A QSE that is more than 51% Black Owned qualifies for Enhanced Recognition, which means that an Affidavit is the only B-BBEE Credential they have to present. Paragraph 5 of Statement 000 published in Gazette #42496 makes the following allowance for Enhanced Recognition: 5. ELIGIBILITY AS A QUALIFYING SMALL ENTERPRISE (QSE) 5.1 A Measured Entity with an annual Total Revenue of between R10 million and R50 million qualifies as a Qualifying Small Enterprise. 5.2 A QSE must comply with all of the elements of B-BBEE for the purposes of measurement. 5.3 Enhanced B-BBEE recognition level for QSE: 5.3.1 Despite paragraph 5.2 above, a Qualifying Small Enterprise which is 100% Black Owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level One Contributor” having a B-BBEE recognition level of 135%. 5.3.2 Despite paragraph 5.2 above, a Qualifying Small Enterprise which is at least 51% Black Owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level Two Contributor” having a B-BBEE recognition level of 125%. 5.3.3 A Black Owned QSE in terms of paragraph 5.3. above, is only required to obtain a sworn affidavit on an annual basis, confirming the following: 5.3.3.1 Annual Total Revenue of between R10 million and R50 million; and 5.3.3.2 Level of Black ownership. 5.4 Despite paragraph 5.3 a black-owned QSE may be measured in terms of the QSE scorecard should it so choose. 5.5 Any misrepresentation in terms of Para 5.3 above constitutes a criminal offence as set out in the B-BBEE Act as amended. QSE Services are available to members with any queries relating to the above.

Here are three tips for avoiding the common conflict that many organisations face regarding what version of a B-BBEE Code of Good Practice is applicable to them: Organisations must comply with the requirements of the B-BBEE Code of Good Practice they qualify to be measured against. For example, an organisation that does not earn 50% of its annual revenue from a sector that has a B-BBEE Sector Code issued in terms of Section 9 (1) of the B-BBEE Act must revert to be measured on the Amended General B-BBEE Codes of Good Practice. In 2019 there were amendments to the Amended General B-BBEE Codes of Good Practice, namely in Statement 000, Statement 300, Statement 400 and Schedule 1 – Interpretations & Definitions. These amendments only apply to those measured on the Amended General B-BBEE Codes of Good Practice. As to date none of the Sector Codes have been amended to incorporate these amendments, they do not apply to those measured on a B-BBEE Sector Code. The Transport Sector Code has not been amended since it was introduced in 2009. Subsequently, an organisation falling into this ambit is still measured against the requirements of the initial B-BBEE Codes of Good Practice implemented in 2007. Consequently, an organisation measured on the Transport Sector Code has not yet faced the consequences of not meeting sub-minimum requirements of the Priority Elements or the Discounting Principle. However, the Y.E.S initiative is applicable to the Transport Sector based on a Clarification Statement issued in February 2020. Lastly, if a Sector Code, either amended or not, is silent on an issue, an organisation must revert to the requirements held within the Amended General B-BBEE Codes of Good Practice. It is, however, vital to know the difference between Silence vs Conflict in the context of B-BBEE Legislation to avoid any issues. Technical Compliance Services are available to help members understand the difference between Silence VS Conflict under B-BBEE legislation.

Early payments apply to Supplier Development Beneficiaries only. Clause 3.7 in Statement 400 of the Amended General B-BBEE Codes of Good Practice outlines the definitions, as well as the only circumstance in which a Large Enterprise can qualify for early payments: “3.7 Beneficiaries of Supplier Development or Enterprise Development are EMEs, QSEs or Generic Entities which are at least 51% Black Owned or at least 51% Black Women Owned utilizing the flow through principle. However, in terms of Generic Entities, this is based on the provision that at the first instance of receiving assistance from the Measured Entity, it was identified that such suppliers were EMEs or QSEs. This recognition for Generic Entities will only be allowed for 5 years from the first time of receiving assistance from the Measured Entity.” Enterprise & Supplier Development Services are available to help members determine how to claim Early Payments.

