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

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

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

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

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

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

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

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

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

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

Reona Strydom | 26 October 2023 The history of South Africa has resulted in a disparity in economic and opportunities disparity based on race and has resulted in many Black people in South Africa not enjoying the same opportunities presented to the rest of the country. The purpose of Broad Based Black Economic Empowerment (B-BBEE) is therefore to bridge the gap between formal and substantive equality to ensure that all people in South Africa enjoy the right to equality. And in today's dynamic business landscape, understanding and implementing a robust B-BBEE strategy is paramount as it will help you achieve your B-BBEE goals and reach the B-BBEE levels you need for your business. Reona Strydom, Technical Specialist at The BEE Chamber, emphasises the importance of having a well-crafted B-BBEE strategy in place. “Meaningful B-BBEE transformation involves a comprehensive and sustained effort that goes beyond compliance and is closely tied to the development and implementation of a comprehensive B-BBEE strategy, aiming to create lasting positive impacts on individuals, communities, and the broader economy. It requires a commitment to social responsibility, inclusivity, and shared economic prosperity. Companies need to integrate these principles into their business operations and corporate culture to contribute meaningfully to B-BBEE objectives.” With this in mind, Strydom provides valuable insights into what businesses need to know to navigate this crucial aspect of their operations successfully. Getting started The first step in formulating a B-BBEE strategy is to set clear goals. “These goals should include the aim to maintain or improve your B-BBEE status, align initiatives with your transformation plan, and integrate B-BBEE with your overall business strategy,” says Strydom. Analysis To move forward effectively, a business must analyse its current B-BBEE results and scoring. This will lead to Identifying shortfalls and gaps in the current strategy, and assess potential risks and how they might affect the business. “Be prepared to adapt to any necessary changes in your business operations, this is essential for success.” Objectives Define clear objectives for the B-BBEE strategy. Plan and implement new initiatives that align with the business goals and consider the budget constraints and allocate resources wisely. Ensure that responsible parties within the business understand both what needs to be done and why it is crucial for business success. Implementation plans and timelines “Determine what is practical and feasible within your business. Research challenges commonly faced in your industry regarding B-BBEE compliance and then lay the groundwork with thorough preparation to minimise disruptions during implementation – but also understand that you may need to be nimble and adjust to get the right plans in place.” Strategic considerations per element Ownership: Recognise that ownership is a long-term commitment. Manage associated risks wisely, understanding that there is no one-size-fits-all solution. Ensure that Black ownership is meaningful and leads to active participation in decision-making processes, rather than being symbolic. “Once you find the correct ownership structure, it can yield a return on investment (ROI) and ensure the longevity of your B-BBEE initiatives.” Management control: “Consider reviewing your human capital environment to identify skills gaps and operational challenges. Programmes like Learnerships, Apprenticeships, Internships, or Youth Employment Service (YES) can help address these issues. Implement inclusive recruitment, retention, and promotion practices to ensure that Black employees have equal opportunities for career advancement.” Skills Development: Skills Development is linking training initiatives to career development, alignment with the needs of both individuals and the business. Businesses can facilitate opportunities for Black people and employees, either within a measured entity or through placement in suppliers or Enterprise and Supplier Development (ESD) beneficiaries. By investing in Bursary, Learnership, Apprenticeship and Internship programmes to develop future workforce members, businesses can build capacity in areas with a shortage of skilled Black professionals. Preferential procurement: “Review your current procurement strategy and identify opportunities for future supplier diversity in alignment with your Enterprise Development (ED) programme. Consider timeframes for implementation and apply pressure to your non-compliant suppliers. By increasing spend with micro and small businesses, you will enhance your B-BBEE score.” ESD and SED: Evaluate if the Socio-Economic Development (SED) initiatives currently in place can support the business objectives. Connect an SED programme with the ESD programme by planning for the absorption of SED beneficiaries into the business supply chain. Make job creation a condition for support given to ESD beneficiaries. Strydom emphasises that a well-thought-out B-BBEE strategy is not just a compliance requirement but a strategic imperative. “By aligning B-BBEE initiatives with your overall business goals and considering these key elements, businesses will not only maintain their competitiveness but also drive sustainable growth and empowerment in South Africa.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.fanews.co.za/article/compliance-regulatory/2/bee-black-empowerment/1093/unlocking-business-success-the-crucial-role-of-a-comprehensive-b-bbee-strategy/38230

