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- THE 2023 SMME BOOSTER FUND IS OPEN FOR PROPOSALS UNTIL 31 MARCH 2024
CBN | 31 August 2023 The SMME Booster Fund (the Fund) is a fund that will provide financial support to organisations that implement business development support projects and/or programmes aimed at growing and developing SMMEs. The Fund will focus on projects and/or programmes that support high-growth, Western Cape-based SMMEs. The Fund utilises a co-funding implementation model which encourages collaboration and partnerships. Business development support includes aspects of support such as training, mentoring, coaching, financial planning, assisting with compliance, providing financial assistance, facilitating access to finance, providing technical support in the form of equipment, specialised software and licensing etc. The financial support from the SMME Booster Fund will focus only on the technical support aspect of the project and/or programme. The rollout of the other aspects such as training, mentoring, coaching, access to market interventions etc. will be funded by the organisation applying for funding. The support provided by the Fund will thus enable the selected organisations to enhance their projects and programmes with an added element of technical support. The Fund will support projects and programmes that focus on the following categories: Category 1: Export Development Category 2: Women-owned Business Category 3: Youth-owned Businesses Category 4: Township-based Businesses The selection of beneficiaries for the Fund will be initiated through this call for proposals. The proposals received will undergo a pre-qualification check, an evaluation, and an adjudication phase. The proposals will be evaluated and adjudicated against pre-determined criteria. Click on the link to access the following forms: SMME Booster Fund Application Guide 2023 and Call for Proposals 2023 To apply please click on the following link: https://dedat-funding.westerncape.gov.za/#/ For more information: Please email DEDAT.Boosterenquiries@westerncape.gov.za or call 021 4839112 For assistance on how to navigate the online application system, please click on the following link: SMME Booster 2023 Online Application Platform Guide Please note that application to the fund remains open but is subject to budget availability. It is in your best interest to complete an application as soon as possible. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cbn.co.za/industry-news/business-advisory-financial-services/the-2023-smme-booster-fund-is-open-for-proposals-until-31-march-2024-subject-to-budget-availability/
- HOW SA'S MINING LAW HOLDS UNIQUE ADVANTAGES FOR CHINESE INVESTORS
Hulme Scholes | 29 August 2023 In a recent statement during the Brics conference, the Chinese delegation opined that South African government procurement processes and Black Economic Empowerment (BEE) policies are potential barriers to Chinese investment in the country. Contrary to this viewpoint, an analysis of South Africa's mining law reveals that Chinese entities enjoy unique advantages when investing, which do not even require citizenship, owing to historical discrimination against Chinese people as a group. Challenging assumptions The assertion that BEE impedes Chinese investment prompts a comprehensive investigation into the matter. Contrary to this claim, an analysis of the legal landscape reveals that this purported impediment does not hold true for the mining industry. To understand this, one must first delve into the complexities of the origins of the transformation imperative underpinning South African mining law. The role of historical disadvantage At the heart of this issue lies the concept of the need to redress discrimination against Historically Disadvantaged Persons (HDPs), a cornerstone of the Mineral and Petroleum Resources Development Act (MPRD Act) and the Mining Charter. One of the MPRD Act's primary objectives is to promote transformation within the mining sector by ensuring active participation by HDPs. Importantly, the MPRD Act defines HDPs as individuals, communities, or categories of persons who suffered unfair discrimination prior to the South African Constitution becoming effective. This definition extends beyond nationality or citizenship and encompasses any persons or categories of person subjected to discrimination under the apartheid regime. Belonging to a racial group that was historically discriminated against and not citizenship, is the prerequisite for qualification as an HDP. China's position as HDPs While critics may argue that this interpretation runs counter to the spirit of the Mining Charter and the MPRD Act, the ordinary meaning of the words used must be given effect to and applied to the fact that Chinese individuals, irrespective of their citizenship status, are considered HDPs under the MPRD Act and the Mining Charter. This recognition stems from the historical reality that Chinese individuals faced discrimination during the apartheid era, resulting in them being rightfully included in the definition of HDPs. This interpretation finds reinforcement in a pivotal 2007 High Court judgment which declared that South African Chinese citizens fall within the category of "Black People" as defined by the Employment Equity Act and the Broad-Based Economic Empowerment Act. It is noteworthy, however, that for the purposes of the MPRD Act, Chinese individuals are not required to qualify as South African citizens to be classified as HDPs. Implications for applications for rights such as Mining