Search Results

Nkateko Joseph Mabasa | 18 June 2025 President Cyril Ramaphosa has defended his administration’s efforts to address the country’s deepening youth unemployment crisis, saying it requires a broad approach, including investing in education and skills development and encouraging entrepreneurship among young people. In his weekly newsletter, which coincided with South Africa observing Youth Day, Ramaphosa singled out the Presidential Employment Stimulus and the Presidential Youth Employment Intervention as two flagship programmes that have helped to cushion the blow of a stagnant labour market. The country’s youth unemployment rate remains among the highest in the world, with more than 60% of people aged 15 to 24 unable to find work, according to Statistics South Africa. Official youth unemployment, for those aged between 15 and 34, increased by 9.2% from the last quarter of 2024 to 46.1% in the first quarter of 2025. “To overcome this challenge we need an approach that includes investing in education and skills development, fostering youth entrepreneurship and implementing targeted employment programmes focusing on young people,” the president wrote. He said the Presidential Employment Stimulus and Presidential Youth Employment Intervention were “providing opportunities to hundreds of thousands of young people at a time when not enough jobs are being created to absorb new entrants into the labour market”. Launched in 2020, the Presidential Employment Stimulus has supported more than two million work and livelihood opportunities. According to the presidency, 72% of the participants were young people and 66% were women. The president also praised the SAYouth.mobi platform, a zero-rated data-free site that connects unemployed young people to training and job opportunities. Ramaphosa said 4.7 million young people have registered on SAYouth.mobi and on the department of employment and labour’s employment services database, collectively accessing more than 1.6 million earning opportunities. Beyond simply creating jobs, Ramaphosa said his government is working to remove systemic barriers that prevent young people from reaching the labour market. In 2019, the requirement for work experience in entry-level public service jobs was abolished, a move he said has opened the door for first-time jobseekers. “Young people have often expressed frustration around the onerous experience requirements from employers that effectively serve as a barrier to entry for them,” Ramaphosa said. Public-private partnerships, such as the Youth Employment Service, have placed thousands of young people in workplaces across a range of economic sectors, offering much-needed experience, said Ramaphosa. But he conceded that formal employment opportunities alone were not enough, stressing the need to bolster skills development and nurture entrepreneurship among the youth.  “The extent and scale of the youth unemployment crisis means that we should not focus solely on placing more young people in formal, existing jobs,” he wrote. Capitec Bank chief executive Gerrie Fourie recently said South Africa’s unemployment rate was closer to 10% instead of the official 32.9% if Stats SA were to include those self-employed in the informal economy. Fourier argued that many people in townships and rural areas have informal steady jobs as hawkers and make a daily turnover of about R1 000.  Stats SA refuted claims that it overlooks informal sector workers, stating it follows International Labour Organisation standards to track unregistered, small-scale employment. It regularly publishes detailed reports, such as the Quarterly Labour Force Survey, to monitor this sector.  Statistician general Risenga Maluleke emphasised that official data should inform policy, not be misrepresented, and urged critics to base their arguments on evidence. According to Stats SA,  the rate of young people not in employment, education or training has increased from 38.3% to 43.2% over the past 10 years. This raises questions about the ability of the informal economy to create alternative employment.   South Africa’s youth are increasingly being left behind by the economy, with rising unemployment, hunger and crime dimming prospects for a generation that makes up a third of the population, according to Stats SA’s latest Social Profile of Youth report, which tracks the well-being of young people from 2014 to 2024. Defined as those aged 15 to 34, the youth cohort accounts for about 21 million people, representing 33.1% of the population.  