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Sandile Motha | 16 August 2023 Despite several crises that have rocked South Africa in recent years, it remains a better place to invest in. This is according to an internationally renowned entrepreneur, Dr Brett Lyndall Singh, CEO of AOM Group. Singh was reacting to the recently released statistics that show the country’s unemployment rate has slumped to 32,6%, meaning more people have been employed in the second quarter of 2023. “The results of the Quarterly Labour Force Survey indicate that the number of employed persons increased by 154 000 to 16.3-million in the second quarter of 2023 compared to the first quarter of 2023,” said statistician-general Risenga Maluleke at the announcement of unemployment figures in Pretoria on Tuesday. Statistics South Africa also noted that the number of unemployed people decreased by 11 000 to 7.9-million during the same quarter. “The discouraged work-seekers decreased by 94 000 in the second quarter of 2023 compared to the first quarter of 2023, resulting in a net decrease of 1 000 in the not economically active population,” it said. “The above changes in employment and unemployment resulted in the official unemployment rate decreasing by 0.3% of a percentage point from 32.9% in the first quarter of 2023 to 32.6% in the second quarter of 2023.” Also highlighted by the national statistical agency is that there was a slight improvement in the unemployment rate, which decreased by 0.3 of a percentage point to 42.1% in the second quarter compared to the first quarter of the very same year. According to Singh, the recent statistics show that the country is continuing to do well even though there are a plethora of challenges facing the economy. He commended the country for being constantly resilient even though many things that threatened its investor’s confidence had happened recently. This include the week-long taxi strike Cape Town, the gas explosions that rocked Gauteng July, as well as the torching of trucks. “Yes, there are indeed many negative things happening in the country, but the country still stands in a good position for investments and doing business,” said Singh. “When looking at all these negative developments, we also need to consider the good things that we are doing as a country. “Even when compared with many African countries, South Africa has financial sector policies that are user-friendly to investors. “In some African countries such as Mali and other countries of the same calibre, it’s a hustle to make an investment and easily get your money whenever you need it,” explained Singh, noting that South Africa has many black industrialists, mostly women who play a crucial role in the economy. “Regardless of the negative associations, the majority want to invest [59%] or do business [76%] in South Africa.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/slumping-unemployment-rate-a-sign-of-resilient-economy/

Xolisile Mbatha | 17 August 2023 Dumi le Roux, EmpowaYouth’s head, said this initiative in the area of Bushbuckridge focuses on five key sectors that play a pivotal role in the economic development of the region in terms of the transportation sector, tourism, entrepreneurship, health and wellness, and agriculture. Young people geared up for the exciting EmpowaYouth Activation Weekend recently hosted by Empowaworx. The initiative aims to empower youth throughout the country by bringing private and public sector entities to where the youth are, to offer them real and relevant opportunities for jobs, learning and entrepreneurial funding. According to Dumi le Roux, head of EmpowaYouth, in each area in which they activate, they take into consideration the district development model to ensure that the content and opportunities they offer are aligned with industries that are set to grow. According to her, this ensures sustainability for the youth, by giving opportunities relevant to the area in which they reside. “We ensure that the youth attending are given information that enables them to make informed decisions about career choices, to find opportunities that match their desires and skill sets. We activate different stages to address different industries. Each stage is carefully curated to ensure content is relevant and impactful.” Le Roux said that in the area of Bushbuckridge, the initiative focuses on five key sectors that play a pivotal role in the economic development of the region. “This will focus on the transportation sector, tourism, entrepreneurship, health and wellness, and agriculture. This is done by demonstrating the diverse potential within the agriculture value chain, from farming to agritech and agripreneurs, and the immense impact on both food security and employment.” Le Roux said EmpowaYouth activates in semi-rural and peri-urban townships, and gives the youth the opportunities not often afforded to them, to become viable contributors to their communities and the economy. “All the content is filmed and livestreamed on our social media pages, as well as packaged and posted on our YouTube channel, so that those who cannot attend in person are still able to benefit from the incredible line-up of speakers that present keynote addresses, masterclasses and panel discussions.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mpumalanganews.co.za/425136/empowayouth-activation-weekend-takes-place-in-mkhuhlu/