Rights, under the MPRD Act Chinese entities hold a distinct advantage when compared to other foreign entities when applying for such rights under the MPRD Act. All such applicants must facilitate the participation by HDPs in mining activities as a prerequisite for a successful grant of rights, an obligation discharged by adhering to the guidelines in the Mining Charter. Consequently, Chinese individuals and companies intending to apply for mining rights in South Africa are not required to conclude transactions with South African HDPs to fulfill Mining Charter BEE requirements. A comparison of the Codes of Good Practice for the mining sector's definition of "Historically Disadvantaged South Africans" with the HDP definition of the MPRD Act and the Mining Charter, reveals minimal disparities in substance. The reference to South Africans in the definition in the Codes makes no significant difference. The future landscape Anticipating the Department of Mineral Resources and Energy's (DMRE) response to this application of the definition of HDP poses intriguing questions, like those raised when the view is pronounced that white women are also HDPs as they were also discriminated against in pre-Constitution South Africa. The DMRE's stance could oscillate between scepticism and acceptance, influenced by both legal considerations and geopolitical dynamics between South Africa and China. Nevertheless, this interpretation of the definition of HDP could serve as an appealing prospect for the DMRE, potentially encouraging stronger ties with Brics partners and fostering increased investment in South Africa's mineral wealth. For the same reasons, Indian persons who are not South African citizens have the same advantages, as they also qualify as HDPs for the purposes of the MPRD Act. Whether India or China takes advantage of this nuance in our mining laws in the context of the stronger ties occasioned by Brics, is the question to be ultimately answered. It is also likely that the government will amend the definition of HDPs to limit it to South African citizens if such a trend gains momentum. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/717/241439.html
- OVERCOMING THE SKILLS SCARCITY REQUIRES THE EXPERTISE OF THE MSP
Hope Lukoto | 30 August 2023 Skills are a rare resource that can be found within the talented depths of a trusted Managed Services Provider. Skills are a rare resource that can be found within the talented depths of a trusted managed services provider. In 2021, Gartner found that talent shortages were inhibiting technology adoption and development, with 64% of IT executives citing it as a challenge. Fast-forward to 2023, and the market remains complicated with the firm predicting that demand for talent within tech will continue to exceed supply until 2026. This is echoed by S&P Global statistics, which highlights how complex the skills situation has become, with 51% of respondents saying it has been difficult to hire new people and 44% struggling to find qualified candidates. The S&P analysis also found that while companies are looking for smart ways to upskill and reskill existing talent while building packages that woo top talent to their doors, the cost of finding, attracting and retaining the right people is high. If anything, it is increasing as companies fight for talent — 86% of CIOs participating in a Gartner Survey are competing for qualified candidates and 73% are concerned about attrition. This demand for highly skilled individuals, particularly within the technology sector, is not just adding zeros to the business bottom line (as well as wrinkles to the CIO’s brow), it is igniting a shift in how companies find, and work with, talent. Gartner has also found that 58% of organisations today are turning to borderless talent to resolve their skills woes, with 27% considering hiring borderless technology employees. The goal today is to find sustainable ways of filling the gaps by strategically sourcing skills. And this strategic sourcing has shifted to the managed services provider (MSP). Where in the past, outsourcing talent and resources to third parties was really only used to save costs and manage non-critical areas of the business, today this narrative has changed. Deloitte describes it as a reality where “technology, talent and risk forces are colliding” and emphasises the value of companies working with MSPs to fill skills gaps and gain a competitive advantage. By bringing in expertise from trusted service providers that have retained and fought for the right skills, companies are bypassing the risk of falling behind and gaining all the value without the battle. Deloitte also believes that collaborating with MSPs to overcome the skills gap allows for the business to explore new revenue streams and new business avenues. This move is also changing the shape of how the work is done, and how skills are appreciated within the business. MSPs provide talent that is focused on outcomes, innovation and deliverables within tight cost parameters and expectations. It is an approach that adds immense value to the business. Collaborating with an MSP to manage very specific gaps in your talent pool also allows you to simplify how you approach technology investments and strategy. If you know that you can rely on your MSP to provide support, expertise, implementation, and management of innovative solutions it opens up a lot more doors and gives you a lot more freedom. Plus, as KMPG found, outsourcing saves costs, improves efficiencies, accelerates change and can save some sectors up to 50% on costs. The skills gap doesn’t have to grow wider. It can be managed with an MSP that understands your business, your needs, and your technology requirements and that has invested in the right strategies to ensure that talent is diverse, skilled and capable. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/partner-content/2023-08-29-overcoming-the-skills-scarcity-requires-the-expertise-of-the-msp/