Although youth unemployment remains high, the profile of those most affected has shifted, suggesting that access to basic education is becoming less of a barrier to employment. The share of jobless youth without a matric qualification declined by 10.3 percentage points, while unemployment among matriculants fell by 7.2 percentage points.  But the report also shows that a matric certificate does little to shield young people from joblessness. From 2014 to 2024, the proportion of youth who were employed dropped from 30.5% to 27.7%, while youth unemployment rose sharply from 36.8% to 45.5% over the same period. This upward trend in joblessness was observed in most provinces except the Western Cape. At the same time, more youth are living in households without any employed adults. This figure rose from 21.8% to 23.8% for males and from 24.5% to 25.5% for females. At the household level, the situation remains precarious as income from salaries and wages declined in 2023. In rural areas, reliance on social grants remained high, despite a marginal decline in their overall share of household income. Food insecurity also worsened, with the share of young people living in hungry households rising from 13.5% in 2014 to 15.8% in 2023. “Households with no employed adults are becoming more common, which makes the intergenerational transfer of poverty more likely,” said the report. Youth safety also deteriorated, particularly for young men. Fewer youths reported feeling safe walking alone during the day, while feelings of night-time safety remained unchanged at 34.9%. Young men aged 16 to 34 were more likely to be victims of assault, street robbery and theft than their female peers, according to the report. School attendance increased slightly, from 74.7% in 2014 to 75.2% in 2023, while enrolment in higher education climbed by 1.3 percentage points to 13.2%. Youth with tertiary qualifications were also the least likely to be unemployed. Statistics South Africa said this reinforces the importance of continued education in an exclusionary labour market. Enrolment in technical and vocational education and training colleges dropped slightly, while participation in adult education and training went down from 1% to just 0.04%. Stats SA noted a small uptick in home-schooling and other alternative education options, which signals growing demand for non-traditional learning opportunities. “South Africa’s youth are better educated, but not necessarily better off,” the report concludes. The youth data raises questions about the intersection between skills alignment, the quality of work and the cost of living. Ramaphosa said the government has ramped up funding for technical and vocational education and training colleges, including the establishment of new campuses. The presidential youth programme has also partnered with the National Youth Development Agency and the department of small business development to develop young entrepreneurs. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/news/2025-06-18-ramaphosa-touts-youth-jobs-drive-as-statssa-data-paints-grim-unemployment-picture/

The Socio-Economic Development   element requires an Independent Competent Person to present an Independent Competent Person’s Report to confirm that the requirements of an organisation’s Socio-Economic Development contributions have been met and that a claim is indeed legitimate. As per Schedule 1  of the Amended General B-BBEE Codes of Good Practice, a “Competent Person” means a person who has acquired through training, qualification and experience the knowledge and skills necessary for undertaking any task assigned to them under the codes.” An Independent Competent Person must have no conflict of interest when nominated to sign off on an organisation’s Socio-Economic Development initiative. Such a person must have sufficient training and experience or knowledge, as well as other qualities that allow them to assist an organisation in the capacity of an Independent Competent Person. The competence level depends on the initiative's complexity and the requirements of a particular assessment. An Independent Competent Person must have a duty of care to an organisation’s investors. Socio-Economic Development Services are available to assist organisations that wish to confirm the competence of an Independent Competent Person.

The Ownership element of the B-BBEE Scorecard assesses the proportion of Ownership  held by Black People within an organisation and is one of the Priority elements under B-BBEE Legislation.   As per the Amended General B-BBEE Codes of Good Practice, and using the Verification Manual as a guide, Ownership must be measured on the date of a B-BBEE Verification and not on the date of an Ownership transaction.   Ownership Services are available to Members to assist with understanding requirements for Ownership.

