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Staff Writer | 12 July 2024 The South African Health Products Regulatory Authority (SAHPRA) plans to introduce Black Economic Empowerment (BEE) conditions for the issuing of licences. The group’s draft broad-based BEE policy aims to promote the objectives of the B-BEE Act by factoring in the code of good practice when determining qualification criteria for licence issuing. Thus, B-BBEE elements will be added to SAHPRA’s activities related to its issuing of licenses to manufacture, wholesale, distribute, import, and export health products and permits as envisaged in section 22c of the Medicines Act. SAHPRA’s plans to implement the policy in two phases. In the first one-year phase, SAHPRA will require an applicant to submit their B-BBEE level certificate when applying for a licence. SAHPRA will then verify the B-BBEE level status. If an applicant fails to submit their B-BBEE level certificate or the certificate is unverifiable, SAHPRA will not issue a licence to such an applicant. SAHPRA will then use the information gathered to understand the industry structure. “SAHPRA will then develop, consult with industry, including relevant stakeholders and finalise criteria to be applied when licence applications are reviewed and eventually issued,” said the policy. In the second phase, SAHPRA will utilise the applicant’s B-BBEE level to review and issue licences according to the approved criteria. Business interest group Sakeliga said that the new BEE requirement offers an alarming preview of the drastic consequences of the NHI system, under which the state would control the entire medical supply chain. “The BEE licensing of health products and equipment is a grim illustration of how BEE promotes the narrow interests of politicians, bureaucrats, and self-enriching intermediaries at the expense of the public,” said Sakeliga. “It is inevitable that the addition of BEE requirements – a measure with inherently no relevance for the effective supply of medical products – will lead to declines in the quality, affordability, and availability of medical products. The stifling effect will discourage both local and international operators.” Although the policy was published last year, stakeholders will still be allowed to send comments to SAHPRA by the close of business on 9 September 2024. Larger trend Sakeliga said that the proposed licensing changes from SAHPRA are part of a more significant trend to make all economic activity subject to the state’s approval, with a particular focus on BEE. “The cover-up method followed by Sahpra, namely a first phase aimed at seemingly innocent BEE reporting to pave the way for a second phase requiring BEE compliance, is part of a pattern that manifests itself in more or less explicit terms also repeated with other regulators.” “We see similar efforts in the financial services industry, the real estate industry, in decisions of the competition commission, the telecommunications industry, the agricultural industry on issues such as water, and more.” For instance, the Property Practitioners Regulatory Authority (PPRA) said that level 8 BEE compliance (40 points) is now non-negotiable for all real estate agencies with a turnover of over R2.5 million. Jan le Roux, CEO of the Real Estate Business Owners of South Africa (Rebosa), previously said that the PPRA’s B-BBEE requirements for the next round of Fidelity Fund Certificates (FFCs) for 2025 had significantly changed. According to the Property Practitioners Act, no entity may act as a property practitioner without a valid FFC. In the past, the only requirement was a valid BEE certificate, where no minimum score was required. Le Roux added that the PPRA issued FFCs without the minimum BEE requirement, mainly for information-gathering purposes. However, this has now changed, with the PPRA doubling down on the requirement for higher BEE scores. “Regarding Rebosa’s points, while precedents may have been set in the past to allow additional time for industry alignment, it is imperative to underscore that compliance with regulations such as those set forth by the PPRA is non-negotiable,” said PPRA CEO Thato Ramaili. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/782170/bee-changes-for-healthcare-in-south-africa-with-major-fears-over-the-nhi/

