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Chrislynn Sias | 8 July 2023 When people apply for employment, they find most employers require job experience. And when you have just completed your high school career, the only experience you have is sitting in a classroom. At the end of June,119 learners graduated from the Cape Skills and Employment Accelerator – a City of Cape Town-funded project, administered by the Craft + Design Institute (CDI). The project focuses on creating employment opportunities for youth and women in the clothing and textile industry in Cape Town. The group of 119 received their National Qualifications Framework-level training certificates from Boland College and the Cape Town Work Based Learning Academy, which marks a final milestone of success on the project. The first 17 graduates completed their learnerships on the project last year. One of the previous graduates who participated in the project is Tiana Daniels. She is currently a professional model and content creator, in the process of establishing her own personal enterprise. “I began this programme directly following my completion of high school, so I was essentially unaware of what to anticipate. However, it has proven to be an invaluable experience, as I’ve learnt a diverse range of valuable skills, from time management to properly altering a garment.” According to Daniels, the programme has broadened her horizons with a plethora of opportunities and inspiring ideas. “For instance, I have discovered an interest in the business side of the fashion industry, which has motivated me to pursue a degree in business management.” Daniels said in addition to her acquiring proficiency in sewing, her educational journey has encompassed a “multitude of invaluable skills within the industry”. “This includes being able to accurately determine the cost of a garment and acquiring the ability to skilfully thread any sewing machine. Such knowledge has increased my capability of understanding various aspects within the field.” Erica Elk, group CEO of the CDI, said the outcome had been a remarkable success, given the project started during the Covid-19 pandemic. She said they had initiated the project in the midst of a very difficult period for employment creation and for businesses trading in the creative industries. “We are proud of the outcome, through which so many young women have gained an NQF4 Learnership qualification as a machinist. While they were learning, 27 CDI member SMMEs hosted the learners by providing the site for workplace learning to take place, and hopefully with a job at the end of each learner’s 12-month journey,” said Elk. She added that it was not just a skills development project for youth. The CDI placed emphasis on the development of each business and their capacity to grow. Alderman James Vos, the City of Cape Town’s Mayoral Committee member for Economic Growth, said the project was designed to respond to a skills need in Cape Town’s high growth industries and the needs of youths wanting to become part of the City’s workforce. According to Vos, there is a direct correlation between South Africa’s unemployment crisis – which largely affects the youth – and the dearth of valuable skills. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/weekend-argus/news/cape-youth-boosted-as-119-learners-graduate-from-the-cape-skills-and-employment-accelerator-and-find-work-f84e3079-af2d-4644-87c3-7d96e23f9761

Bongani Mdakane | 9th Jul 2023 The Black Business Council (BBC) is urging financial institutions such as major commercial and development banks to reconsider their lending criteria and give preference to black-owned businesses operating in the mining sector. The emphasis, said the BBC, should be placed on coal and logistics sectors, arguing that energy transition could not be done at the expense of closing coal power stations and abandoning those coal towns as white elephants. The council said the rationale for this was based on a lived experience of many black businesses in these sectors finding it difficult to access funding due to criteria prohibitive to black-owned businesses expanding their businesses. Speaking to Sunday World, BBC president Elias Monage said an application lodged in April by his organisation with the Competition Commission alleging collusion bears testimony to white business being opposed to the country’s transformational agenda – hence the refusal by banks to fund black businesses. “The BBC takes note of white businesses which are funding NGOs to oppose transformation agenda and spread a negative narrative against black empowerment. The Preferential Procurement Bill that is before parliament must include a provision for Africans, particularly black women, youth, people living with disabilities, to be given 40% of the value of the project as part of addressing the imbalances of the past. “We remain resolute and firm that t parliament must seriously address empowerment category within the bill before it becomes law,” said Monage. In February, the council lodged a complaint with the commission, raising concerns about big banks failing to fund black-owned businesses. Monage said no response had been received regarding their complaint from the