From time to time, the South African National Accreditation System (SANAS) publishes a list  of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials .     This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

Journalist | 18 June 2025 Gwede Mantashe’s removal of B-BBEE rules for prospecting rights has ignited criticism from labour and activists, raising fears of a shift in policy. Is the ANC-led government of national unity (GNU) about to sell out on the principle of broad-based black economic empowerment (B-BBEE), the policy which has formed the bedrock of ANC policy and which has been in the crosshairs of its critics recently? That’s the question which arises from the decision of Minerals and Petroleum Resources Minister Gwede Mantashe to remove the requirement for B-BBEE participation in prospecting rights. According to some NGOs involved in the mining sector, Mantashe caved in to pressure from the mining lobby, not only on the prospecting licence rules, but also on the requirement that the minister must approve any change in control of listed companies that own mining rights. The latter means that the government would be unable to track owners and assign responsibility to them for cleaning up mining sites once an ore body has reached the end of its profitable life. That, say Mantashe’s accusers, means potential environmental damage on a huge scale. But it is the amendment to empowerment rules which has angered groups like organised labour, because there seems to be no logical reason for the deviation. The latest development comes after Communications and Digital Technologies Minister Solly Malatsi was pilloried for allegedly trying to soften empowerment law to allow Elon Musk’s Starlink to operate in South Africa. That this was an incorrect reading of both the law and what Malatsi said made no difference to his enemies, who claimed the DA minister was “selling out” B-BBEE. There is also some concern about whether the ANC is feeling the pressure of people like the right-wing lobby and its powerful friend, US President Donald Trump, who view empowerment laws as apartheid in reverse. It seems unlikely the ANC would roll back these laws because it would be punished at the ballot box. Which leaves another question: What is Mantashe up 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://www.citizen.co.za/news/opinion/is-the-anc-quietly-rewriting-empowerment/

Nkateko Joseph Mabasa | 17 June 2025 Business Leadership South Africa (BLSA) has criticised the recently launched Transformation Fund as being flawed because it was structured around input-based targets instead of clear, outcome-driven goals. It said effective efforts should be anchored in measurable objectives that justified the financial commitment required.  According to a draft released in March, the R100 billion fund aims to promote black economic empowerment and inclusive economic growth by facilitating the increased participation of black people in the mainstream economy.  In a submission to the department of trade, industry and competition, BLSA, an association  representing big businesses, said while it recognised the importance of transformation initiatives, “we have concerns regarding the feasibility, governance and financial sustainability of the proposed fund in its current form”. “The fund should use an outcome-based approach by specifying the expected transformation impact in tangible terms, such as the number of businesses it aims to grow, employment targets, or improvements in SME (small and medium enterprises) survival rates,” it said. “For example, a goal of supporting 5 000 black-owned businesses with a 30% annual growth rate over five years would provide a more practical framework for assessing effectiveness.” Trade and Industry Minister Parks Tau published the fund’s concept document — which envisages raising R20 billion annually for black enterprise development — in March, with a 28 May deadline for comments. Scrutiny of the draft comes amid tension over the government’s black economic empowerment policies. For example, the Democratic Alliance (DA), despite being part of the government of national unity, is challenging the Employment Equity Act in court, arguing that it introduces unfair race quotas that contradict the Constitution. Communications and Digital Technologies Minister Solly Malatsi, a DA cabinet member, recently had to defend his controversial proposed information and communication technology policy adjustments as intended to broadly attract investment in the sector, rather than to simply pave the way for Elon Musk’s Starlink to operate in South Africa, as critics suggested. President Cyril Ramaphosa has defended black economic empowerment as vital for inclusive growth, crediting it for the emergence of black industrialists and support for women-owned businesses. BLSA acknowledged the importance of redressing the structural economic imbalances created by apartheid, and commended the government for establishing the Transformation Fund, but bemoaned the lack of analysis about why previous state-led initiatives such as the National Empowerment Fund and the Small Business Fund had underperformed. “The paper does not provide a comprehensive overview of these existing funding mechanisms, nor does it justify why a new R100 billion structure is necessary instead of enhancing existing models,” it said in its submission. It also expressed concern about institutional inflation, where new entities are created for the same purpose instead of supporting ongoing programmes, adding that access to funding alone would not resolve the systemic challenges and insufficient mentorship