The Measurement of Ownership for Built Environment Professionals (BEPs) under the Amended Construction B-BBEE Sector Codes of Good Practice is quite unique. There is a focus on Registered Professionals and Shareholders being a part of Executive Management. Clause 3.1.3 of the Amended Construction B-BBEE Sector Codes of Good Practice states the following:     “3.1.3 The Measurement of Ownership in BEPs;   3.1.3.1 More than 50% of the total ownership held in a Measured Entity as a BEP must be held by individuals who are both:   3.1.3.1.1 Professionally registered with any of the statutory professional councils in the BEP environment in South Africa; and at the same time,   3.1.3.1.2 A member of the Executive Management of the Measured Entity;   3.1.3.2 Therefore when measuring the black ownership of any BEP, where the measured entity does not meet the requirements of 3.1.3.1 above, only 50% of the black ownership of those owners who do not meet the requirement of 3.1.3.1 may be included in the total measurement of black ownership in the measured entity.   3.1.3.3 For the avoidance of doubt, Executive Management in this context is defined as “Top Management” in terms of the Employment Equity Regulations and include the ‘Executive Directors’ and ‘Other Executive Management’ of the Measured Entity.   3.1.3.4 Where the ownership of a BEP is held by a holding company, the ownership in the holding company must comply with the provisions of 3.1.3.1, for the black ownership in the measured entity to be recognised, otherwise 3.1.3.2 will apply.   3.1.3.5 In addition, where the measured entity does not meet the requirement of 3.1.3.1, the measured entity does not qualify for automatic enhancement in terms of Clauses 4.2.3, 4.2.4, and 5.3.2. nor will it qualify for bonus points in 2.4 of the ownership scorecard.”   Technical Compliance Services are available to guide members in understanding these requirements.

At times, we may find that there are differences between concepts under the Amended General B-BBEE Codes of Good Practice as well as specific B-BBEE Sector Codes of Good Practice. This is evident when comparing the definition of a Start-up Enterprise under the Amended Construction B-BBEE Sector Codes Of Good Practice which states that a:   “Start-up Enterprise means a recently formed or incorporated Entity that has been in operation for less than 1 year. An entity that was formed and incorporated some time ago, but which has been dormant (non-operational), will qualify as a start-up enterprise for the first year after it commences operations. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise.”   It is important for Members to take note of the differences between B-BBEE Sector Codes of Good Practice to ensure that the correct implementation takes place.   Technical Compliance Services  are available to guide members on requirements under B-BBEE Sector Codes of Good Practice.

Under the element Socio-Economic Development, there is an emphasis on the concept of the objective of facilitating income generating activities for targeted beneficiaries.  As per Statement 500 of the Amended General Codes of Good Practice, the following is stated under Clause 3.2: 3.2  Socio- Economic Development Contributions: 3.2.1       Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating income generating activities for targeted beneficiaries.   Furthermore, the definition of Socio-Economic Development Contributions  is stated under Schedule 1 of the Amended General Codes of Good Practice as follows:   “Socio-Economic Development Contributions means monetary or non-monetary contribution implemented for communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are Black people. The objective of Socio-Economic Development Contributions is the promotion of sustainable access for the beneficiaries to the economy. Socio-Economic Development Contributions commonly take the following forms:   (a)   development programmes for women, youth, people with disabilities, people living in rural areas; (b)   support of healthcare and HIV/AIDS programmes; (c)    support for education programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships; (d)   community training; skills development for unemployed people and adult basic education and training; or (e)   support of arts, cultural or sporting development programmes;”   Technical Compliance Services  are available to guide members in understanding the concept of Socio-Economic Development.

