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Andile Ntingi | 4 September 2024 President Cyril Ramaphosa has the gift of the gab. When he was deputy to then president Jacob Zuma he mesmerised the business community in November 2017 with his “New Deal” speech, in which he acknowledged that the SA economy needed to undergo structural reforms to grow. This speech drew inspiration from former US president Franklin D Roosevelt’s New Deal programme, a series of economic reforms and infrastructure projects introduced between 1933 and 1938 aimed at ending the Great Depression.  Then on February 16 2018 Ramaphosa serenaded South Africans with the “Thuma Mina” (Send Me) state of the nation speech, delivered two days after Zuma had dramatically stepped down as president of the country and been replaced by Ramaphosa. These two famous speeches gave hope to many people that Ramaphosa was a reform-minded, benevolent leader capable of turning the economy around and stopping SA’s slide into a basket case status. In the Thuma Mina speech, an adaptation of late saxophonist Hugh Masekela’s 2002 song Thuma Mina , Ramaphosa pledged to support efforts to “triumph over poverty”. “I wanna lend a hand. Send me,” he famously pledged. South Africans were prepared to follow his lead, roll up their sleeves, and help him rebuild their country from the ruins of overwhelming corruption, a stagnant economy, failing SMEs and rising unemployment. Six years on, there has been no economic turnaround and unemployment has soared. Under Ramaphosa’s leadership the economy has grown at an average of 0.32% a year, more than four times slower than the annual growth rate of 1.57% achieved during Zuma’s nine-year tenure, which started during the 2009 global financial crisis and ended at the beginning of 2018.  Under Zuma, unemployment rose from 20.51% to 24.22%, but it has since jumped to 33.5% under Ramaphosa. Small, micro and medium-sized enterprises (SMMEs), which contribute 57% of SA’s GDP and 56% of national employment, have had to deal with the worst of it, suffocating under the weight of the Covid-19 pandemic, power cuts, logistics constraints, water shortages, excessive red tape, a high cost of doing business and the lack of access to capital and markets. Yet, according to the National Development Plan (NDP), by 2030 SMMEs are expected to contribute 60%-80% to GDP and generate 90% of the 11-million new jobs that need to be created. But, given the severity of the challenges our country faces, the targets envisioned in the NDP are unlikely to be met by 2030. To make matters worse, there was a lengthy delay in developing and promulgating the National Small Enterprise Amendment Bill, which is meant to accelerate the SMME sector’s post-Covid recovery. The delay has had a knock-on effect because it has also held back the proposed merger between the Small Enterprise Development Agency (Seda), the Co-operative Banks Development Agency and the Small Enterprise Finance Agency (Sefa) to establish a new entity known as the Small Enterprise Development Finance Agency (Sedfa). The merger should have been concluded by April 1 2022, but the cabinet gave it a 20-month deadline extension to enable the department of small business development to finalise the National Small Enterprise Amendment Bill. It was eventually introduced in parliament in June 2023 to facilitate public consultations. The 20-month extension meant the merger should have been completed by the end of February 2024, but this did not happen as the country was bracing for the May 29 general elections.  Ramaphosa finally signed the bill into law in July. Now small business development minister Stella Ndabeni-Abrahams has the task of implementing the new legislation, which also provides for the establishment of the office of the small enterprise ombud services. This ombud will mediate disputes involving SMMEs and aim to reduce the number of disputes that degenerate into costly litigation.  The National Small Enterprise Amendment Act has raised the hope of struggling entrepreneurs and SMME owners, who are counting on it to improve the ecosystem for SMMEs, streamline bureaucracy, minimise duplication and enhance the delivery of services to SA’s estimated 2.6-million SMMEs, most of which are informal. SA has tinkered with its SMME landscape before through a consolidation of SMME institutions, but these mergers have not boosted the contribution of SMMEs to the economy, which remains dominated by oligopolies and monopolies. Since 1994, the government has restructured and consolidated state institutions supporting SMMEs three times. In 2004, Ntsika Enterprise Promotion and the national co-ordinating office of manufacturing advice offices merged to form Seda, an entity that offers nonfinancial support and advisory services to SMMEs. The second consolidation took place in 2012, when Sefa was established after the merger of Khula Enterprise Finance, the SA Micro-Finance Apex Fund and the Industrial Development Corporation’s small business funding unit into a single lender offering loans to SMMEs. This merger was a forerunner to a third shake-up in the SMME landscape, which resulted in the establishment of the department of small business development in 2014. There are three key challenges Ndabeni-Abrahams must address if we are to move the needle as far as SMME development is concerned. The first involves Sefa, which has a R4.2bn loan book. The agency deals with loan applicants whose business plans are usually drafted by Seda, which expects Sefa to automatically approve the loans. But the reality is that loans are approved or rejected based on the loan applicant’s ability to repay debt, not on who prepared their business plans.  The second pressing matter is the manner in which the R20bn government expenditure on enterprise development is monitored. Sedfa must be given the mandate to co-ordinate this expenditure to ensure maximum impact in the SMME sector, instead of the practice of giving this mandate to various departments, where the funds are funnelled into a black box that no-one can account for.  The third issue is the proliferation of extortion syndicates, which threaten and demand protection fees from SMMEs, primarily those that trade in townships and rural towns. Ndabeni-Abrahams must put pressure on her colleagues in the security cluster to eradicate these brazen criminals, which are forcing more and more SMMEs to shut down. In the wake of the historic May 29 election, SMME owners expect real service from their government, not the rhetoric and lip service they have been subjected to for so long. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2024-09-04-andile-ntingi-consolidation-of-smme-legislation-must-usher-in-real-service-not-rhetoric/