capacity had hampered black empowerment initiatives. “Without targeted investment in mentorship infrastructure even significant financial allocations may fail to yield desired development outcomes,” it said. Labour union Solidarity and the Free Market Foundation estimate that black empowerment laws have incurred R145 billion to R290 billion in compliance costs since their inception, equivalent to between 2% and 4% of GDP. A report by the two organisations on the cost of broad-based black economic empowerment says the programme has imposed a substantial economic burden on high-intensity sectors such as mining and finance, attributing low employment numbers to racially motivated policies. “While B-BBEE may have contributed to an increase in black ownership and supported some skills and SME development, those gains are overshadowed by elite capture, limited grassroots impact and persistent inequality,” the report said. BLSA said transformation efforts would improve with more private sector participation in the fund’s financial disbursement and oversight. It argued that transformation is already happening in companies’ enterprise and supplier development programmes, which have proved to be commercially viable in integrating small businesses. A joint fund management team between government and the private sector would allow businesses to share and “codify lessons and best practices for the fund’s design”, the organisation added. “We recommend that the Transformation Fund be designed with sufficient flexibility to align with existing industry master plans and accommodate the requirements of the fast-growing priority sectors,” it submitted. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mg.co.za/business/2025-06-17-transformation-fund-draft-document-lacks-clear-outcome-driven-goals-blsa-says/

Midrand Reporter | 16 June 2025 The graduation served as a poignant reminder that when entrepreneurs are equipped with the right tools, support, and confidence, they build with purpose and build to last. The Innovator Trust, established by Vodacom over a decade ago, aims to support the development of small, black-owned, information and communications technology (ICT) enterprises in South Africa. It has successfully assisted black-owned small, medium, and micro enterprises (SMMEs) in the ICT sector, positively impacting thousands of lives through its comprehensive programmes.This proud legacy reflects a commitment to strategic entrepreneurship, job creation, and the empowerment of innovative ideas. As a result, on June 3, the Innovator Trust hosted the 2025 enterprise development graduation ceremony at Vodacom World in Midrand. The event celebrated entrepreneurs from the hatch incubator, IT accelerator programme (ITAP), and youth entrepreneurship programme (YEP). From side hustles, to scalable businesses, the Innovator Trust has supported over 200 entrepreneurs at every growth stage, providing practical tools, experienced mentorship, and strategic guidance that yields tangible results. Tashline Jooste, CEO of Innovator Trust, reflected on the trust’s, over a decade-long, journey. “We have been developing our capacity and enhancing our systems to better support SMMEs,” said Jooste. “Every business requires a supportive ecosystem, which begins with incubation. “What we are witnessing, a decade later, is the rise of industry leaders who are shaping the future of South Africa’s digital economy. While some may view this as just a graduation ceremony, for us, it is a testament to what can be achieved through targeted, relevant support for SMMEs.” Lungile Manzini, executive head of sustainable development at Vodacom South Africa, delivered the keynote address, highlighting the importance of purpose-driven SMMEs, while Siya Sangweni facilitated a dynamic panel discussion on the current state of the SMME landscape in South Africa. Entrepreneurs openly shared their experiences regarding challenges, such as cash flow issues and delays in corporate payments, emphasising the need for support beyond financial aid. The atmosphere shifted from strategy to celebration as beneficiary graduates took to the stage, greeted by thunderous applause. One of the evening’s highlights was the Pinnacle Award, recognising the entrepreneur who excelled across all measures of business success. Michael Cyster was the winner of this prestigious category. “I’ve never chased recognition, but to be acknowledged like this is indescribable,” said Cyster. “I’ve just put my head down and worked, and I’m so grateful to the Innovator Trust for seeing me and acknowledging the effort we put in.” Graduates and runners-up received well-deserved recognition, with several categories awarding up to R50 000 in cash prizes to support their continued business growth. ‘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.citizen.co.za/midrand-reporter/news-headlines/local-news/2025/06/16/innovator-trust-recognises-top-ict-achievers/