Opinion | 16 August 2023 August is Women’s Month, a time to reflect upon and evaluate the progress women in South Africa and BRICS have made over the past 67 years. On August 9, 1956, 20000 South African women representing all communities marched to the apartheid government offices in the Union Buildings in Pretoria. For the past 67 years, August 9 has been commemorated as Women’s Day in South Africa. It marks the day the women of South Africa stood up to the apartheid regime to protest the extension of pass laws to African women. On July 31, 2014, the Women’s Movement in South Africa, in conjunction with government, declared August Women’s Month. This declaration was in response to the ongoing struggles of women in South Africa and in response to the UN’s call on all countries to move towards achieving the 17 Sustainable Development Goals (SDG) by 2030. For women in South Africa and the BRICS nations, the SDG 5 speaks to gender equality. The SDG 5 calls upon all nations to: “End all forms of discrimination against women and girls everywhere; Eliminate all forms of violence against all women and girls in the public and private spheres, including trafficking and sexual and other types of exploitation; Eliminate all harmful practices, such as child, early and forced marriage and female genital mutilation; Recognise and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and family; Ensure women’s full and effective participation and opportunities for leadership and decision-making; Ensure universal access to sexual and reproductive health and reproductive rights; Undertake reforms to give women equal rights to economic resources, ownership, property, financial services and inheritance; Enhance the use of enabling technology in ICT to promote women’s empowerment, and finally, Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.” Almost all these sub-goals in SDG 5 were first discussed and encapsulated in the Beijing Platform of Action that emanated from the fourth UN World Conference On Women in September 1995 in China. Women from South Africa, China, India, and from the Global South played an important role in defining the Beijing Platform of Action. Women in South Africa have now decided that this year they will place special emphasis on SDG 5 that calls for women and girls’ social and economic empowerment, contributing to their ability to pursue their right to a healthy life. In 2023 the official theme for celebrating Women’s Month in South Africa is: “Women’s Socio-Economic Rights and Empowerment: Building Back Better for Women’s Improved Resilience.” This theme links South Africa to the international campaign on Generation Equality as part of its efforts to achieve gender equality by 2030 in line with SDG 5. Underpinning this theme is a commitment to stand against a system that controls women as being subservient and passive beings at the mercy of man. As part of SDG 5 this agency is integral to inclusive and sustainable development as economic empowerment contributes to the pursuance of the right to a healthy life. Women and girls’ social and economic empowerment contributes to their ability to pursue their right to a healthy life. In South Africa today there is an awareness that socio-economic empowerment is contingent upon sustainable economic development and empowering women to be an integral part of that process. International Labour Organisation (ILO) data shows that globally women comprise 49.6% of the population, but have fewer opportunities to control their lives and make decisions. In a report on BRICS countries the ILO reports that with respect to women empowerment, challenges remain despite all the group’s members having ratified the 1951 Equal Remuneration Convention. The biggest challenge is not implementing the convention in national legislation, and consequently structural discrimination in employment persists. The BRICS countries need to put in place legal, institutional and government policy frameworks to deal with the roots of the discrimination. Gender equality in education and employment contributes to economic growth and development. The 2022 SDG UN Gender Inequality Index across 129 countries shows that BRICS countries are under-performing against the international average on gender. A recent academic study on the role of women in economic development in BRICS by M K Pandey and I G Sergeeva in 2022 (in the Journal of New Economy, vol. 23, no. 1, pp. 43-65. DOI: 10.29141/2658-5081-2022-23-1-3) confirms the under-performance of BRICS countries when it comes to gender disparities. The empirical study by Pandey and Sergeeva used 2000 to 2021 World Bank data to assess women’s empowerment according to the UN Gender Inequality Index with respect to empowerment, health, and labour markets. The study found the BRICS countries lag far behind when it comes to real justice for women’s empowerment. Of the five countries, China and Russia were found to have put the greatest effort into reducing the gender gap between women and men. Brazil is making some effort but still lags behind, while South Africa and India are confronted by deep-seated cultural problems and dynamics that mitigate against structural change. In India women carry the burden of being home makers, producers of goods and services and caregivers. The study found that over the past 40 years China has made progress in almost all areas when it comes to disparities faced by women. The UN recently reported that over the period, China managed to eliminate absolute poverty, especially in rural areas. This investment has led to women’s economic empowerment and equality in general. China embarked upon reforms that promote women and girls in higher education, mainstream employment, better wages and entrepreneurship. Despite 19 years of a post-apartheid government, the study found that women in South Africa are still held back by traditional beliefs about gender roles. Post-apartheid