Ashley Lechman | 5 November 2023 Two entrepreneurs in the energy sector in South Africa have come together to assist and train other small businesses to get ahead in their respective fields. Hleziphi Siyothula-Mtshizana, the founder and CEO of In Pursuit Renewable Energy, a services company offering cost-effective alternative energy solutions, believes that her organisation can play a positive role in addressing the country’s energy crisis, and make an important contribution to developing skills in the RE environment. The company currently employs four people. Long-time university friend and founder and managing director of the non-profit organisation KgabisoPalesa Cares (KP Cares), Kgabiso Palesa Sephai, is passionate about the provision of training to youth and communities in renewable energy, as well as skills development in energy efficiency, solar PV systems and battery storage. KP Cares has trained 100 young people and 10 SMMEs, with 40 of the young people currently placed on internships with various host companies. KP Cares currently employs 14 people. Forging a partnership with the Energy and Water Sector Education and Training Authority (EWSETA) and The Innovation Hub, KP Cares managed to capacitate SMMEs with essential business training. “Our partnership with The Innovation Hub, which ultimately benefits SMMEs within the sectors we serve, responds directly to several strategic focus areas for the EWSETA in that it not only capacitates SMMEs operating within the energy and water sector, but also seeks to develop much-needed sector knowledge and skills, particularly in the RE sector,” said Mpho Mookapele, CEO of EWSETA. “In addition, the support being provided to these specific beneficiaries addresses the strategic imperative of increased gender representation in the energy space that for too long has been dominated by males,” Mookapele further said. Siyothula-Mtshizana and Sephai have both made their own mark on the energy sector. They are both qualified electrical engineers and understand the challenges women face in this environment. It is for this reason that they place extensive emphasis on ensuring that women are given access to the sector. Siyothula-Mtshizana said; “We started operations in 2017 and have worked hard at establishing the company and the brand, but the Innovation Hub training will capacitate us with increased knowledge that will open doors and provide opportunities for growth, and ultimately enable In Pursuit Renewable Energy to fulfil its goal of growing and developing young people who have their sights set on a future in the alternative industry sector.” Sephai told “Business Report”: “KP Cares has been able to make a difference in the lives of many to date, but with our focus on driving youth skills development through internships, we aim to do even more in the future, and this opportunity that has been presented by EWSETA will help to achieve this.” The two women are part of a cohort of 10 SMMEs from Gauteng, KwaZulu-Natal and North West who are participating in The Innovation Hub’s ongoing energy efficiency training programme for businesses that aim to deliver valuable energy efficiency services to the various markets. The programme facilitators and team have compiled an empowering and informative programme for entrepreneurs participating in the programme. “The SMMEs participating in this programme were carefully selected in terms of their business model and aims and I believe that this programme will be successful in achieving the desired skills development impact,” Mookapele said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/energy-sector-entrepreneurs-and-long-time-friends-come-together-to-train-and-assist-other-smmes-77d4959e-b863-47a8-95a0-2a3d2a00c981

Bongani Mdakane | 6th November 2023 The Competition Commission has demanded that energy giant Vitol increase the number of fuel stations owned by historically disadvantaged people as part of an array of conditions it imposed on it in its pursuit to buy a controlling stake in Engen. The competition tsar this week recommended that the Competition Tribunal approve the deal that will see Vivo, a unit of the Swiss-based Dutch multinational energy group, Vitol, buy a 74% stake in Engen from Petronas. Engen has about 1 300 service stations in seven African countries and is part of the Malaysian oil and gas group, Petronas. Vivo, a unit of Vitol Group, has more than 2 600 service stations across 23 African countries and uses the Engen and Shell brands. Former MTN boss Phuthuma Nhleko’s Phembani Group, a long-standing Petronas partner in Africa and Engen’s BEE shareholder, will continue its association with Engen and will retain its 21% of the South African business. Another condition put forward by the commission is that the merged entity must increase levels of localisation across the value chain, develop historically disadvantaged persons-owned suppliers, establish a new employee share-ownership plan for the merged entity’s employees in South Africa and put a moratorium on merger-specific retrenchments. The commission watchdog said the proposed merger raised significant competition and public interest concerns, hence the conditions attached to the deal, to get its approval. “In South Africa, the Engen Group imports, supplies, and distributes refined petroleum products to the retail market. It also earns revenue from retail convenience services provided at these service stations. The Engen Group also provides refined petroleum products to resellers and large customers through its commercial division,” the commission said. “The