commission. “We are disappointed as we view this issue as a critical matter that needs the urgent attention the commission. “We will be meeting with our lawyers to plan a way forward to deal with the matter as this creates more challenges for black-owned business to be sustainable, and to survive current economic challenges faced by business,” said Monage. In its complaint of February, the organisation outlined difficulties and challenges affecting black businesses, and the failure of businesses to access funding from major banks in the country – and a decision that banks would not fund coal mining in South Africa. Monage said: “The timing and communication of the decision of the banks raises a suspicion that they may have coordinated or colluded in contravention of section 4(1)(b), alternatively 4(1)(a) of the Competition Act. 3. “The banks are individually and collectively dominant in the market for business funding. The refusal of banks to fund coal may also constitute abuse of dominance in contravention of various subsections of section 8 of the Competition Act, including exclusionary conduct against junior and emerging black miners, who are in early stages of entry into coal mining (large mining groups are predominantly exiting or have exited the market), by refusing to supply an essential facility, namely business funding to junior and emerging black miners.” The council said the effect of this “has been too substantial to lessen competition in the market, in that coal has been made to be uncompetitive against other energy sources”. “The conduct of the banks also has the effect of raising the price of electricity paid by consumers in South Africa … thereby harming the public interest objectives of the Competition Act. 6. “The BBC requests the Competition Commission to investigate the conduct of these banks and decide if the Competition Act was transgressed.” Commission spokesperson Siyabulela Makunga said: “The commission has received a complaint from BBC. The issues raised in the complaint are being investigated. The commission has been engaging on the matter with the BBC executive, and we prefer exhausting these engagements before making public comments.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/bbc-rebukes-big-banks-for-shutting-out-emerging-black-coal-miners/

Creamer Media | 7 July 2023 Take a walk past the Ceramic Industries factories in Vereeniging, Krugersdorp and Hammanskraal on any given day and you may come across informal traders, tilers, transporters and other artisans milling nearby the company’s headquarters hoping for an opportunity for a ‘piece job’ or a chance to earn a day’s honest living. In response to this pressing need in the community, Ceramic Industries, along with business incubator, Vantage Advisory launched an Enterprise Development project that offers interested tilers and transporters in Hammanskraal the opportunity to formalize their enterprises by aiding and guiding them through a structured incubation program. The initial step was to register all 42 beneficiaries with the Companies and Intellectual Property Commission (CIPC). Following registration, the SMEs were accepted into a business development support program designed to assist entrepreneurs in shifting from informal to formal enterprises so that they, too, could contribute to their community's socioeconomic development. On the 8th of July 2023, Ceramic Industries will host an Awards event at Zenzele Park in Boksburg for its Enterprise & Supplier Development Graduation in recognition of SMEs that have achieved the greatest revenue growth and employment creation. Ceramic Industries is Africa's leading maker of high-quality, stylish, trendy tiles and bathroom ware, with a focus on responsible corporate responsibility and the social and economic development of formerly disadvantaged individuals with eight factories, seven in South Africa's Gauteng province and one in Australia. Steered by effective leadership towards responsible corporate responsibility, Ceramic Industries is conscious of the collective challenges our nation faces and intentional in its approach to creating meaningful and sustainable interventions which promote the social and economic development of previously disadvantaged individuals. The twelve-month Business Development Support (BDS) programmes gave the SMEs an overview foundation of various skills, processes, and compliance requirements that are essential skills for any start-up business. Says Vantage Advisory Director, Luncedo Mtwentwe: “Entrepreneurship cannot be taught in the classroom. Now that we have introduced basic business concepts to our beneficiaries, we want them to apply the knowledge they have gained in more practical ways in their businesses. Ceramic Industries’ Tabisa Ngubo adds that the organization offers myriad business opportunities to its Enterprise Development alumni but also encourages them to spread their wings beyond the exposure that they gain from Ceramic Industries. “It is incredible to witness the growth amongst our intake of artisans especially when they literally present their offerings in a boardroom setting with the verve and confidence of skilled business practitioners. True empowerment is about seeing individuals leapfrog to new heights and become fully independent to the point of even hiring their own staff and turning their businesses into going concerns. Some of our ED suppliers now own entire fleets and are strategic partners in our business value chain. Our ED awards are about encouraging more small businesses to grow with us,” says Tabisa Ngubo, Ceramics Industries CSI Coordinator. Ceramic Industries is devoted to broad-based economic transformation through the expansion of entrepreneurs and suppliers, as well as the creation of competitive marketplaces for them to create more jobs and build sustainable communities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/unlocking-true-enterprise-development-from-the-streets-to-the-boardroom-2023-07-07