South Africa has given women more opportunities, but this is accompanied by new obstacles. The women’s movement that grew out of the Struggle against apartheid in the 1950s has been consolidated into a powerful new force in the struggle against inequality and economic disparity for women. However, notwithstanding this development, the ILO reported in 2017 that women constituted 51% of the total South African population, and yet their participation in the workforce was only at 44.3%, and at lower levels of employment. The Pandey and Sargeeva study suggests that even in 2021, gender-based discrimination and segregation persisted in the labour market where women work in low paid, poor quality, miserable working conditions, with no access to social protection. Although the government has introduced policies and legislation that are in favour of women, they face the challenge of dealing with the inequality in accessing basic social services in health, education, transport, housing and justice for gender-based violence. To break through the glass ceiling that prevents women from attaining their potential, women in all the BRICS countries need the support and encouragement from the forthcoming BRICS heads of state summit. The summit needs to address the challenges listed in this article if the heads of state wish to promote economic growth and development in BRICS. The Pandey and Sargeeva study make several important recommendations that BRICS should consider. The study recommends work-life integration to improve productivity where working mothers may benefit from workplace flexibility; increasing and enabling access to public and private finance and resources and investment to open markets for women entrepreneurs; promoting internet technology among women to enable women in the workforce to be connected locally and globally; addressing barriers that prevent women from accessing leadership positions by creating opportunities for women; and providing quality education to advance gender equality in the workforce by motivating private and public sector employers to provide education and training for women. If the BRICS Summit takes decisions to promote these recommendations for the women in BRICS, then South African women will feel justified in the country hosting BRICS related activities in South Africa. Josie is an Adjunct Professor at University of Venda. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capetimes/opinion/womens-empowerment-should-top-brics-summits-agenda-c99c551a-75fa-456e-80a0-b2b53571baf9

Sinesipho Schrieber | 16 August 2023 About 154,000 jobs were created from April to June 2023 but 7.9-million people remain unemployed. While about 154,000 jobs were added from April to June this year, 7.9-million people remain unemployed in South Africa and many more jobs need to be created to address poverty. This was the sentiment of job seekers and opposition parties as Stats SA released the latest unemployment figures. The statistics indicated a 0.3% drop in unemployment from 32.9% to 32.6% in the first quarter of 2023. Rural provinces continued to dominate unemployment figures, with the Eastern Cape accounting for the largest number of unemployed people at 39.7%, followed by Mpumalanga with 38.4%, the North West 36.8% and the Free State 36.7%. Gauteng was at 34.4%, Limpopo 31.6%, KwaZulu-Natal 31.0%, the Northern Cape 26.9% and the Western Cape 20.9%. GOOD MP Brett Herron said though there was slight improvement in the employment rate, the number of those unemployed was still shocking. The government should consider a R999 basic income grant for the millions of unemployed, he said. “These stubbornly high figures are a stark reminder many South Africans will remain trapped in poverty without any sort of daily income to survive on. “There is no doubt South Africa needs an economy that can generate jobs, but in the meantime it needs a complete overhaul of its social security system, starting with the introduction of measures such as a basic income grant,” Herron said. The death of unemployed mother Bongeka Buso and her children Oratile, Orabile and Anathi, from Butterworth, left many shocked. Daily Dispatch reported it was suspected Buso killed her children and herself because of financial distress. The family’s death highlighted the plight of unemployment. Former acting Tshwane mayor and Transformation Alliance leader Abel Tau said: “We are not satisfied as they don’t even begin to scratch the surface. South Africa is the most unequal country, with most people living below the breadline. It is important for the government to prioritise economic stimulation for job creation.” While opposition parties did not celebrate the small decrease, the ANC did. “These figures provide a reliable basis for evaluating the effectiveness and influence of the ANC’s economic policies. Nevertheless, we are concerned about the decline in the manufacturing sector which experienced a 5.8% decrease due to electricity load-shedding. The ANC remains steadfast in prioritising energy security,” it said. TimesLIVE previously reported Gauteng premier Panyaza Lesufi said more than 230,000 applications were received for 6,044 posts advertised on the Nasi iSpani recruitment programme. Last month, Lesufi said more than 1.2-million applications were received for 8,000 jobs advertised in the programme. “We received 1,230,092 applications. Of that total, 1,171,035 were received online. Through paper-based and mass centres we received 59,057 applications,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/news/south-africa/2023-08-16-thousands-of-jobs-created-but-millions-remain-unemployed-in-poverty/

