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- PRESIDENCY DOUBLES DOWN ON BEE IN SOUTH AFRICA
SA News | 5 October 2026 South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) policy remains an important tool for addressing the injustices of Apartheid, Minister in the Presidency Khumbudzo Ntshavheni said. However, the government has supported a review of the laws to expand and strengthen the framework, she added. “B-BBEE is an instrument of that choice, and section 9(2) of the Constitution requires it. Redress is a constitutional obligation, not a bargaining chip,” Ntshavheni said. “And it is working. Behind every figure is a South African whose life has changed.” Speaking to IOL, the Minister said 3.4 million black South Africans belong to a middle class that their parents were barred from by law, with R400 billion a year in spending power. According to the Broad-Based Black Economic Empowerment Amendment Act, BBBEE means the viable economic empowerment of all black people. This includes, in particular, women, workers, youth, people with disabilities and people living in rural areas. It is done through diverse but integrated socio-economic strategies that include, but are not limited to, increasing the number of black people who manage, own and control enterprises and productive assets, among others. Ntshavheni added that through the Youth Employment Service, created under the B-BBEE framework, some 240,000 young people have been given a full year of paid work, earning R15 billion in salaries. Expanding access for international companies Ntshavheni highlighted Equity Equivalent Investment Programmes [EEIP]. Through these programmes, global companies have created more than 2,000 jobs, backed 87 black-owned businesses, almost half of which are owned by black women, and trained more than 2,500 people. In his newsletter to the nation in June last year, President Cyril Ramaphosa said the EEIP was created to accommodate multinationals whose global practices or policies prevent them from complying with the B-BBEE ownership element through the ‘traditional’ sale of equity or shares. The programme allows multinationals to invest in socio-economic, skills and enterprise development in South Africa without selling equity in their local subsidiaries. The Minister added that this progress has not come at the expense of white South Africans, who continue to prosper in our economy. “It belongs to the whole nation,” she said, adding that for many, the promise of 1994 is not yet fulfilled. These are 23.1 million black South Africans who remain outside of the fruits of the economic prosperity. A typical black African worker earns R5,200 a month, and the typical white worker earns R25,000, she said. “To abandon redress now would be to tell these South Africans that their freedom ends at the ballot box.” The Minister stressed that B-BBEE is not a precondition for investing in South Africa and that it applies where a company requires a licence from the state, such as in mining and ICT. Multinationals whose policies, on the proof thereof, do not allow them to sell local equity can comply through EEIPs. She added that South Africa is a founding member of the World Trade Organisation and a non-aligned country. “Non-discrimination is a principle we hold to. Every investor plays by the same rules in our country, wherever they come from,” she said. BEE under review On ownership requirements in the mining industry, these are not arbitrary. Under the Mineral and Petroleum Resources Development Act, South Africa’s minerals are the common heritage of all South Africans, held by the State as custodian. “Those who extract them must share the benefit with the people who own them. Multinationals that do not wish to sell equity have a clear alternative in EEIPs,” she added. There is also flexibility across sectors of the economy, with each sector having a set of Sector Codes governed by a charter council that negotiates its flexibilities within agreed-upon frameworks applicable to that respective sector. “Under the B-BBEE Codes, a multinational that cannot sell local equity, by virtue of its policies, can instead make an equivalent contribution to black-owned enterprises and suppliers, skills development and other national priorities through an EEIP. “Cabinet has also supported a review of the framework to strengthen it for transformation and growth,” she explained. Companies that comply with B-BBEE through Equity Equivalent Investment Programmes and investing in black-owned businesses and skills instead of selling equity include Dell, Microsoft and HP. Others continue to expand: Microsoft has announced a R5.4 billion investment in local cloud and AI [artificial intelligence] infrastructure, The US International Development Finance Corporation has invested $50 million in the Phalaborwa rare earths project. Amazon Web Services has been investing in cloud infrastructure for several years She added that South Africa determines its domestic policy in the best interests of its citizens. “Our energy, telecommunications and mining rules are made by South Africans, under our Constitution, to serve our development.” This is the country that provides fair market access for all partners. Ntshavheni said while South Africa wants foreign capital, it wants it to build processing, beneficiation and manufacturing capacity on home soil. “That is investment with development, not investment at the expense of development. Our minerals belong to the people of South Africa and must work in their interest. Investors who help build these value chains here are partners in that project, and we are actively seeking them.” She explained that the Department of Trade, Industry and Competition (DTIC) is already taking investors through what the policy provides, including its flexibilities, and engages companies on individual transactions. “B-BBEE ensures that growth is shared, and that is what makes it sustainable,” she said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business-opinion/878275/presidency-doubles-down-on-bee-in-south-africa/
- SMMES NEED MORE ACCESSIBLE SUPPLY CHAINS TO UNLOCK GROWTH
Shannon de Ryhove | 16 September 2026 South African corporates need to rethink procurement and supply-chain practices if small, medium and micro enterprises (SMMEs) are to participate meaningfully in the economy, speakers at a Sustainability and ESG Africa webinar have said. The “Moving Goods, Growing Businesses” webinar examined how logistics, procurement, infrastructure and environmental requirements can create barriers for SMMEs seeking to access markets, fulfil contracts and grow. South African Supplier Diversity Council manager of special projects Ashok Deokiram said one of the biggest challenges facing smaller businesses was working capital being trapped in extended payment cycles. SMMEs could be required to pay their suppliers within 30 days, while their customers might take 60 or 90 days to pay. Up to 90% of SMMEs are reportedly paid outside agreed terms, he said, further increasing pressure on their cash flow. Logistics costs were another significant constraint. Smaller businesses generally lack the volumes needed to negotiate favourable freight rates and can consequently pay retail rates, making them less competitive than larger operators. Deokiram also highlighted inventory and warehousing costs, as well as the expense of compliance and certification requirements, including environmental, social and governance (ESG) requirements. “SMEs find it difficult to actually comply,” he said, noting that corporates increasingly expect smaller suppliers to demonstrate ESG compliance before offering them business opportunities. B Lab Africa senior business development associate Melaney Oldenhof said procurement requirements were frequently designed with large enterprises in mind, creating unintended barriers for smaller suppliers. Drawing on her own experience of supplying African brands to the luxury hospitality sector, she said payment terms could make it difficult for small businesses to fulfil orders because many lack the financial resources to fund production for extended periods before receiving payment. Companies should therefore view