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24 February 2023 Although entering into an Enterprise or Supplier Development loan contract is generally done with the best intentions, some loans issued will inevitably be defaulted on or, in the worst case, a Beneficiary will refuse to repay it. When giving a loan, an organisation has the full rights of recovery; however, this has to be clear in the terms and conditions. First and foremost, a loan must take the form of a debt instrument; thus, it must never be a grant disguised as a loan. Any loan made with the intention of not receiving repayment of the capital amount is not a loan but a grant and must be claimed as such. Consequently, claiming a loan under Enterprise or Supplier Development instead of a grant is Fronting Practice. However, if a beneficiary fails to repay a bona fide loan, an organisation may offer a Beneficiary a grant which will allow them to repay the loan. Otherwise, an organisation can write off the loan or follow the legal route based on the terms and conditions of a particular loan. Enterprise & Supplier Development Services are available to is available to guide members to ensure their contracts align with the requirements of the relevant code.

24 February 2023 B-BBEE Sector Codes of Good Practice (Sector Codes) vary from each other as they do from the General B-BBEE Codes of Good Practice (Generic Codes). However, if a Sector Code is silent on a matter, the matter reverts to the Generic Codes. In the case of the Amended AgriBee Sector Code (AgriBee), "Absorption" is defined as follows: "means a measure of the Measured Entity’s ability to successfully secure formal permanent or long-term contract employment for a Learner or to assist a Learner further their education and training". The differentiation in this case between the Generic Codes and AgriBEE is the inclusion of the words “permanent” and ”further education and training”. Technical Services are available to assist members measured on a Sector Codes.

24 February 2023 The Construction Sector Code differs from others as it does not incorporate Enterprise Development as an element. Therefore, what happens if an organisation is measured on the Generic Codes, but its Enterprise Development Beneficiary is subject to the Construction Sector Code? There is no cross-implementation in Generic Codes and Sector Codes; an organisation is measured on either/or. In this case, such an Enterprise Development Beneficiary will be subject to the definition laid out in the Generic Codes. Important to note is that where a matter is silent in any Sector Code, it reverts to the Generic Codes and not vice versa. Enterprise & Supplier Development Services are available to assist Members in hosting beneficiaries outside the ambit of the code they are measured on.

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SA News | 21 February 2023 The Gauteng provincial government intends to address overcrowding in schools, which is exacerbated by high levels of in-migration, by building new schools in high-pressure communities. “Unless we do something differently, our education system will collapse. Addressing this issue and learning from the experience of unplaced learners in Grades 1 and 8, Gauteng has budgeted R6 billion from our provincial coffers to build new schools in high pressured communities,” Gauteng Premier Panyaza Lesufi said on Monday. Delivering his State of the Province Address in the Gauteng Provincial Legislature, Lesufi said the province has received a major boost of R1.5 billion from National Treasury to demolish mobile and asbestos schools. The province will rebuild 18 new schools in Gauteng. For the first time, the province will access resources from the private sector financial institutions to fund infrastructure projects upfront, after which they will be built, maintained, transferred and handed over to the province. “Within the coming weeks, we are going to the market to solicit proposals from private companies to build these schools. We will not compromise on BEE [Black economic empowerment] and township beneficiation. "To give our learners a competitive edge and to prepare them for the post-matric world, we will continue to roll out Schools of Specialisation,” the Premier said. To date, Gauteng has 21 Schools of Specialisation and by the end of this administration, it is set to have 35. The Premier said the number of children registered in Early Childhood Development (ECD) sites has increased. “As part of the process to bolster our education system, we are now ready to build an ECD of the future, starting with Tshwane (in Soshanguve). We are committed to rolling out ECDs of the future across the five corridors. “The ECD of the future will have classrooms with indoor splash pools, information and communications technology (ICT) centres, a water recycling area and mini sports areas. Coding and Robotics will gradually be introduced into the curriculum to meet the challenges of the Fourth Industrial Revolution (4IR),” Lesufi said. Youth development Over the years, Gauteng has committed to procure goods and services from youth-owned businesses. Between April and December 2022, procurement spend amounted to R1.6 billion in youth-owned companies. “As