzamo says a lot of work still lies ahead: "I am passionate about creating jobs. Because of the fund, it is easier to create jobs, and that feels good. Now we need to sustain these jobs." The CGA is extremely proud to be part of this ground-breaking programme, which has not only provided a major leg-up for black growers, who usually struggle to obtain loan funding and financial assistance, but has also focused on transferring skills to these farmers as well as creating new jobs in surrounding communities. The local industry has predicted that citrus exports could grow to 260 million (15 kg) cartons annually by 2032 if all role-players work together. With transformation of the industry a key priority over the next ten years, a target for black citrus growers’ contribution towards the overall 260 million vision has also been set, namely 50 million cartons annually. We believe the ETBCG Programme will contribute towards achieving this goal by assisting and supporting growers to expand their operations and export their produce to key markets across the world. The deployment of funds under the programme is expected to continue until March 2024, which will be followed by a monitoring period that will take place for another two years. The CGA would like to thank all the partners that have made the programme possible: the Jobs Fund, Land Bank, Department of Agriculture, AGRISETA, the LIMA Rural Development Foundation and FNB. We look forward to the ETBCG Programme continuing to support the increased participation of black citrus growers in the industry and in this way, contribute towards meaningful and sustainable transformation within the agricultural sector. Issued by CEO of the Citrus Growers Association (CGA), Justin Chadwick ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/r789-million-disbursed-to-black-citrus-growers-under-the-economic-transformation-of-black-citrus-growers-programme-2023-07-25