Staff Reporter | 30 August 2024 As South Africans reflect on the journey 30 years into democracy, it’s vital to recognise both the achievements and the challenges that still lie ahead. While there have seen numerous policy and legislative reforms, it’s disheartening to note that the built environment sector remains largely untransformed, according to the Council for the Built Environment. In addition, the organisation said statistics indicated that 13% of professionally registered individuals in this field are women, and these statistics “are indeed worrying and highlight a significant inequality that must be addressed”. In this regard, the Built Environment Women’s Network, in collaboration with the Tshwane University of Technology’s Faculty of Engineering and Built Environment recently hosted a fantastic Youth Assembly and Women's Network event under the theme Women’s Well-being and Career Growth. The networking event aimed to empower underprivileged female students by addressing both their educational needs and personal well-being. “A significant part of the event was a hygiene products drive, which successfully donated over 200 dignity packs. Additionally, this is part of our broader programme aimed at empowering women and creating a networking platform for information sharing, best practices, and role modelling within the Built Environment,” the Council for the Built Environment said in a statement. “It was inspiring to see so many passionate individuals, especially young women, come together to discuss ideas, share experiences, and work towards building a more inclusive Built Environment. We had insightful discussions, networking opportunities, and a chance to highlight the vital role that women play in this field. “This, for us, was a demonstration that we shouldn’t just talk about these issues; our actions must reflect our intentions. We are now deliberately creating supportive platforms that allow women in the Built Environment to pursue their passions and practice what they studied, just like their male counterparts. “We do this because we strongly believe that for change to happen, it must start with us, and it is a long journey. We will continue to advocate and champion inclusivity, foster partnerships, and ensure that the voices of women are not just heard but valued.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/pretoria-news/news/empowering-women-in-the-built-environment-for-true-transformation-9e32898e-56db-4f06-a742-d01a4604fdf5

Ed Stoddard | 3 September 2024 South Africa’s economy grew 0.4% in the second quarter of this year after a revised performance that saw its size unchanged on a quarterly basis in Q1 from the initial estimate of a 0.1% contraction, Statistics South Africa said on Tuesday. This remains a woeful pace to tackle the terrible trifecta of poverty, unemployment and inequality. The read of a 0.4% second-quarter (Q2) expansion on a quarterly basis was just shy of economists’ expectations and underscores the scale of the challenge to switch economic gears into significantly faster growth.  The April-to-June period was marked by the notable milestone of Eskom implementing no rolling nationwide power cuts during the entire three months. The power crisis has long been regarded as the biggest constraint on economic growth, so that was a big deal. And the electricity sector did contribute to the marginal rate of growth recorded.  “… the electricity, gas & water supply industry… grew by 3.1%, driven by increased electricity generation and water distribution. If we ignore the topsy-turvy economic environment caused by the pandemic in 2020, the 3.1% growth rate represents the sharpest increase since the third quarter of 2008 (also 3.1%),” Statistics South Africa said.  Yet the economy is showing no signs yet of lift-off and overall growth remains at a woeful pace to tackle the terrible trifecta of poverty, unemployment and inequality.   It is probably also the case that political uncertainty ahead of the elections in late May may have kept a lid on confidence and investment, with the formation of the government of national unity coming too late in the quarter to make a real material difference to growth.  The best that can be said is that the economy at least expanded in Q2 after flatlining in Q1 – a slight upward revision from the initial estimate of a 0.1% contraction — and hopefully the pace can pick up in the second half of the year, helped my mounting expectations of a domestic interest rate cut this month as inflation slows.  There are some green shoots on the demand side of the data that could start to blossom in a lower inflation and interest rate environment, and looming withdrawals under the new “two-pot” retirement system are seen as a potential boost to expenditure.  “On the expenditure (demand) side of the economy, rising consumer confidence saw household consumption expenditure strengthen by 1.4%. Consumers increased their spending across most product categories,” Stats SA said.  This followed a 0.2% decline in Q1 and economists said this was a surprise on the upside.  “That 1.4% growth in household consumption stood out, we didn’t expect that given current economic conditions. But it’s from a low base,” Jee-A van der Linde, senior economist at Oxford Economics Africa, told Daily Maverick.  On the production side, manufacturing returned to growth with an expansion of 1.1% after a 1.4% dip in the previous quarter. But the mining sector maintained its decline with a 0.8% fall in production, and agricultural output dropped 2.1%.  “Agriculture, forestry and fishing faced headwinds, including lower-than-expected rainfall in some parts of the country (affecting maize and soya bean production), heavy rain in KwaZulu-Natal (affecting sugar cane production), and foot-and-mouth disease (affecting sheep and pork production),” Stats SA said.  Headwinds also abound for manufacturing and mining. The Absa Purchasing Managers’ Index (PMI) for August contracted back into negative territory , suggesting that the sector is struggling to gain traction this quarter.  Meanwhile, the mining sector remains hampered by logistical constraints, low prices for platinum group metals and rising costs.  One very worrying sign in the data was a 1.4% fall in gross fixed capital formation, which is effectively a broad measurement of investment. This was its fourth straight quarter of decline and much faster rates of economic growth require this number to start rising. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2024-09-03-sa-economy-grows-0-4-in-q2-after-flatlining-in-q1-stats-sa/

Staff Writer | 4 September 2024 Business group Sakeliga has claimed victory in one of three major issues facing property practitioners in South Africa, reporting that the Property Practitioners Regulatory Authority (PPRA) has reversed a decision to enforce high-level BEE requirements. The group said that the PPRA had written to industry body Rebosa walking back on a change communicated since April. The issue relates to a new policy that  came into effect in April 2024 , where Fidelity Fund Certificates (FFCs)—required for property practitioners to operate—would be denied if applicants did not meet BEE requirements. The need for a BEE certificate has been part of the Property Practitioners Act since it was enacted in 2022; however, until April 2024, FFCs were issued based on the requirement of having a BEE certificate, not necessarily being BEE compliant. In April, the PPSA reminded practitioners that BEE compliance was required and that FFCs would not be issued unless they met the “accepted level of compliance” of 40 points or more (BEE Level 8). “You will not be issued a BEE certificate if you score below 40 (making your BEE certificate non-compliant),” it said at the time. The PPRA described the policy as “non-negotiable”. “It is imperative to underscore that compliance with regulations such as those set forth by the PPSA is non-negotiable,” it said. Now, Sakeliga said, the PPRA has received legal advice that the initial interpretation may be correct. “The letter relayed that the PPRA had sought legal advice and would no longer be requiring level 8 B-BBEE certificates with new FFC applications. “Its counsel had confirmed what our legal team had spelt out in letters of demand to the PPRA: that the Act’s reference in section 50(a)(x) to a valid BEE certificate cannot be construed to mean a certificate of BEE compliance – not at level 8 nor at any other level,” Sakeliga said. The group noted that the PPRA has not a public statement about the policy shifts, which could fuel confusion. Before the apparent turn, property practitioners who failed to renew their FFCs by the specified deadline of 31 October of the relevant year, while still actively practising, faced penalties. The apparent shift in policy was met with immediate backlash by the sector, with property groups raising concern over the impact on small businesses, sole proprietorships, and “one-man” or “mom-and-pop” operations. While industry bodies like the Real Estate Business Owners of South Africa (Rebosa) opted to consult with the PPRA over the policy, others, like Sakeliga, pursued the legal route. Sakeliga said that, even though the most urgent aspect of the regulations has been walked back “for now”, two other problems remain: First, there is the Act’s requirement that not only estate agents, but all property practitioners must have a fidelity fund certificate. The group said this should be reversed as it gives the PPRA reach over thousands of businesses. Second, the Act still stipulates that fidelity fund certificates may only be issued to applicants with a valid B-BBEE certificate. “At least for now, the PPRA is reverting back to accepting that ‘valid’ cannot be taken to mean ‘compliant’ with B-BBEE, yet the certification demand is itself an unjustified, costly, and harmful infringement on the freedom to do business and serve society. “The certificate requirement serves no legitimate government purpose, since there is no relationship between fulfilling the inherent requirements for a fidelity fund certificate and having a B-BBEE certificate or not,” the group said. PPRA responds The PPRA is registering and issuing FFCs to all sectors of the property industry within its regulatory scope, and the BEE certificate required from all property practitioners when applying for an FFC is required to be valid but not necessarily compliant in terms of the applicable legislation. “In order to give effect to our transformation mandate, the PPRA will launch compliance programmes in terms of section 20(1) and 20(3) of the Property Practitioners Act,” it said. The group said that there is “no policy to withdraw” or put on hold, as it were, given that it has not yet taken an official stance on how to interpret legislation. “The interpretation of the use of the word “valid” and whether it should be interpreted in the narrow sense of ‘properly issued’ or in the wider sense of ‘compliant’, is the legal question which is being addressed and which will found the PPRA’s policy on implementing section 50(a)(x),” it said. However, this does contradict the communication to Rebosa in April, where the group specified the level 8 BEE compliance was necessary for certificates to be issued. The PPRA confirmed that no certificates have been denied so far on the basis of this requirement. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/property/789518/big-turn-for-bee-in-south-africas-property-sector/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend and can be a complex calculation. The formula is (A – B = TMPS) broken down as (Not Limited to):    A |        Cost of sales- adjusted for opening and closing stock; Operating expenses; Other expenses; and Capital Expenditure   B |        Salaries, wages, remunerations and emoluments; Empowerment-related procurement; Supplier-specific exclusions: o   Taxes and levies; o   Imports, providing they meet the criteria; o   Organ of state / public entity that enjoys a statutory/regulated monopoly in the supply of such goods or services; o   Pass through third-party procurement; Accounting-related exclusions: o   Depreciation and amortisation; o   Fair value adjustments; and o   Forex transactions.   Enterprise & Supplier Development Services are available to assist members with understanding the TMPS calculation.

Ethics, skills & competence are at the top of the due diligence list when selecting a B-BBEE Rating Agency. Firstly, an organisation must ensure that they engage the services of a B-BBEE Rating Agency in line with the SANAS R47-03   document that does not allow B-BBEE Rating Agencies to provide B-BBEE Consulting services.   Secondly, organisations must ensure that their chosen B-BBEE Rating Agency allocates a team with the technical expertise to ensure the B-BBEE Verification process is smooth. Remember, an organisation is within their rights to request CVs about the team undertaking their B-BBEE Verification.   It is encouraged that Members adopt a Due Diligence process when selecting a B-BBEE Rating Agency.   Verification Preparation Services   are available to Members to assist with planning for the B-BBEE Verification process.

On 01 September 2024, the Department of Employment & Labour has opened up for Employment Equity Reporting. The deadline will close on 15 January 2025.   Who must Report  in 2024:   All designated employers with 50 or more employees must report every year. Employers with fewer than 50 employees who are designated in terms of the turnover threshold applicable to designated employers (Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013). Employers who became newly  designated  on or after the first working day of April 2024, but before the first working day of October 2024, must only submit their first report on the first working day of October 2024. Employers who voluntarily wish to comply in terms of section 14 of the EE Act.   We encourage all Members to take note of the above and ensure that all Reporting is complete before the deadline date.    Human Capital Services  are available for Members who need assistance with submissions

Nkhensani Nkuna | 3 September 2024 THE construction of the R250 million Mahumani High-Tech Skills Development Centre started on Monday. This comes after the acting premier of Limpopo Province, Basikopo Makamu, led the sod turning and site handover ceremony of the project at Nkomo Village outside Giyani in Limpopo Province on Saturday, August 31. The project is an initiative of the Construction Education and Training Authority (CETA) in partnership with training centres – AgriSETA, FP&M SETA and MerSETA –who are collaborating with the Department of Higher Education. Hosi Mahumani has provided 12.3-hectares of land to build the state of the art centre. The first phase is expected to be completed over two years. This phase will include the development of an administration block, two libraries, acultural centre, a farming model, a farming field, a piggery, and a chicken coop, among other facilities. Notably, 30 percent of the construction budget will be allocated to local small, medium, and micro enterprises and the construction phase is expected to create over 250 jobs. This is a five-year development plan and upon completion the centre is expected to form part of the Letaba Technical Vocational Education and Training (TVET) College, which currently has three colleges in the Mopani District Municipality. The Board chairperson of CETA, Thabo Masombuko, said: “This significant initiative is focused on enhancing rural skills within the district and the Greater Giyani Local Municipality. The initiative is structured to train more than 700 learners every year, offering them valuable skills to enable their participation in the economy.” The Letaba TVET College acting Principal, Benjamin Moshoma, said the college was committed to working with the Mahumani Traditional Authority to uplift theyoung with skills development. “By equipping individuals with futuristic skills, the centre will play a pivotal role in unlocking innovation, entrepreneurship, and sustainable growth, ultimately contributing to a more prosperous and equitable society,” said Moshoma. Meanwhile, Makamu warned local companies about jeopardizing the project, simply because they did not get a tender. “The 30 percent share is allocated to local businesses, but not everyone is going to get the job, so don’t cause destruction, because you did not get the job. This project is going to change the lives of so many young people, so please don’t be selfish and want to stop a project which will help the next generation,” he said. Makamu was appointed acting premier of the province effective last Thursday until September 9, when Dr Phophi Ramathuba returns from the Forum on China-Africa Cooperation in Beijing, China. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.cajnewsafrica.com/2024/09/03/r250m-high-skills-centre-for-limpopo-youth/