Roy Cokayne | 7 July 2023 Applicant says the new system has relegated its B-BBEE Level 1 rating to 10% of its tender scorecard and ‘elevated 100% black ownership to 50% of the scoring’. Contractors say it is unconstitutional, irrational, and will lead to ‘obvious and avoidable’ disadvantages for potential tenderers. The South African National Roads Agency (Sanral) is facing a high court challenge after allegedly unilaterally introducing a new preferential procurement scoring system for its tenders. The new scoring system allegedly significantly downgrades the importance of the Broad-Based Black Economic Empowerment (B-BBEE) Act ratings of most bidders. Cape Town-registered H&I Construction (Pty) Ltd has launched an urgent application in the High Court in Gqeberha to interdict Sanral from implementing its new scoring system when adjudicating two specific tenders, pending an application to review and set aside this new scoring system. H&I Construction will be applying for the latter in Part B of its application on the grounds that the new scoring system: Does not comply with the requirements set out by Section 2 of the Preferential Procurement Policy Framework Act 5 of 2000; and Was introduced with H&I Construction being consulted. Francis Chemaly, commercial manager of H&I Construction, said the new scoring system that Sanral now seeks to employ “is unconstitutional and irrational and therefore reviewable both on grounds of legality and under the Promotion of Administrative Justice Act. ‘Unfair, uncompetitive, cost-averse’ “Sanral introduced these changes to its tendering system without consulting those directly affected by it, including the applicant [H&I Construction],” said Chemaly. “The proposed new scoring system is so unfair, so irrational, uncompetitive and cost averse, that potential bidders such as the applicant [H&I Construction] will simply not be able to present a bid on a viable, cost effective basis, and have any hope of scoring sufficient points in a fair process to have the bid awarded to it, should Sanral be permitted to proceed with its new scoring system for these tenders.” Moneyweb emailed Sanral a list of questions about the new scoring system. Sanral GM for communications and marketing Vusi Mona said the matter is currently being processed legally. “There is a litigation process that is currently underway and we are finalising our legal papers. You will appreciate our reluctance to litigate through the media. However, once all papers have been served and are before court, we may be in a better position to consider responding to the media queries under discussion,” he said. Chemaly said Sanral’s new scoring system has relegated H&I Construction’s B-BBEE Level 1 rating “to a mere 10% of its tender scoring scorecard and elevated 100% black ownership to 50% of the scoring”. He said it will make it practically impossible for H&I Construction and other tenderers in a similar position to participate fairly and competitively in a transparent, cost effective bidding process. Not board-approved? Chemaly said it is unclear if the new scoring system has been approved by Sanral’s board and the absence of any such evidence on the Sanral website – where other public procurement and supply chain management procedures that were sanctioned by the board are to be found – “suggests that Sanral’s decision to introduce the new scoring system is invalid on that narrow ground already”. Chemaly said Sanral was given the opportunity to urgently revisit and remove the inclusion of the new criteria for the two tenders but refused to do so. JSE-listed construction and engineering group Wilson Bayly Holmes-Ovcon (WBHO) has applied to join Part B of the application. A further 11 construction companies, including JSE-listed Raubex and Stefanutti Stocks, were cited as respondents and have provided signed affidavits in support of H&I Construction’s application. Chemaly said these companies were cited as respondents by virtue of their interest in this application as major contractors in the construction industry. He said these companies are potential tenderers for the tenders that have already been advertised that form the subject of this application and other Sanral tenders that have been advertised with the same new scoring system. “They also have an interest … in the lawfulness and validity of Sanral’s new scoring system generally, given that Sanral has indicated it intends using the scoring system for its