division also blends lubricants to create refined petroleum products which are supplied to its retail and commercial customers and distributors. It exports its products to Namibia, Botswana, Eswatini and Lesotho.” This deal comes as the local industry faces a shortage of refineries, with the country increasingly reliant on imports. Supply line disruptions are at risk, as highlighted by the Transnet strike last year, which affected operations at the Durban port. In another deal, the commission unconditionally approved the transaction that will see Aspen Pharmacare buy the promotion, sales and distribution rights relating to 23 pharmaceutical products supplied in South Africa, by Lilly SA. The $41.5-million deal was first announced in August. “The commission found that the proposed transaction is unlikely to result in substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction does not raise any substantial public interest concerns,” it said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/black-players-set-to-benefit-from-engen-deal/#google_vignette

Isabel van Gend | 6 November 2023 GARDEN ROUTE | KAROO NEWS - The South African government recently published a revised critical skills list. This register of 142 occupations includes those skills the government considers to be critically needed in the country and fundamental to stimulate economic growth and development. Compiled after extensive engagement between government departments, academic institutions, professional bodies and businesses, the intention of the critical skills list is to attract highly qualified foreign nationals to work in South Africa and fill the gaps in those listed occupations. But, while the focus is on foreign nationals, these critical skills also provide work and study opportunities for South Africans. Learners and their parents, job seekers, educators and employers all need to be aware of these skills shortages, as they make decisions about career paths, education resources and hiring strategies. The country’s official unemployment rate stands at 32.6% - the highest in the world, according to the World Bank. But to ensure that we build the skills base that South Africa so desperately needs, we can’t afford to focus on current job seekers. Learners in Grade 9 or preferably those even younger, must be guided in taking the right subjects to increase their opportunity to secure employment after leaving university. For a significant number of the occupations on the critical skills list, you need a background in maths and physical science. However, these subjects are perceived as difficult or having no tangible value in the real world, and so they are avoided by learners. In marginalised schools, if there are 250 Grade 12s, as few as 6-25 take physical science up to matric level. The percentage of learners in rural areas choosing physical science is even less than in urban areas, while some schools are phasing out maths and physical science completely, because of the low uptake by pupils and the pressure on schools to achieve pass rates. What many learners and parents are failing to realise is that maths and physical science are gateway subjects that can have a significant impact on what a learner can apply to study at university – and their future job prospects. In addition, the country needs skills in Science, Technology, Engineering and Maths (STEM) or it risks being left behind by all the other nations progressing with their Fourth Industrial Revolution initiatives. STEM in ACTION One of our missions at Nelson Mandela University is to create awareness of non-traditional STEM careers and provide support to learners and educators. By helping to promote and develop critical maths and physical science skills, our goal is to ultimately increase the number of learners who qualify to study science and technology in the Eastern Cape. Started 14 years ago, and sponsored by Sanral, STEM in ACTION is an education support programme within the Faculty of Engineering, the Built Environment and Technology, where learners and educators are taught by Mandela University facilitators, in laboratory sessions at our Missionvale Campus. We believe that you learn most effectively when more than one sense is involved, and so we take a “hands-on, brains-on” approach to learning. By using practical activities, you create a concrete experience for a very abstract subject. By experiencing science first-hand, our aim is to excite learners, make the subject memorable and motivate learners to start considering possible STEM career paths. STEM in ACTION includes a variety of education support projects including the Selected Learner Project, the Selected Schools Project, and Educator Development. The university works with marginalised but functional schools in the Nelson Mandela Bay metropole, transporting learners to and from the campus, and providing a light meal. With the Selected Learner Project (SLP), Grade 10 and 11 learners who achieve 65% or more in physical science and maths and have the potential to study for a degree in engineering are chosen. Learners take part in experiments that they would not have at their own schools, including exposure to coding and programming interventions. With the Selected Schools Project (SSP), schools in the metro are carefully chosen and invited to the university where they have access to sophisticated equipment to be able to perform curriculum-aligned experiments for Grades 8-12 in physical science. Selected learners are also identified and provided with the opportunity to attend extra weekly classes, where the most problematic