Staff Writer | 10 July 2024 BECAUSE emerging property developers often face considerable challenges in getting projects off the ground, the Dube TradePort Special Economic Zone (SEZ) has introduced a long-term leasehold ownership model to unlock new opportunities. Speaking at the South African Institute of Black Property Practitioners conference at the Durban ICC, Andile Mnguni, Dube TradePort SEZ’s property investment head noted that emerging property developers often face substantial challenges in getting their deals off the ground especially in the lucrative commercial and industrial segment of the market due to unaffordable land and inadequate access to the necessary capital. However, he said Dube TradePort SEZ has noted a growing awareness and interest in the benefits of a long-term leasehold ownership model as the sector begins to adapt to a changing economic landscape. Mnguni explained: “The leasehold model can facilitate access to land, launching numerous commercially viable industrial projects by eliminating the need for property developers having to buy land upfront, and reducing the capital requirements to initiate the deals, whilst still meeting all the criteria needed to enable commercial banks to fund these notarial leasehold developments.” Notarial leasehold contracts allow investors to access land developable over long periods without the need to purchase it outright and ensure the property owner a stable revenue stream over the lease period. Mnguni added that, by lowering the initial expenditure necessary for development, leasehold agreements enabled a wider range of property developers who could add value to the commercial real estate market segment. “In the ten years since the leasehold model was implemented in the Dube TradePort SEZ, we, as the landlord, have a stake in both the overall prosperity of our property developers and their tenants in our zones.  We have worked with developers to enhance the industrial precinct, consistently funding amenities, support services, and new infrastructure, which has increased value and the overall experience of our investors in our zones.” “Furthermore, Dube TradePort SEZ has been working in tandem with development finance institutions like Ithala Development Finance Corporation Limited and KZN Growth Fund here in KwaZulu-Natal, together with some of South Africa’s development finance institutions and large commercial banks, to secure funding for emerging property developers developing with our precinct.” He added that Dube TradePort SEZ’s teams had helped with due diligence reports to enhance the business cases for these developers’ projects highlighting the leasehold’s ability to provide stable revenues for funding institutions over decades. Mnguni says: “We go as far as supporting black SMMEs with up to 15% discounts on rental rates and have worked smartly to provide linkages with established businesses within our precinct, providing them with a platform to market their products.’ “Dube TradePort has also piloted programmes where it substitutes fixed rentals and opts to take a percentage of a tenant revenue which helps the developer and its end clients’ cashflow. In the initial stages of operations, as the landlord, we are invested in the success of our developers and their clients and work hand-in-hand to ensure their growth.” The leasehold property development model will continue to evolve as it is adopted in more segments of the property market as it enables access to land, while providing consistent revenues for landowners and financing institutions. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://kznindustrialnews.co.za/leasehold-model-assists-dube-tradeport-sez-property-developers/

Stephanie Allais and Siphelo Ngcwangu | 10 July 2024 Dear Minister Nobuhle Nkabane, The clumsy rules for employers to get training money back actually encourages them to give poor data. Continually tweaking behaviour via incentives, rules, and tools has led to a system that is simply too complex for its own good. This is Part One in a three-part series. As academics who have worked closely with your department over many years, we welcome your appointment to lead higher education and training, convinced that you will bring renewed energy and fresh insights to an area critical to the future of our country’s young people and its economic success. It is often said that South Africa has a skills crisis, and that our education system doesn’t meet the needs of the economy. But we have an elaborate national system that asks employers every year what skills they need. So, why is training not meeting the country’s needs? Simply put, the rules and tools set up over the years to consult employers and fund their training requirements are too complex. Well-intentioned policymakers have added unnecessary complexity time and again, creating too many tools to do too many things. They end up doing none of them well and sometimes incentivise negative outcomes. Clumsy and tedious funding processes and complex, overly elaborate regulatory oversight complete the picture. The result is little coherent direction from the state in priority areas, and an inability by employers to prioritise the training they need. Effective leadership As the new minister, you could provide refreshed and effective leadership with a few simple changes. This is not about new policy, just simplification and streamlining. The system was designed to understand the skills employers need within the context of specific industries, and to encourage and support them to do the required