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OLC Through the Line Communications | 29 March 2023 Africa's leading through-the-line agency is proud to announce its newly acquired Broad-Based Black Economic Empowerment (BBBEE) Level 1 certification. The high-engagement agency's Level 1 BBBEE status reflects the company's commitment to diversity and inclusion in the workplace and will offer clients enhanced procurement recognition and contribute to the broader economic transformation agenda. Through the years, OLC has recognised and continues to recognise the importance of creating a gender-inclusive workplace and commitment to empowering women. This sees OLC celebrate a watershed milestone – an agency 18-year first, where a substantial part of its executive talent are phenomenal female powerhouses who anchor various departments within the business. Founder and CEO Jerome Cohen believes that he's had the privilege of working with some genuinely unique teams: "But I have to say that our female executive team is absolutely exceptional. These women bring a level of intelligence, passion, and creativity that is truly inspiring. They can navigate the complexities of our industry with grace and agility, and their insights and ideas have been instrumental in driving our company's success. I'm honoured to work alongside them and am constantly amazed by their impact on our business and culture." Formidable names lead Strategy, Activations, Promotions, Finance, PR, and Operations with extensive industry know-how that navigates their path and helps them play an instrumental role in effectively driving progressive marketing solutions to diverse clients across various sectors. OLC's Level 1 BBBEE certification comes hot on the heels of a rigorous pitch process that led to the business being awarded a deserving contract as the tripartite lead agency for Coca-Cola's most extensive campaign – Unapologetically Coke No Sugar 2023. In addition to Coca-Cola, OLC has an expansive client base that services brands such as Huawei, SunBet, Pernod South Africa (GH Mumm, Avion, Martell), Tiger Brands, Bayer, Discovery, Johnsons, and Kia, amongst others, proving that OLC is on an unstoppable upward trajectory and looking to take your brand to the next level with it. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/423/237222.html

Pierre Bekker | 27 March 2023 For industries and organisations that do not specialise in recruitment, finding the right skills for a specific business or project can be extremely challenging and time-consuming. This is exacerbated when the skills sought are highly specialised and globally scarce. Once found, it is essential for the employing company to double-check the veracity of the candidates’ qualifications and skills. Often, businesses need to look abroad for skills that are in short supply, such as underwater welding, with no reliable means of knowing whether references and recent work experience is legitimate. This means that bringing in such individuals is done at high risk to the business, with the added strain of the employer having to bring in such workers, sponsor their visa applications and travel while still providing accommodation and covering other costs. Here, partnering with a Temporary Employment Services (TES) provider can turn the needle-in-a-haystack search into a seamless process, making it easier to recruit specialist skills from all over the globe safely and reliably. The skills search is on With so many renewable energy projects urgently due to start all over South Africa, and a growing shortage of skills in other established industries such as construction, engineering, mining, and manufacturing, companies are having to search farther and wider to locate the skills they need to get the job done. This can be a huge burden, both from a time and administrative perspective, not to mention highly risky for the business if they bring in resources from overseas only to discover that their skills are inadequate or lacking, or the candidate isn’t the right fit for the job. Making such a discovery after a project has already begun will cause huge, costly delays and the recruitment process will have to start all over again. Partnering with the professionals To avoid being put in such a situation where budgets are already tight and deadlines are beyond urgent, businesses seeking skills in short supply should partner with a TES provider. Specialising in the recruitment of scarce skills, TES providers have extensive databases of industry-relevant skills for candidates all over the world. These databases have already been checked and vetted, and TES providers have a wealth of experience in assisting businesses to get the exact resources they need, without undue delay. A TES partner will prove invaluable in assisting businesses through the entire process of bringing in the necessary resources, right from recruitment, through to the end of their contract when the workers must be repatriated. Mitigating risk and streamlining the search With a TES provider by your side, the risk and stress of hiring specialist skills is eliminated. The recruitment process becomes seamless, and the TES partner handles every aspect of sourcing, attracting, short listing, screening, interviewing and the assessment of suitable candidates. A reputable TES provider will have developed their recruitment brand to such an extent that it is easier for them to attract candidates, both nationally and internationally. TES providers also augment already-significant databases using tactics such as meta-search engines, social recruiting, print media and radio recruitment campaigns to ensure that both active and passive job seekers are targeted. Holistic employment management In addition to handling all aspects of finding and verifying the right skills, a TES provider also manages all aspects of employment. This is one less thing for the organisation to worry about, and they benefit from having access to the skills they need, while their TES provider oversees all Human Resources (HR) processes associated with these resources such as payroll, Industrial Relations management, health, and safety compliance, Broad Based Black Economic Empowerment (B-BBEE), and so forth. By partnering with a TES provider, businesses can get skilled, reliable resources that are entirely managed on their behalf, on demand. This means that projects are less likely to be delayed due to human resource issues, which further translates to time and cost savings that far outweigh the fixed costs involved in partnering with a TES provider. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cbn.co.za/industry-news/skills-training-development/finding-specialised-skills-made-easy-with-a-temporary-employment-services-provider/