Chanel George | 16 August 2023 The department said the money recovered effectively went into the pockets of underpaid workers, who are the most vulnerable. The Department of Employment and Labour, through its inspections and enforcement services (IES), has recovered more than R84 million through 152 159 inspections conducted in the last financial year. This was according to a media release issued by the Department of Employment and Labour. The department’s deputy director-general of inspection and enforcement services, Aggy Moiloa’s presentation on the annual analysis report for the financial year of 2022/2023, indicated that the money recovered effectively went into the pockets of underpaid workers, who are the most vulnerable. This report was heard at the department’s executive committee meeting on Monday. Moiloa said employers across South Africa, were tested for compliance by the department on the following legislation: the Basic Conditions of Employment Act (BCEA), National Minimum Wage Act (NMWA), Compensation for Occupational Injuries and Diseases Act (COIDA), Unemployment Insurance Contributions Act (UICA), Employment Equity Act (EE), and Occupational Health and Safety Act (OHSA). She said workers who have entered into learnership agreements in accordance with Section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998) are eligible for allowances listed in Schedule 2 of the NMW Act. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/witness/news/department-of-employment-and-labour-recovers-over-r84-million/

Murray Swart | 16 August 2023 More than a quarter of a million new jobs were created in Cape Town over the last year, with 56 000 added in the last quarter alone. This is according to the latest Quarterly Labour Survey released by StatsSA, which noted a 7% year-on-year drop in the metro’s unemployment rate. This equates to 263 000 new employment opportunities in the city. ‘Cape Town has now had five straight quarters of positive jobs growth, with the lowest unemployment rate of the metros,’ said CoCT Mayor Geordin Hill-Lewis. ‘This is such encouraging progress and we take great heart from the fact that a quarter of a million more Capetonians have work today than just a year ago.’ Hill-Lewis explained that the improved unemployment rate is evidence of how the Cape Town economy is booming and is now the heart of national economic growth. ‘When we speak about being a City of Hope for all, this is what we mean: getting more people out of poverty and into work. And for five straight quarters, this is exactly what is happening in Cape Town.’ ‘Our city economy is growing faster and adding more jobs, primarily because our government is investing in infrastructure, focusing on beating loadshedding and working to be the easiest place to do business in Africa.’ ‘This attracts new investment, and investment brings new jobs.’ ‘More and more Capetonians are eager to be part of the workforce and have been able to find a place in it.’ He added that, in an effort to enable further job-creating economic growth, the CoCT is forging ahead with plans to end loadshedding over time alongside a record R43 billion infrastructure investment over three years. Importantly, Cape Town’s labour absorption rate (percentage of employed working-age population) has eclipsed the pre-Covid rate, indicating that the city’s labour market has well and truly recovered and is now back to positive growth. James Vos, the mayoral committee member for economic growth, said the City’s investment promotion and skills development programmes have spurred major gains across multiple industries. ‘Our projects have facilitated billions of rands in investments and led to the creation of thousands of jobs. Under the City’s Building Hope Budget, R41 million has been allocated for direct economic incentives to attract more investments and job opportunities to Cape Town.’ ‘We have also built a strong training support system for entrepreneurs, small business owners and employees so that they can gain the skills needed in emerging and high-growth industries such as the green economy, call centres, tourism, and clothing and textile,’ Vos said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.capetownetc.com/news/new-jobs-in-cape-town/

Staff Writer | 15 August 2023 Small business owners, aspiring entrepreneurs and stakeholders are invited to participate in the inaugural Vodacom Business small and medium enterprise (SME) summit. The SME Thrive Summit, a hybrid event, will take place on 18 August, from 9am to 2pm. In a statement, Vodacom Business says the SME Thrive Summit aims to provide small businesses with resources, knowledge and networking opportunities. The day will feature a series of informative sessions, exhibits by small business owners, keynote presentations, live master classes and panel discussions, it states. Topics to be covered include access to finance, how to leverage digital marketing tools, and tips on how businesses can protect themselves against cyber security threats. “SMEs remain a crucial foundation of the South African economy,” says Buhle Vilakazi, executive head of SME at Vodacom South Africa. “We recognise their vital contribution in fostering innovation, creating jobs and spurring economic growth throughout the country. “With the introduction of this summit, we are hoping to foster financial change and help SMEs grow their business, which will influence the country’s economic performance.” Data shows SMEs account for approximately 98% of South Africa’s business network. However, SME businesses continue to take strain and face challenges preventing them from fulfilling their potential. Expert speakers