Philippa Larkin | 25 October 2023 Sanral will be cancelling all existing advertised tenders that have not yet closed, issue new tender adverts, and subsequently adjudicate all tenders within the confines of the interim policy Master Builders South Africa (MBSA) yesterday welcomed the decision by the board of South African National Roads Agency Limited (Sanral) to withdrew its new controversial Preferential Procurement Policy to avert lengthy court battles, despite the parastatal cancelling all existing advertised tenders that had not yet closed. MBSA is the leading national representative body in the building and construction industry in South Africa. The new policy was adopted by the Board on May 23, but came to loggerheads with the construction industry, which said the new policy would cost the economy billions of rands. Subsequently, numerous legal salvos were fired by various parties. Sanral said in a statement yesterday that it intended to commence a process on a date soon to be announced, where it sought to engage the construction industry and all relevant stakeholders to address meaningful transformation imperatives of the sector. Sanral said it was advised by Senior Counsel that in light of the change in the scoring formula, it was necessary to commence the tender process afresh, a decision which had been reached with much angst in light of the urgent need for the services to be rendered. “Sanral will, therefore, be cancelling all existing advertised tenders that have not yet closed, issue new tender adverts, and subsequently adjudicate all tenders within the confines of the interim policy. Sanral intends to expedite the re-advertisement of tenders and processing thereof within this current financial year,” it said. Themba Mhambi, the chairperson of the Sanral board, said, “The board of Sanral has adopted the decision to withdraw the new Preferential Procurement Policy because of the negative impact these court challenges have, including the fact that we anticipate that the lengthy court processes will cause significant delays to the work of Sanral.” Sanral’s board proposed, as an interim measure, pending the adoption of a finalised policy, to adjudicate all tenders in accordance with the scorecard. Sanral would require, as a condition of contract, that successful bidders be required to ensure compliance with contract participation goals for targeted enterprises in targeted areas and labour as per the formula applied by the CIDB, as was applied before the introduction of the policy, which was being withdrawn. The CIDB is required in terms of the Construction Industry Development Board Act to establish the Register of contractors and Register of Projects. The register of contractors grades and categorises contractors according to their capability to carry out construction projects. Sanral’s CEO, Reginald Demana, said that infrastructure development is critical to South Africa’s economic growth and, in the wake of the Covid-19 pandemic, the country could not afford further disruptions towards the expansion and maintenance of the national road network and key arteries across the country’s provinces. “Road and rail infrastructure are the lifeblood of our economy and, as such, any disruption to its maintenance, as well as any disruption to our extensive programme of new infrastructure projects, is a threat to our country’s economic growth,” said Demana. He said a protracted legal battle between Sanral and the construction industry would have dire consequences not only for Sanral’s projects, which run into billions of rands, but would also be detrimental to the entire economy. Demana said, “Clearly, it is not in the interest of Sanral, nor is it in the national interest, to delay our infrastructure build programme. Roy Mnisi, the executive director of MBSA, said yesterday that the withdrawal of the policy by Sanral might sound regressive, but it was necessary to address the gaps that might have caused some of the legal challenges launched by various construction companies. “A policy that is subject to constant court challenges is not a good one for the entity and for the construction sector and it most definitely required some attention for a variety of reasons. Court challenges adversely affect the procurement and construction process that we dearly need to keep the sector alive. It is on that basis that we view the decision by the board of Sanral as a progressive one which should be supported rather than being frowned upon,” he said. However, Mnisi said the concerning part was the financial impact of cancelling of all existing advertised tenders that had not yet closed. “Construction companies that have already prepared their tenders stand to lose their money spent in responding to those tenders. Putting together tender documents for procurement of work of the size of Sanral tenders cost a lot of time and money and we believe that they may be consideration for those who may have submitted their tenders before the announcement by Sanral,” he said. MBSA said, as a construction sector, “we would appreciate a meaningful consultation to have our inputs on the process and development of the new Procurement Policy of Sanral. We have always been committed to work closely with state-owned companies and agencies involved in infrastructure development”. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/companies/mbsa-welcomes-sanrals-withdrawal-of-its-controversial-new-preferential-procurement-policy-e69da879-0eac-43fa-bae1-aaaf7a1e3d65