Lunga Simelane | 28 March 2023 General views of the African National Congress (ANC) headquarters Luthuli House in Johannesburg. Picture: Michel Bega The ruling party is targeting 20% from the white voters, with an undetermined percentage from the other race groups. A drive to up its membership may reportedly see the ANC target white people to help improve its chances in the 2024 election. According to City Press, the ruling party is targeting 20% from the white voters, with an undetermined percentage from the other race groups. Strategy In an aim to attract more white voters in next year’s national elections, the ANC considered adopting a document presented by a group of its white, Indian and coloured members, which was part of its strategy to regain the two-third majority. It was understood the document was drafted by a group led by ANC member JP Pretorius, who said it was to make the determination of the character of the party, which the national conference concurred with, to speak and to mobilise communities as part of the renewal. Political analyst Xolani Dube said this was nothing but “ANC gimmicks”. He said if one looked at the policies of the ANC or any other political party, it would show who the beneficiaries of these policies really were. “I think it is one of those … discourses that the ANC always throws into the public to gain relevance and be seen as shapers and they set the agenda. “The fact of the matter is there is no need for the ANC to go and recruit because their policies and everything of the ANC are favouring their people. They are throwing into the valley of nothing with their comments,” he said. Dube said it was crucial to note that the ANC was running away from its true responsibility. “The responsibility which was the resolutions that include doing away with structural economic imbalances in our country. The responsibility of providing security and education to the vulnerable. “Just really lifting the standards of South African natives to a human level that is acceptable.” Expert weighs in While it was said that President Cyril Ramaphosa was also driving the issue to attract other groups and hoped the party would deploy some of them in government to reflect it as a nonracial organisation with equal representation, political analyst Amanda Gouws said the ANC had alienated many people of different races with the absolutist application of black economic empowerment) and broad-based black economic empowerment policies. “Who is going to believe them? Will they also give white people food parcels and T-shirts?” she asked. ANC spokesperson Mahlengi Bhengu-Motsiri did not respond to a request for comment. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/news/anc-hoping-white-votes-2024-election-victory-marcch-2023/

Staff Reporter | 27 March 2023 When they are given the appropriate support and enabling environment, young people in Africa can take advantage of new opportunities, develop innovative solutions, and contribute to building sustainable and resilient agrifood systems, according to a UN report released in 2022. Africa as a region has the highest percentage of youth in the world with an estimated 420 million people aged 15 to 35, and its share of rural youth is projected to rise to 37% by 2050. Young people as producers and traders of food, as workers, innovators and entrepreneurs, and as policy actors are already playing an important role in agrifood systems. But they face a range of age-specific vulnerabilities and difficulties, and those living in rural and underdeveloped areas face additional challenges, including fewer opportunities to access quality education and vocational training, and lack of access to information, decent jobs, land, finance and markets. They are exposed to hazardous work and have insufficient opportunities to participate in policy dialogues and other decision-making processes. They are also confronted with broader challenges in rural areas such as the lack of, or limited access to, basic infrastructure and services, Internet connectivity, and environmental degradation. Youth as a group is diverse. It is a dynamically changing group characterised not only by age but also by a set of intersectional dimensions, such as gender, education, wealth, ethnicity, health and geographic location. Additionally, it is important to recognise that young people are more likely than adults to migrate, and their life course often includes periods of mobility and migration, which has an impact on their level of engagement in agriculture and food systems over time. Young women, especially those living in rural and conflict-prone areas, face additional barriers related to sociocultural norms, additional responsibilities within households, limited freedom and mobility, early marriage and pregnancy. These barriers limit women’s and girls’ ability to take advantage of economic and social opportunities. Gender inequalities have been exacerbated by the COVID-19 pandemic, the additional burdens of domestic work, access to education and health services, and access to technology (the digital divide). Crises have disproportionate effects on young people (especially young women), but they also create spaces for innovation. Conflicts, natural disasters and pandemics disrupt education and destroy jobs and sources of income, leading to migration and displacement, social unrest, and aggravated inequalities. Nevertheless, the COVID-19 pandemic has also shown how young agri-entrepreneurs have adapted, moving to online marketing and sales, creating delivery services for transportation of their products, and adding value to primary products. New employment opportunities The growing population is projected to triple domestic food demand in sub-Saharan Africa by 2050 and bring about changes in food consumption patterns. The net food imports that are expected to increase to respond to this demand could be offset by increased African production which, in turn, presents opportunities to create decent employment for the youth within the broader agrifood system. Data from the Organisation for Economic Co-operation and Development and the Sahel and West Africa Club in 2018 forecast the creation of 32 million new jobs in the agrifood sector up to 2025 in West Africa, along with an increase in the share of off-farm jobs. Similar findings exist for East and Southern Africa. In addition, the African Continental Free Trade Area is expected to facilitate regional trade and contribute to the creation of jobs for young people, particularly in the agriculture sector. Technologies hold the potential to transform the future of farming, making it more attractive and profitable, less burdensome, and more closely tied to markets and consumers. In 2018, almost 50% of the African population owned a mobile phone, with young people being the largest group using cell phones and apps. The impacts on young people can be life-changing in areas such as education, extension services, social networking, job search and financial services. The COVID-19 pandemic has accelerated the pace of digitalisation and innovation, but it has also exposed existing digital divides. Capturing the potential benefits of the automation