- MINISTER CALLS FOR RETHINKING OF STEREOTYPES TOWARDS A GENDER-EQUAL SOCIETY
SA News | 30 August 2023 Higher Education, Science and Innovation Minister, Dr Blade Nzimande, says the rethinking of stereotypes and norms, and reshaping of the relationships between women and men, is a step in the right path towards a gender-equal society. “Conventionally, issues about gender equality have often mainly been placed in the public arena by women. However, it is difficult to reform social structures towards equality without a broad social consensus and ownership between men and women,” Nzimande said on Tuesday. Nzimande emphasised that men and boys must become active and positive advocates for gender equality, to rectify the discrepancy in power relations. He said, with an increasing awareness of men and boys as a necessary part of the solution, there is an urgent need to chart a clear road ahead for their involvement as change agents for gender equality. Nzimande made the remarks during Transforming MENtalities Summit, aimed at engaging men and boys to address the root causes of violence against women. The Transforming MENtalities Summit is based on United Nations Educational, Scientific and Cultural Organisation’s (UNESCO) Transforming MENtalities initiative, launched in 2015 in Latin America and the Caribbean, to promote positive redefinitions of norms of masculinity and meaningful engagement of men and boys, alongside women and girls, in the global pursuit for gender equality. The initiative was later spread to a number of other countries. The objectives of Transforming MENtalities in South Africa are informed by UNESCO’s global initiative, which includes gathering context-nuanced and feminist evidence and building knowledge to inform gender-transformative policymaking; countering and uprooting harmful gender norms to promote positive and healthy alternatives with the support of role models; and strengthening the structures to engage men and boys as accountable allies for gender equality alongside women and people of diverse gender identities. As “Transforming 'MEN'talities” postulates, Nzimande said, a holistic approach is essential in facilitating women’s empowerment, and ultimately the realisation of the United Nations Sustainable Development Goals (SDGs) and the objective of leaving no one behind. Nzimande said, through engagement at the summit, the delegates have another opportunity to come up with sustained methods to engage and empower men and boys on existing societal norms of masculinities and challenge negative gender stereotypes and behaviours. The Minister emphasised that Transforming MENtalities is about transforming the way men and boys build relations with women and girls, the liberation of men and boys from anachronistic and dominant positionalities. “It is about men and boys unlearning reactionary habits and embracing emancipatory values, norms, roles and practices in the multiplicity of relationships they enjoy with women and girls. This relational perspective is important as it requires men and boys to an active part in co-creating new ways of relating to women and girls in private and public, domestic and professional, economic, social and political life. “It means constructive and respectful dialogue, willingness to be vulnerable and open to embracing a new pathway, an ability to listen, learn and unlearn in multiple relational settings with women and girls. MENtalities is therefore a campaign to establish the cocreational responsibilities of men and boys in the struggle for gender equality,” Nzimamde said. He also argued that the term MENtalities should not be an idealistic perspective of gender transformation that is, the notion that a “mere appeal to changing the mentality of men and boys will, by itself, liberate women from gender inequality and oppression”. “This would be naïve. It is for this reason that we cannot delink this campaign from the wider struggles aimed at transforming the structural relations of power that define and reproduce gender inequality in society and economy. “My view is that one can only provide a proper explanation of the roots of the psychosocial oppression of women and girls in the unequal distribution of economic and political power in society, and specifically, the capitalist economy – women are structurally located at the bottom of the economy – if measured by pay, investment income, land, fixed property,” the Minister said. "Unless we root out the structural inequalities of capitalist gender exploitation and oppression, we will not provide the material bases upon which gender power relations can be reset in society at large and provide a foundation for the psycho-social and cultural emancipation of women and by definition men and boys in society." He said the campaign to transforming the MENtalities of men and boys must also be fought in conjunction with the struggles to radically alter the structural position of women especially Black working-class women in the economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa-world/minister-calls-rethinking-stereotypes-towards-gender-equal-society
- DOES A START-UP ENTERPRISE QUALIFY AS AN ENTERPRISE DEVELOPMENT BENEFICIARY?