and industry leaders, including William Mzimba, outgoing Vodacom Business CEO; Mandisa Mpeko, supplier development manager of The Innovator Trust; and Nkgabesing Motau, co-founder of Think Creative Africa, will share their insights, experience and best practices to guide SMEs in overcoming challenges and seizing opportunities. By attending, two entrepreneurs will stand a chance to win a full-day business consultation with Vodacom South Africa CEO Sitho Mdlalose and other executives, as well as a cash prize of R50 000 towards expanding their business. Other prizes include business tech, digital marketing credits and point-of-sale devices. “We’d like to call on small business owners to collaborate with Vodacom to co-create the solutions required to address their business challenges,” states Vilakazi. The in-person event will take place at Vodacom World in Midrand. To participate in the online version of the event, register here. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/dgp45qaBZZ6vX9l8

SA News | 15 August 2023 BRICS countries have been urged to continue to support and invest in the township economy in an effort to reshape the perception of townships, and foster a brighter and inclusive future for all. The Minister in the Presidency for Planning, Monitoring and Evaluation (DPME), Maropene Ramokgopa, led a first of its kind Township Economy in BRICS Dialogue in Orlando West, Soweto, on Tuesday. Ramokgopa said that BRICS member countries have the capacity to leverage the combined resources, experiences and expertise to support each other in nurturing vibrant township economies. She said joint ventures, investment partnerships, and knowledge-sharing initiatives can bring a transformative impact. “As a BRICS nation, we must continue to support and invest in the township economy. By doing so we can rewrite the narrative of our township and create a brighter and more inclusive future for all. “Let us seize this moment to foster innovation, promote entrepreneurship and build a thriving township economy that stands as a beacon of hope both in South Africa and across the globe in particular BRICS countries,” Ramokgopa said. The inaugural dialogue was hosted by the Township Economic Commission of South Africa (TECSA) with the support of the Department of International Relations and Cooperation (DIRCO) BRICS Directorate. The dialogue is convened exactly a week before the commencement of the much-anticipated 15th BRICS Summit in Sandton, Johannesburg. Minister Ramokgopa emphasised the critical importance of implementing policies that promote and empower small enterprises in order to fully unlock the capabilities of the Township Economy. She highlighted that currently, the Department of Small Business Development and the National Planning Commission are collaborating with The Presidency Red Tape team to develop a targeted agenda for regulatory SMME reform in South Africa aimed at improving the business-enabling environment. “We are excited that this time around, we are involving the township economy in this particular summit, all this that we are doing here are going to culminate in what will be discussed in the summit,” she said. In order to ensure the sustained growth of the township economy, Ramokgopa said a multi-pronged approach is essential. Firstly, she highlighted that education and skills development must be prioritized. “Providing quality education and training equips township residents with the knowledge and skills necessary to build, expand and explore new economic sectors. By investing in a skilled workforce, we are in a better position to attract more investors to stimulate economic development,” the Minister said. Secondly, she said partnerships between the government, the private sector, and civil society are critical. She highlighted that through effective and targeted social compacts, government has the potential to remedy some of the challenges experienced by township entrepreneurs. “Government policies should be tailored to encourage investment, while private sector entities can offer mentorship, funding, and market access. Thirdly, we must leverage on our country’s enabling legislation to capacitate, support and accelerate township economies,” she said. Ramokgopa emphasised that townships remain the gateway to the economic participation of millions of our people adding that government must be deliberate about taking BRICS to townships and townships to BRICS. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/brics-countries-urged-support-township-economy

Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , clause 3.7 identifies the requirements for Enterprise and Supplier Development Beneficiaries. Clause 3.7 states the following: 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 assist Members with understanding these requirements.

Under Statement 300 of the Amended General B-BBEE Codes of Good Practice , clause 6 lists various Legitimate Recognisable Training Expenses under the element of Skills Development. Clause 6 states the following: 6. LEGITIMATE RECOGNISABLE TRAINING EXPENSES 6.1.1 costs of training materials; 6.1.2 costs of trainers; 6.1.3 costs of training facilities including costs of catering; 6.1.4 scholarships and bursaries; 6.1.5 course fees; 6.1.6 accommodation and travel; and 6.1.7 Administration costs such as the organization of training including, where appropriate, the cost to the Measured Entity of employing a Skills Development facilitator or a training manager. Skills Development Services are available to assist members to ensure that they claim all Legitimate Recognisable Training Expenses under the element of Skills Development.