and digital revolution and reducing the digital divide for the youth requires tailored support and new investment in skills development, energy access and connectivity. Resilient, climate-smart systems The transition to a greener economy could yield up to 60 million jobs globally over the next two decades. Agroecology and smallholder-based modes of supplying the world’s food needs are perceived as part of the solution for building sustainable, resilient and inclusive agrifood systems. This trend is supported by increasing concerns among consumers about the links between diet and health, food systems and environmental and social issues. These considerations should be centre stage when prioritising investments, as they will shape the food systems of tomorrow. Aquatic food systems represent a critical social safety net and source of food and nutrition, particularly in periods of successive crop failures and poor agricultural harvests, or other humanitarian emergencies related to climate change or conflicts. The aquatic food sector employs more than 12 million people worldwide. Young people play a prominent role in the fisheries and aquaculture economies on the African continent, but their contributions are not reflected in official statistics, sector policies and development programmes. Finance for investment in food systems In Africa, less than 3% of total commercial bank lending is extended to the agriculture sector. Development agencies, international finance institutions, private foundations and NGOs are meeting only a fraction of this funding gap. In order to successfully implement the 2030 Agenda for Sustainable Development, a combination of public, donor and private funding is essential. The different sources of finance that are emerging in Africa, such as dedicated funds for young agri-entrepreneurs, crowdfunding models and, more recently, impact investing, have the potential to reduce and share the risk return of investing in young agri-entrepreneurs, who are often perceived as presenting greater risk to investors than their older counterparts. Principles The design and implementation of youth-responsive interventions are set within the overarching framework of the 2030 Agenda for Sustainable Development and Agenda 2063, with five core principles: Universality; Leaving no one behind; Interconnectedness and indivisibility; Inclusiveness; and Multi-stakeholder partnerships. These principles are in line with relevant youth-related African Union frameworks and strategies. Youth engagement and empowerment Young women and men know their own needs best, and they should have a voice in the design, implementation and evaluation of investment programmes that can affect them. Their capacity to effectively participate is thereby strengthened, and their ideas and proposals are valued and supported. Participatory approaches and meaningful engagement with the youth, notably in governance mechanisms and evaluation processes, can ensure transparency and accountability. The design of investment programmes takes into account the diversity of young people’s needs and aspirations based on such groupings as age, gender, indigenous identity, disability, levels of education and geographic location. Equal opportunities are provided for the youth to access productive resources and services, skills development and decent employment opportunities, start or develop a business, and access social protection, particularly in times of crisis. Investment programmes combine tailored measures to support young women and men in skills development and access to productive assets and services in accordance with market opportunities and territorial potentials, and with regard to sustainable management of ecosystems. Also taken into account are agricultural and rural transformation, the expansion of digitalisation and technologies, new economic models (such as a carbon-light, circular economy) that can create attractive employment and business opportunities for the youth. Adequate investment is directed to build youth capacities to capitalise on those opportunities. Investment programmes provide opportunities for collaboration across sectors and with different stakeholders to aggregate existing data, design joint actions, avoid duplication and enhance the effectiveness of interventions. Lessons learnt and proven approaches from successful initiatives are shared and cross-learning is facilitated at the national level and through South-South and Triangular Co-operation. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.farmersweekly.co.za/opinion/by-invitation/help-the-youth-to-gain-from-agrifood-systems/

Duma Gqubule, Kristal Duncan-Williams and Clotilde Angelucci | 28 March 2023 South Africa is stuck in a low-growth trap. With poor educational outcomes and sluggish GDP growth, we are not producing the volume and type of jobs needed to reverse historical trends. But we could be if we keep building on social employment and incentive programmes for young people. Compare the South African economy to a solution of salt. Add a few spoons and the solution becomes saturated, unable to dissolve any more salt. If we had more solvent, the formal labour market could absorb more job-seekers, but that solvent is a bigger economy. With a compounding GDP growth rate of just 0.7% since 1994, our formal economy has similarly reached a saturation point. So, we are stuck with a stagnant economy and, in the short term, the only way to increase labour absorption is to change the properties of the solution — give it more energy and build more connections. South Africa is categorised as a developing country with a relatively young workforce. Yet, only six in 10 young people between the ages of 15 and 34 were able to tap into learning or earning opportunities in the fourth quarter of 2022. The reasons are complex: on the one hand, our education system is not creating a pathway that sets young people up for future success, and on the other hand, our formal economy is not growing fast enough to create opportunities for the majority of job-seekers, especially young people who fall within the categories of low- and semi-skilled. The consequence is unemployment levels treble those of comparable middle-income countries like Brazil, India and Malaysia. For instance, research comparing 100 countries shows that the quality and quantity of education, using learner completion rates and test scores as proxies, are significantly related to economic growth. In South Africa, educational outcomes are not conducive to growth: roughly one in 10 children fail their grade each year, and 300,000 learners drop out of school annually. And, those entering the formal labour market are finding fewer options because sectors that used to drive productivity, such as agriculture and manufacturing, have been shrinking for years. The positive relationship between the size of a country’s productive output (GDP) and its ability to create and sustain jobs is widely accepted