a province, we continue to place youth development at the centre of our planning. I am happy to announce that the Provincial Cabinet has approved the Gauteng Integrated Youth Development Strategy (GYIDS) 2030. “The Youth Strategy is a blueprint of how this government will respond comprehensively to the socio-economic challenges facing young people in our province. The future belongs to young people and they must be taught now to run government,” the Premier said. The Gauteng Youth Advisory Panel members, in addition to providing oversight, have also been assigned to departments to participate in strategic decision-making processes that have an impact on youth development. “Through the Presidential Youth Employment Stimulus programme, the province has provided more than 100 000 youth with workplace experiences. “By the end of this term, 152 000 young people would be employed by this provincial government. Of this, 100 000 [will be in] our Expanded Public Works Programme, 40 000 [in] educational and general teacher assistance [posts] and 6 000 [in] Crime Prevention Warden [posts]. “Over the years, we have committed to ensuring the inclusion of people with disabilities in all of our programmes. We have set a target of 7% in the procurement spend and support for companies owned by people with disabilities. “We note that our performance is not at the level at which we had envisioned and therefore, recommit ourselves to empower people with disabilities,” the Premier said. – SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.sanews.gov.za/south-africa/gauteng-invests-building-new-schools-address-overcrowding

Phemelo Segoe | 21 February 2023 The matric pass rate says a lot about the health of South Africa’s education system. As an indication of the learners who successfully pass Grade 12, it offers insight into whether primary and secondary institutions are serving the needs of their learners, and provides an indication of the number of new graduates who may apply for tertiary studies or enter the job market. This figure doesn’t tell the full story, however. On 20 January, the Department of Basic Education announced the results of the matric class of 2022. Whether these figures point to a recovery in the wake of the pandemic remains to be seen. Between 2019 and 2020, the pass rate fell by over 5% to 76.2%, and its gains in 2021, by a mere 0.2% percentage points, were so small as to be virtually insignificant. What’s more, researchers feel that the pass rate alone doesn’t reflect the full status of education in South Africa. The “true matric pass rate”, they argue, has to consider the dropout rate. How many learners who started in Grade 1 failed to matriculate 12 years later? The Department of Basic Education puts the dropout rate at between 42 and 56%. The Zero Dropout Campaign puts it closer to 63%, estimating that only 37% of Grade 1 learners ultimately pass Grade 12. In 2020, the Department of Higher Education and Training calculated that less than a third of South African adults, some 32.5%, had a matric certificate or its equivalent. With a matric still serving as the most important qualification for job seekers, these numbers paint an alarming picture. They point to the many millions of South Africans who cannot find employment — the country continues to have one of the highest unemployment rates in the world — and who cannot break intergenerational cycles of poverty. How can we overcome this? How can we support not only the learners who don’t pass in 2022, but also those who didn’t pass in 2021, in 2020, and the many years that came before? The answer to this question isn’t an easy one. Pointing fingers in any one direction is reductive and counterproductive. In a country like South Africa, which is beset by many complex socio-economic and political issues, it’s best to view responsibility for addressing these problems as shared. Government has its role to play, yes, but so too does civil society and the private sector. If we look to business, it’s clear that there are a variety of advantages available for companies that make the effort to support new and future employees who don’t have a matric. One of the most obvious of these relates to the B-BBEE Scorecard. Businesses that offer skills development programmes for low skilled employees and unemployed community members stand to earn up to 25 points towards their B-BBEE Scorecard. Companies with more than R50 million turnover need to spend 6% of their payroll on skills development to qualify. These skills development initiatives can take a variety of forms, namely the Amended Senior Certificate (ASC), Adult Basic Education and Training (ABET), now known as Adult Education and Training (AET) and finally, learnerships are particularly valuable. With an ASC, learners have a qualification that is recognised as the equivalent of a matric. Through AET, adults who fell off the academic wagon sometime before Grade 9 have access to formal education and through learnerships, employees can gain practical work experience and earn a living while they complete their qualification. Additional B-BBEE points are made available for companies that hire these learners full time once their learnerships are complete. Upskilling employees who do not have a matric, or helping new recruits to complete their matric before they come on board, offers a variety of real and tangible benefits. It not only gives individuals a new chance to further their careers and earning potential, but it also helps businesses to grow and thrive, and has the potential to improve South Africa’s economic prospects over the long term. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cbn.co.za/industry-news/skills-training-development/upskilling-a-win-win-solution/