training. Employers with an annual payroll exceeding R500,000 pay a levy allocated via the tax system to Sector Education and Training Authorities (Setas). They in turn give 20% of the money back when employers submit an annual workplace skills plan and training report. The idea is for these documents to provide insight into employers’ skills needs and show what training is taking place. Setas and the government can then direct funds to meeting training gaps by funding areas not covered by workplace training. The assumption is that because this data identifies the skills employers need, it can be used to formulate sectoral training planned by Setas. It also informs the list of Occupations in High Demand developed by the government, and a critical skills list that guides the allocation of certain work visas. The problem in the real world is that current data from employers gives very poor insight into skills needs. In some cases, employers only get their money back from the Setas if their training report matches their previous plan. This incentivises them to propose only training that will be easily achieved. The clumsy rules for employers to get training money back actually encourages them to give poor data. Some employers also only list those training programmes that will be funded by Seta. This might sound crazy, but it is the result of overly complex policy. Labour force trends Plans developed by Setas have two main funding mechanisms for skills provision: earmarked “funding windows” during which employers and training providers can apply, and bursaries. Setas decide on these based on the aggregated data obtained from employers, as well as analysis of labour force trends and other research. So, for example, employers list production workers as scarce even when they are not because they know they will need to train new employees, and grants are made available for scarce skills training. This way, they get back their levy funds to do the core training they need to do every year. Another example: where employers have crucial training by international providers often linked to suppliers of specific technology, they can’t get funding because these trainers are not accredited in South Africa. This essential training by highly regarded international providers is valued and needed by employers. So, some employers simply don’t report skills gaps in these areas because it’s a waste of their time as they won’t get money back for it. Broad-based black economic empowerment (BBBEE) employment scorecard reporting adds further complexity, and additional perverse incentives. Some employers report on skills gaps to obtain funded learnerships as cheap labour, with no plan to hire trainees once they have completed their courses. With no real skills gaps, training funding gives them subsidised labour. The system does try to deal with this: the BBBEE scorecard rewards employers if they hire staff they train. The result is that large employers reduce the amount of training they do in crucial trades, because they don’t want to be reporting training above their own skills needs for fear of being penalised for not hiring trainees once they qualify. This way, fewer young people are trained as artisans who could work in small businesses inside big companies’ value chains, and are lost to the relevant industries. Continually tweaking behaviour via incentives, rules, and tools has led to a system that is simply too complex for its own good. There are other problems facing employers in reporting their skills needs. They have to describe their workforce against the codes of the Organising Framework for Occupations, which many find cumbersome and hard to relate to their own organograms, job descriptions, and concrete requirements. So, transaction costs are huge. Additionally, the annual nature of the process mitigates against long-term planning. Equally significantly, many employers don’t participate at all. No insights are obtained from non-levy-paying members, and there is very little engagement with smaller companies, making the national data incomplete in significant ways. As a result, the government and the Setas collect data from employers that is essentially meaningless and incomplete within the context of the overall economy, then use it for planning through clumsy funding systems. Setas are supposed to be tripartite structures, accounting to employers, unions, and the government. So why are employers’ voices not stronger in the design of these systems? Again, we have good intentions backfiring. In reality, Setas are ultimately responsible to the Department of Higher Education and Training (DHET), not the tripartite structures. The DHET oversees their annual performance plans and adjudicates the strength of their sector skills programmes. The aim is positive – to make sure the Setas are doing what they should. But it does so within a complex and over-designed system that reduces oversight to box ticking instead of strategic assessment. The state is left checking allocations against designated windows, instead of making strategic decisions about economic and educational priorities. Recently gazetted changes to the rules and tools for skills planning address little of this because they don’t reduce complexity or change lines of accountability. Anticipating skills requirements across a complex economy like South Africa’s is not a simple exercise. International and local research shows that employers struggle to articulate their skills needs. But some small changes could substantially improve the data South Africa collects and how it is used. For example, Stats SA could regularly assess and analyse workplace skills needs by industry and for the whole economy. Developing insight at a sectoral level also requires understanding the skills needs of non-levy-paying companies. Industry associations could be helpful here. SETAs could be important intermediaries between the worlds of education and work, but only if they spend more time in high-level engagement with employers on their real training needs, planning and funding accordingly. Stephanie Allais is Professor of Education and Research Chair of Skills Development at the Centre for Researching Education and Labour, University of the Witwatersrand. Siphelo Ngcwangu is Associate Professor of Sociology at the University of Johannesburg. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2024-07-10-getting-south-africas-skills-needs-right-requires-the-right-incentives-and-accurate-data-part-one/

Boitumelo Kgobotlo | 9 July 2024 The Minister of Employment and Labour, Nomakhosazana Meth , has promised that she will dedicate her tenure to creating 2.5-million job opportunities. These include permanent and fixed-term contracts, depending on the employer and partners for the projects. Meth said the country was faced with high rates of unemployment and that citizens did not only need hope but effective change that would secure a better future for all. Meet-and-greet meeting Meth spoke at a meet-and-greet ministerial committee meeting that included heads of departmental funds like the Unemployment Insurance Fund and the Compensation Fund. The two entities are meant to function at their best in the seventh administration to provide social security and basic services. The department also aims to ensure that all companies respect the national minimum wage. “The scourge of unemployment remains a huge hurdle that the country is facing. The Quarterly Labour Force Survey for quarter one of 2024 indicates that the official unemployment rate is standing at 32.9% while the expanded unemployment rate is at 41.9%,” said Meth. “The picture becomes dire when it comes to the youth unemployment rate, with youth aged 15–24 years standing at 59.7% and youth aged 25–34 years standing at 40.7%. “These statistics should remind us that the stakes are still high, and we must hasten to strengthen the implementation of interventions to reduce the unemployment rate.” Six priorities Meth set out six priorities for the department, which she said would be possible to achieve through an intensive and collaborative mechanism that would drive everyone to always put the department’s objectives upfront. The priorities included building industries for an inclusive economy, tackling the high cost of living, investing in people, defending democracy, advancing freedom, and bettering Africa and the world. “Ours in the seventh administration is to ensure that we shift gears and embrace the principles brought about by the government of national unity. “I require active and impactful participation in the district development model, as that will continue to expand our reach as the Department of Employment and Labour. “Our role at the International Labour Organisation cannot be emphasised enough, as it is a vehicle for building a better Africa and the world.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER ’. https://sundayworld.co.za/news/labour-minister-meth-targets-2-5-million-job-opportunities/

Dr Zizamele Cebekhulu-Makhaza | 11 July 2024 As South Africans brace for the significant changes that the Government of National Unity (GNU) is expected to bring about, we must advocate for national leadership appointed according to merit rather than political affiliation. The government’s primary goal for the next five years should be to revitalise the economy, develop regulations that support the private sector, and drive job creation. For this, it needs to create a public sector that makes decisions for the good of our society rather than self-gratification or individual profit. Cadre deployment in government has been disastrous for South Africa. Appointing public servants to positions of power primarily based on political affiliation has been detrimental to the country’s attempts to create a functional government that serves to protect the interests of the people, and the economy. The practice of cadre deployment must be eliminated with immediate effect. Cadre deployment often allows for underqualified or inexperienced people to be appointed to the country’s most important positions. It has significant implications for government departments, state-owned enterprises (SOEs), and other areas of public responsibility. For example, our SOEs are crucial for managing infrastructure and delivering essential services in key sectors such as energy, transport, and water supply – all of which are vital for the country’s development and the well-being of its citizens. However, when politically-connected individuals lacking the necessary skills and experience are appointed to lead these types of enterprises, they often fail to fulfil their duties effectively. The results are poor decision-making and the overall mismanagement of state resources. Consequently, many critical SOEs have suffered untold damages from ineffective leadership. Additionally, cadre deployment negatively impacts the administration and management of public-private partnerships (PPPs). PPPs are essential for leveraging private-sector expertise and investment to improve public services and infrastructure. Effective management of these