Solly Phetoe | 16 June 2025 Broad-Based Black Economic Empowerment (BBBEE) remains an important tool to address our deeply ingrained levels of inequality.   It would be strange for any democratic government of a nation emerging from three hundred and fifty years of the most brutal and institutionalised forms of discrimination that left over 90% of society consigned to the most poorly paid form of manual labour, not to embrace state supported economic empowerment programme.   It would have been tantamount to endorsing South Africa’s status as the world’s most unequal society, something clearly the fringe right wing extremists wish for. BBBEE is merely one tool, among many, to address the legacies of the past and the inequalities of today.  This is a key prescript of the Constitution and an obligation of the state to society. BBBEE in short seeks to give a fair opportunity to millions historically denied such due to their race, gender or disability.  People, in particular the race baiting fringe right wing, ignore its inclusivity.  BBBEE includes Africans, Coloureds, Indians, plus women, workers and persons with disabilities of all races.  In short it covers about 97% of society! BBBEE is not just the 30% shareholding option but also equity equivalents where investors can offer similar investments supporting local companies, creating jobs and investing in communities.  All equally important.  It includes Employee Shareholder or Worker Ownership Programmes (ESOPs).  This has been an initiative COSATU and many unions have championed.  In the recent past few years, it has seen over 550 000 workers become shareholders in their companies.  This has given them a stake in the companies’ well-being and growth, but also crucially put money in their pockets.  Some critics lament that BBBEE has failed and must be scrapped.  Yet they are silent on its role in creating a growing Black middle class.  They deride efforts to create Black industrialists yet miss the point of their role in opening factories and companies, and the jobs these create in local communities.   Is BBBEE perfect?  Of course not.  Does it need to be adjusted, lessons learned, mistakes corrected?  Without a doubt.  Cosatu does have many concerns with the implementation of BBBEE, notwithstanding appreciating its successes in many instances.  BBBEE does need to be adjusted to learn from challenges experienced, to avoid repeating them and to ensure its progressive objectives reach those most in need of empowerment, the millions of working class residents living in townships, informal areas, rural towns and villages across the nation. A discussion needs to be had about the once empowered, always empowered notion.  Do we want BBBEE to continue to benefit those already empowered? Or can it be adjusted to prioritise those still in need of empowerment?  How can this be practically done?  An elegant solution is needed lest BBBEE be dismissed as benefiting only the wealthy. How can SMMEs, especially emerging ones, and particularly those in townships and rural areas, be elevated?  We should not continue to normalise township and rural economies to be composed of taxis, petrol stations, hawkers and taverns alone.  An inclusive targeted approach to these communities where the overwhelming majority of South Africans live, is needed. Can more be done to eliminate fronting where White South Africans merely add the name of a Black employee or partner to their ownership papers or where a Black owned company simply imports goods from Asia?  BBBEE is not about names on a letter head.  It is meant to reach those in need of empowerment.  It cannot be about enriching importers when we need to elevate local procurement and give support to local businesses, Black and White, and not sacrifice them in pursuit of cheap imports. Public procurement with an annual budget of over R1 trillion, from departments to municipalities, entities and State-Owned Enterprises, has a key role to play in supporting BBBEE and more critically making sure it reaches those who need it, not the nouveau riche. The recently assented to Public Procurement Act elevating this important objective across the state will be an important boost in this regard.  Public representatives across the three spheres of government need to hold the executives accountable in this regard. The private sector too, in particular large mining, manufacturing, financial and other well-resourced sectors with large procurement budgets, need to provide more solidarity and support to local companies, in particular BBBEE compliant ones.  This is key not only to transformation and empowerment, but also to boosting localisation and stimulating badly needed economic growth and tackling unemployment. Whilst Cosatu supports the thrust of BBBEE, the heart of our support and in fact our passion, lays in ramping up ESOPS or Worker Ownership Programmes.  We want workers to live a better life, to boost their earnings, to have more money to pay their debts, to feed their families and to buy the goods local companies produce and thus spur economic growth and sustain and create more jobs. We want workers to become co-owners of their companies as this gives them a stake in their success and a direct motive to boost productivity and again spur economic growth and sustain and create jobs. We want to end the still painfully prevalent apartheid scars that are the feature of almost every township, village and community.  We want workers, African, Coloured, Indian, White, women and with disabilities, to be co-owners in this economy, including on the JSE. We want this better life now, not in some indeterminate future promised on a Jpeg by irrelevant populists.  Workers are the backbone of the economy. They have made South Africa the industrial hub of the economy.  Many have grown wealthy off of their sweat and blood, it is time that this wealth is shared with the working class.  ESOPs are a critical path to doing that. BBBEE is not perfect, but its objectives remain as valid today as they were in 1994.  Adjustments are needed, in particular to make sure the SMMEs in our townships, local manufacturers, and most importantly workers are elevated and prioritised at all times. ‘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/opinion/2025-06-16-cosatu-the-importance-of-bbbee-in-addressing-inequality-in-sa/