by most economists. As a report by PwC confirms, we need faster and more sustainable growth to reduce unemployment. But that alone won’t do the trick; we also need to ensure that once in school, a post-secondary qualification or a first work experience, young people are supported to finish what they started. The good news is that we’re already out of the starting blocks, because the policies and programmes already exist, but they must be improved, expanded and better funded. As part of a robust package of economic policies to stimulate growth, National Treasury must broaden access to social employment programmes and incentives for small, medium and micro businesses to hire more young people. These policies have demonstrated their ability to put money in people’s pockets so they can buy food and basic necessities. Often, they spend their income at the stores and businesses close to where they live, which is good for local economies. Spending stimulates growth, so businesses and the economy benefit when individuals and households have more disposable income. This is how social employment programmes and state-sponsored incentives can stimulate economic growth at a time when seven out of the 10 major industries are getting smaller. Powering social employment programmes The government has introduced numerous programmes to address the country’s youth unemployment crisis; for example, the Presidential Employment Stimulus, launched in December 2020, included the establishment of the largest employment programme for young people, the Basic Education Employment Initiative (BEEI). To date, the BEEI has provided short-term work experience for one million young South Africans and its value to schools and learner support is starting to become clear. Siilarly, the Social Employment Fund (SEF) has done what the Expanded Public Works Programme failed to do by creating pathways for personal progression and skills development. While these programmes are steps in the right direction to prepare young people to be work-ready, their future is uncertain as public funding is confirmed only until 2024. It would be a travesty and a major missed opportunity for this country if the energy and new connections created by these programmes were lost. We should be building on them, growing their synergies with skills development and the formal labour market. Closer collaboration should be created with a variety of sectors, such as the green economy, to equip young people with the hard and soft skills needed, as well as the social connections and mentoring relationships that can help them to find work. Recalibrating existing small business incentives In 2014, the government developed the Employment Tax Incentive (ETI), a rebate for employers who hire young people. Employment data shows that more than 60% of all employed people are working in small, medium and micro businesses, which have fewer than 50 staff. Ideally, schemes such as the ETI should fuel the growth of these small businesses; however, research by Youth Capital shows that only a minority of small businesses have made use of available state-sponsored incentives. Many of them are not aware of these incentives or how to access them, and those who are, are unable to do so because of red tape. With funding confirmed until 2029, the ETI could enable the growth of small, medium and micro enterprises; and in turn, these businesses could hire more young people. But to do so, the ETI’s criteria must be tailored to the needs of small business owners, many of whom require reliable information and assistance to access these state-sponsored benefits. Empowering social employment programmes and improving the efficacy of business incentives are not the only answers, but they are interventions that, if fueled by appropriate government spending, have the power to increase young people’s ability to earn an income and stimulate the national economy in the process. This will add energy and new connections to the existing economy, enabling greater labour absorption in the short- to medium-term and contributing to a bigger solution through economic growth over the longer term. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-03-28-two-interventions-treasury-can-make-to-stimulate-sas-gdp-and-boost-youth-employment/

Bizcommunity | 26 March 2023 Non-profit school, Christel House South Africa met with social transformation experts and changemakers recently for the inaugural think tank of Youth Bridge, a new Christel House SA employment initiative. Youth Bridge is aimed at supporting unemployed youth (15 to 35-year-olds) and helping them bridge the gap between their undiscovered ambitions, abilities and the career opportunities that await them. It draws on lessons learnt from Christel House SA’s successful efforts over the past 22-years to support vulnerable youth to secure gainful employment. Key to the programme’s success is addressing the barriers to stable, successful employment through a character-based, career-focused readiness programme and then continuing to support candidates through their first periods of placement. Given the backdrop of South Africa’s high youth unemployment rate, the school engaged with experts on how to create sustainable and viable solutions around their new Youth Bridge Initiative. Adding value to the underserved Key themes that were discussed included the perceived disconnect and mismatch of expectations between the youth and the South African industry, potential strategies that businesses and entrepreneurs can implement to generate new employment opportunities, how youth who come from vulnerable communities can be better supported and, most importantly, how a character-based, career-focused approach will support young work-seekers in their career journey. “Christel House SA develops children from underserved communities on more than an IQ level – they understand that EQ is just as important, if not more so. I’m so excited about the Youth Bridge programme and I think the character-based and career-focused element is key,” says Nikki Joshua, a representative from Leelyn Management, the implementation partner for the Jobs Connect programme, run by the City of Cape Town. “The Youth Bridge programme offers an opportunity to add real value and prepare our youth to find and keep jobs. While it's wonderful to do good for our youth, doing what's right is even more meaningful. With the appropriate guidance and support, our youth can achieve their full potential,” adds Lance Bouwers, a representative from T3 Telecoms SA. The Youth Bridge programme offers unemployed youth the opportunity to engage in a 6-month programme that includes full-time 1.5-month intensive contact sessions, bolstered by 4.5 months of longitudinal support and mentorship. Participants receive character development lessons, computer training, financial literacy education, career etiquette, establishing a career path and a psychometric assessment to assist in finding their passion. Thereafter, mentors connect graduates to further education opportunities to improve their skills and employability and eventually match them with potential employers. The launch of the Youth Bridge Programme is particularly timely given the results of the Quarterly Labour Force Survey (QLFS) for Q4: 2022 by Statistics South Africa, which shows another drop to 45,3% in South Africa’s youth (aged 15-34 years) unemployment rate. “The unemployment crisis highlights the urgent need to implement effective solutions that empower our youth to become active and productive members of society,” said Ayanda Mvandaba, Managing Partner: 10X. “Youth Bridge recognises the challenges that the emerging workforce faces in not only securing employment opportunities but also in maintaining positions that offer growth potential for career advancement. Our role is to act as the unifying force, which brings our partners and youth together for a common purpose – to make a meaningful impact in the lives of the next generation.