partnerships requires a deep understanding of both public sector needs and private sector capabilities. Cadre deployment also directly impacts a key pillar in South Africa’s socio-economic development plans: education. This has resulted in poor administration and ineffective educational policies which have hampered efforts to improve schooling outcomes among early-grades, and to align education and skills development with industry needs, further entrenching poverty, unemployment, and inequality. Our children, youth, and workers suffer when educational reforms are driven by individual political agendas rather than long-term strategic goals. We must strengthen basic education, prioritise skills development according to the needs of our industries and businesses, and empower educational institutions to produce graduates equipped to meet the demands of our modern economy. Failure to do so will see local organisations continuously resort to importing the necessary skills and talent, even as unemployment remains persistently high in our country. We must grow our own wood to drive economic growth, innovation, and competitiveness in global markets. Similarly, in the health sector, poor management of the National Health Insurance (NHI) could lead to significant national health challenges that disproportionately affect South Africa’s poor and most vulnerable citizens, deepening divisions in healthcare rather than bridging them. Successful implementation of the NHI Bill will therefore require a competent and experienced guiding hand in the government. This means we urgently need an effective Department of Health headed by qualified medical experts, and not cadre appointment politicians and bureaucrats who are underequipped to address the country’s complex healthcare needs. Whoever our new ministers and public leaders may be, we must commit ourselves as a nation to holding these appointees to a far higher standard than their predecessors. We must vet them from day one, and scrutinise their backgrounds to ensure they have the appropriate qualifications and experience to fulfil the duties within their particular portfolios. And if they lack the credentials, we must demand change. Only then will we see the public sector deliver a fertile environment for sustainable socio-economic development, rising investment, and accelerated business growth. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/calling-for-a-gnu-free-of-cadre-deployment-67cd74be-f203-43d7-a045-03fdc3a9fe5a

Creamer Media | 9 July 2024 Agile Capital, a leading private equity firm, has acquired a significant minority share in Berry Astrapak.  Berry Astrapak is a specialised manufacturer of an extensive range of rigid moulded, and thermoformed plastic packaging products serving the African market. The Group has manufacturing operations in Gauteng, Western Cape and Kwa-Zulu Natal and focuses on innovation -led growth in plastic packaging . Astrapak’s growth has included the acquisition of the business in June 2017 by the RPC Group which then spent several developing years as RPC Astrapak (Pty) Ltd.  Due to the nature of the business , manufacturing capabilities and good supply chain, the Berry Global Group, Inc. subsequently completed the acquisition of RPC Group Plc in June 2019. Astrapak services a number of industries from personal care products , food services right through to the automotive market. The organisation is well positioned to grow top-line sales to take advantage of African market opportunities.  Some reports indicate that the Africa Packaging Market size is currently estimated at USD43 billion and is expected to reach USD52 billion by 2029.  This is attributed to the increasing number of young consumers in Africa particularly, intensifying the demand for consumer goods. It is also worth noting that sustainability within the packaging industry has become a significant selling point. “We pursue opportunities across diverse sectors,” explains Liz Kolobe, Partner: Agile Capital. “We seek to invest in businesses which have a sound strategy for growth with solid operational track records and solid management teams for long term partnerships.  Berry Astrapak is well established and we look forward to continuing the journey of growth with the business .” “Agile Capital was a good cultural fit for us, we see them as part of a strategic edge for the business ,” says Craig Matthews, Managing Director: Berry Astrapak. One of the cornerstones of the Group’s B-BBEE strategy is to partner with appropriate companies for specific initiatives which fits neatly with Agile’s philosophy that the right BEE partner provides more than just credentials within a given transaction. “Our experienced executive team brings diverse skills to this partnership and we view this transaction as a remarkable opportunity to make a substantial contribution to the South African business landscape”, concludes Kolobe. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/agile-capital-acquires-a-stake-in-berry-astrapak-2024-07-09-1