suppliers as stakeholders rather than simply vendors, she argued, and consider how their commercial decisions affect the businesses within their supply chains. This includes reconsidering payment terms, onboarding requirements, audits, certification and logistics, she said. International Association for Impact Assessment South Africa National Executive Committee member Orlinda Mafika similarly cautioned against imposing environmental requirements on SMMEs that had been designed for large corporations. “The problem was not necessarily the requirements themselves, but how they were designed and implemented,” she said. Expensive certifications, excessive documentation, repetitive requests for information and complex carbon reporting could all create unnecessary barriers. “Requirements should then look at the size, the scale, the sector, and the actual environmental risks,” Mafika said. She called for greater proportionality, shared responsibility and capacity building when introducing sustainability requirements into SMME supply chains. Rather than simply demanding information such as carbon footprints, larger companies should provide methodologies, guidance, reasonable timeframes and support. The panellists also called for greater collaboration between corporates and their smaller suppliers. Shared warehousing, transportation, cold-chain facilities and technology systems could help SMMEs reduce costs and improve efficiency. Deokiram said many smaller businesses relied on basic systems such as spreadsheets and could benefit from access to more sophisticated logistics systems and expertise. Oldenhof suggested that buyers could also help suppliers become more resilient by funding training and compliance support, while providing more predictable and consolidated orders could allow SMMEs to plan production, transport and warehousing more efficiently. Better access to information was particularly important in logistics, Deokiram said. For example, transport operators could potentially reduce costs by securing return loads rather than travelling back empty after delivering goods. The discussion also highlighted the importance of ensuring that SMME development does not create long-term dependence on a single corporate customer. Businesses providing support should work with suppliers on strategies that enable them to diversify their customer bases and become increasingly independent. The speakers further linked supply-chain resilience to environmental and climate risks. Mafika said infrastructure operated within an ecological system, meaning that businesses dependent on water, land, functioning ecosystems and predictable weather needed to understand these risks when planning projects and operations. Environmental impact assessments and other assessments should therefore provide information that remains useful beyond regulatory approval and helps businesses build resilience into their supply chains. Deokiram added that SMMEs needed environmental and compliance information presented in simple, accessible language so that they could make informed decisions about issues such as vehicle purchases, packaging and carbon emissions. Ultimately, the panellists agreed that improving SMME participation would require a shift from simply “ticking the box” on supplier diversity towards deliberately creating markets in which smaller businesses can succeed. Deokiram called for corporates to develop clear, time-bound plans to improve SMME participation, while Oldenhof said companies should ask whether their procurement processes were actually designed to allow smaller businesses to participate while remaining healthy and resilient. Mafika said professional associations also had a role to play in building capacity and helping bridge the gap between policy, corporate expectations and practical implementation. The message from the discussion was clear: supporting SMMEs requires more than opening procurement opportunities. It requires supply chains, systems and requirements that recognise the realities of smaller businesses and enable them to participate sustainably. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/smmes-need-more-accessible-supply-chains-to-unlock-growth-2026-09-16
- DA OPPOSES AMENDED EMPLOYMENT EQUITY CODE OVER JOBS CONCERNS, CALLS ON OTHERS TO DO LIKEWISE
News Desk | 16 September 2026 The Democratic Alliance says new amendments around the Employment Equity Act will worsen unemployment. The Democratic Alliance (DA) will oppose the latest proposed Employment Equity Code of Good Practice, saying it will place additional burdens on businesses and threaten job creation, according to the party’s spokesperson on employment and labour, Michael Bagraim. He was referring to the Draft Reviewed Code of Good Practice on the Preparation and Implementation of the Employment Equity Plan, released in July and open for public comment until 20 September. This, in turn, was part of operationalising a 2022 Amendment to the Employment Equity Act (EEA), which placed extensive powers in the hands of the minister to enforce effective demographic quotas on firms with fines capable of putting firms deemed non-compliant out of business. The erstwhile employment and labour minister, Thulas Nxesi, had made it clear that his department was determined to institute “harsh” measures against businesses in order to achieve the government’s desired racial and gender outcomes. Bagraim said the DA was particularly concerned about the proposed implementation of Section 15A of the EEA, which the party is challenging in court. The DA points out that the provision gives the employment and labour minister powers to impose sectoral numerical targets on employers. It says, accurately, that these targets effectively amount to binding quotas and could expose companies to penalties of up to 10% of their turnover for non-compliance. The DA also objects to the requirement that employers set annual targets according to predetermined demographic formulas. This fails to take account of economic conditions, skills shortages, and the specific demands of individual positions. The party said employment decisions should instead be based on merit, competence, and the firms’ requirements. The DA has also raised concerns about the impact of the proposed code on small and medium-sized businesses. It said additional compliance and reporting requirements could divert resources from core business activities and job creation. “This red tape acts as a barrier to entry and growth,” Bagraim said. The DA’s submission argues that consideration of the code should be deferred until the courts have ruled on the constitutionality of Section 15A. The DA said its opposition was also motivated by South Africa’s high unemployment rate, which stands at a staggering 33.6%. “Millions of South Africans wake up each day searching for work, worried about keeping the lights on and putting food on the table,” Bagraim said. Bagraim said the party’s objective was to make it easier for businesses to operate and grow while creating more opportunities for South Africans to enter the labour market. He added that the DA was calling on other South Africans to submit objections to the code. The ratcheting-up of official demands for race-based staffing is only one of a number of measures inimical to economic growth implemented since President Cyril Ramaphosa assumed the presidency. They demonstrate clearly that employment policy – in a country with one of the highest rates of unemployment on Earth – remains doggedly defined by the “transformation” agenda to the exclusion of almost anything else. Add to this a failing skills pipeline, high minimum wages, and a generally adverse economic environment, and it should not be surprising that job creation is invariably disappointing. Public opinion in South Africa, measured over decades by a number of institutions, has been consistent that unemployment is the central concern for the country’s people, and that meritocratic hiring is by an overwhelming margin the preferred position ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.thecommonsense.co.za/Politics/da-opposes-amended-employment-equity-code-over-jobs
- STRONGER BRICS COOPERATION NEEDED TO TACKLE YOUTH CHALLENGES