Q | ABC Traders enters into an Enterprise Development Beneficiary contract that involves a Start-up Enterprise. Schedule 1 of the Amended General B-BBEE Codes of Good Practice defines a Start-up Enterprise as “a recently formed or incorporated Entity that has been in operation for less than 1 year. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise”. Does a Start-up business qualify as an Enterprise Development Beneficiary? A | An Enterprise Development Beneficiary must meet the definition of ‘entity’ as it appears in Schedule 1 of the Codes of Good Practice which: “means a legal entity or a natural or a juristic person conducting a business, trade or profession in the Republic of South Africa”. Therefore, ABC Traders can claim a Start-up Enterprise as an Enterprise Development Beneficiary, providing the objectives are clear and measurable when entering into an agreement. Enterprise & Supplier Development Services are available for Members to understand Beneficiary requirements.
- SKILLS DEVELOPMENT – CLAIMING LEARNERSHIPS
Q | ABC Traders meets its Skills Development target of 5% Learnerships. At the time of its B-BBEE Verification, must 2.5% of the Learners be employed people and 2.5% unemployed, or can the target be split over both? A | ABC Traders can split the 5% target over employed and unemployed people in whichever way they see fit as per 2.1.2.1 of series 300 of the Codes of Good Practice. ABC Traders can achieve six points if: “2.1.2.1 Number of black people participating in Learnerships, Apprenticeships and internships as a percentage of total employees.” However, to claim Absorption, the Learners must not have had a long-term contract of employment. Skills Development Services are available for Members to understand the requirements for claiming Learnerships.
- PARLIAMENT SEEKS WRITTEN COMMENTS ON NEW PUBLIC PROCUREMENT BILL
Mayibongwe Maqhina | 29 August 2023 Parliament has asked members of the public and interested parties to make written comments on the Public Procurement Bill. The bill, now before the standing committee on finance, was introduced in the National Legislature by Finance Minister Enoch Godongwana after approval by the Cabinet in May. Godongwana previously said the bill was revised to take into account the Constitutional Court judgment on the preferential procurement regulations and the Zondo Commission that highlighted abuses in state procurement. Committee chairperson Joe Maswanganyi said stakeholders and interested parties should submit written submissions on the bill by September 11. “Those who want to make submissions at public hearings on Tuesday, 12 and Wednesday, 13 September 2023 should specifically request this,” he said. He added that the public hearings would be conducted virtually. Maswanganyi explained that the Public Procurement Bill aimed to regulate public procurement and prescribe a framework within which preferential procurement must be implemented. The summary of the bill states that public procurement in South Africa is currently fragmented as there are a number of laws that regulate procurement across public administration. “This fragmentation results in confusion as different procurement rules apply. Some of these laws pre-date the constitutional order brought about in 1994,” reads the bill. The National Treasury said it was important and necessary to have legislation that created a single framework regulating procurement in line with all applicable stipulations of the Constitution, and that contributed to address the economic and social challenges of South Africa. “The bill aims to create a single regulatory framework for public procurement and to eliminate fragmentation in laws that deal with procurement in the public sector and, among others, provide for the establishment of a Public Procurement Office within the National Treasury.” The new legislation would apply to all procurement carried out by a procuring institution, including procurement through donor or grant funding, and any person who submits a bid or has been awarded a bid. It said no person may interfere with, or influence the procurement process of a procuring institution, and impede the accounting officer or the accounting authority or an official in fulfilling his or her responsibilities. The bill sets out the categories of people who are not allowed to tender for services in the government. These include public office bearers, leaders of political parties, civil servants, state-owned enterprise employees as well as employee of municipalities or municipal entities. This will also apply to non-executive directors of boards of SOEs and companies that have been blacklisted for a certain period. “The bill also requires persons involved in procurement or a person related to the official ... to disclose a direct or indirect personal interest in a procurement.” According to the proposed legislation, the Public Procurement Office that would be established within the National Treasury would promote