Siyabonga Sithole | 21 February 2023 South Africa - Pretoria - 30 April 2021. Long queues at Church Square following Sassa's announcement to its clients that the Special Covid-19 Social Relief of Distress (350 Grant)comes to an end (on Friday 30 April 2021). Picture: Oupa Mokoena/African News Agency(ANA) Johannesburg - News that the country has seen more than 700 000 graduates and young people join the social development queues in search for the R350 Social Relief of Distress Grant (SRD) grant has sent shock waves across the country. Cosatu says it is alarmed by reports that more than 700 000 graduates have applied for the R350 social distress relief grant since the start of 2023, adding that South Africa had become a “nanny state” where young people are given social grants instead of job opportunities. Last week, media reports indicated that more and more unemployed graduates were now approaching the department of social development to apply for grants instead of accessing job opportunities. The shocking news comes two weeks after more than 1000 unemployed medical doctors affiliated with the SA Medical Association Trade Union took to the streets of Pretoria, demanding jobs across SA’s clinics and hospitals. Last week, Social Development Minister Lindiwe Zulu revealed that the SA Social Security Agency (Sassa) had received more than 13.5 million applications for the SRD grant as of the end of January, and more than 716 000 tertiary graduates had applied. Zulu said between 7.4 million and 7.8 million applications were approved every month. Speaking to The Star, Cosatu spokesperson Sizwe Pamla said this was the biggest scandal in a country with the highest youth unemployment rate, which stands at over 60%. Latest statistics have put the country’s youth unemployment rate at 64.18%. The youth unemployment rate refers to the share of the workforce aged 15-24 that is currently not working but actively searching for work. “This is a scandal that should bring shame to policymakers and decision-makers. This shows that the policy choices have let down badly these young people, who are watching their dreams pass them by,” Pamla said. This week, it is expected that Finance Minister Enoch Godongwana will table his Budget speech, in which he will outline key focus areas for the country’s economic recovery. Cosatu hopes the minister will have something tangible to give the more than 10 million unemployed youth of this country. “The upcoming Budget speech can make a difference if it allocates money for the Presidential Employment Programme to absorb a million young people. They also need to finalise the establishment of a state bank so that young people can get affordable funding to start businesses. We need a people-centred budget that caters to rural and township economies,” Pamla said. Dr Cedric Sihlangu, provincial chairperson of the SA Medical Association Trade Union, said in the absence of meaningful jobs for graduates across sectors, the R350 grant presented an income to millions of unemployed graduates. “In the absence of jobs, it is not surprising that you find more and more graduates applying for social grants. It is a worrying trend as graduates, even in highly skilled sectors of the economy such as doctors, are found sitting at home without jobs while government Sona (State of the Nation Address) after Sona speaks prettily about the need to employ young people and graduates,” Sihlangu said. Sassa spokesperson, Paseka Letsatsi, said more than 60% of grant recipients in the country were young people. “In terms of our analysis, we have picked up that the majority of the people who have applied for the SRD grants are young people and are mostly female. The good thing is that if we have the information, we will be able to share that with our sister departments to ensure that other government departments understand the situation and are able to assist them,” he said. The Institute for Economic Justice has approved the recent announcement by Ramaphosa in his Sona indicating that the social relief distress grant will become a permanent feature in the lives of poor South Africans, including graduates. “Making SRD permanent puts South Africa on course to become a world leader in dignified, evidence-based social protection. The combination of basic income, the national minimum wage and public services could massively raise the living standards of the poorest half of our population,” the institute said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/news/graduates-queue-for-grants-instead-of-jobs-ffc3483c-7e7c-4f64-99d9-b158c765c18a