SA News | 23 August 2026 Minister in the Presidency responsible for Women, Youth and Persons with Disabilities Sindisiwe Chikunga has called for stronger cooperation among BRICS countries to equip young people with the skills, opportunities and support needed to thrive in a rapidly changing global economy. Addressing the Brazil, Russia, India, China and South Africa (BRICS) Youth Ministerial Meeting in Visakhapatnam, India, on Saturday, Chikunga said young people across the world continue to face unemployment, poverty, inequality, skills mismatches, and uneven effects of technological and economic change. She said these challenges require deeper cooperation among BRICS nations in areas such as skills development, entrepreneurship, innovation, digital transformation, education, and youth leadership. “By investing in youth today, we invest in the resilience, prosperity and sustainability of our nations tomorrow,” Chikunga said. The Minister held a bilateral meeting with United Arab Emirates (UAE) Minister of State for Youth Affairs, Dr Sultan bin Saif Al Neyadi, aimed at strengthening South Africa–UAE cooperation in youth empowerment, and skills development. Chikunga said the meeting reflected the shared commitment of BRICS nations to place young people at the centre of global development. Prevailing global context Turning to the global context, Chikunga noted that young people continue to face the challenges of unemployment, poverty, inequality, skills mismatches, and uneven impacts of technological and economic change. She said these realities demand stronger cooperation among countries to ensure that youth are equipped with the skills, opportunities and support. “With only 12% of the Sustainable Development Goals (SDG) targets on track to be met by 2030, the current global reality is untenable, undesirable and unsustainable. All of this makes our meeting particularly significant,” Chikunga said. Chikunga highlighted South Africa’s investments in youth development through the National Youth Development Agency and the National Youth Service Programme, which have expanded opportunities for volunteerism, civic participation, entrepreneurship and employment support. She said volunteerism remains an important instrument for promoting social cohesion, active citizenship and people-to-people cooperation among BRICS countries. The Minister also noted President Cyril Ramaphosa’s announcement of the implementation of paid voluntary work targeting 100 000 young people in 2026. Investment in basic and higher education On education, the Minister highlighted government investment over the past three decades, with expanded access to basic and higher education, and improved opportunities for young people from disadvantaged backgrounds. “At basic education level, in 1994, the matric pass rate stood at around 58%. Three decades later, the Class of 2025 achieved a record breaking National Senior Certificate (NSC) pass rate of 88%. This is the result of three decades of making education an apex priority of government. “In higher education and training, we have also honoured the call for the doors of learning and culture to be opened, through the National Student Financial Aid Scheme (NSFAS). “From its humble beginnings in the early 1990s, NSFAS has grown from a budget of R33 million in 1991, serving only 7 240 students, to a budget well over R50 billion in 2026, funding over 1.1 million students at universities and Technical and Vocational Education and Training (TVET) colleges,” Chikunga said. The Minister also highlighted the role of South Africa’s social protection programmes, saying they continue to cushion vulnerable young people and their families against poverty and support access to education and economic participation. Chikunga said the inclusion of young persons with disabilities should also remain a key priority within the BRICS Youth Track. “We must ensure that young persons with disabilities have equal access to education, skills development, employment opportunities, entrepreneurship support, digital technologies and leadership platforms,” the Minister said. The Minister emphasised that an inclusive BRICS youth agenda should recognise the contributions of all young people, including women, rural youth, and persons with disabilities. She reaffirmed South Africa’s commitment to peace, stability, and development as essential conditions for young people to realise their full potential. The Minister welcomed the adoption of the Joint Statement of the BRICS Youth Ministers’ Meeting and the BRICS Youth Cooperation Framework. “These instruments provide an important basis for continuity, structured cooperation and practical initiatives that will strengthen the BRICS Youth Track and enhance opportunities for our young people. As BRICS continues to evolve, let us ensure that the voices, aspirations, and innovations of young people remain at the heart of our collective agenda,” Chikunga said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/stronger-brics-cooperation-needed-tackle-youth-challenges
- THE YOUNG AND THE JOBLESS: THE STRUGGLE OF THE QUALIFIED YET UNEMPLOYED
Coceka Magubeni, Boitumelo Kgobotlo | 23rd August 2026 Noxolo Mahlubi’s N6 qualification in public management has not translated into employment. The 32-year-old who hails from Qumbu in the Eastern Cape says her struggle started when she failed to secure the in-service training required to complete her qualification. “We were told to go to TVET colleges because universities are full. We were promised the same skill set, but we are struggling to get in-service training for us to get our qualifications,” she said. Her inability to enter the workplace has left her increasingly discouraged. “I do not know what being employed feels like, and yet I went to school… so with these latest unemployment statistics, it does not give you any hope,” Mahlubi said. She currently relies on her son’s child support grant to survive, despite the money being intended primarily for his needs. Mahlubi’s story mirrors those of millions of unemployed young people in the country. During the second quarter, the total number of unemployed youth (15-34 years) increased to 5-million, Statistics South Africa reported in the Quarterly Labour Force Survey last week. While the country’s official unemployment rate increased to 33.6%. Further north of the country, in the North West, 31-year-old Onalenna Motau is also sitting at home with a post-matric qualification, a diploma in veterinary technology. Although she is yet to secure an offer of employment, she has at least secured some interviews. But those only came after she submitted more than 50 applications. The wait, the angst and the uncertainty have, she says, affected her relationships, daily routines, and mental wellbeing. “I don’t communicate with my people anymore because I don’t even know what to say to people; I don’t go anywhere. I wait for my mum to come with bread after work,” she said. For Tebogo Ngubo, who was born and raised in Johannesburg, the financial hub of the country, being counted among the country’s unemployed has been deeply frustrating. “Growing up, I always dreamed of being financially independent, building something of my own and being in a position where I could also help my family…” the 28-year-old told Sunday World. For young people like Mahlubi, Motau and Ngubo, and millions of others across the country, unemployment is not a number on a graph; it is a daily reality marked by financial hardship, frustration, anxiety, and uncertainty about the future that is not fully captured in the stats. Two analysts that Sunday World spoke to outline some of the impediments that job seekers face daily. In their shared struggle to find work, Mahlubi, Motau and Ngubo share another common challenge – they have no previous work experience. This is one of the glaring concerns that emerged from last week’s numbers, according to Annelene Dippenaar, chief business officer at Shop2Shop. “The majority of unemployed youth in this country have no previous work experience whatsoever… the problem is that it [the labour market] never admitted them in the first place,” she says. The other problem for many