physical science concepts are retaught. For many learners, there is immense pressure from their parents to enter the accounting, legal or medical fields, as these are perceived as careers where you make enough money to take care of your entire family. The intention of the SLP and SSP programmes is to inform the learners about non-traditional careers in the STEM fields and empower them to apply for these degrees. Transforming education begins with teaching teachers Learners come into the programmes and then leave. If you want to make more impact, you need to focus on teachers. Nelson Mandela University is one of six South African universities that form part of the University of the Free State (UFS) Collaboration. UFS has developed two programmes, Family Maths and Key Concepts in Science, that are being introduced to schools in the metro. The university also trains facilitators to teach teachers. Every year an average of 37 Grade 8 and 9 teachers are selected and exposed to teaching, learning and laboratory skills that they can then apply at their own schools. In addition, they are supplied with worksheets, resources, and equipment, to again reinforce the hands-on, brains-on teaching approach. It’s the fourth year that Mandela University has partnered with UFS, and the programme has been so successful that it is being expanded to areas outside of the metro such as Makhanda (Grahamstown) and Graaff-Reinet. STEM in ACTION has been running since 2010 and while the feedback from schools and learners is all resoundingly positive, its influence is a drop in the unemployment ocean. The impact on learners is dependent on numerous factors, including how motivated the learners are and how much support they get at home. Hardworking students with potential, who have a strong support network, will feel more confident in their own abilities, and can excel in physical science or maths. If a learner has a natural aptitude for these subjects, we encourage them to consider STEM careers as their chances of employment are far greater, and with it the ability to financially support themselves and their family. But it takes a team effort to inspire learners and to be the anchor they need to make good choices for themselves, their futures and that of the country. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.georgeherald.com/News/Article/LifeStyle/stem-subjects-are-key-to-getting-south-africa-s-youth-employed-202311061211

Colin Windell | 7 November 2023 BMW South Africa will undertake an extensive test cycle for hydrogen fuel-cell vehicles next year in collaboration with Anglo American Platinum and Sasol, the latter being the supplier of the green hydrogen and these vehicles will operate locally as part of an international trial of the alternative fuel. This, and the fact BMW is in the process of gearing up its Plant Rosslyn facility to manufacture the next generation X3 plug-in hybrid forms part of a massive transformation taking place within the company locally and in each BMW operation on a global scale. The word transformation in the South African context is all too often used in an accusatory manner and very much limited to BEEE scores (or the lack thereof), rather than being seen in a celebratory way – and in the case of BMW South Africa, this is how it should be seen. As a Group, BMW is changing its entire ethos from the ground up and throughout every single department to direct its efforts to be sustainable, eco-efficient and as much about people as it is about cars and mobility. Within the South African context, this ranges from re-using test electric vehicle batteries to help keep the lights on at a school in Soshanguve, providing day-care for toddlers at the plant so parents can bring their children to work with them and operating a ‘no waste to landfill’ philosophy. “At the BMW Group, we take responsibility for our impacts on the world. Sustainability is not only at the centre of our current global strategy, but something that has long been entrenched in our corporate culture,” says Peter van Binsbergen, CEO of BMW South Africa. “When it comes to decarbonisation, our objectives are among the most ambitious in the car industry. We are committed to the Paris Climate Agreement, which means we are transforming our entire value chain in line to limit global warming to 1.5°C. “We will halve the C02 emissions per kilometre driven of every car we manufacture by 2030, and by taking responsibility for the emissions produced over the entire life cycle of each vehicle – from the supply chain, through production, to the end-of-use phase – we will achieve a 40% reduction in carbon dioxide emissions in the same time frame.” Member of the Board of Management at BMW AG and Labour Relations Director, Ilka Horstmeier says: “At the BMW Group, we are embracing circularity by modifying our design processes, using resources more efficiently and closing material loops. “We aim to increase the percentage of secondary materials in our vehicles by up to 50%. This will rely on a significant increase in the availability of recycled material, which we plan to facilitate by working closely with our suppliers.” At Plant Rosslyn, the water used to wash vehicles as they come off the line is recycled back through the paint shop and that waste water is then recycled again for irrigation while packing material from suppliers also gets a new life, particularly the polystyrene packaging that is sent to Envirolite in Cape Town for conversion into building bricks. At the famous round building in Midrand, when the slate roof required replacement the roof tiles were