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.bizcommunity.com/Article/196/500/237075.html

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Media Statement | 27 March 2023 Small and medium-sized businesses (SMEs) are the backbone of economic development in emerging markets like India, South Africa, Kenya and Colombia, where these enterprises contribute up to 40% of national GDP. Recent years have seen the SME sector in these nations develop at different speeds, with countries like Brazil joining economic powerhouses like the UK and America in topping the list of countries with the largest new business growth. In these inspiring examples are key learning opportunities for South African small businesses. This is the opinion of Mark Paper, Chief Operation Officer: Business Partners International at Business Partners Limited, who points to the growth strategies of countries like India, Mexico and Brazil as case studies for how the South African SME sector can expand; despite several unique hurdles that face the country’s entrepreneurs. A three-pronged approach to sector development Paper points to the success of India’s IT industry as an example of how strategic positioning and long-term planning can reap huge dividends for the country and its people. During the early 1990s, India experienced a ‘brain drain’ in its fledgling IT industry, with local talent emigrating to other markets. This loss of key talent served as a prompt for key decision-makers to boost investment into building new capacities. For India, an intervention at school-level education was identified as a possible solution. The government therefore poured resources into encouraging young children to pursue careers in IT and technology-related fields. Today, India is a global technology hub, producing between 600 000 and 800 000 tertiary IT graduates per year, according to Bombay-listed software and services giant, Zensar Technologies. For Paper, India’s success in this arena cannot be attributed to the state acting alone, but rather, to the collaborative efforts of multiple stakeholders in civil society, education, training and development, career development and the corporate realm. As he argues, true impact requires the cooperation and collaboration of “the golden tripartite: the public sector, the private sector and the South African public. Our country is well positioned to follow India’s lead, albeit in the broader context of STEM (science, technology, engineering and mathematics), but more investment needs to flow in from multiple directions. State-led interventions to encourage education-driven initiatives are important, but we need the private sector to employ these graduates at scale. This needs to have the backing of civil society, which plays a crucial role as the parents and caregivers of young talent in promoting STEM education and equipping young people with the tools they need to succeed in these areas,” says Paper. Policies need to be targeted at achieving specific, measurable goals One of the cornerstones of Brazil’s success as a country with a thriving SME sector, is the measurability of its policies. According to a report published by leading South African researcher and journalist, Stephen Timm, in recent years, Brazil’s planning ministry honed their focus in on fostering a more enabling environment for entrepreneurship. These efforts were backed by strong policy reforms such as mandated, governmental ‘set-asides’ or large portions of the state’s procurement bill that are allocated for small firms. Under articles 42 to 49 of Lei Geral, all governmental tenders of up to US $80 000 (about R260,000) in value must be granted to SMEs. However, the process of these policy changes and their implementation is measured closely. Policymakers are held to account according to measurable targets on the number of loans offered to SMEs on an annual basis, the number of small businesses registered as taxpayers and supported in fulfilling their obligations and the number of SMEs supporting key industries such as export and manufacturing. This approach is conducive to creating an environment in which policymakers can be held to account for the implementation of their policies – one in which “we do what we say we are going to do, and we remain open to exploring what we can do better,” says Paper. Leveraging financial technology as part of a broader purpose One cannot talk about strengthening the local SME sector without touching on solutions to its greatest challenge. Research conducted by Business Partners Limited for its quarterly SME Confidence Index has shown over a number of years, that access to finance is one of the biggest and most prevalent hurdles to success in South Africa. Mexico provides a key learning opportunity of how non-bank financial institutions and fintech startups can work together to fill this gap and provide SMEs with greater access to funding. Mexican financial leasing firm and direct SME lender, Mega is leading the charge in the financial sector by offering finance to the ‘unbanked’ and under-served constituent of SMEs who are not regarded as being part of the formal sector. In the example of Mega and its non-bank counterparts in Mexico, Paper finds another invaluable lesson for South Africans. “Our local entrepreneurship base is alive with talent and our entrepreneurs are hungry for innovation. In fintech, we find a viable solution to how we can leapfrog other emerging markets and harness our drive to succeed by advocating for greater financial inclusion. Providing more non-traditional financing solutions for SMMEs (small, micro and medium enterprises), particularly on a micro scale should not be seen as a goal in isolation. Rather, fintech innovators should frame their efforts within the broader imperative of sustainability – a crucial part of which involves social justice and equality. “This is what investors, corporate decision-makers and the government want to see more of,” says Paper. “As we continue with the year ahead, looking for solutions for promoting economic growth and better supporting SMEs in South Africa, lessons from other emerging markets provide a good start,” concludes Paper. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/how-to-boost-the-development-of-south-africas-sme-sector-lessons-from-other-emerging-markets-2023-03-24