young job seekers is that a growing number of them are not employed, in education or training – a category often referred to as NEET – significantly “reducing their chances of securing work due to limited skills, qualifications and workplace exposure”, according to Nkosinathi Mahlangu, youth employment portfolio head at Momentum. Mahlangu says many young people have become discouraged from actively seeking employment, including graduates such as Motau and Mahlubi who struggle to find opportunities aligned with their qualifications. Job seeking, Ngubo notes, is also a costly exercise. “Even the little things become a struggle, like having money for transport to get to interviews, buying data to apply for jobs, and then dealing with that constant thought of, ‘What am I doing wrong?” she said. It is a struggle Dippenaar attributes to South Africa’s spatial geography, where work opportunities in townships and/or rural areas are few and far between. She also notes the brutality of the recruitment process on people who are not part of the system. “Employers screen on experience. Experience requires a job. A young person with no payslip, no employment history and no credit record is effectively invisible to every system that allocates opportunity in this economy…they are not unqualified. They are unrecorded,” she notes. Both Mahlangu and Dippenaar point to the disconnect between higher education outputs and labour market demands, but there is also the structural problem of persistently low economic growth, whose consequences are likely to be felt for years to come. For Mahlangu, addressing youth unemployment requires coordinated and meaningful collaboration between government, business, educational institutions, and civil society. By aligning training, economic opportunities, and workforce planning, he believes South Africa can create a more inclusive and responsive system that equips young people for long-term success. Dippenaar, on the other hand, suggests reducing the cost of registering and legally operating a very small business. She also stresses that the operating environment that small businesses depend on, as well as infrastructure such as electricity, transport and safety, needs to be strengthened. For Mahlubi, Motau and Ngubo, the struggle continues as they continue to keep their dreams and hopes alive amid grim statistics. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/the-young-and-the-jobless-the-struggle-of-the-qualified-yet-unemployed/
- EMPLOYMENT AND LABOUR ON 2026 REPORTING PERIOD
SA News | 5 August 2026 2026 reporting period will be first year of assessment for all designated employers who submit reports. The 2026 reporting period will be first assessment for all designated employers who submit employment equity plan reports – thus giving employers a base from which to assess progress towards achieving employment equity in an employer’s workforce. Department of Employment and Labour’s Employment Equity (EE) Directorate Director, Dr Ntsoaki Mamashela said following the enactment of EE amendments of 2022, which require employers to set five-year targets designated employers must be thorough in development and implementation of their EE transformation targets. Dr Mamashela was delivering a presentation on key highlights of the 2026 Commission for Employment Equity (CEE) on issues of transformation in the workplaces. This was during the joint Department of Employment and Labour, CEE, and Commission for Employment Equity (CEE) advocacy on equity in workplaces held today (4 August 2026) at Coastlands Hotel in uMhlanga, the residential, commercial and resort town north of Durban. According to the department designated employers (those employing more than fifty employees) are encouraged to apply for their Employment Equity Compliance Certificate immediately after submitting their Employment Equity Report. However, Dr Mamashela cautioned that it will not be easy to get the certificate. She said the department will be thorough in its assessments of reports. She said there were still employers submitting invalid reports and doing the copy and paste. According to Section 20 of EE Act designated employers are required to develop an Employment Equity Plan. The EE Amendments of 2022 requires employers to develop their own set targets. The equity plan provides a template from which to achieve reasonable progress towards employment equity in that employer’s workforce. The objectives need to be achieved for each year of the plan. The achievement or compliance to achievement of sector-specific numerical targets are also tied to access to State contracts. For media inquiries, please contact: Teboho Thejane Departmental Spokesperson 082 697 0694 teboho.thejane@labour.gov.za ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.gov.za/news/media-statements/employment-and-labour-2026-reporting-period
- DOUBLE-BOOKED HOTELS, A LUXURY 49-NIGHT ESTATE STAY — INSIDE NSFAS BOSS MATHEBULA’S R110,000-PLUS SPENDING
Siyabonga Goni | 29 July 2026 While tertiary students across South Africa demand an increase in food allowances and an accommodation cap, the upper echelon of the National Student Financial Aid Scheme (NSFAS) appears to be operating on a vastly different budget, including eyebrow-raising spending on hotels. Daily Maverick has obtained a trail of invoices revealing how NSFAS splashed public funds on hotel stays for Administrator Hlengani Mathebula. The most damning evidence of blatant financial negligence lies in an outright “double-booking” of two hotels during the final week of May 2026, and a stay at an estate. Double-booking hotels and fruitless expenditure According to official tax invoices, taxpayers paid R9,200 for Mathebula to stay at the Pepperclub Hotel & Spa for four nights from 25 to 29 May. On the same dates, a separate invoice reveals that NSFAS simultaneously paid R14,850 for Mathebula to occupy a luxury suite at The Westin Cape Town from 25-28 May. For three consecutive nights, public funds were burnt to secure two separate five-star hotel rooms in the same city under a single individual’s name. Responding to Daily Maverick questions on the reasons behind the double booking, NSFAS technical adviser Khulani Qoma told Daily Maverick to attribute the response to spokesperson Ishmael Mnisi, who said that all travel and accommodation were carefully considered and reasonably priced. “On the Tourvest tax matter, Professor Hlengani Mathebula stayed at The Westin Cape Town for the duration of his stay, but a prior booking had been made with the Pepperclub Hotel. However, an unsuccessful attempt to cancel the booking was made due to health reasons. What further compounded the matter was the fact that this coincided with the budget vote debates when hotels were oversubscribed, leaving NSFAS with limited booking options,” Mnisi attempted to explain. Mnisi could not elaborate on whose health condition led to the cancellation of the Pepperclub Hotel. Treasury’s National Travel Policy Framework establishes minimum norms and standards for public sector officials travelling on official business in SA. Section 15.2 – no-shows and cancellations of the policy – says that if a traveller fails to cancel a booking in time, it is officially classified as Fruitless and Wasteful Expenditure. Section 15.2.4 says: “The Traveller will be responsible for any fruitless expenditure incurred due to a no-show or late cancellation where it was in his/her ability to cancel... The Institution must recover the amount from the Traveller.” NSFAS’ provision of travel management services also states: “Cancellation of accommodation bookings must be done promptly to guard against no-show and late cancellation fees.” When asked whether Mathebula would be held personally liable, Mnisi said responsibility lay elsewhere. “This double-booking error is therefore not personally attributable to him. It came as a shock to him when this was raised by Daily Maverick, which contradicted the assurance he received when the matter came to his attention previously,” said Mnisi. Following the stay at Westin, a new reservation was again made at the same Hotel between 7 and 12 June. In mid-June, from 13 June until 1 August, NSFAS forked