and implement necessary measures to maintain the integrity of procurement, among other things. Provincial treasuries will be expected to intervene by taking appropriate steps to address a material breach of the act by a procuring institution within their province. “Every procuring institution must establish a procurement unit as part of its procurement system.” The Public Procurement Office will be expected to develop an information and communication technology-based procurement system. The bill also provides for the establishment of the Public Procurement Tribunal to review decisions taken by organs of state and to blacklist a service provider. “If a bidder is not satisfied by a decision made by a procuring institution in terms of section 31, that bidder may, within 10 days of being informed of the procuring institution’s decision, submit an application for review to the tribunal.” It also states that any party that was dissatisfied with an order of the tribunal may institute proceedings for judicial review. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capetimes/news/parliament-seeks-written-comments-on-new-public-procurement-bill-8d6a98cb-7bf6-4d22-8b44-4eb36d5d61d5
- EPF, TDM, AND CHIETA’S EMPOWERMENT INITIATIVE MITIGATES DESPAIR IN TOWNSHIPS
Staff Writer | 29 August 2023 By equipping these entrepreneurs with essential resources, mentorship, and tools, this initiative rekindles optimism and encourages the pursuit of economic independence. In a resolute response to the challenges faced by Township communities, the Empire Partner Foundation (EPF), in collaboration with Township Distribution Model (TDM) and with generous sponsorship from the Chemical Industries Education & Training Authority (CHIETA), today announced the successful recruitment, selection and onboarding of 50 previously unemployed youth onto EPF’s self-employment initiative. This pivotal EPF initiative stands as a beacon of hope and a testament to the power of community-driven economic development, which as its foundation, creates a circular economy of nurturing local talent to provide direct services to the community, while creating self-employment opportunities in that community. The CHIETA KASI FOOD CART project, supported by robust data, will showcases the substantial impact the project will make towards uplifting the beneficiaries and communities they operate in. Total Beneficiaries: 50 Gender Distribution: Female: 38, Male: 12 Age Distribution: 18 years to 34 years: 41 and 34 years and above: 9 Ethnicity: Black: 100% Townships: Brits: 7 beneficiaries Soshanguve: 11 beneficiaries Tshwane: 1 beneficiary Centurion: 2 beneficiaries Midrand: 1 beneficiary Cosmo City: 6 beneficiaries Tembisa: 5 beneficiaries Boksburg: 1 beneficiary Brakpan: 1 beneficiary Soweto: 7 beneficiaries Kathlehong: 2 beneficiaries Vaal: 6 beneficiaries Education Qualification: Grade 10: 3 beneficiaries Grade 11: 5 beneficiaries Grade 12: 37 beneficiaries Post Graduate: 5 beneficiaries This collaboration between EPF, TDM, and CHIETA not only propels the entrepreneurial dreams of individuals but also provides an effective response to the despair often felt within township communities. By equipping these entrepreneurs with essential resources, mentorship, and tools, this initiative rekindles optimism and encourages the pursuit of economic independence. In the face of adversity, EPF, TDM, and CHIETA are united in their commitment to eradicating despair and replacing it with the promise of a brighter future. This initiative stands as a testament to the transformative potential that can be unlocked when organizations collaborate with a shared vision of community upliftment. For more information about this initiative and future collaborations, please contact: info@empirepartnerfoundation.org ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2023/08/29/epf-tdm-and-chietas-empowerment-initiative-mitigates-despair-in-townships-via-enlisting-and-integrating-50-entrepreneurs/
- WHY SA’S MINING LAW GRANTS SPECIAL PRIVILEGES TO CHINA
Hulme Scholes | 28 August 2023 I READ with interest, a comment by the Chinese delegation to BRICS, that South African Government procurement processes and BEE, are seen as an impediment to Chinese investment in South Africa. These are not impediments as firstly, the Cadres do not allow their participation in State procurement to be affected by irritating legislation like the Criminal Procedure Act, the Public Finance Management Act and the Prevention of Organised Crime Act. Secondly, and when considered in a mining context, Chinese people, even those that are not South African citizens, qualify as Historically Disadvantaged Persons for the purposes of the MPRD Act and the Mining Charter. Some may say this is contrary to the spirit of the Mining Charter, but the truth is that the Yuan and Yang of the Mining Charter is that a history of racial discrimination and not citizenship, is the imperative for BEE in the mining industry. The MPRD Act