Telkom Business | 26 March 2023 We are living in a digital world, and today’s SMMEs have to make the transition rapidly if they wish to prosper and grow. Corporates must play their role in helping them to do so. he lockdowns associated with the COVID-19 pandemic had many unexpected consequences, introducing new trends of what we call ‘normal’, the most important being a massive push to drive businesses online. This massive push has encouraged many small and medium businesses to navigate these trends by transitioning to selling online. However, we must acknowledge the fact that moving a brick-and-mortar business to the digital world can be challenging. Small and medium business entrepreneurs are required to be more strategic with their business plans, have a detailed analysis of their customers’ needs, and have a holistic long-term vision of their business(es). Today’s entrepreneurs must have a comprehensive plan that enables them to adapt to online business operation solutions. There are several advantages, both short-term and long-term, for small and medium businesses to move their businesses online. One of the most visible short-term advantages for entrepreneurs to move their businesses online is that they will still be able to increase and diversify their sales. Another advantage is that small and medium business entrepreneurs will be able to enhance the overall shopping experience for their customers through their physical and online business presence, providing business solutions such as buy online, pick up in-store (BOPIS) to offering curbside delivery, and more. That is why it is crucial for big businesses to develop business solutions that are inclusive, and Yep! is one of those business solutions that is developed to advance small and medium entrepreneurs’ business ecosystems through digitalisation. The shift online brings South Africa’s SMMEs to a crossroads. While many of them had already begun to move online, a large contingent of them remain stuck in the analogue era and find the idea of shifting onto digital platforms frankly daunting. It is necessary to view the imperative for SMMEs to shift to digital platforms within the bigger context—one in which our SMMEs have been underperforming for many years. South Africa’s SMMEs make up 98.5% of our economy but, disastrously, only create 28% of the jobs. These figures from the Small Business Institute show that South Africa is lagging international benchmarks – in successful economies, the same high proportion of SMMEs employ somewhere between 60% and 70% of the workforce and contribute as much as 60% to GDP. In addition, a high proportion of our SMMEs are designated as survivalist, that is just focused on providing an income for a single individual. The Small Business Institute estimates that 3.3 million of our 5.6 million SMMEs fall into this category. Bearing this in mind, it’s unsurprising that the Global Entrepreneurship Monitor for 2021-2 found that South African entrepreneurs are less likely to adjust their business plans to new business realities. Those realities include a highly competitive environment, a depressed economy and a growing need to adopt digital platforms. Digital platforms are key because they allow SMMEs to compete on more equal terms with larger businesses by refining their business processes to deliver better service, and to reach new customers. Digital platforms also enable SMMEs to accept digital payments. The latter is an important point not only from a security point of view but also because digital payments automatically create the basis for a set of accounts that can be used to demonstrate a business’s health and potential when applying for financing from banks. The typical, cash-based SMME finds it virtually impossible to qualify for finance, thus preventing it from expanding. In short, one can make a good argument that one of the major reasons behind the dire performance of South Africa’s SMME sector as an engine of growth and job creation is attributable to its relative lack of digitalisation, and its continuing addiction to cash. Why it’s important to facilitate the digitalisation of SMMEs There are good reasons for companies like Telkom Business to put a lot of energy and capital into developing solutions to assist SMMEs to make the digital transition. For one, it’s a large market with a huge potential for growth; it’s also vital that SMMEs are empowered to grow and become sustainable in order to create the inclusive, job-creating economy we need as a country. That’s the thinking behind the Yep! portal created by Telkom Business. Yep! was born out of the Yellow Pages print directory which, like the SMMEs we have just been discussing, also had to make a transition into the Digital Age. Yep! is essentially a reinvention of the venerable Yellow Pages as a digital marketplace where customers (individuals or other SMMEs) can find SMME service providers. Essentially, then, Yep! aims to create a digital ecosystem for SMMEs. We believe this approach is vital in enabling the digital transition I outlined above. To grow, our SMMEs need to be positioned to acquire new customers. Coming from an analogue environment, their current reach is typically very limited. The feedback is good, with many SMEs reporting that they are experiencing significant growth. A good example is a computer company that is benefitting from help with refining its Google marketing campaign over time, with escalating returns. A digital platform immediately gives them a national showcase for their businesses, something it would ordinarily take conventional business years to achieve. And because it’s digital, payment can easily be effected. Another important component of any attempt to help SMMEs make the big digital leap forward is help in creating the website or digital storefront they will need. The smaller SMMEs will also need training of various levels in order to begin optimising their business practices. Assistance in creating and building a brand, as well as marketing of products and services, is another important area. The National Development Plan envisages that, as in the rest of the world, our SMME sector will be the engine of inclusive, job-creating economic growth. Digitalising this sector is our best hope of enabling the sector to fulfil its promise, and corporate South Africa has a duty to assist. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-03-25-south-africas-smmes-need-to-make-the-big-digital-leap/