out R86,811.67 to book Mathebula into the Advertentia Real Estate Holiday Apartments to stay in Cape Town for a 49-night stay. Mnisi said: “Following our internal verifications, NSFAS can state that Mathebula didn’t incur additional hotel accommodation costs in the immediate days following the Advertentia booking in Cape Town.” NSFAS did not respond to the question of why it booked the estate. Instead it said Mathebula was being unfairly painted as spending state resources irrationally. “His administration is the leanest by people and spend,” said Mnisi. R10-million spent on advisers Mathebula has also raised eyebrow by appointing four advisers at a salary of nearly R10-million. Daily Maverick asked for justification of the appointment of advisers Nonkululeko Manyika, Khulani Qoma, Dudu Hlatshwayo and Madala Mthembu, who cumulatively make up an annual salary of close to R10-million. Mnisi said: “Mathebula didn’t walk in with his advisers from day one. He spent a month alone, making dispassionate assessments of the needs. He later appointed his advisers incrementally across the period, ending up with a total of four advisers, who possess skills ranging from financial management, strategy, legal, governance to corporate affairs and stakeholder relations.” Students struggling The spending comes as NSFAS-funded students continue to argue that current allowances no longer meet the cost of living. University of Johannesburg second-year student Simamkele Qoyi says the money is insufficient. “I divide the allowance, with the R1,550 being for food and the rest for toiletries. Sometimes I sacrifice from my savings in order to buy all my toiletries as the money was finished by food – for example, meat. Sometimes with the money I help at home and also buy large quantities of food to last the whole month… I do wish for an increase, because an increase could benefit us as students as then we would be able to buy enough groceries to sustain us for the whole month,” said Qoyi. Another student, from the University of the Western Cape who asked to remain anonymous, said it was enough for her. “It is enough to cover essential items because I mainly use it for groceries and toiletries, which is what the allowance is intended for; however, some students rely entirely on this allowance to cover everything, including personal care, clothes and sometimes even helping their families; for those students, R1,716 is often not enough,” she said. On hearing of the administrator’s spending, she said: “Hearing that such a large amount was spent on luxury travel raises concerns about priorities. Those funds could have been used to improve student support or other important services.” The spokesperson of the South African Union of Students (Saus), Dr Thato Masekoa, said the students were living under harsh conditions. “Saus believes that the current living allowance of R1,716 per month is grossly inadequate and no longer reflects the economic realities faced by students… Many students skip meals, experience chronic food insecurity, walk long distances because they cannot afford transport, borrow money to meet basic needs, or sacrifice essential academic materials simply to eat,” said Masekoa. On the travel expenditure, he added: “If confirmed, such expenditure represents a deeply troubling contradiction between the hardships experienced by students and the stewardship of public resources intended to support them.” Daily Maverick questioned NSFAS on plans to increase student allowances. Mnisi said: “NSFAS is disinclined to answer your latter questions presently.” Economic development and transformation adviser Duma Gqubule told Daily Maverick that the “chaos” at NSFAS needed to be probed, and that the allowance needed to keep up with inflation. “It has to keep up with inflation… We must set the allowances higher. We’ve been seeing in the media the stories of children without accommodation, sleeping in libraries, people in desperate situations. When I talk to people who are lecturers, they tell me about these situations, that the students are in a desperate situation,” said Gqubule. EFF demands accountability The Economic Freedom Fighters (EFF) have since called for an investigation into Mathebula’s actions. Speaking to Daily Maverick, the EFF’s Sihle Lonzi said the administrator was living lavishly, and also noted that the National Treasury had yet to approve the remuneration of the NSFAS administrator. “It’s a vote of no confidence in what (Minister of Higher Education) Buti Manamela is trying to do at NSFAS, because the finance minister would have long approved. They are just employing each other, spending money of the government that is meant to serve the student,” said Lonzi. He added that they would aim to bring Mathebula and Manamela before the Portfolio Committee on Higher Education to explain NSFAS’ issues and clarify whether accommodation middlemen had been eliminated. Lonzi heavily criticised the appointments of the four advisers, writing to committee chairperson Tebogo Letsie to demand an investigation into the administrator and his advisers’ remuneration. On Tuesday, News24 reported that Minister of Finance, Enoch Godongwana, had rejected the annual salary package of R5.5-million for Mathebula. This comes after the National Treasury told Daily Maverick that it has received a request seeking the concurrence of Godongwana regarding the remuneration of the administrator in terms of section 17C of the NSFAS Act. “It is currently being considered, and when a response has been finalised the minister will inform the minister of higher education of his decision. It is worth noting that although the letter is dated 17 June, the minister of finance only received it on 4 July,” said the National Treasury. It added: “Spending by NSFAS on this and all other matters is governed by the Public Finance Management Act and the entity’s policies and prescripts on spending. In this regard, the Department of Higher Education and NSFAS will have their own travel policies governing accommodation, travel costs, etc. Any expenditure on this must be aligned to their policy. If it isn’t, it may then be considered irregular expenditure.” Daily Maverick also sent questions to Department of Higher Education and Training spokesperson Matshepo Seedat, who referred the publication to a statement dated 14 July 2026, in which Manamela defended the spending by Mathebula on the advisers, saying that Mathebula had adopted a lean technical support model comprising four specialist advisers appointed to support him. “The technical support structure utilised during a previous NSFAS administration amounted to approximately R16.5-million per annum; an earlier administration incurred technical support costs of approximately R19.6-million per annum; and the remuneration associated with the former NSFAS board and its committee structures during the 2025/26 period amounted to approximately R31-million,” said Seedat. DM ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2026-07-29-double-booked-hotels-a-luxury-49-night-estate-stay-inside-nsfas-boss-mathebulas-r110000-plus-spending-spree/?dm_source=blocks-grid-wide&dm_medium=card-link&dm_campaign=inform&dm_position=1&utm_campaign=Post-2520&utm_medium=email&utm_source=first-thing
- NEW BEE TAX TO PAY BLACK-OWNED BUSINESSES R55 MILLION EVERY DAY FOR 5 YEARS