Kara le Roux | 12 June 2025 Small businesses often collapse under the weight of underfunding and a lack of resources. The likes of Mr Price and Woolworths are stepping in to help. South Africa’s small businesses shoulder a heavy load, employing about 13.4 million people, and more than 70% of them don’t make it past the seven-year mark. This week, Woolworths and Mr Price joined the growing queue of corporates trying to fix that, pledging millions towards entrepreneurship and empowerment. The business of doing good  Woolworths is framing its new Inclusive Justice Institute as a practical demonstration of corporate empowerment, with the minister of small business development, Stella Ndabeni-Abrahams, endorsing it as a model for retail-led development. Backed by R300-million in funding — R200-million from Woolworths and R100-million from the Land Bank for emerging farmers — the institute will operate through two non-profit arms. One focuses on developing suppliers and the other on community programmes like food security and education. The retailer says it increased its procurement from SMMEs by 42% to R4-billion last year, and donated R816-million worth of surplus food to under-resourced communities. Woolworths’ corporate social justice director, Zinzi Mgolodela, said: “Our support for MSMEs [micro, small and medium enterprises] has helped stimulate economic growth by empowering beneficiaries to create jobs and expand their businesses. “Through our NGO partnerships, we support rural and semi-urban communities to grow food and become self-sufficient, and our education initiatives have improved learning in under-resourced schools and promoted child safety , giving children the opportunity to thrive in safe, supportive environments.” The Land Bank’s CEO, Themba Rikhotso, said: “This initiative aligns directly with Land Bank’s mission of empowering previously disadvantaged communities and to increase the inclusion of emerging farmers in the commercial agricultural sector, thereby enhancing the country’s long-term food security.” Fishing for hustlers under 35   Meanwhile, Mr Price’s Bindzu Youth Fund offers black and youth-owned businesses the chance to apply for R3-million in grant funding, spread across bootcamp training, mentorship and seed capital. The retailer’s efforts seem to be focused on the right goal. Data from FinScope indicate that 30% of SMME owners are under the age of 35. To qualify, applicants must have been operating for at least 12 months, be between the ages of 18 and 34, and earn less than R5-million in annual turnover. The foundation says the goal is to help young entrepreneurs cross the resource chasm, which kills most early startups. “The country has no shortage of young minds with bright ideas and business know-how,” said the foundation. “So, although training and mentorship have been foundational to the success of young entrepreneurs, a greater need lies in real resources, and the willingness to release these resources to the youth.” The closing date to apply to the Mr Price Foundation is 30 June. Credit desert  According to the Tips State of Small Business in South Africa 2024 report, SMMEs secure considerably less external funding than large corporations. They receive a paltry 13% of total bank credit. Corporations gobble up 51%, while regular consumer clients get 36%, which leaves small enterprises starved of working capital. The Woolworths and Mr Price programmes signal that retailers are no longer content to just manage supply chains but want to manufacture credibility. With government interventions slow and often mired in inefficiency, the private sector is positioning itself as both rescuer and reinforcer of South Africa’s SMME ecosystem. ‘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/2025-06-12-retail-giants-step-in-with-millions-of-rands-to-help-entrepreneurs-on-their-way-up/

Cape Business News | 11 June 2025 BMG – part of Invicta Holdings Limited – celebrates five years since joining South Africa’s Youth Employment Service (YES) Programme, which is a joint initiative between the Government and private sector. The country’s YES programme aims to create one million work opportunities for unemployed black youth. “We believe that the business sector has a responsibility to help solve the escalating problem of youth unemployment.” “The social cost of unemployment and the threat it poses to the stability and dignity of South African society, are far too great for companies not to get involved in a meaningful way,” says Ruth Black, group human resources executive, Invicta Shared Services. “Through the inspiring YES Programme, Invicta and BMG currently employ over 132 young people who have participated in this programme. “The YES programme offers our youth a bridging opportunity between school and the world of work, aspiring to nurture leadership capabilities, that are invaluable for business success and individual achievement. “By providing the opportunity for young people to gain practical work experience and enjoy mentoring and training at BMG, we are able to equip them with the necessary skills and business ethos that contribute to a brighter future and economic sustainability. “This 12-month programme offers participating businesses the chance to gain up to two levels on their Broad-Based Black Economic Empowerment (B-BBEE) scorecard. As a special service, BMG offers its customers the opportunity to participate in this initiative by providing the necessary training to selected candidates at BMG World. These businesses are able to claim the scorecard points at the end of the programme. “The BMG team has always enjoyed a culture of learning and knowledge sharing, which is why this uplifting programme is a perfect fit with our need to develop commercial and technical skills and nurture personal development.” BMG currently has 82 candidates participating in the YES programme, who are involved in all areas of the business – including sales, warehouse functions, experience in various product divisions as well as important support functions. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://cbn.co.za/industry-news/skills-training-development-news/its-a-yes-from-bmg/