Ismail Joosub | 2 September 2024 In pursuit of a more just and equitable society, South Africa’s Black Economic Empowerment (“BEE”) policies – now known as Broad-Based Black Economic Empowerment (“BBBEE”) – were introduced with the noble aim of correcting the injustices of the apartheid era. The policies were designed to ensure that previously disadvantaged individuals could participate more fully in the economic life of the nation. However, as we examine the effects of the policies, it becomes clear that there are significant constitutional and economic questions that need to be addressed. The Constitution is a beacon of hope and fairness, enshrining principles of equality and non-racialism. Section 9 is the cornerstone of our equality framework. It asserts that, “ everyone is equal before the law and has the right to equal protection and benefit of the law “. This section not only prohibits discrimination, but also allows for affirmative action measures to be implemented to promote equality. Specifically, section 9(2) provides that, “ to promote or achieve equality, legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination may be taken “. The intention behind this provision is clear: To ensure that those who have been historically marginalised have the opportunity to succeed and participate fully in society. However, the application of this principle through BBBEE policies has raised significant questions about whether these measures are achieving their intended goals without conflicting with other constitutional principles. BBBEE, established through the Broad-Based Black Economic Empowerment Act of 2003 and its 2013 iteration, seeks to promote economic inclusion by improving black ownership, management control, skills development and preferential procurement. At its core, BBBEE aims to address economic disparities by integrating black South Africans into the mainstream economy. Yet, despite its intentions, BBBEE has sparked debate about its alignment with constitutional values. While the policy has undeniably made strides in opening doors for some previously marginalised individuals, it has also faced criticism for its execution. The concept of demographic representivity – ensuring that business and public sector employment mirror national demographics – has led to complex and often contentious practices. The Employment Equity Act (“EEA”) of 1998, a precursor to BBBEE, mandates that employers achieve racial representivity at all organisational levels. While this aim is rooted in the desire to promote inclusivity, the practical application has sometimes resulted in unrealistic targets. The pressure to meet these targets can lead to appointments based more on race than on merit or qualifications. This has occasionally undermined organisational efficiency and service delivery, particularly in the public sector where competence and skill should be paramount. Impact of BBBEE on private sector In the private sector, BBBEE’s impact is equally profound. The policy’s stringent requirements and frequent amendments have created a challenging environment for businesses. Companies are required to demonstrate compliance with various criteria related to ownership, management control and procurement. For multinational corporations and family-owned businesses with existing structures, these requirements often necessitate complex restructuring. This can be particularly burdensome and may deter investment, as investors seek stable and predictable environments for their capital. Moreover, the frequent changes in BBBEE regulations contribute to an environment of uncertainty. Each update can alter compliance requirements and impact business strategies, leading to hesitation among potential investors. The European Union Chamber of Commerce has highlighted these challenges, noting that the ambiguous application of BBBEE criteria poses significant hurdles for foreign investors. The economic ramifications of BBBEE cannot be ignored. Economic growth is essential for national prosperity, particularly for improving living standards and reducing poverty. The Fraser Institute’s 2023 Annual Report underscores the correlation between economic freedom and growth rates. Nations that embrace free markets and minimise government intervention typically experience higher growth and better living standards. In contrast, BBBEE’s rigid quotas and compliance requirements have led to inefficiencies and reduced economic dynamism. The EEA and BBBEE policies have been linked to increased unemployment and reduced state efficiency. The mandate for demographic representivity has, in some cases, led to higher operational costs and reduced competitiveness for businesses. In the public sector, the focus on meeting demographic targets has sometimes overshadowed the need for efficiency and competency, resulting in decreased service delivery and increased corruption. The legal background to BBBEE policies underscores their constitutional complexities, particularly when examined through the lens of the Constitutional Court’s ruling in the  Van Heerden  case. In  The Minister of Finance and Another v Frederik Jacobus Van Heerden,  the Court addressed the constitutional validity of measures under section 9(2) of the Constitution, which permits differentiation to promote equality. The judgment emphasised that affirmative action measures must not only target disadvantaged groups, but also genuinely advance their position and foster  substantive equality . This entails that such measures should rectify systemic inequalities and provide meaningful benefits to those historically marginalised. Despite this framework, BBBEE policies often fall short of these constitutional criteria. Criticism of BBBEE The  Zondo Commission  highlighted that BBBEE has been manipulated to advance the interests of a select few, rather than addressing broader economic disparities.  