Shaun Jacobs | 27 July 2026 The new Transformation Fund is effectively another tax the private sector will have to pay for the privilege of operating their businesses in South Africa. Under the new fund, money that would have been allocated by companies to supplier and enterprise development will instead flow to the state. The government will then manage the fund and allocate capital towards businesses that meet its criteria and drive the transformation of the economy. The Institute of Race Relations’ head of policy research, Anthea Jeffery, explained that this is another example of the state trying to centralise power in South Africa. Jeffery told the Free Market Foundation that instead of the state leaving private companies to allocate capital as they wish, it wants to exercise authority over what is done with the money. The Transformation Fund was first announced by Minister of Trade, Industry, and Competition Parks Tau in January 2025. It is designed to pool and redirect funding from big corporates and businesses to small, black-owned enterprises and entrepreneurs. This aims to level the playing field in the economy by giving black-owned businesses a leg up through funding from the government. President Ramaphosa said the government will use the fund and all policy levers to deconcentrate ownership in the economy. “There is both a constitutional and economic imperative to correct the skewed patterns of ownership, control, and participation in the economy,” Ramaphosa said. “The fund aims to improve access to funding for majority black-owned and controlled enterprises, and support them to participate in value chains across key sectors of the economy.” Tau has explained how the fund will work and how his department plans to fund it amid widespread criticism from both defenders and critics of Black Economic Empowerment (BEE). The fund will be an independent entity under the Department of Trade, Industry, and Competition. It will be run through partnerships with public- and private-sector stakeholders. Partnering with financial institutions, the fund will have a digital portal for real-time investment monitoring to ensure the funds are not misused. Tau also claimed the system will monitor job creation and impact metrics to ensure it drives the outcomes the government desires. R100 billion power grab A major question surrounding the fund is how it will be capitalised, with Tau saying it will allocate R100 billion to black businesses over the first five years of operation. This amounts to R20 billion a year, or R55 million per day. This is an extraordinary amount of money to be allocated. For comparison, the established Industrial and Development Corporation disbursed R16.3 billion in its previous financial year. Only R2.6 billion of this went to small businesses in that period. Jeffery explained that the draft regulations for the fund indicate that it will be capitalised through existing supplier and enterprise development funds. Instead of private companies allocating this money themselves to earn BEE points, they will be able to pay into the fund for an equivalent amount of points or even more. “This now has a particular bearing on the private sector and how it copes with BEE. Under the existing codes, companies put money into supplier and enterprise development,” Jeffery said. “They are, in effect, helping to grow small businesses and incubate them. Some of them are in the supply chains of big corporates and others are in the broader economy.” “What the government wants to do is impose a state-controlled fund into which money, which business currently has the choice of what to do with, will go to the government.” The draft regulations show that businesses will be encouraged to contribute to the fund rather than to their own supplier and enterprise development. Webber Wentzel’s experts explained that businesses could even score more points by contributing to the fund than by making individual contributions to black-controlled companies. The proposal is to increase the total points businesses can score in the Enterprise and Supplier Development element from 46 to 53, including bonus points, if they contribute to the fund. “The money, according to the state, should rather go into the Transformation Fund and the government will decide on its deployment,” Jeffery said. “At the same time, businesses are coming under pressure to buy from 51% black-owned firms. There are not that many businesses that fit this requirement.” Now, corporates will be encouraged to do business with 100% black-owned firms, of which there are even fewer. The government will also be hard-pressed to find enough of these companies to allocate the R100 billion Transformation Fund to. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://dailyinvestor.com/finance/145446/new-bee-tax-to-pay-black-owned-businesses-r55-million-every-day-for-5-years/
- FAILED BEE DEAL FORCES FORMER ANC COUNCILLOR OUT OF HOME
Tshwarelo eseng Mogakane | 26 July 2026 Rametsi claims house was part of the deal he had with Cornish. Soured business relations between former ANC councillor Johny Rametsi and his former partners Gordon and Lorna Cornish have left Rametsi and his family destitute. The former councillor and mayoral committee member in the Matlosana and Dr Kenneth Kaunda District Municipalities has been evicted from his home in Klerksdorp after the North West High Court determined that he was not the rightful owner of the La Hoff property. In his answering affidavit, Rametsi told the court that the residential property formed part of a wider commercial arrangement linked to Prothane Industrial, a polyurethane manufacturing business he once co-owned with the couple. But the court found that ownership of the house was never legally passed to him because there was no written deed of alienation and no registered transfer in the deeds office. According to Rametsi, Cornish approached him in 2008 and offered him a 51% interest in Prothane Industrial because the company needed to be BEE compliant to secure funding. “The first applicant approached me and offered me 51% ownership in his close corporation, Prothane Industrial. My majority ownership secured the funding,” Rametsi states in the affidavit. An official Companies and Intellectual Property Commission (CIPC) document attached to the affidavit records Rametsi as holding a 51% member’s interest in Prothane Industrial from April 3, 2008, with Cornish holding the remaining 49%. The same CIPC document lists Rametsi’s residential address as the disputed La Hoff property. Rametsi further alleges that there was an agreement that the residence would eventually become his. He says he also received a company vehicle, payment of his children’s school fees, and a monthly allowance. He claims he generated about R5-million worth of business for the company through what he describes as “sweat equity”, and that attorneys had already begun transferring the property into his name before the relationship deteriorated. However, Cornish’s version, contained in court papers, differs sharply. He did not dispute that Prothane required a BEE-compliant structure to access finance but said Rametsi was expected to acquire a substantial member’s interest as part of that commercial arrangement. Cornish argued that the broader transaction never materialised after Rametsi allegedly failed to obtain financing to purchase the member’s interest. He said this brought the arrangement to an end and extinguished any rights Rametsi had to remain on the property. The High Court found that whatever business arrangement existed between the parties could not override South African property law. Judge André Petersen held that ownership of immovable property can pass only through a valid written agreement and registration in the Deeds Office. Hence, the court found that Rametsi was occupying the residence unlawfully and ordered him to vacate it. The former councillor’s family was removed from the property in Klerksdorp on June 15. In 2015, Prothane Industrial was selected as one of the inaugural Top 40 National Gazelles, a flagship programme launched by the Department of Small Business Development and the Small Enterprise Development Agency to identify and support South Africa’s fastest-growing small and medium enterprises. The company was listed among the country’s standout manufacturing businesses at the programme’s launch. But the relationship behind that success would eventually unravel. Company newsletters from Prothane’s earlier years introduced Cornish as the company’s co-owner and Rametsi as its partner, with the two jointly addressing staff under the heading “Message from the Owners”. Sunday World established that Prothane Industrial has since been sold to new owners. Cornish has since relocated to Mozambique, where he is involved in farming activities. Rametsi told the Sunday World that neighbours had taken him and his family in after their eviction. “My Samaritan neighbours took me in. I have now even overstayed. I feel betrayed. Those I trusted with my hard labour and black skin to push the business to success have left me down and out.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/failed-bee-deal-forces-former-anc-councillor-out-of-home/