imposes an obligation on applicants for Mining Rights, to facilitate the participation by HDPs in the mining industry. This obligation is discharged by complying with the Mining Charter. The MPRD Act and the Mining Charter define HDPs as any person, category of persons or community unfairly discriminated against before the Constitution took effect. To fall into that category, a natural person does not have to be a South African citizen but can be from any country whose citizens fell within a racial grouping discriminated against under Apartheid laws. Chinese people were so discriminated against. A prior version of the Mining Charter did attempt, albeit clumsily, to limit HDPs to include only South African citizens, but this version has been replaced by the 2018 version of the Mining Charter, which contains no such restriction or limitation. Practically then, any Chinese person or a Chinese company for that matter which intends to apply for Mining Rights in South Africa, would not need to conclude a transaction with South African HDPs to discharge the BEE obligation under the MPRD Act. The Codes of Good Practice for the mining industry, contain a definition of Historically Disadvantaged South Africans, but there is no significant difference between that definition and the definition of HDPs in the MPRD Act and the Mining Charter. The reference to South Africans is contextually meaningless. Interestingly, in a 2007 Judgment, our Courts held that South African Chinese people fall within the ambit of the definition of “Black People” for purposes of the Employment Equity Act and the Broad-Based Economic Empowerment Act. The Mining Charter and the MPRD Act do not however require Chinese people to be South African citizens to qualify as HDPs for the purposes of ticking the BEE box for applications for rights under the MPRD Act. It is doubtful that the DMRE will embrace this interpretation with enthusiasm, but they may do so to woo their new BRICS besties to increase their share in South Africa’s mineral wealth by applying for rights under the MPRD Act. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.miningmx.com/opinion/54271-sas-mining-law-welcomes-china-with-open-arms/
- SANRAL DOUBLES DOWN ON NEW PROCUREMENT RULES DESPITE SIGNS OF TENSION IN ITS CORRIDORS
Ray Mahlaka | 28 August 2023 Although Sanral has acknowledged that some of its staff members did not comply with its new scoring system on tenders, the state-owned entity said the new system has not caused tensions between its board and senior management. he South African National Roads Agency (Sanral) has dismissed suggestions that its new preferential procurement policy for its tenders has created tensions with bidders and within its management structures. Sanral ruffled feathers when its board implemented a new scoring system in May that the state-owned entity (SOE) uses when adjudicating tender bids. Some industry players and tender bidders argued that the new scoring system would significantly downgrade their Broad-Based Black Economic Empowerment (B-BBEE) status and leave them unable to do business with the state and its organs. Two engineering construction companies, H&I Construction and Wilson Bayly Holmes-Ovcon (WBHO), have dragged Sanral to court to challenge the board’s new scoring system on tenders. In the court application, H&I Construction and WBHO are supported by 11 other construction companies, including Raubex and Stefanutti Stocks. Some Sanral managers have reportedly pushed back against the implementation of the new scoring system mandated by the board — led by chairperson Themba Mhambi — because it might contravene the Preferential Procurement Policy Framework Act and regulations on procuring goods from companies with a favourable B-BBEE status. The tender adjudication system of government departments and state organs is based on a points system in which companies with favourable B-BBEE profiles earn more points, thus being in a better position to be awarded tenders. Although Sanral has acknowledged that some of its staff members did not comply with the new scoring system, the SOE said the new system caused no tensions between its board and senior management. “There is and never has been any dispute between the chairperson of the Sanral board and its management,” Sanral said in a statement to Daily Maverick on Monday. “The Sanral board has clearly communicated its position that Sanral takes positions as an organisation and expects its staff members to be disciplined in the implementation of board resolutions.” However, News24 Business reported that Sanral chief financial officer, Inge Mulder, and Inba Thumbiran, the head of supply chain management, have been suspended while the kerfuffle over the board’s new procurement policy rages. The reasons behind the reported suspension of Mulder and Thumbiran are not known, but the two senior Sanral officials would have been closely involved in overseeing the implementation of the board’s new scoring