public procurement on various tenders nationally,” he said. Chemaly said all the construction companies listed “stand to suffer the same prejudice, albeit to varying degrees” as H&I Construction, under the new Sanral scoring system. Scorecard changes He said Sanral in the past used a bidder’s B-BBEE rating to allocate the preferential procurement part of the score, awarding 10 or 20 points based on the tenderer’s rating. “However, as a result of the amendments to the tenders, Sanral has relegated a bidder’s B-BBEE Level rating to a mere one point (in the case of a 90/10 tender) or two points (in the case of an 80/20 tender) and has elevated black ownership and sub-contracting to targeted enterprises to respectively five points (10 points in the case of 80/20) and four points (eight points in the case of 80/20) of the scoring of tenders that use the 90/10 scoring regime, i.e. tenders with a value of more than R50 million,” he said. Chemaly stressed H&I Construction’s application does not intend to disrupt the evaluation of any tenders under Sanral’s previous preferential procurement scoring system. Where the new system falls short He listed some of the reasons the new scoring system falls far short of the legal requirements set by the constitution for public procurement. One of these is the fact that Sanral, according to the tender, will engage with bidders independently further in regard to the scoring criteria, which creates the real danger of the process not being transparent and the black ownership requirement being manipulated even further on entirely subjective and variable grounds. Riaan de Necker, group MD for WBHO’s road & earthworks division, said WBHO is intending to participate in 11 tenders issued by Sanral, which now fall to be evaluated in terms of the new scoring system. De Necker said WBHO shares H&I’s concerns about the constitutional invalidity and unlawfulness of Sanral’s new scoring system and intends to participate in Part B of H&I’s application as a co-applicant. He said WBHO wrote to Sanral about each of the current tenders for which group companies intends to submit a bid. It sought an undertaking that each of these tenders be postponed until the issues concerning the scoring system are determined by the court. De Necker said Sanral refused to provide such an undertaking, which is unreasonable. He said the disadvantages of potential tenderers being required to submit bids and these bids being evaluated and contracts awarded on the basis of the new scoring system, which is under review, are obvious and avoidable. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/south-africa/sanrals-new-preferential-procurement-scoring-system-challenged/

Sandi Kwon Hoo | 7 July 2023 A pastor was ordered to repay the Agricultural Sector Education and Training Authority an amount of R1.9 million after entering into a plea agreement with the State. A BLOEMFONTEIN pastor, Lerato Raphael Mokoteli, was ordered to repay the Agricultural Sector Education and Training Authority (AgriSeta) an amount of R1.9 million after entering into a plea agreement with the State. Mokoteli was charged for fraudulent claims made between 2016 and 2019, where he submitted invoices for offering training and mentorship to a food garden operation in Kimberley. In a joint statement by the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA), it was indicated that Mokoteli paid R1.9 million to AgriSeta on June 15. “In March 2015, Mokoteli and Anthony Dywili fraudulently applied to AgriSeta for R1.9 million funding to provide training and mentoring for a food garden operation in Kimberley. Mokoteli and Dywili claimed that the application was a joint venture between Business Against Crime and Dipalemo Training Strategic Services, an AgriSeta accredited service provider. However, such a joint venture did not exist. Dipalemo was not aware of the application and did not receive a cent.” SIU spokesperson Kaizer Kganyago stated that they investigated allegations of corruption and maladministration in 2018, where it was discovered that the Northern Cape Empowerment Academy in which the accused had entered into a memorandum of understanding along with Business Against Crime, led by Dipalemo, knowing very well that the academy only existed on paper. “Between June and November 2016, Mokoteli submitted invoices totalling R1.3 million to Business Against Crime on behalf of Dipalemo. Mokoteli did not have any relationship with Dipalemo. “Mokoteli submitted a close-up report to AgriSeta on behalf of Dipalemo that had never rendered any training.” He added that 50 beneficiaries were paid a stipend totalling R219,000 and were awarded certificates of competency in food operation. ”They claimed that R381,564.86 was used for the administration of training. Dywili did not disclose to AgriSeta that R600,000 of the funding was unspent, in violation of the terms of the agreement.” Kganyago indicated that R317,000 of the funding was paid to a non-profit organisation called Christian for Peace in Africa, which is chaired by Dywili, in July 2016. “The bank account of the organisation was opened in June 2016.” NPA regional spokesperson Mojalefa Senokoatsane added that the accused – Moketeli, Dywili along