- BETTER PROCUREMENT STRATEGY CAN EXPAND SOUTH AFRICA'S INDUSTRIAL BASE
Schalk Burger | 27 July 2026 With smarter localisation, clearer procurement rules and a more deliberate industrial strategy, public spending could again become a powerful engine for rebuilding factories, expand supply chains and restore confidence in South Africa as a manufacturing country, public and private professionals say. Localisation is not about closing the economy, but about using the State’s buying power to build a stronger, more competitive manufacturing base that can serve domestic and export markets, says electromechanical equipment manufacturer ACTOM Group CEO Mervyn Naidoo. South Africa does not lack industrial capability; it lacks a procurement system designed to nurture and expand it. With clear rules, long‑term visibility and firm designation, public spending can again become a catalyst for investment, job creation and industrial renewal, he says. “The problem is not a lack of opportunity, but a lack of coherence. Public procurement is too often fragmented and inconsistent, and contracts are awarded for short periods, with no guarantee of continuity or commitment to local industry. “Nobody is going to invest in long‑term capacity, automation or technology upgrades when demand is uncertain. The result is predictable, as imports fill the gap, local factories sit underutilised, and the country loses skills, tax revenue and jobs,” he says. State-owned Eskom’s Transmission Development Plan is an example of long‑term visibility already in place. With a 15- to 20‑year pipeline of grid infrastructure ahead, South Africa has a rare opportunity to use this demand to rebuild domestic manufacturing. If government paired this pipeline with firm local‑content rules, long‑horizon contracts and sector designation, companies would have the confidence to invest in new plants, expand capacity and train workers, Naidoo emphasises. Localisation is a policy tool used worldwide to secure industrial capabilities, adds Department of Trade, Industry and Competition acting deputy director-general Dr Tebogo Makube. However, South Africa’s challenge is that the current procurement framework places overwhelming weight on price. Under the 80%:20% and 90%:10% systems, price accounts for up to 90% of the evaluation. “This makes it extremely difficult for local manufacturers, who face higher electricity tariffs, unreliable municipal services and rising logistics costs, to compete against imports from countries with lower input costs or State‑supported industries,” he says. Further, localisation must apply across procurement methods. Whether a project is delivered through engineering, procurement and construction contractors, public‑private partnerships or direct departmental procurement, if public money is being spent, local content rules should apply. This clarity is essential to prevent loopholes that allow imported products to bypass designation, he says. The Preferential Procurement Act of 2024 aims to rebalance this. Once regulations are finalised, designated products will again require minimum local‑content thresholds as a first‑stage evaluation criterion. Bids that do not meet these requirements will not proceed to price evaluation, says Makube. Meanwhile, the metals and engineering value chain relies heavily on public procurement, with about one-quarter of domestic sales stemming from the public sector. This figure can exceed 60% in some subsectors, industry organisation Steel and Engineering Industries Federation of Southern Africa CEO Tafadzwa Chibanguza points out. When procurement is inconsistent, the entire ecosystem suffers. Localisation is not a barrier to global competitiveness, but a prerequisite for it. Many of South Africa's manufacturers are operating at 50% to 70% capacity, with fixed costs spread across too few orders, he adds. “When public procurement lifts utilisation, companies can reduce per‑unit costs, improve efficiency and become more competitive internationally. Localisation is a platform for export readiness, and not a retreat from global markets,” he says. Additionally, the multiplier effects are often ignored in procurement decisions. A locally manufactured transformer supports upstream steel and copper producers, downstream fabricators, logistics providers, engineers and service centres. These economic linkages exceed the value of the final product and are lost entirely when imports replace local production, says Chibanguza. South Africa’s manufacturing sector has become largely stagnant, with years of factory closures, shrinking order books, rising input costs and erratic demand hollowing out industrial capacity that once anchored hundreds of thousands of jobs, the organisations say. Rewriting the rules of procurement is a strategic choice about the kind of economy South Africa wants to build, namely one where factories are busy, skills are deepened, and public money works harder for long‑term growth, they state. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/better-procurement-strategy-can-expand-south-africas-industrial-base-2026-07-20
- RETHINKING QUALIFICATIONS: THE HIDDEN TALENTS ON SOUTH AFRICA'S FACTORY FLOORS
Merel van der Lei | 13 July 2026 On a packaging line outside Pietermaritzburg, an operator slightly adjusts a machine because the packaging film is running tacky, preventing a batch from jamming. Two bays down, a setter finishes a die changeover in a third of the manual's estimated time because she knows the most efficient sequence by memory. Neither holds a formal certificate for what they just did. Yet, both made the difference between a shift hitting its production targets and failing. Walk any production line in the country and you find the same thing: skill that is real, hard-won and applied by the hour, and almost entirely invisible to the way South Africa measures its industrial workforce development. And that blind spot has become expensive. In August 2025, the Bureau for Economic Research reviewed the SETA system. They found that once you exclude the short, low-complexity courses that inflate headline numbers, certifying a single artisan through substantive routes – like learnerships and artisanal programmes – costs R388,052. That is more than it costs to produce a university graduate, at R370,923. We pay a premium price for the paperwork, and still, on the BER's own manufacturing survey, around half of manufacturers name the shortage of skilled labour as a serious constraint on their business. The rest of the picture is not much better. Over the review period, SETA revenue rose 46% in real terms while the number of certifications fell 23%. Output per SETA employee dropped from 92 certifications a year to 35. Against the target implied by the National Skills Development Plan – roughly a tenth of the workforce trained each year – the system delivers between 4% and 6,6%. More money, fewer results, and a scoreboard that counts who enrolled rather than the competence already standing on the floor. Riaz Moola, who runs the training provider HyperionDev, put the diagnosis plainly in May: South Africa has "a growing outcomes problem". Success in skills development, he argued, has for a long time been measured by how many people entered a programme rather than by what came of it. His world is digital talent, not toolmakers, but the flaw travels, and it is at its sharpest on a factory floor. When the sector gathers at the Manufacturing Indaba in Sandton on 14 and 15 July, under the banner "Made in Africa: Scaling Growth, Shaping Trade", the artisan shortage will be a recurring topic. The instinct will be to call for more training, more enrolments, more throughput and more funding. That instinct mistakes a measurement failure for a volume one. You cannot scale production that you cannot staff, and you will not staff it from a system that grows more expensive and less productive every year. The certificate was never built to capture what keeps a line running. A qualification signed off in a classroom months ago says little about