system on procurement. Asked about the employment status of Mulder and Thumbiran, Sanral said it was “not aware of any dispute between itself and any employee in relation to the procurement policy issues currently serving before the courts”. In the past, Sanral used a bidder’s (or company’s) B-BBEE rating to allocate 10 or 20 points regarding compliance with the SOE’s preferential procurement requirements. Companies with a Level 1 B-BBEE rating (the highest and most coveted empowerment status) could automatically receive the full amount of points. In May, Sanral changed the weighting of the 10 and 20 points for preferential procurement, which has angered players such as H&I Construction and others. H&I Construction said Sanral’s changes would relegate a bidder’s B-BBEE level rating to a mere one point, in the case of a 90/10 tender (where the tender is valued at more than R50-million), or two points in the case of an 80/20 tender (where the tender has a value equal to or above R30,000 and up to R50-million). “[As a result of amendments to the tender scoring system] Sanral has elevated black ownership and sub-contracting to targeted enterprises to respectively five points (10 points in the case of 80/20) and four points (eight points in the case of 80/20) of the scoring of tenders that use the 90/10 scoring regime,” argued H&I Construction. Construction companies have spent billions of rands over the past decade to boost their empowerment profiles so that they can do business with the state. Sanral has defended its new tender scoring system, saying it is “committed to the constitutionally enshrined imperatives of economic transformation and will continue to pursue the government’s transformation objectives accordingly”. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-08-28-sanral-doubles-down-on-new-procurement-rules-despite-signs-of-tension-in-its-corridors/
- ICT SKILLS ARE OUR FUTURE
Creamer Media | 24 August 2023 BMG has donated 55 high resolution monitors to the Redtank ICT Academy - a skills development organisation, with a mission of empowering communities through the provision of technology skills. “BMG’s passion for skills upliftment goes back many years and we are very proud to support education programmes that help learners enter the workplace with confidence and credibility,” says Darryn Wright, Group Marketing Executive, BMG. “BMG’s social responsibility programme encompasses an ongoing commitment to investing in education in order to promote the growth of technically skilled South Africans, especially those from previously disadvantaged communities. “BMG is proud to be part of the Redtank ICT Academy’s motivating programme that equips enthusiastic learners with the necessary knowledge, skills and values for successful careers. We are very pleased to have been able to donate high resolution monitors to this worthy organisation, which will be used as much needed IT equipment to teach graphic design and many other valuable development skills.” The Redtank ICT Academy is a registered non-profit company, that aims to assist communities to address the high unemployment rate and skills shortage especially amongst the youth in rural communities, as well as the lack of inclusion of women and people living with disabilities. According to Sydney Mokhethi, a director of the academy, the team is passionate about Information and Communication Technology (ICT) skills training, as every industry now uses some form of technology to produce goods and supply services. The academy’s focus includes ICT skills transfer and qualifications of unemployed youth, promoting and creating access to technology training across the country and to provide a platform for people interested in careers in ICT. The academy also offers life skills programmes that focus on leadership, decision making, career choices, university preparation and work readiness. Training curricula also include entrepreneurship development, to foster a future generation of motivated and successful entrepreneurs. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/ict-skills-are-our-future-2023-08-24
- #WOMENSMONTH: INCLUSION OF WOMEN TO ADVANCE THE SPIRIT OF B-BBEE IN SOUTH AFRICA
Nomathole Nhlapo | 25 August 2023 The Broad-Based Black Economic Empowerment Act, No 53 of 2003 (B-BBEE Act) and the regulations promulgated thereunder (B-BBEE Regulations) govern the effective participation of Black people in the South African economy. The B-BBEE Act aims to promote a higher growth rate of ownership and management, increased employment, skills training, and the involvement of communities in economic activities, more equitable income distribution and the granting of equal access to government services for Black South Africans. The B-BBEE Act aims to redress the historic economic inequalities as a result of apartheid, which excluded a large portion of the South African population, being Black people, from the primary economy of South Africa. The impact of