Michelle Esau | 21 February 2023 There are worsening socio-economic conditions for the working class and marginalised poor communities. Picture: Armand Hough/African News Agency (ANA) We were forced, during the difficult lockdowns of the Covid-19 pandemic, to pause and reflect on how we do things. Certainly, at the Faculty of the Economic and Management Sciences at the University of the Western Cape (UWC), it brought home the need to be agile and innovative while being compassionate. As we head into the 2023 Budget Speech this week, the outlook for the year ahead is grim. Each time the Reserve Bank meets, the nation holds a collective breath in anticipation of a repo rate hike that ultimately affects the consumer. In the case of home loans and mortgages, consumers are feeling the effects of rising inflation, interest rate hikes and the impact it has on food, fuel and household items. Add to this cocktail of the high rate of unemployment – youth unemployment, in particular – exacerbated by the Covid-19 pandemic because we were already in an economic downward trajectory before the pandemic. Just as we started to adopt a more positive outlook coming out of the pandemic, we were hit in a very serious way by the energy crisis. It is not new, but the situation has regressed in the past few months. In the Western Cape, we are also faced with a water crisis. If middle-class citizens are struggling, imagine how the poor and marginalised struggle to put food on the table and find enough money to get to work with rising costs of fuel and public transport. The government is struggling to deliver on its constitutional mandate as a result of rampant corruption and mismanagement. There is a lot of pressure on our president with the dynamics this year within his Cabinet and agencies of government. There is urgent pressure to alleviate poverty and unemployment in the context of the National Development Plan. There isn’t a very positive outlook for 2023 due to the energy crisis and its impact on economic development and small businesses in particular. The challenges appear insurmountable. But we must draw on our experiences during Covid. As a faculty, we discussed the trauma we experienced. Amid the loss and anxiety, there was a silver lining. We have drawn on resilience, goodwill, social capital and kindness that emerged during these dark times and which now stands us in good stead as a nation. The threat to our lives and livelihoods really brought these attributes to the fore. It also brought innovation. In this spirit, our faculty has strengthened its existing collaborations with like-minded organisations. Part of our strategic plan for student success involves partnerships and collaborations like the one we established with the South African Institute of Professional Accountants (SAIPA). The 10-year partnership was established out of the need for a professional qualification beyond the chartered accountant qualification route. We offer an accredited BCom Financial Accounting programme in partnership with SAIPA to strategically prepare and position our students for a smoother integration into the world of work that facilitates both theory and practice. SAIPA’s Chief Executive, Shahied Daniels, said that we need to ready the professional accountants of tomorrow, today, to thrive in a fast-changing and increasingly technologically robust accountancy landscape. It’s one thing equipping students with the necessary technical skills, but providing them with the ability to apply these skills in a dynamic way is another – and that is what our partnership enables. In the same way, SAIPA and UWC are reaching out to the government to partner and collaborate in the same way. On 23 February 2023, SAIPA and our faculty will host a breakfast and a full-day engagement, where the Budget will be interrogated. We are positioning the event in the higher education sector to engage in some of the pragmatic ways universities can partner with the government and other relevant stakeholders to find solutions that transcend fiscal limitations. We are connected, and we want to be more responsive. We are using the opportunity to introduce our new Department of Management and Entrepreneurship, Department of Finance, and our BCom Information Systems programme. These are further ways in which we are hoping to prepare our students for scarce skills that are needed in the world of work. Together with SAIPA’s Faith Ngwenya, Technical & Standards Executive, we believe that the Youth today need to be more competitive than ever before to advance in the job market. Through this partnership with SAIPA, we are enabling tomorrow’s finance and accountancy practitioners to be one step closer on their journey to becoming successful Professional Accountants (SA). * Professor Michelle Esau is the Dean of the Faculty of Economic and Management Sciences at the University of the Western Cape. ** The SAIPA’s Budget Breakfast and the event takes place on Thursday, 23 February 2023, at the Jakes Gerwel Hall at the University of the Western Cape from 7.30 am. To book your seat, visit www.mysaipa.co.za. *** The views expressed do not necessarily reflect the views of IOL or Independent Media. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/news/opinion/opinion-there-isnt-a-very-positive-outlook-for-2023-a8119726-e1a9-4495-aa32-c905950d0f63