Staff Writer | 11 June 2025 The Chemical Industries Education and Training Authority (CHIETA), in partnership with the Karoo Hoogland Municipality, officially launched the Fraserburg Smart Skills Centre on 6 June 2025. This marks a significant step in bringing accessible, future-focused skills development to rural and underprivileged communities. The launch follows the signing of a Memorandum of Understanding in January 2025, laying the foundation for a high-impact initiative aimed at closing the digital divide and equipping residents for opportunities in the digital and green economies. A Future-Ready Facility in the Heart of the Karoo The Fraserburg Smart Skills Centre is now fully operational, offering accredited digital literacy programmes, career development tools, and foundational training in key areas such as green hydrogen, coding, and online entrepreneurship. With free access to high-speed internet, digital devices, and curated learning content, the centre aims to empower youth, unemployed residents, and small businesses in Fraserburg, Williston, and Sutherland. “Today’s launch signals hope and opportunity,” said CHIETA CEO Yershen Pillay. “This centre is not just a building, it’s a springboard for skills transformation and economic renewal in one of the country’s most underserved regions.” Expanding CHIETA’s National Footprint Fraserburg becomes the seventh location in CHIETA’s growing network of Smart Skills Centres across South Africa. Each centre supports CHIETA’s mission to broaden access to 21st-century skills and build industry-ready communities in alignment with the National Skills Development Plan. It is the first CHIETA SMART Skills Centre in the Northern Cape. Sustainable Growth Through Local Partnerships The long-term success of the Fraserburg centre will depend on strong collaboration with municipal leaders, community organisations, and local employers. Stakeholders are encouraged to co-develop programmes that address the region’s specific economic needs. CHIETA will continue to support these initiatives through discretionary funding aligned with its strategic objectives. “We are deeply proud of our partnership with the Karoo Hoogland Municipality,” Pillay added. “By embedding digital infrastructure in the rural economy, we are planting the seeds of transformation that will benefit generations to come.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2025/06/11/chieta-launches-smart-skills-centre-in-fraserburg/

Ann Bernstein | 11 June 2025 Proposal to fund Transformation Fund by centralising private sector’s enterprise & supplier development contributions is misguided. In a concept document released in April the department of trade, industry & competition proposed the introduction of a R100bn Transformation Fund, which it conceives as a vehicle to accelerate empowerment by supporting black-owned businesses through financial and nonfinancial interventions. While the stated aim of this fund is one that everyone shares, the proposed approach, particularly the intention to fund it through the redirection and centralisation of private sector enterprise & supplier development (ESD) spending, is economically unsound and strategically counterproductive. This would not only fail to advance transformation, but also disrupt one of the more successful empowerment mechanisms in place. It thus actually risks reducing real inclusion by divorcing firms benefiting from ESD spending from their most potent enabler: integration into commercial supply chains.  Under the broad-based BEE codes ESD is not a form of corporate philanthropy or social investment. It is about leveraging business processes to direct business to black-owned and black-managed firms. To accrue ESD points companies must buy goods and services from empowered firms or invest in the development of black-owned suppliers. This means businesses’ supply chains are used not merely to meet legislative requirements but to build resilient, cost-effective and inclusive supply chains. The consequence of this is enormously important regarding the Transformation Fund concept document: ESD is not optional spending, it is embedded in procurement activity that is essential to a business’s commercial and operational strategy. Similarly, supplier and enterprise development activities are directed at improving the capacity of firms that already supply the business or could do so in future. These are not discretionary contributions waiting to be redirected to an all-purpose Transformation Fund. They are targeted investments into viable commercial partnerships from which the firm doing the procurement receives goods and services needed for commercial reasons. Suggesting that there is a world in which businesses might “voluntarily” hand these over to the Transformation Fund, which is what the concept document proposes, is not just unrealistic — it is fundamentally disconnected from how ESD functions.  Do the authors of the document not appreciate this? Maybe. But maybe they do. Maybe that is why, buried in the concept document’s depths is an important clue to how the Transformation Fund will evolve: “Government,” the document says, “will review the ESD codes to ensure  that funds for ESD are paid by entities towards the Transformation Fund”.  