Harvard’s Growth Lab and the Institute of Race Relations have similarly criticised BBBEE, arguing that its continuation hampers economic growth and fails to benefit the broader disadvantaged population. Instead of broadly advancing economic equality, BBBEE has sometimes benefited a narrow elite, leaving many disadvantaged individuals with limited gains. This disparity underscores a significant constitutional tension: While BBBEE aims to address historical injustices, its implementation has not fully achieved its goals of poverty reduction and equality enhancement. The persistence of high levels of inequality suggests that BBBEE has not sufficiently met the criteria of advancing substantive equality as envisioned by section 9(2) and the  Van Heerden  judgment. Additionally, section 195 of the Constitution emphasises “broad representivity” in public administration, but differentiates it from strict quotas. This suggests that while diversity is important, it should not come at the expense of efficiency and merit. The rigid racial targets imposed by BBBEE policies often conflict with this principle, as they enforce quotas that may not align with the functional needs of various sectors. In light of these challenges, it is crucial to explore alternative approaches that are more in line with Section 9’s principles of equality and fairness. Rather than relying solely on racial quotas, a model that addresses socio-economic disadvantage more broadly could better align with the Constitution’s commitment to substantive equality. This approach would focus on alleviating poverty and providing opportunities based on need, rather than race alone. Aligning empowerment policies with the Constitution’s principle of equality (Section 9) and the foundational value of non-racialism (Section 1) is essential. By creating a more conducive environment for growth that balances social objectives with economic efficiency, South Africa can work towards a more equitable and prosperous future for all its citizens. The road ahead requires a commitment to reevaluating and reforming policies to ensure they serve the broader goals of justice and economic development, in true alignment with the values enshrined in our Constitution. Ismail Joosub is the manager of constitutional advancement at the FW de Klerk Foundation. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/thought-leader/2024-09-02-from-empowerment-to-elitism-the-bbbee-dilemma-and-constitutional-tensions/

Hope Mafu | 2 September 2024 MTN Foundation launched its 2024 edition of Women in Digital Business Challenge on Monday to tackle the weary presence of women in the information, communication and technology (ICT) industry. The challenge aims to foster the participation of women in South Africa’s ICT sector. After vetting and shortlisting 20 applicants, the challenge absorbed a cohort of 10 women who are small business owners, where R1 million was invested. Each contestant received R100K towards developing their businesses. According to MTN South Africa Foundation general manager, Arthur Mukhuvha, the challenge is set to run for six months, offering participants an opportunity to strengthen and grow their small businesses into sustainable and thriving enterprises. “The prize money will be used for working capital, business development, purchasing tangible assets, investing in business technology hardware, software or intellectual property (IP), and technical and soft skills training,” said Mukhuvha. Partnering with the National Youth Development Agency (NYDA), the challenge is expected to play a pivotal role by ensuring the entrepreneurs reach the pinnacle of their ICT businesses, or preside over executive positions. “This showcases the commitment of the public and private sector institutions to work together, develop and empower the youth and henceforth create opportunities for our youth and women to be able to participate in the mainstream economy,” said Mukhuvha. According to Mukhuvha, this aligned with the Department of Higher Education and Training research in 2022, showing only 13% of women graduated with science and technology qualifications, while 2% entered the ICT industry. “We believe that science, technology, engineering and mathematics (STEM) qualified women can excel within the science and tech sectors. By supporting talented women through the Women in Digital Business Challenge, we believe that we will be empowering women to play more leading roles in the economy. In addition, because many of these businesses are focused on meeting community needs, women can play a vital role in helping address the skills and employment issues that our nation faces,” said Mukhuvha. The ten entrepreneurs will be mentored for four months by experts and business coaches to help grow their business acumen, marketing strategies, financial and management skills. “We are confident that, as previous finalists have shown, the ten graduates of the 2024 Challenge will use their skills and entrepreneurial flair to build their businesses and assist others in achieving their technical ambitions,” said Mukhuvha. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/news/mtn-invests-r1m-in-developing-womens-smmes-and-ict-skills-db05fffa-4334-443a-9068-a962c93fa0bf