Samsung Newsroom | 20 February 2023 Walter Sisulu University (WSU) in conjunction with Samsung Electronics South Africa hosted a Certificate Award Ceremony on 17 February 2023 at the Blue Lagoon Hotel & Conference Centre in East London – to certify the successful execution of its inaugural flagship partnership – the WSU-Samsung Innovation Campus. This partnership between WSU and Samsung South Africa was fostered through the Centre for Entrepreneurship Rapid Incubator (CfERI), which aims to develop and inculcate Fourth Industrial Revolution (4IR) skills in Coding & Programming, Artificial Intelligence (AI) and Internet of Things (IoT) on the country’s youth. More importantly, the WSU-Samsung Innovation Campus seeks to contribute to the national imperative of creating a work ready and employable WSU student community. Dr Thobekani Lose at WSU said: “With this strategic agreement in its first year of implementation, the Buffalo City Campus, through the Department of Information Technology has successfully recruited and upskilled 19 participants in basic coding and programming education in Python during the period of September and December 2022. The students who participated in the programme are now being celebrated through this award ceremony, where certificates will be handed out – arranged by both our University and Samsung.” WSU–CFERI signed a Memorandum of Agreement (MOA) with Samsung Electronics South Africa and through this partnership – the WSU-Samsung Innovation Campus was born. This WSU-Samsung Innovation Campus has – in its first year of inception – been able to offer critical skills in basic coding and programming education of this strategic MOA. An initial cohort of 21 students were inducted to kick-start this programme and the collective vision behind this imperative partnership is to target youth who are at university level that would like to develop their 4IR skills. The ultimate objective is to enable and empower them to become future technological leaders. A group of 19 Students from the Faculty of Science, Engineering and Technology – who are beneficiaries and proud products of this programme are graduating this week. As specialists in providing quality academic, technological and career-orientated programmes that provide relevant skills development in rural and urban areas – WSU is now placing special emphasis on entrepreneurship. The WSU-CfERI, provides an opportunity for WSU students, local youth entrepreneurs, and WSU alumni to nurture, sustain and grow business ideas as well as small and emerging businesses in the province. The introduction of the WSU-CfERI serves as a responsive mechanism to the high levels of unemployment as it addresses the challenges experienced in the rural and disadvantaged communities. Hlubi Shivanda, Director: Business Operations and Innovation and Corporate Affairs at Samsung South Africa said: “The Samsung Innovation Campus (SIC) aims to empower a generation of problem-solvers by equipping them with future-proof skills and giving them practical understanding of the technologies that will shape their future and enrich sustainable growth of the world. “As Samsung, we are aware of the great importance of education – this is why we have formed this strategic partnership with WSU to equip young people with the skills and knowledge they will need to build a better world. Through our Global Samsung Innovation Campus initiative and this partnership with WSU, we are committed to empowering the leaders of tomorrow and equipping them with the tools they will need to realise meaningful change,” Shivanda adds. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://news.samsung.com/za/wsu-samsung-innovation-campus-inculcates-4ir-skills-to-create-work-ready-employable-students-entrepreneurs

Media Statement | 21 February 2023 Applications for the SAB Foundation Social Innovation and Disability Empowerment Awards 2023 are now open (20 February 2023, Johannesburg) Applications for the 13th annual SAB Foundation Social Innovation Awards and the eighth annual Disability Empowerment Awards are now open for applications. Prizes range from R200 000 to R1.3 million in grant funding and each award winner will receive valuable business skills development coaching, mentorship, and technical support. The Social Innovation Awards are aimed at innovators, entrepreneurs, institutions and social enterprises with prototypes or early-stage businesses that can solve social issues in our country. These products, services, business models and processes should directly address the social challenges faced by low-income women, youth, or people living in rural areas while simultaneously creating a sustainable business model. The Disability Empowerment Awards award entrepreneurs or social enterprises that have developed an innovation that improves access to the economy and/ or provides solutions for persons with disabilities, while generating enough revenue to become sustainable over time. Online applications open at midday on 17 February 2023 and close at midday on 27 March 2023. Only applications submitted on the SAB Foundation web portal will be accepted. Apply now: https://sabfoundation.co.za/social-innovation-awards. “We are excited about the 2023 applications and look forward to meeting our finalists this year,” says Itumeleng