with the AgriSeta chief executive officer Jeremia Sello Madiba, between 2008 and 2017, were charged with various counts of fraud and money laundering. “Madiba allegedly awarded the tender without the required decision by the board of directors of AgriSeta, in contravention of the Public Finance Management Act (PFMA). He will be appearing in court on a PFMA charge on August 28.” Senokoatsane said Mokoteli entered into a guilty plea agreement with the State on May 26. “In terms of the agreement, Mokoteli pleaded guilty to two counts of fraud and two counts of money laundering and agreed to pay back R1.9 million to AgriSeta. “Mokoteli was sentenced to 10 years imprisonment on two counts of fraud and five years for two counts of money laundering on June 14. The sentence was suspended for a period of five years on condition that he is not convicted of similar offences during the period.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dfa.co.za/news/pastor-ordered-to-pay-back-r1-9-million-in-fraudulent-funding-ac0f9615-4220-4f5a-9f2b-796be9d86a23/

Admire Moyo | 7 July 2023 DLO Energy Resources Group, a 100% black female-owned renewable energy company, has acquired a 30% equity stake in the BBBEE special purpose vehicle of the Longyuan Mulilo wind projects in the Northern Cape, for an undisclosed amount. The company believes the deal is a milestone in increasing female ownership and promoting gender equality within the energy sector. According to the firm, this strategic move positions DLO as the largest black female-owned shareholder in one of South Africa’s largest operational wind farms, solidifying its commitment to renewable energy and empowering women in leadership roles. The Johannesburg-headquartered company operates as an independent power producer, driving the transition to clean and sustainable energy solutions in SA and other parts of the African continent. In 2021, DLO acquired power infrastructure company Conco Energy Solutions, also with the aim of increasing women’s participation in the male-dominated power sector. DLO is a renewable energy developer and strategic investor, which has 51% majority shareholding held by Linda Mabhena-Olagunju. Mabhena-Olagunju was last year ranked seventh out of 100 in the prestigious Choiseul 100 Africa listing, making her the only South African on the list and one of four women included in this ranking. The Longyuan Mulilo wind projects, a collaboration between DLO, China Longyuan Power Group, a consortium of South African entities, and a local community trust, has a combined capacity of 244MW. DLO notes these wind farms, consisting of 163 turbines, have been actively feeding clean electricity into the national grid since 2017, significantly contributing to SA’s energy needs and mitigating the impact of load-shedding. It adds the wind farms have reduced carbon emissions by an estimated 619 900 tonnes of carbon dioxide per annum, furthering SA’s commitment to combat climate change. DLO CEO Mabhena-Olagunju is spearheading the DLO African Women in Leadership Summit, taking place on 15 August in Sandton, coinciding with Women’s Month. The firm points out that the summit aims to empower women and facilitate their entry into the energy sector by exploring opportunities within the energy value chain. The event will provide a platform to expose women-owned entities to the vast potential that exists in the energy sector. “The renewable energy sector still has a long way to go in respect to transformation and female representation, especially when it comes to ownership and operational involvement,” says Mabhena-Olagunju. “One of the initiatives we have taken as a company is to share the knowledge and experience we have gathered over the years and use our platform to open the door for other female entrepreneurs to access the renewable energy market through assisting them with identifying the opportunities. “The summit will offer a workshop on understanding the renewable energy value chain,” she concludes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/nWJadMbNnoDMbjO1

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Daily, during the procurement process, organisations are purchasing across sectors, whether they are paying for hotel accommodation, professional fees or other goods and services that support the delivery of their business offering. Similarly, an organisation measured on a specific B-BBEE Sector Code of Good Practice may make purchases from suppliers measured on other B-BBEE Sector Codes of Good Practice. In choosing a supplier that is measured outside the B-BBEE Sector Code of Good Practice on which an organisation is measured, one must be aware of each B-BBEE Sector Code of Good Practice’s targets and expectations. An example is that qualification criteria for small businesses differ under Sectors such as Construction and Media, Advertising & Communication. Without being aware of each criterion of each B-BBEE Code of Good Practice, this could, at the time of a B-BBEE Verification, impact an organisation’s Preferential Procurement Scorecard. Enterprise & Supplier Development Services are available to assist Members with understanding the differences between B-BBEE Sector Codes of Good Practice.