Sheetal Bhoola | 2 September 2024 In recent years, we have become accustomed to hearing about the brain drain and South Africans who attain skills and qualifications at home and then leave our country to earn a livelihood abroad. Some patriotic South Africans return home at some stage, and many do not. So many debates are focused on whether life is better in other countries and the varying socio-economic challenges no longer unique to South Africa. Then, there are the students who seek to study abroad for various reasons. For many, it is classified as a life lesson coupled with qualifications endorsed by institutions abroad. Skills attained abroad are the keys and entry card to becoming employed, and hopefully, a citizen in another country is specific to qualifications, skills, market demand and location. Yet, so many South African school-leavers opt to study abroad if they are given the opportunity. The motivations are varied, but a central goal is to experience life abroad and attain an internationally recognised qualification that can facilitate emigration. The emigration process can be assisted through the development and structuring of a global network, which is attainable if one is a student abroad. In addition, potential employees with international experience tend to be more likely to be employed than their South African counterparts who have not had the opportunity to study or live abroad. These experiences are expensive, and scholarships to study abroad are not plentiful. South Africans are often categorically pooled together with other candidates from African countries when opportunities for Africans are available. Some European countries, for instance, indicate very particular criteria and regulations for applicants. Often, eligible candidates must be of a specific nationality, meet high academic benchmarks, fit into a particular age group, and be available to travel within the timetable of International Communication. Some scholarships have also been earmarked to specifically support African women or African “black” women globally, which leaves no room for others to apply. The stakes are high, and South African school-leavers, undergraduates and post-graduate students are competing with individuals from around the world for those spaces. There are a variety of international exchange scholarships available, but the keys to meeting eligibility are excellent academic performance and meeting the other necessary criteria. A common question any candidate asks is, “How will you benefit from this opportunity?” The German Academic Exchange Service (DAAD) has a range of scholarships on offer for South Africans, however, their selection process is rigorous and rigid. In 2004, DAAD funded me to complete an international co-badged Master’s degree in Germany and India. The hosting institutions were the University of Freiburg, Germany and Jawaharlal Nehru University, New Delhi, India. The Indian Council for Cultural Relations funded the selected students from South Africa and other institutions. The funding included all travel and living expenses and tuition fees. I experienced student life in a developing and developed country that could not be compared geographically, culturally and educationally. The experience strengthened my personality by taking me out of my comfort zone, developing my communication and social skills further, and allowing me to learn much more and become an aspiring global South African citizen. More importantly, I learned to live in another country, with a new culture, and learn new languages. South Africa’s Daily News Editor, Ayanda Mdluli, is aspiring to learn Mandarin. He was selected to attend a four-month journalism training program hosted by the China Communications Press Centre in Beijing. Internships such as these provide great value in international experience, personality strengthening, skills and knowledge building, and networking. Editor Mdluli is among 100 other journalists from around the world, which will allow him to consolidate professional relationships with journalists and media houses worldwide. In addition, he can be recognised for his skills in China. Similar internship programs are also facilitated by many other international institutions, although not all are funded. The key is to look at the fee structure and identify at the outset if it is an affordable option for yourself. Some South Africans have indicated that the tuition abroad at certain institutions in China is far cheaper than in South Africa. Tuition fees at a Chinese public university can be as little as $2000, depending on which institution and the location of the institution. Tuition fees in the United Kingdom are expensive in comparison. Tuition fees and regulations abroad vary depending on region, country, and institution. Norway and Germany are among the few countries that permit free tertiary education at state-funded institutions. Some state universities located in specific regions, like the Baden-Württemberg area, charge between 1500 and 2000 euros per semester per student, whereas the fees at private universities are higher. Other European state universities offer free tuition to European Union citizens only, and international students are forced to pay hefty fees, sometimes more than the citizens of that country. These options predominantly attract elite international students. Besides the cost of institutions, one has to consider the living expenses and travel to and from South Africa, especially if there is no scholarship. Depending on where a non-EU student is located in Norway, they may be able to access free tertiary education. Countries like Finland offer free tuition to European Union citizens only. The Nations Category list, which is applied globally, also impacts the tuition fee that a South African student may be liable for while studying abroad. South Africa is listed as Category C, which is a grouping that comprises of nations that have different infrastructure, natural resources, and economic development compared to countries in Category A and B. However, international bilateral agreements with other countries have encouraged affordable educational opportunities abroad for South Africans. Universities in Denmark facilitate free tuition for international students who attend a state university within an official exchange program. Still, students not belonging to an exchange program cannot access that benefit. American University tuition fees are among the world’s highest, although public universities are cheaper than private institutions. The exchange rate of the rand versus other currencies has to be considered when one decides where to apply. The educational ties between India and South Africa have strengthened in recent years, and their India-Africa Maitri Scholarship Scheme is developed specifically for South Africans. Candidates