Dhlamini, Social Innovation and Entrepreneurship Manager at the SAB Foundation. “Over the years we have been so inspired by ordinary individuals doing extraordinary things.” “These awards give us the opportunity to support and encourage talented innovators who drive change and improve the lives of people in their communities,” says Dhlamini. “Through the funding, training and mentorship that we provide, we enable them to grow and scale their businesses and ultimately achieve self-sustainability.” Social innovations that were awarded in 2022 included a low-cost utility vehicle that assists emerging rural farmers in performing their daily tasks. Another was a polymer-based, non-pressurised, recyclable and reusable fire extinguisher designed to combat the threat of fires in informal settlements. In the Disability Empowerment Awards category equally innovative solutions were awarded, such as technology that produces high-quality, affordable prosthetics and orthotics for amputees and persons with disabilities. Through this prestigious awards programme, the SAB Foundation has invested over R90 million in grant funding and business support to support 176 entrepreneurs. Between 2011 and 2021, these individuals have created 1 638 new jobs since winning an award and collectively employed 3 174 people. “Building sustainable businesses in underserved communities is a key priority for us at the SAB Foundation, because we know that each business creates employment opportunities for locals which enables them to put food on the table for their families,” concludes Dhlamini. Applications are open to all South African citizens of 18 years or older with evidence that prior to applying, they have spent time and money developing the innovation. Early submissions are strongly encouraged. Apply now: https://sabfoundation.co.za/social-innovation-awards. The Awards are not open to NGOs that are fully dependent on grant income. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/calling-all-south-african-social-innovators-2023-02-21

William Gumede | 20 February 2023 SA’s corporates must rethink their flawed CSR models or risk rising anti-business feeling, community protests and legal action against them by previously disadvantaged communities The corporate social responsibility (CSR) models used by many companies in SA are unsuitable for a developing country, making them often irrelevant and lacking credibility. As a consequence they largely have insignificant social impact. The dominant CSR model used by SA companies is more suited to developed countries. CSR is the idea that companies have a responsibility to operate in a fashion that exercises duty of care for wider society, people, economy, environment and the future. It is a central pillar of corporate governance. Yet CSR is often a small unit in many companies and those who run it are marginal in the business rather than integral to its functioning. SA CSR initiatives are largely public relations focused — media catching sports events, celebrity driven functions and superficial photo-op “developmental” projects devised by company managers who are far removed from the needs of impoverished communities. Glossy CSR is in many cases just PR-speak, talking glibly of the “triple bottom line” and “profit, people, planet”, whereby the business is supposedly committed to prioritising social, environmental and sustainability impacts in tandem with profitmaking. Yet except for these “commitments” there are often few sustainable projects to show. The result is that stakeholders are resentful, angry and say most of the CSR they experience is mere window-dressing. Irrelevant CSR models undermine the social licence to operate of many companies — the approval of the community, stakeholders and wider society. Companies in developing countries, with their huge developmental needs, require more appropriate CSR models. In SA in particular, with its historical inequalities where past profits were made by exploiting excluded communities and where the structural imbalances of the past still affect the present, companies have greater social, environmental and economic responsibility. In such a context a more holistic CSR is crucial for a company to secure the “social licence” to operate. Countries have dominant corporate cultures, which influence their CSR models. SA’s dominant mainstream corporate culture comes from apartheid and was based on a segregation of opportunities based on race, cheap black labour, corporate welfare for whites and stripping the environment. Many industrialised country companies operating in poorer African countries operate on almost the same model, with benefits segregated between expatriates and locals, stripping the local environment and trying to pay as little tax as possible. SA needs new approaches to CSR. A CSR model for SA companies cannot be relegated to a marginal unit in an organisation but should encompass all operations of a company. A companywide approach to CSR must look at the firm operating as a responsible democratic corporate citizen, which models sustainability in its internal as well as its external operations and considers the future impact of its current operations. Employees, contractors, customers and communities have to