Moneyweb | 15 August 2023 Insurer Sanlam has had to begin unwinding its failed R8 billion broad-based black economic empowerment (B-BBEE) transaction implemented in March 2019. The deal, which saw a 5% stake in the financial services group effectively issued to five new beneficiary trusts and existing empowerment partner Ubuntu-Botho, has been under water since early 2020, when the effects of the Covid-19 pandemic rattled through markets. The deal boosted Sanlam’s direct black shareholding to 18%, with black economic ownership (including indirect holdings) increasing to 35%. Of course, no one could’ve predicted a global pandemic, followed by Russia’s invasion of Ukraine and surging global inflation. The result is that the group’s share price has traded below the R70 issue price of the 111 million shares practically since just one year into the five-year deal. Sanlam provided half the funding of the transaction, with Standard Bank providing the other half via preference shares in the special purpose vehicle (SPV) and equity-secured funding. Or, as Sanlam describes the situation: “Due to the negative impacts on the Sanlam share price, the Funding SPV remains in a negative equity position, a situation which has existed since March 2020 and is likely to persist in the short-term until the repayment date of the funding in March 2024.” Sanlam’s problem is that the A preference shares held by Standard Bank are secured by Sanlam shares. Further declines in the group’s share price could see a breach of debt covenants which would force the disposal of a “large block of shares” which, it says, “is likely to negatively impact the Sanlam share price”. Sanlam admits there is “unlikely benefit” to any of the beneficiaries of the transaction, which include trusts for rural and urban poor black women, professional black women, black youth, black business partners and broad-based groups and group employees. To remedy this, Sanlam will purchase the A preference shares in the funding SPV from Standard Bank for R2.421 billion. It will fund this from existing cash resources, with a small adjustment for interest between the end of June and when it is finalised. (Even if the share price holds up, the second issue is that the subscription SPV is required to dispose of 85 million shares in Sanlam in the open market once redemptions occur in March next year. This wouldn’t be a problem if the price was, say, double the level it is currently. It is not.) This solves some of Sanlam’s headache, but not all of it. More issues … It is on the hook for the vendor funding provided via second ranking (‘B’) preference shares, which totals R3.7 billion (its 50% share of the funding). To date, it has impaired its holding in the B-BBEE SPV by a total of R2.923 billion (R1.673 billion in 2020, R145 million in 2021, and R1.105 billion in 2022). These are accounting entries necessitated by the group’s share price, among other factors, and the group has been clear that these “impairments can reverse in future periods based on the movement in the group’s share price”. The group says it anticipates that the funding SPV structure “may be unwound following its maturity in March 2024” and that it “will continue to consider alternatives in the best interest of stakeholders to implement the orderly unwinding” of it. This could include a possible repurchase of Sanlam shares from the Subscription SPV – in other words, the 26 million shares pledged to Standard Bank for R1.2 billion in collar funding. At the end of the first quarter this year, Sanlam reported “discretionary capital” of R3 billion. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/sanlam-forced-to-bail-out-failed-r8bn-bee-deal/

Opinion | 15 August 2023 In an economy where the job market is unable to fully absorb all citizens who are of working age, entrepreneurship and small businesses have widely been accepted in our country (and in many others) as an incredibly crucial component of job creation and economic growth. As successful small businesses grow and expand, they eventually become medium-sized and large companies, further contributing to much-needed job creation and economic development. Of course, more jobs mean more people with disposable income and the ability to take care of their households where the benefit at times extend to as many as five to six people per household. As they grow, small businesses employ locals who in turn will ideally spend their earnings within the local economy, thereby supporting other local businesses and creating a positive economic and job creation cycle. It is this localisation model that we believe can create the job opportunities our country so desperately needs - the model upon which Proudly South African is based. In his 2022 State of the Nation Address (Sona), President Cyril Ramaphosa clarified to the nation that role of government in economic growth is not necessarily to create jobs, but rather “to create the conditions that will enable the private sector — both big and small — to emerge, to grow, to access new markets, to create new products, and to hire more employees.” Government’s role, therefore, is to formulate and implement policies and programmes that help to industrialise various sectors, and to support local businesses while taking into account global trade policies and their implementation in other countries, as well as taking into account the cost of living for ordinary South African citizens. With the required development and growth of small, medium-and