can select five preferred institutions they want to study at for a qualification. This is a great benefit, as many other scholarships are less inclusive. This opportunity stipulates any South African is legible to apply as long as the age restriction is adhered to and the necessary academic indicators are met. The scholarship includes living facilities as well as the travel fare. In addition, the continual bilateral agreements have also encouraged the structuring of scholarships, especially for Indian South Africans. To be eligible, one has to be of Indian descent. South Africans recently embraced this opportunity, and approximately 30 students were selected to study in India in 2025. Many embassies, South African Research Institutions such as the National Institute of Humanities and Social Sciences, the National Research Foundation as well as the Erasmus Program and the Boren Awards for International Study - fund short and long term development learning programs and the opportunity to acquire a qualification abroad. Universities and national international relations offices around the globe play a pivotal role in career development and providing opportunities to youth. South Africans have to be dedicated and display academic excellence to be selected to participate in an internship or scholarship program abroad. The opportunity can only facilitate the process of South African youths aiming to become global citizens. Dr Sheetal Bhoola is a lecturer and researcher at the University of Zululand, and the director at StellarMaths (Phoenix & Sunningdale). ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/opinion/considering-studying-abroad-the-benefits-can-be-lasting-03a26c59-c255-473a-bc47-e86c11e345dd

Nomazizi Siphondo | 1 September 2024 This Women’s Month, we at the National Empowerment Fund (NEF) proudly commemorate a milestone that is a testament to progress and a beacon of commitment: the 10th anniversary of our Women Empowerment Fund. Since its inception in 2014, the WEF has been at the forefront of revolutionising economic opportunities for black female entrepreneurs across South Africa, blending financial and non-financial support to foster growth and innovation in their ventures. Over the past decade, the WEF has made an indelible mark, disbursing an impressive R4.5 billion. The substantial investment has provided vital capital and catalysed significant growth across diverse sectors including construction, student accommodation and service stations. Our journey has been one of supporting resilient and visionary women who are transforming entrepreneurial dreams into thriving realities. The WEF stands out not merely for its financial support but for its holistic approach to empowering woman entrepreneurs. We offer preferential pricing, reducing financing margins for businesses with female ownership. The concessionary pricing significantly lowers capital costs, easing the path to essential funding. Our goal is clear: to dismantle barriers and make financing more accessible for woman-led businesses. Beyond financial assistance, the WEF is committed to comprehensive support through mentorship, networking opportunities and tailored training. We understand that entrepreneurial success is often as much about guidance and connections as it is about funding. By connecting entrepreneurs with seasoned professionals and a robust network of industry contacts, we provide the tools necessary to navigate business challenges and seize new opportunities. Our commitment to supporting woman entrepreneurs remains steadfast, with a significant disbursement target of R675 million for the current financial year. Of this, 35% is earmarked specifically for the WEF, highlighting our dedication to empowering women and investing in their success. As of August 2024, our pipeline boasts R495m in potential approvals, underscoring the strong demand and vibrant opportunities for woman-led ventures. Among the WEF’s success stories is Smith Capital Equipment, a prime example of how our investment can transform businesses. In 2015, our R41m investment enabled Isipho Capital Engineering to acquire Smith Capital Equipment, leading to its majority black woman ownership. Under CEO Fortunate Mdanda, Smith Capital has become a leader in manufacturing aerial platforms and drilling rigs, supporting 75 jobs and reinforcing local manufacturing capabilities. Despite challenges, such as the disruptions caused by the Covid-19 pandemic, our impact remains robust. In the financial year 2024, 37% of NEF’s disbursements were allocated to woman-empowered businesses, demonstrating our unwavering commitment to advancing female entrepreneurship. However, we acknowledge that woman entrepreneurs face significant barriers, including limited management skills, inadequate access to affordable capital and market entry challenges. Addressing the issues is central to our mission. Our concessionary funding approach, coupled with targeted investor education and strategic partnerships, aims to overcome the obstacles and enhance market access. As we celebrate the 10th anniversary of the Women Empowerment Fund, we reaffirm our commitment to supporting woman-led enterprises across various sectors, including property, tourism, manufacturing and energy. The diverse potential within the industries reflects the growing ambition and resilience of South Africa’s woman entrepreneurs. The WEF’s 10-year milestone is a celebration of our achievements and a call to action. As we honour Women’s Month, we remain dedicated to advancing the success and empowerment of woman entrepreneurs, driving economic growth and contributing to a more inclusive and equitable future for all. Nomazizi Siphondo, the head of the Women Empowerment Fund and Acting uMnotho Fund Manager, National Empowerment Fund. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/celebrating-a-decade-the-women-empowerment-funds-impact-on-entrepreneurs-7a83ef9e-4a9f-4f5d-972b-c09a075a87d7