repurposed into the campus gardens as seating, rather than ending up in a landfill. Plant Rosslyn has about 2,500 employees and provides jobs – through its first and second-tier suppliers – to 14,500 South Africans. “Our approach to development and learning is holistic starting from the infant stage through our Early Learning Centre which is situated on the premises at Plant Rosslyn. This educational facility caters for employee's children from ages 3 to 6 years old and follows the national education syllabus,” says Van Binsebergen. “For the next step of the journey, we have partnered with schools, the Ntsha Peu Primary School and Lethabong Secondary School situated in Soshanguve, while in 1978, Plant Rosslyn opened its training academy offering a wide range of technical programs. “Key milestones in our 45-year journey includes the introduction of learnerships in 2000, the introduction of apprenticeships in 2015 and an R733.6-million investment in a new fully-equipped training academy. “The training academy was accredited in 2021 to offer a robotics qualification and in 2022, it was accredited by the Quality Council for Trades and Occupations as a trade test centre in legacy trades. We continue our journey forward with a new offering in Electric Vehicle Safety tying in with the developments in our Plant.” Besides the general refurbishment of the buildings at both the schools, the installation of solar panels and the battery backup, both are highly geared towards courses in computer science and robotics. Lethabong will have its entire campus rebuilt and remodelled and it will change from being a general high school to a focused science, mathematics and digital arts. “For 45 years well-trained and skilled apprentices have gone onto formal employment at BMW Group South Africa, and within the broader industry. Candidates are trained across multiple disciplines and efforts continue within the programme to increase female representation to tackle gender imbalance in the industry,” says Van Binsbergen. “We wholly support South Africa's Broad-based Black Economic Empowerment and currently, we are at level 3, but we are striving to attain level 1 by 2025. “As part of its transformation strategy and in response to the country's youth unemployment crisis, BMW Group South Africa participates in the Youth Employment Service (YES) programme that encourages corporations to provide short-term employment, of around a year, for young South Africans. The main objective is to provide them with crucial work experience, which can be hard to access in a country with an unemployment level of 34%. “YES candidates are placed within the broader BMW Group South Africa network. A total of 1 506 jobs across nine provinces were created by BMW Group South Africa as part of the initiative. Of these, 63% are female.” “Currently, the BMW Group uses around 25% recycled steel, up to 20% recycled thermoplastics and up to 50% recycled aluminium for selected components across its portfolio. We aim to increase the percentage of recycled material in our vehicles to up to 50% in the future,” adds Horstmeier. Transformation is something to be celebrated. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/motoring/industry-news/how-bmw-south-africa-is-transforming-its-operation-right-to-the-core-ac8f65b9-bf54-4cf6-8aa5-5e54a9270609

SA Gov | 2 November 2023 Minister Dlamini Zuma kick starts Disability Rights Awareness Month Campaign. South Africa joins the global community to commemorate Disability Rights Awareness Month (DRAM) from 3 November to 3 December. Disability is an evolving concept and is the consequence of an impairment that may be physical, cognitive, mental, sensory, emotional, developmental, or some combination of these. Disability may be present from birth, or occur during a person's lifetime. It may be permanent, temporary or episodic in nature. The 2023 DRAM theme is “CONSOLIDATE and ACCELERATE RIGHTS of PERSONS with DISABILITIES INTO THE FUTURE”. This is a testament to the Bill of Rights that confirms that everyone has a right to life, equality and human dignity. “People with disabilities should not be excluded from their constitutional rights due to disability,” said Minister Dlamini Zuma. The National Disability Rights Policy, namely, the White Paper on the Rights of Persons with Disabilities aligns with the National Development Plan and the Strategic Priorities of the Sixth Administration in calling for Economic Transformation and Job Creation. “While people with disabilities continue to be unemployed and underemployed, it remains important to promote and support the empowerment of persons with disabilities to reduce economic vulnerability”, said Minister Dlamini Zuma. The DWYPD has presented to cabinet on the sixth annual progress report on the implementation of the White Paper on the Rights of Persons with Disabilities calling for an increase of the 2% minimum employment equity target to 3% for persons with disabilities for the 2024-2025 financial year, towards the progressive realisation of the minimum 7% employment equity target for persons with disabilities by 2030. Cabinet approved the latter and departments are encouraged to urgently implement measures to recruit persons with disabilities, including headhunting. The 2023 DRAM makes a clarion call by emphasising the urgency of the implementation of reducing economic vulnerability, releasing human capital and supporting sustainable integrated community life. “Commemorating Disability Awareness Month offers an opportunity for all of us to remove social barriers and perceptions while improving the quality of life of people with disabilities through concrete action of Empowering Persons with Disabilities through Resourceful, Sustainable and Safe Environments”, added Minister Dlamini Zuma. Minister Dlamini Zuma calls on all South Africans, and various organisations, institutions, and individuals to play their part in raising awareness on the need to uphold disability rights throughout the month and beyond. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.gov.za/speeches/minister-nkosazana-dlamini-zuma-kick-starts-disability-rights-awareness%C2%A0month-campaign-2