Based on the General Amended B-BBEE Codes of Good Practice, an organisation can only claim Skills Development Expenditure for Learnerships if an organisation incurred such an expense within their financial year. Evidence for a Learnership for a B-BBEE Verification under the Skills Development element include, however, are not limited to: A signed Learnership Agreement; Proof of the expenditure incurred by providing invoices and proof of payment; A certified copy of a Beneficiary’s ID; A completed EEA1; Proof of Payslips; Doctor’s confirmation of Disability (if applicable); and An interview between the Learner and the B-BBEE Rating Agency conducting the B-BBEE Verification. Skills Development Services are available to assist Members with B-BBEE Verification requirements under the element of Skills Development.

On 30 June 2023, the Financial Sector Transformation Council (FSTC) has released Notice 01 of 2023 in relation to Group Reporting. The FSTC have, due to legal challenges, reconsidered the previous decision to withdraw the group reporting exemptions provision and the Group Reporting Guidance Note GN000(a), and at a special sitting of the Council held on 13 June 2023, resolved to reinstate the group reporting exemptions provision as provided for in the Financial Sector Code (FS Code) and the Group Reporting Guidance Note GN000(a). In this regard, measured entities are hereby invited to submit applications for group reporting for consideration by the FSTC as provided for in the FS Code, FS000 paragraph 8.4. B-BBEE Verification Services are available to assist Financial Service Sector Members with their Reporting requirements.

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Natasha Odendaal | 30 June 2023 A new innovation centre aimed at enhancing innovation within the small, medium-sized and microenterprise (SMME) space has been launched at State Information Technology Agency’s (Sita’s) Centurion offices. The Motheo Innovation Centre, an initiative of Sita in partnership with Software AG, provides the facilities needed by South African innovators and SMMEs in the information and communications technology industry to collaborate and create avenues for development that work to create sustainable and entrepreneurial SMMEs. “We are excited to open our third innovation centre. These innovation centres are critical to us transforming this country. They are part of this fabric that we are creating that will cover all of the country to ensure that youth, SMMEs and women-owned businesses can come together and cocreate with us,” Sita MD Dr Bongani Andy Mabaso said during the launch on Friday. The Motheo Innovation Centre, unveiled on Friday by Communications and Digital Technologies Minister Mondli Gungubele, aims to stimulate, encourage and empower SMMEs and foster the development and commercialisation of groundbreaking inventions, technology-based products, services and solutions. “We want to create an ecosystem where innovation can thrive and create a Silicon Valley in Africa. We are still going to open more innovation centres. This is just the start,” he continued, noting the need to leverage innovation and technology to alleviate some of the challenges faced by South Africa. Software AG country leader Itayi Mandonga added that, in addition to building skills in South Africa, what is important for the company is the product of the centre: the individual that is going to change their lives, change their communities and change South Africa by making use of the innovation centre. “We should not build what is already there. Research and development is building what does not yet exist, it is about new intellectual property,” concluded Mabaso. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/sita-unveils-new-innovation-centre-for-smmes-2023-06-30