be seen as stakeholders in a similar way as shareholders. Within companies, gender equality, nonracialism, diversity and ethical decision-making have to be actively strived for. There should be no gender pay gap between women and men doing the same work. There should not be excessive pay gaps between the highest paid executives and ordinary employees. In countries where historical instances of discrimination against colour, gender or religion exist, companies should genuinely introduce diversity, redress and inclusivity. A CSR model has to reject a corporate culture that demands extreme profits above all else, and measure success in more sustainably inclusive ways. The business operations of a CSR model in a developing country should be done in a sustainable way, whereby the business practices minimal harm. CSR should include human rights, fair labour practices and fair-trade practices. CSR includes a responsibility to ensure sustainable use of natural resources, reducing greenhouse gas emissions and pollution and rehabilitating the environment. CSR involves treating customers, contractors and partners fairly — not exploiting the poor, the vulnerable and illiterate with higher fees than those who are more affluent, treating dependent contractors and businesses fairly, including paying them on time. In a developing country CSR has to involve companies providing industry-relevant skills and technical training to employees. During apartheid black consumers were treated in a racist manner by SA companies. Unconscious bias, stereotyping and implicit prejudice of black people have become embedded in the culture of many companies. During the apartheid era financial institutions “redlined” townships and therefore did not provide home loans to people in predominantly black neighbourhoods on the basis that they were unlikely to be able to afford or repay loans. This practice has continued in the postapartheid era. It is alleged that insurance companies in many instances charge blacks more for insurance, deeming them supposedly “riskier” than their white peers. In 2018 consumer activist Emerald van Zyl took a major bank to the Equality Court for discrimination against more than 4,000 black customers by allegedly charging them up to 40% more than white clients on their home loans. Mobile operators have been accused of charging exploitive prices for data and not compensating customers whose livelihoods depend on data, for disappearing data. Insurance companies often refused to honour legitimate claims of customers giving sophisticated but dubious reasons why they refuse to do so. Corruption by private sector companies is now the same as in the public sector. Price-fixing, exploitive practices and defective products have increased societal distrust against corporates. In 2017 three SA banks were implicated among 17 banking groups in colluding to fix the price of the rand, after an investigation by the Competition Commission. In 2017 the department of water & sanitation revealed that 36 mines were operating without water licences, violating the National Water Act as they use water, waste and pollute without being monitored. Research by the Centre for Applied Legal Studies at the University of the Witwatersrand in 2018 on mines ranging from platinum to coal, found that very few of the social and labour plans mining companies signed up to were implemented. Mining companies failed to build houses, provide childcare and bursaries and conduct training as promised. In 2013, 15 construction firms agreed to pay fines totalling R1.4bn for collusive tendering related to the construction of facilities for the 2010 Football World Cup. In 2012 the Competition Commission announced several fishing companies had admitted to price fixing of pelagic fish, which includes anchovy, pilchards and redeye. Six of SA’s leading milk producers were accused in 2006 of price fixing in a case that continued until 2011. In 2007 a number of companies were found guilty of fixing the price of bread and costs of milling. Communities increasingly march against mining companies for destroying the environment and striking black economic empowerment deals with dodgy traditional leaders and politically connected cadres who would be expected to shield these companies from community pressure when they damage the environment, fail to adhere to mining licence conditions such as providing social housing, and do not provide supplier opportunities for local small business. In a more sustainable developing country CSR model companies would empower communities, stakeholders and wider society more equitably. It is important to involve local communities surrounding mines and factor this into the value chain through the use of local small contractors and farmers for goods and services. Corporates must support local community development projects, educational programmes and fund sport and recreation facilities and community infrastructure projects. CSR in SA and developing countries must prioritise reparations. In SA companies should give opportunities to former employees and their families who were excluded from company benefits during the apartheid era, and give them access to vocational and technical training, bursaries and housing funding as