SA News | 9 July 2024 Newly appointed Employment and Labour Minister, Nomakhosazana Meth, says the department is facing a mammoth task of ensuring that it continues in earnest to usher in, not only hope to citizens, but substantive positive change in their lives. Meth was speaking during a Ministerial Committee meeting to welcome new principals and to present to them the department’s programme. Together with Deputy Ministers Phumzile Mgcina and Jomo Sibiya, Meth held a meeting with the Executive Committee, including the department's Acting Director-General, Onke Mjo, and the department’s Deputy Director-Generals. Monday’s meeting was also attended by heads of the Compensation Fund (CF) and Unemployment Insurance Fund (UIF), as well as heads of entities, such as Supported Employment Enterprises (SEE), Commission for Conciliation Mediation and Arbitration (CCMA), Productivity SA, and National Economic and Labour Council (Nedlac). In her address, Meth said South Africa is still struggling with the stubborn triple challenges of poverty, unemployment, and inequality. She said the scourge of unemployment remains a huge hurdle that the country is facing, with the official unemployment rate currently standing at 32.9% while the expanded unemployment rate is at 41.9%, according to the Quarterly Labour Force Survey (QLFS) for Quarter 1 of 2024. “The picture becomes dire when it comes to the youth unemployment rate with youth aged 15 – 24 years standing at 59.7% and youth aged 25 – 34 years standing at 40.7%. These statistics should remind us that the stakes are still high, and we must hasten to strengthen the implementation of interventions to dent the unemployment rate.”Meth maintained that substantive results can be achieved through an intensive and collaborative mechanism, “that will propel all of us to realise the department's objectives". Priorities    She said in carrying forth its mandate, the department will be guided by a set of six priorities for the seventh administration, and these are:•    Priority 1: Put South Africa to work.•    Priority 2: Build our industries for an inclusive economy.•    Priority 3: Tackle the prohibitive cost of living.•    Priority 4: Invest in people.•    Priority 5: Defend democracy and advance freedom.•    Priority 6: Better Africa and the World. “These priorities must find expression in the work of the Department of Employment and Labour family.“The priority is to create and sustain 2.5 million work opportunities delivering public goods and services in communities; implement a cross-cutting industrial strategy that drives growth and creates opportunity for youth and other unemployed people; tackle the war on poverty by providing comprehensive social security and basic services through the Unemployment Insurance Fund and Compensation Fund; and continue enforcement of compliance with the National Minimum Wage across all applicable industries in South Africa,” Meth said. Through investing in people, the Minister emphasised that the department, as the custodian of employment law, has a responsibility to ensure workplaces that are free of traumatic events and a deterioration in the quality of life of many workers; managing compliance with employment law and Immigration Act; and strengthen relations with stakeholders, internationally and at regional level. “Ours in the seventh administration is to ensure that we shift gears and embrace the principles brought about by the Government of National Unity (GNU). I require active and impactful participation in the District Development Model (DDM) as that will continue to expand our reach as the department,” Meth said. The DDM aims to improve the coherence and impact of government service delivery with a focus on 44 districts and eight metros around the country as development spaces that can be used as centres of service delivery and economic development, including job creation. She also emphasised the department’s role at the International Labour Organization (ILO), which is a vehicle in building a better Africa and the world. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/new-labour-minister-charts-way-forward

Q |  In 2023, a Measured Entity had an unemployed Learner enrolled in an NQF 4 Learnership. In 2024 the same Learner was enrolled in an NQF 5 Learnership. Does a continued Learnership constitute Absorption?   A | Schedule 1  of the Amended General B-BBEE Codes of Good Practice defines Absorption as: “…Measured Entity’s ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice.”   Furthermore, “long-term contract of employment” means a legal agreement between an individual and an entity that this individual would work for until his or her mandatory date of retirement;   As the Learner was unemployed and thus did not have a long-term contract of employment before the Learnerships, the Skills Development Scorecard does not recognise Absorption.   The only exception is if a B-BBEE Sector Code of Good Practice defines Absorption differently.   Skills Development Services are available for Members  with regards to the concept of Absorption.

Q | A Measured Entity enters into an Enterprise Development Beneficiary contract that involves a Start-up Enterprise. Schedule 1  of the Amended General B-BBEE Codes of Good Practice defines a Start-up Enterprise as “a recently formed or incorporated Entity that has been in operation for less than 1 year. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise”.   Does a Start-up business qualify as an Enterprise Development Beneficiary?    A | An Enterprise Development Beneficiary must meet the definition of ‘Entity’ as it appears in Schedule 1 of the Codes of Good Practice which: “means a legal entity or a natural or a juristic person conducting a business, trade or profession in the Republic of South Africa”.   Therefore, the Measured Entity can claim a Start-up Enterprise as an Enterprise Development Beneficiary, providing the objectives are clear and measurable when entering into an agreement.   Enterprise & Supplier Development Services are available for Members to understand Beneficiary requirements.