Zelda Venter | 28 March 2023 Pretoria - Five workers turned to the Labour Court to complain about unfair discrimination after they had a peek at a white colleague’s payslip and saw that she earned more than them. The workers, employed by Makro as merchandise controllers, said they saw the payslip after their colleague, who worked in the same division as them, by mistake left it on the printer. They were bitterly unhappy. They felt that while she performed the same tasks as them, she earned more simply because she was white. They took their complaints of discrimination to management and raised a grievance over salary disparities that were allegedly based on race. Management denied this. It held a meeting with the workers to discuss the alleged disparities and management subsequently adjusted the applicants' (and other employees) salaries. It told the disgruntled workers that this was done in accordance with a fair process to ensure disparities are eradicated. It said the business had exhausted the process and for this reason the grievance is concluded. Not satisfied, the workers turned to court. Their case was premised on the provisions of the Employment Equity Act that provides that a difference in terms and conditions of employment between employees of the same employer performing the same or substantially the same work amounts to unfair discrimination. The case was simply that a white woman, employed by Makro as a merchandise controller since June 2011, earned more than them – black workers who did similar work. In denying this, Makro said historically, the recruitment process included considering a candidate’s employment history and not the salary the candidate was earning at the time. It said it aimed to make an offer to a candidate attractive by increasing the candidate’s existing salary up to a maximum of 15%. In 2018, it introduced salary bands for all positions within the organisation, including the merchandise controller position. Management said it had subsequent to the introduction of salary bands adjusted the salaries of employees, including the applicant’s, to ensure remuneration was at least at the middle level of the respective salary band. Acting Judge G Mthalane said it was not disputed by the applicants that their salaries had been adjusted, in the meantime, to ensure that remuneration was at least at the middle level of the respective salary band. The judge added that it was common cause that there were some black employees who earned more than the white colleague in question. The applicants argued that the reason for that was because some black employees had longer service. “I find this irrelevant. The fact of the matter is that there are two black employees who earn more than the comparator (the white colleague).” The judge concluded that the process followed by the retailer and not race was the reason for the disparity. “Something more is required to prove discrimination. The unequal treatment must be based on attributes and characteristics attaching to a person before it can fall within the meaning of ‘discrimination’.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/pretoria-news/news/peek-at-white-colleagues-payslip-ends-badly-for-employees-claiming-racism-c2c19711-974c-4588-934a-ca295a2da86c

SA News | 25 March 2023 Government remains committed to supporting the black-owned business sector in their efforts to rebuild their businesses following the economic downturn, said Deputy President Paul Mashatile. “As government, we remain committed to supporting the black-owned business sector, in their efforts to rebuild their businesses after the economic downturn. We have begun to have important conversations about how people in the informal economy can get the most out of what our economy has to offer,” said the Deputy President. Delivering the keynote address at the Black Business Quarterly (BBQ) Awards ceremony, held at Emperors Palace in Kempton Park, Gauteng on Friday, the Deputy President spoke of the devastating and disruptive effects of load-shedding on the economy and the small business sector. This he said remains “a major concern for all of us”. “Load-shedding has cut business hours and production capacity, with the consequent result of reduced income. Businesses have also had to spend large amounts towards finding alternative energy sources to keep their operations viable. “Consequently, this has resulted in significant losses in jobs between the years 2019 and 2021, both in the formal and informal sectors. Nevertheless, the South African economy grew slightly for the second year in a row, expanding by at least 2.0 percent between the years 2021 and 2022, which represented an increase from 4,50 trillion Rands to 4,60 trillion Rands." The Deputy President also noted that the increase in the number of unemployed South Africans, particularly among the youth, necessitates more immediate steps to assist government in fundamentally altering the country’s economic growth trajectory. “As the sixth administration of government draws to a close, we must be truthful with ourselves. We must have an open and inclusive conversation about rebuilding that which will result in increased economic activity. “We must acknowledge that there is a greater and more pressing need to support aggressive means and forms of economic integration for black-owned firms, particularly in the historically untransformed sectors of the economy. “Furthermore, in order to give various economic issues urgency, including the evaluation of how we may reinforce policies that are focused on economic emancipation, it is necessary to look at the agenda of the governing party. We must pay close attention to how government at all levels, can create a supportive policy and regulatory environment that in turn supports the informal economy,” said the Deputy President. He spoke of the need to improve the state's overall capacity to expedite the processing of applications and approvals, in order to integrate the commercial and economic operations of unorganised players in the informal economy into the mainstream sector. “As such, it cannot be business as usual, when businesses, especially, black-owned enterprises, continue to experience the harshest types of hardship and depression as a result of a system that is unresponsive to their needs. “This includes the need to resolve the ongoing challenges of government’s non-payment and settlement of invoices due to small businesses within regulated time frames. The National Treasury requires that invoices for these critical service providers be paid and settled within 30 days.” He added that government is committed to implementing consequence management for departments and state agencies that fail to implement these requirements. “We recognise that late payment after services have been rendered has significant repercussions for your businesses' finances.” Youth and job creation The Deputy President said government is also committed to creating more sustainable jobs, particularly for the youth. He highlighted that during the 2021/2022 financial year, the National Youth Development Agency (NYDA) Grant Programme provided more than 2000 youth-owned enterprises in rural and township economies with grant funds to launch their firms. “Moreover, supported by the National Youth Development Agency funding programme and the Youth Micro Business Relief Fund, youth-owned firms have created and maintained employment of 8,600 employees in the economy. Yet, these are by no means sufficient. “We need to grow these efforts further by scaling up on investments to build skills. On our side as government, we need to sharpen our role in coordinating, facilitating, as well as unlocking opportunities for people who wish to expand their local businesses,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/sa-must-brace-for-economic-headwinds-imf-warns/