part of compensation for past exclusion. SA companies should also make sure they find black former employees and their families who have not received their pension payments. Many black employees died or suffered disability from illnesses such as tuberculosis, asbestosis and work accidents, but they or their families never received compensation. SA’s corporates must rethink their flawed CSR models or risk rising anti-business feeling, community protests and legal action against them by previously disadvantaged communities. • Gumede, an associate professor at the Wits School of Governance, is author of “Restless Nation: Making Sense of Troubled Times”. This is an edited version of his keynote address “Reimagining Social Impact” at the Annual Social Impact Symposium of Stellenbosch University. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-02-20-william-gumede-why-sas-csr-models-need-to-change/

Schalk Burger | 20 February 2023 Rescuing the small and medium-sized enterprises (SMEs) sector requires fundamental and large-scale interventions aimed at addressing their specific problems, including the energy crisis, the need for transport infrastructure and the need for supportive policy. Arguably, the most immediate concern for South Africa’s SME sector is the impact of the worsening energy crisis, says small business financier Business Partners chief investment officer Jeremy Lang. In the recent State of the Nation Address, President Cyril Ramaphosa indicated that State-level measures to help small businesses install solar power and energy-saving devices will be rolled out including through the adjustment of the bounce-back loan scheme. “Bringing SMEs into the supply chain for alternative, renewable sources of energy that will relieve pressure on the grid is one way in which government can boost the sector. Involving small businesses in the process of building an energy secure nation will also be a step in the right direction,” says Lang. The struggle of local small businesses against rising inflation and interest rates, petrol hikes and stage 6 loadshedding has been well-documented, with many businesses shutting their doors in 2022, he notes. During the 2022 Budget speech, Finance Minister Enoch Godongwana announced the launch of a government-initiated bounce-back scheme, which is a mechanism to offer financial support to businesses impacted by Covid-19. However, of the R15-billion that was to be deployed, only R140-million in loans had been approved, with only R77-million disbursed by late 2022. The discouragingly low approval rate and uptake are a testament to the far-reaching impact of the multi-layered economic decline that has undermined any progress towards post-pandemic recovery, Lang points out. Also in 2022, Godongwana committed R17.5-billion to the launch of infrastructure catalytic projects. “While good examples of planning have been seen in provinces such as KwaZulu-Natal, a more targeted approach to dealing with obstacles that are the most imperative to the growth of small businesses is needed,” he said. Rehabilitating and expanding the reach of the country’s urban rail network is a much-needed solution to more efficient public transport, he highlights. Additionally, initiatives such as the African Continental Free Trade Area are effective in principle, but not in terms of practicality, given the poor state of South African rails and roads, he notes. During this year’s National Budget Speech, on February 22, government should detail plans to bolster the growth of the SME sector and encourage entrepreneurial activity through tax breaks and incentives, Lang says. “Currently, SMEs qualifying as Small Business Corporations are exempt from paying income tax on the first R91 250 of their taxable income. This exemption, although renewed every year to account for inflationary pressures is not being increased at a rate high enough to make the difference that is needed for small businesses to regain ground in a way that is impactful and sustainable,” he highlights. This is a challenge that needs to be addressed as a matter of urgency and in tandem with revisions to the current employment tax incentive (ETI), which was increased by 50% to a maximum monthly value of R1 500 in the 2022 Budget Speech, he adds. “If SMEs are to benefit materially enough to grow their ventures and help alleviate the scourge of youth unemployment, tax incentives that support this objective need to be revised upwards at a rate that exceeds inflation. “Further interventions could include extending the applicable age bracket of the ETI to 35 and expanding the country’s designated special economic zones to include under-resourced communities in all nine provinces,” Lang notes. Many local small businesses emerged from the pandemic years last year as cautiously optimistic about the prospects of economic recovery. However, several socioeconomic factors have served to erode business confidence and thwart efforts to rebuild the already struggling SME sector, and there is a growing expectation for urgent government intervention that will offer much-needed relief, he adds. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/smes-need-energy-solution-transport-infrastructure-and-industry-development-2023-02-20