this policy was particularly damaging to the ability of Black women to meaningfully participate in the economy. The Codes of Good Practice for B-BBEE and sector specific codes (B-BBEE Codes) provide the framework for interpretative principles of B-BBEE that specify the elements against which an entity will be measured to determine its B-BBEE compliance rating, together with the methodology for measuring each element of B-BBEE. The B-BBEE Codes have included key provisions that are aimed at empowering Black women and providing enhanced recognition of certain categories of Black people that include Black women. The impact of the B-BBEE Codes on the participation of Black women-owned businesses in economic activity is outlined in each element of B-BBEE and is discussed below. Ownership and management The ownership element measures the extent to which Black people are owners of businesses. Black people can be direct or indirect participants in the ownership structure of a company, an existing close corporation, a co-operative, a trust, a broad-based ownership scheme, or an employee share ownership programme. By way of an example (which illustrates the manner in which ownership by Black people generally - and Black women in particular - is encouraged), the broad-based ownership scheme rules outlined in Annex 100 (B) of the B-BBEE Codes require at least 50% of the fiduciaries of the scheme must be Black people and at least 25% must be Black women. Entities receive points for the management control scorecard by meeting the targets for participation of Black people and Black women at board, executive management, senior management, middle management, and junior management levels, and for employing Black people with disabilities. Skills development The skills development element measures the extent to which employers carry out initiatives designed to develop the competences of Black employees and Black people. The measurement criteria for skills development targets expenditure on learning programmes for Black people and expenditure on bursaries for Black students at higher education institutions. The aforementioned targets are broken down according to the relevant economically active participants (EAP) as determined and published by Statistics South Africa. The EAP statistics are reported according to the following race groups: African male, African female, Coloured male, Coloured female, Indian male, Indian female, White male, and White female. The compliance target for skills development is split in proportion to the prevailing EAP statistics. Enterprise development The enterprise and supplier development element measures the extent to which entities procure goods and services from empowering suppliers with strong B-BBEE levels and provide support for the growth of Black-owned businesses. This element allows companies to receive points on procurement spend from empowering suppliers that are at least 30% Black women-owned based on the applicable B-BBEE recognition levels as a percentage of the total measured procurement spend. Additionally, B-BBEE procurement spend from generic entity suppliers that are at least 51% Black-owned or at least 51% Black women-owned (utilising the flow-through principle) can be recognised under the enterprise and supplier development scorecard. The B-BBEE Codes encourage entities to support procurement from Black-owned and Black women-owned businesses in order to increase the participation of these businesses in the mainstream economy. Socio-economic contributions The B-BBEE Codes recognise socio-economic development contributions that companies can advance through initiatives that promote access to the economy for Black people. Socio-economic development commonly takes the following forms: programmes with the specific objective of facilitating income-generating activities for Black people as targeted beneficiaries; development programmes for women, youth, people with disabilities, people living in rural areas; support of healthcare and HIV/AIDS programmes; support for education programmes, resources and materials at primary, secondary and tertiary education levels, as well as bursaries and scholarships; community training; skills development for unemployed people and adult basic education and training; or support of arts, cultural or sporting development programmes. There is still much work to be done to implement the objectives of the B-BBEE Act and the B-BBEE Codes and ensure an inclusive business environment – especially for Black women. Female-led businesses need to be adequately supported by legislative frameworks, business, government, and the communities in which they operate. Women have the power to be decision-makers and occupy strategic positions in business. The spirit of equality, equity and collaboration, bolstered by the necessary legal support, will see women thrive in all sectors of the economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/717/241334.html