macro-sized enterprises (SMMEs) being the proverbial light at the end of the tunnel for our unemployment woes, there have been an array of challenges faced by entrepreneurs and investors. One persistent challenge that too often has come to my attention during my tenure at the helm of Proudly South African, having interacted with a significant number of our members (some of whom are indeed SMEs), is the difficulty for new entrants to enter the various markets that they are targeting. Taking into consideration the trajectory of our country from the dawn of democracy, South Africa’s economic composition includes an overwhelming majority of entrepreneurs and small businesses who are relatively inexperienced, with little to no business mentorship, and who have inherited a retail market saturated by business relationships and supplier-retail deals that are decades if not centuries old. Interlinked with these market access challenges is access to sufficient funding, an important element of starting or running a successful business. In this chicken-and-egg situation, SMMEs struggle to get funding without demonstrating that they have a market to sell to which will enable them to repay the loans secured for their businesses, and equally, they can’t access markets without the funding to get their businesses off the ground, or without having working capital to fulfil orders if they were to secure these. Recent history has shown the importance and efficiency of Public-Private Partnerships (PPPs) not only in solving and averting many socio-economic challenges and crises, but also to creating job opportunities in various sectors. An example is creation of the Riversands Incubation Hub in Diepsloot. The partnership between Century Property Developments and the National Treasury’s Jobs Fund, is now home to about 150 businesses and has created more than 1 000 permanent and 2 000 temporary jobs. Another PPP success story is the one that assisted in the prevention of some parts of the country reaching Day Zero – the point at which municipal water supply would be shut off due to water scarcity, back in 2018. The partnership between South African Breweries (SA Breweries) and the municipalities of Cape Town and Tshwane saw an additional 4.67 million litres of water per day being supplied for residents – a total of 1.7 billion litres per annum, thereby averting the crisis. The importance and role of the private sector in creating jobs as highlighted in President Ramaphosa’s 2018 Sona, therefore, cannot be overemphasized, and this includes big businesses working with and helping to develop small and medium sized businesses, as is often the case with SA Breweries. A few years ago, SA Breweries set their localisation target to 95%. This seeks to ensure that the entire value chain from production right through to consumption, is entrenched locally. Included in the list of beneficiaries of their target are the farms that grow the barley, hops, and the maize required; the packaging of the product, the crowns (tops), labelling and bottling, as well as logistics and transportation, all contributing immensely to job creation. Their impressive localisation target coupled with their procurement target of supporting historically disadvantaged groups and individuals has helped support new entrants and transformed entities. One such example is iSanti Glass based in Roodekop, Germiston, the first ever majority black-owned glass container manufacturer in South Africa. At an event I recently attended celebrating a successful three-year partnership between SA Breweries and the iSanti Glass, I learned that the former played a significant role in funding the purchase of this Roodekop factory from packaging giant, Nampak. Furthermore, SA Breweries committed to a 10-year agreement with iSanti Glass, and in so doing further securing funding for the glass manufacturer from potential funders including those linked and associated with the Black Industrial programme (such as the Department of Trade, Industry and Competition through the Industrial Development Corporation). Through this agreement, SA Breweries solved the chicken-and-egg paradox for iSanti Glass – a great story to tell. It was heart-warming to hear the iSanti Glass chairman and co-founder also make a commitment that in turn they will also buy their raw materials locally, ensuring that their entire value chain is also entrenched locally, thereby opening other opportunities for other new entrants, as well possibly transformed entities, that stand to benefit from this localisation commitment. Through them giving long-term offtake agreements to other emerging businesses, they will have enabled an entrepreneur to enter an industry that was previously closed off to new entrants and transformed entities. It is as clear as glass, therefore, that the more businesses commit to localisation throughout their processes and value chains, the more direct and indirect job opportunities emerge and the more our country’s economy stands to benefit and grow. SA Breweries can confidently proclaim that “a’vulekile amasango” (the doors are wide open), like Ismail said in his hit song from the early 2000s, as they have surely opened doors for a multitude of farmers, industrialists, new entrants and transformed entities through their combined localisation and transformation (access to market) agenda. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/localisation-public-private-partnerships-play-vital-role-adfb271c-6bce-417e-8f89-55f4e4f6b49e