This is a clear signal that the government is contemplating the possibility that supposedly voluntary contributions may become mandatory. Once it becomes clear that individual businesses are unwilling to fund a centralised initiative that offers them no commercial return, no supply chain benefits and no meaningful control, the state will move to compel contributions through a revision of the broad-based BEE codes.  Forced redirection of ESD funds will be a stealth tax on business — disconnected from market realities and divorced from operational effectiveness. In doing so it would undermine the very essence of empowerment: building black-owned businesses that are commercially viable and integrated into the economy.  The logic of the Transformation Fund suggests a simple trade-off: instead of empowering businesses through market access and corporate mentorship, the state will centralise funding and attempt to provide equivalent support from above. This approach assumes the government can: Identify viable black-owned businesses more effectively than the private sector using its existing supply chain processes.  Offer better development and training support than corporates with a direct commercial stake in success. Facilitate market access for empowered companies without being the buyer of those businesses’ goods and services.  These assumptions are not only unproven; they fly in the face of experience. Existing government empowerment funds, including the National Empowerment Fund (NEF) and the Black Industrialists Programme, have struggled with scale, impact and governance. Their loan books carry high impairment rates. Their reach into rural and township economies has been limited. And their commercial insight is dubious.  So why would the state assume that a new centralised fund — operating with a broader mandate and less specificity — will do any better? Ludicrously, by removing ESD funds from their present context and relocating them to a distant central body, the Transformation Fund will weaken existing black-owned businesses that are part of real supply chains. These are precisely the businesses that are most likely to succeed. The most effective empowerment is that which is embedded in the commercial logic of existing supply chains. ESD works because businesses understand their markets, their procurement needs and their operational risks. They choose suppliers who can meet their standards, and they invest in those suppliers accordingly. Empowerment is achieved not through sentiment, but through alignment of incentives.  Even assuming perfect governance, a centralised fund cannot replicate this dynamic. It cannot assess whether a small logistics firm in a rural town can meet the delivery requirements of a national retailer, or help it do so. It cannot provide mentorship in the intricacies of data integration or food safety protocols. Corporates can, and do.  A centralised mechanism operated at arm’s length from commercial realities can only increase inefficiency and waste, while weakening empowerment outcomes.  There is no evidence that ESD is failing. According to the Broad-based BEE Commission, total ESD spend by JSE-listed firms and state-owned companies amounts to about R26bn annually. While not perfect, this system supports thousands of firms. It is commercially anchored and largely self-sustaining. Why disrupt this?  The Transformation Fund concept document offers no empirical review of what has worked in existing broad-based BBBEE policy. It offers no diagnostic analysis of ESD effectiveness. It doesn't even attempt to quantify the trade-offs involved in redirecting these funds. Instead it proceeds on the presumption that centralisation is inherently better and that the state (weak and corrupt as much of it is) is better suited than private players. SA urgently needs more inclusive economic growth. Apartheid’s legacy, with decades of economic underperformance, has left many millions of South Africans locked out of opportunity. But inclusion cannot come at the expense of economic logic. Empowerment policies must be tested, measured and revised based on data — not designed around political optics or centralised control.  A better way forward would be to commission an independent, evidence-based review of BEE outcomes over the past 20 years. Such a review would assess the relative effectiveness of tools such as ESD, preferential procurement and skills development. It should weigh benefits against costs and evaluate how to scale what works while discontinuing what doesn’t. The goal should be to build a transformation agenda that would not have all the risks associated with large pots of discretionary money. As proposed the Transformation Fund does not meet these standards. The department of trade, industry & competition’s proposal to fund the Transformation Fund by centralising ESD contributions is misguided. It will disrupt integrated supply chains, disempower viable black-owned businesses and create a bloated, inefficient bureaucracy. Far from advancing transformation, it will set it back.  If SA is to build a more inclusive economy it must do so through mechanisms that align public objectives with market realities. ESD is one such mechanism. Undermining it to fund a vague and overambitious Transformation Fund is a mistake the country cannot afford to make. ‘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.businesslive.co.za/bd/opinion/2025-06-11-ann-bernstein-sa-needs-to-align-public-objectives-with-market-realities/