Cass-Leigh Oranje | 2 November 2023 The Employment Equity Act 55 of 1998 (EEA) aims to achieve workplace equity by promoting equal opportunities and fair treatment. The Act further seeks to implement affirmative actions to uplift and aid disadvantaged groups in the workplace. Section 2 of the Act highlights the fundamental purpose of the Act, which is to prevent unfair discrimination in the workplace through the promotion of equal opportunities for all employees irrespective of any arbitrary ground (examples of arbitrary grounds are race, gender, sex, religion, age) and to ensure that there is fair treatment for all. The Act further demonstrates that it is of utmost importance that employers address and combat disadvantages in the workplace that predominately affect designated groups. Section 6(1) of the EEA is also paramount. This section states that no person may be unfairly discriminated against. The test for unfair discrimination is found in Section 11 of the EEA, where an employer would need to prove that, on a balance of probabilities, the alleged discrimination of the listed grounds did not occur or that the discrimination is rational and not unfair or is otherwise justified. The EEA is to be implemented by every employer. However, specific sections in the Act would only apply to certain entities. Chapter 2 of the EEA applies to all employers and employees, and Chapter 3 only applies to designated employers. The EEA applies to all employees and employers, excluding the South African National Defence Force, National Intelligence Agency, and South African Secret Services. Contravening the EEA may lead to unfair discrimination disputes at the CCMA and Labour Court or Compliance Orders being issued. In addition, there are imposed penalties for contravening the EEA, and employers may be faced with the prospect of not being able to enter into business with any government entity, thus significantly restricting their business potential. Failure to comply with the provisions limits the business potential and may cost the business tremendously; employers are therefore encouraged to adhere to the provision laid out in the EEA. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.mondaq.com/southafrica/employee-rights-labour-relations/1384498/the-employment-equity-act-does-it-apply-to-my-business

Statement 000, Clause 7 of the General Amended B-BBEE Codes of Good Practice makes the following references: “7. Eligibility of Joint Ventures and Start-up Enterprises 7.1 The measurement of Unincorporated Joint Ventures will be done as follows: 7.2 Unincorporated Joint Ventures are required to compile a consolidated verification certificate. A consolidated verification certificate will consolidate the verified compliance data of joint venture partners, in accordance with paragraph 7.3 below, as if those Measured Entities were a single Measured Entity. 7.3 The consolidation of compliance data shall be based on a weighting in accordance with the joint venture agreement relevant to the specific joint venture. Therefore, should two companies enter into an Unincorporated Joint Venture, their respective scores in terms of the relevant Code of Good Practice will be weighted according to their proportionate share in the joint venture and added together for a combined score out of 100. 7.3.1. Should a company qualify in terms of the Qualifying Small Enterprise Scorecard, its B-BBEE score out of 100 must be used to calculate the consolidated score. 7.3.2. 51% Black Owned EMEs and 51% Black Owned QSEs will qualify for a score of 95 points, while 100% Black Owned EMEs and 100% Black Owned QSEs will qualify for a score of 100 Points. 7.3.3. EME’s other than those in paragraph 7.3.2 above will qualify for a score of 85 Points. 7.3.4. The JV B-BBEE Certificate is valid for 12 Months and only applicable to a specific Project. 7.3.5. Notwithstanding the B-BBEE Status Level attributed to the JV in terms of the above mechanism, the black Ownership of the respective partners may be flowed through to the JV in proportion with the respective JV partners’ economic interest and voting rights in the JV as determined by the JV agreement. 7.4 Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of this Statement. 7.5 Despite paragraph 7.4, a Start-up Enterprise may be measured in terms of the QSE scorecard or the Generic scorecard should they choose to. 7.6 Despite paragraph 7.4, a Start-up Enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.” An Incorporated Joint Venture means establishing a new company with representative shareholders to obtain a B-BBEE status. As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice, an Unincorporated Joint Venture means a joint venture between two or more Measured Entities affected by agreement without incorporation. Requirements between each Sector Code may differ. Technical Compliance Services are available to help members understand requirements for Unincorporated Joint Ventures.

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