Bongani Mdakane | 26 March 2023 South Africa’s economic and social challenges are a cause for concern, with mounting unmatched energy crisis, macro-financial instability, lack of jobs and a stalling transition to a greener economy taking a heavy toll. During the recent visit to the country by an International Monetary Fund (IMF) team led by Papa N’Diaye from 1-17 March, where the crew held meetings with the economic authorities and other stakeholders from the public and private sectors for the 2023 Article IV annual consultation, the IMF painted a grim picture and stated that South Africans should be ready for tough economic times ahead. This week the IMF stated that South Africa’s economic and social challenges were mounting, risking stagnation amid an unprecedented energy crisis, increasingly binding infrastructure and logistics bottlenecks, a less favorable external environment, and climate shocks. “A recovery in the services sector supported job creation in 2022, however, employment remains below pre-pandemic levels and unemployment close to record highs, on the back of already high poverty and inequality. In addition, the economy remains exposed to external shocks and capital flow volatility, in the context of tighter global financial conditions, and volatile commodity prices related to Russia’s war in Ukraine. The elevated public debt significantly limits the fiscal space available to respond to economic and climate shocks and meet social and developmental needs. Long-standing rigidities in product and labour markets, and governance and corruption vulnerabilities also weigh on growth and employment prospects, threatening social cohesion,” said IMF. The IMF said that the country’s large external asset position, low levels of foreign currency debt, diversified economy, sophisticated financial system, and flexible exchange rate regime are sources of strength, supported by the South African Reserve Bank’s (SARB) through its pro-active monetary policy that has kept inflation expectations anchored. “These features provide a favorable base for growth, as fiscal and structural challenges continue to be tackled, including through Operation Vulindlela. On the policy front, the government has made important headway on domestic revenue mobilisation, removed licensing requirements for embedded power generation, announced a plan to create a mechanism for private sector participation in transmission infrastructure, completed the spectrum auction, and has taken steps to improve third-party access to the country’s ports and freight network. “Anti-corruption measures in response to the judicial recommendations of the Commission of Inquiry into allegations of State Capture have also been announced in October 2022. This progress is welcome and needs to be sustained, but further reforms are urgently needed to durably lift potential growth, create enough jobs to reduce unemployment, absorb new entrants into the labour force, and reduce poverty and inequality,” said the IMF. However, the organisation stated that the near-term growth outlook had deteriorated as the real GDP growth was projected to slow down sharply to 0.1% in 2023 mainly due to a significant increase in the intensity of power cuts, as well as the weaker commodity prices and external environment. “In the medium term, growth is expected to rebound, though only to about 1,5% per year, with income per capita likely to stagnate as a result. This is because of long-standing structural impediments, such as product and labour market rigidities and human capital constraints, offsetting expected improvements in energy supply, higher private spending on energy-related infrastructure, and a more supportive external environment. Headline inflation is projected to fall back within the SARB target range of 3% to 6% in the second half of 2023. Lower food and fuel price inflation and the SARB’s less accommodative monetary policy stance are key factors behind this decline. Inflation is expected to reach the target range mid-point of 4.5% in 2024 and remain there through the medium term,’ said the IMF. Based on the challenges that the country is faced with, the current account is projected to move to a substantial deficit of 2.3% of GDP in 2023 and to deteriorate further to about 2,5% in 2024, on the back of softer commodity prices, weaker external demand, and higher energy-related capital imports. The IMF said that as these factors disintegrated and logistical constraints were alleviated, the deficit was expected to improve somewhat to about 2% of GDP over the medium term. “Despite recent improvements, fiscal accounts will remain under pressure with the overall balance projected to widen to a deficit of about -6.5% of GDP in the fiscal year (FY) 23/24, and deteriorate further through FY25/26, reflecting the Eskom debt relief operation, which entails a capital transfer, continued transfers to other loss-making state-owned enterprises, spending on the Social Relief Distress grants, and increased interest payments. The deficit is expected to narrow after FY26/27 assuming improved conditions at Eskom, though public debt would continue to rise,” said the IMF. The Financial Action Task Force (FATF) has placed South Africa on its list of jurisdictions under increased monitoring with strategic deficiencies in its anti-money laundering and counter-financing of terrorism (AML/CFT) framework. “FATF has recognised that South Africa has made significant progress on many of the recommended actions to improve its systems, including the passage of two key Acts of Parliament addressing technical compliance deficiencies, demonstrating the authorities’ strong political commitment. Exiting the greylist will require South Africa to continue to implement the agreed FATF implementation action plan in a timely manner. International experience suggests that the adverse impacts of greylisting increase the longer a country remains on the list. Therefore, the mission encourages stakeholders to continue working together to exit the list as quickly as possible, and closely monitor the impact of the greylisting on capital flows and the financial system,” said the IMF. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/sa-must-brace-for-economic-headwinds-imf-warns/