whether an operator can read the quirks of the specific machine in front of them today. That knowledge is built in the flow of the work, shift after shift, and is the very thing manufacturers are short of. They have no shortage of people who have sat through training. What they lack is a way to see, prove and build on the competence their employees already demonstrate. The stakes climb as the sector itself contracts. Manufacturing was the single biggest drag on GDP in the final quarter of 2025 and shrank again in the first quarter of 2026, a second consecutive decline, even as the wider economy recorded its strongest (albeit from a low base) year since 2022. An industry under that kind of pressure cannot afford to pay a premium for certificates while the skill it actually needs goes unrecognised and underleveraged. None of this argues for scrapping qualifications, which still matter a lot for a worker's mobility beyond any single employer. The correction is to stop treating the certificate as the finish line and to start recognising competence continuously, in the place where it is used. Frontline systems already make that practical. When bite-sized training reaches an operator on the same phone that carries their roster and their payslip, learning becomes part of the working week rather than an annual or tedious event. When an employee logs a fault, records a fix or signs off a safety check on that device, the entry does two jobs at once. It stands as proof for an audit, but it also builds a live map of who can do what, and where a gap is opening before it stops a line. That gives leadership something a drawer of certificates never could: a current read and insights on capability across a workforce spread over many sites. Which competencies are strong? Which are thinning as experienced hands near retirement? Which need attention this month rather than next year? The thing is that digitising workforces working with their hands is not seen as part of the skills development dialogue. This approach is also a matter of fairness in a country where 60,9% of young people aged 15 to 24 are unemployed. A young worker who can prove competence through their daily output, rather than relying solely on a certificate they may have struggled to access, gains a clearer route to recognition and promotion. Measuring skill where it happens rewards what people can already do – precisely what a labour market starved of artisans, yet crowded with excluded youth, needs. South Africa does not need to spend more to build industrial skills. We need to stop mistaking attendance for ability and look at the factory floor. The artisans the sector says it cannot find are, in many cases, already clocked in. What has been missing is a system able to see them, recognise them, and leverage them as the foundation of the next generation of skilled artisans we need. Time is running out, though. This opportunity exists only as long as organisations can keep these skilled individuals on the payroll before economic contractions or retirement intervene. It is a race we can still win – and without spending billions more. Merel van der Lei is the CEO of Wyzetalk ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/business-report/companies/2026-07-13-rethinking-qualifications-the-hidden-talents-on-south-africas-factory-floors/
- WAR BREWING OVER PLAN TO IMPOSE BEE LAWS ON SPRINGBOKS VS ALL BLACKS TOUR
Malcolm Libera | 9 July 2026 A legal battle is brewing over the government’s plan to grant special protected status to the upcoming Rugby’s Greatest Rivalry 2026 Tour. The tour will see South Africa’s Springboks take on New Zealand’s All Blacks between August and September this year. The Department of Trade, Industry and Competition (DTIC) recently published a notice proposing that the tour be declared a protected event under Section 15A of the Merchandise Marks Act of 1941. If approved, the designation would give organisers additional legal protection against the unauthorised use of event-related branding, logos, slogans and trademarks associated with the Springboks, All Blacks and the tour itself. The protection would cover a wide range of names and visual marks, helping organisers combat counterfeit merchandise and unauthorised commercial activity linked to the event. However, the proposed declaration comes with a number of conditions that have sparked criticism from trade union Solidarity. The union argued that the government wants to impose procurement and Broad-Based Black Economic Empowerment (B-BBEE) requirements on what is essentially a private sporting event. Under the notice, the South African Rugby Union (SARU), as the organiser, would be required to align its procurement processes with constitutional procurement principles, including fairness, equity, transparency and competitiveness. The organisation would also have to comply with the Preferential Procurement Policy Framework Act and apply the DTIC’s B-BBEE codes of good practice when evaluating suppliers. In practical terms, this means a supplier’s B-BBEE status must be considered alongside price and other factors when contracts for the tour are awarded. The notice also requires organisers to support South African businesses, particularly those from previously disadvantaged communities. They will also have to submit an impact assessment report to the Minister of Trade, Industry and Competition between six and twelve months after the event concludes. The report would need to outline the tour’s economic and social impact and demonstrate how opportunities were created for local and disadvantaged businesses. Opens the door to greater state control Supporters of the approach argue that the conditions ensure that major events deliver broader economic benefits and create opportunities for historically disadvantaged enterprises. However, Solidarity has strongly opposed the proposal and has indicated that its legal team is already preparing submissions against the regulations. According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), the government should not use the protected-event designation to enforce procurement policies on independent event organisers. “Our biggest concern is the attempt to impose BEE regulations and procurement requirements on the organisers of the All Black tour,” he said. “Solidarity is already challenging the Public Procurement Act in court. Imposing these requirements on independent events while the Act is still being challenged makes no sense.” He argued that the proposal could interfere with existing commercial arrangements and create uncertainty for businesses that have already entered into contracts related to the tour. “Where does this decision leave businesses that have already signed contracts for supporter jerseys, marketing and other products?” he asked. Du Buisson further warned that the requirements could have significant consequences if applied strictly. “If the law is applied to its fullest extent, only 100% black-owned businesses may have the right to manufacture or sell Springbok supporter jerseys. Such an outcome is simply absurd.” Solidarity also believes the proposal could establish a precedent that extends government influence over private events beyond rugby. “Once a minister can declare anything to be in the ‘public interest’ and subsequently subject it to state procurement requirements, there is virtually no limit to state interference,” Du Buisson said. The organisation has also raised concerns about the administrative burden imposed by the reporting and compliance requirements associated with protected-event status. “Mandatory impact reports to the minister and other regulatory requirements increase the cost of hosting major events. South Africa should encourage international sporting and cultural events, not deter them through excessive state control,” he said. The proposal is open for public comment, with interested parties given 15 days from publication of the notice to submit feedback. The notice, in its entirety, along with the protected marks and terms, can be viewed below. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/865928/war-brewing-over-plan-to-impose-bee-laws-on-springboks-vs-all-blacks-tour/












