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Neelam Rahim | 23 February 2025 The unprecedented delay in tabling South Africa’s budget has sparked calls for a fundamental reassessment of fiscal priorities, with the Institute of Race Relations (IRR) leading the charge. The IRR has submitted its “Cut VAT and BEE Premiums” blueprint to Parliament’s finance committees, advocating for significant cuts to Broad-Based Black Economic Empowerment (BEE) premiums in public procurement. Gabriel Crouse from the IRR estimates that eliminating BEE premiums could save the government up to R150 billion annually. “Public procurement accounts for R1.1 to R1.2 trillion each year. Direct BEE premiums add an estimated R17 billion to this, but the real cost—through inefficiencies and corruption—could be closer to R150 billion,” Crouse explained. The IRR’s proposal argues that cutting BEE premiums could reduce the Value-Added Tax (VAT) from 15% to 11.5%, injecting R100 billion back into the economy. “This would directly benefit the poorest South Africans, potentially increasing the social grant from R370 to R430 without increasing national debt,” Crouse noted. However, the issue has highlighted troubling gaps in government transparency. When asked about the actual cost of BEE premiums, Treasury officials, including Acting Chief Procurement Officer Vilimatibula, admitted they couldn’t provide precise figures. “It’s shocking that Treasury, which oversees R1.2 trillion in spending, doesn’t know how much is going to BEE premiums,” said Crouse. ANC Secretary General Fikile Mbalula, when questioned about the lack of transparency, responded dismissively: “Let’s wait.” Crouse criticized this stance, saying, “South Africans deserve to know how their taxes are spent. We need a debate grounded in facts, not abstractions.” As the country awaits the rescheduled budget announcement, the IRR’s call for reform raises pressing questions about fiscal responsibility, transparency, and the true cost of empowerment policies in South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://radioislam.org.za/a/irr-calls-for-rethink-on-bee-premiums-amid-budget-delays/

SA News | 23 February 2025 Government is committed to preserving local industries and safeguarding employment opportunities, the Department of Trade, Industry and Competition said. This as government acknowledged the concerns raised by the National Union of Metalworkers of South Africa (NUMSA) on the impact of ArcelorMittal South Africa’s (AMSA) decision to wind down its long steel business. “We recognise the significance of this matter for workers, the broader steel industry, and the economy,” said the department in a statement on Saturday.This as NUMSA staged a picket outside the Industrial Development Corporation (IDC) to voice their demands on Friday.“The Minister is awaiting the memorandum to be presented by the board regarding these demands. Once received, the Minister will consider the issues raised and respond appropriately.  “The Department of Trade, Industry, and Competition (the dtic) remains committed to engaging all stakeholders, including AMSA, organised labour, and industry partners, to find sustainable solutions. We continue to explore all possible avenues to avert job losses, support affected workers and ensure the resilience of South Africa’s steel sector,” said the department.The dtic urged all parties to engage constructively “as we work towards interventions that protect industrial capacity while securing long-term economic stability.” “The government remains steadfast in its commitment to preserving local industries and safeguarding employment opportunities,” said the department. In January, the dtic said the steel industry is critical in the reconstruction and recovery plan for the South African economy, particularly the manufacturing, mining, construction, engineering, and transportation sectors.This as AMSA announced that it was winding down its longs steel business at its Newcastle plant. “The department notes with serious concern the announcement by ArcelorMittal South Africa to wind down its longs steel business at its Newcastle plant. In fulfilment of its mandate to work with the private sector in growing the local economy the dtic remains committed to working with AMSA to find a workable and lasting situation,” the department said in a statement at the time. During the course of 2024, AMSA had reached out to various government departments and state-owned entities with requests for different concessions for their business. Having taken heed of these requests, the Minister of the dtic took the decision to form a comprehensive and coordinated approach to resolving the issues raised by AMSA. The Minister set up a technical working group made up of the relevant stakeholders including the dtic and AMSA, the Departments of Electricity and Energy, Transport, as well as Eskom, Transnet and private sector stakeholders. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/government-remains-committed-preserving-local-industries

By Siseko Maposa | 20 February 2025 The unprecedented postponement of the 2025 budget speech to 12 March has left everyone riveted. The delay is indeed significant, but it would be shortsighted to overlook the broader context and underlying factors that led to this decision.  The warning signs of South Africa’s fiscal health crisis have been flashing for quite some time. At the Kgalema Motlanthe Foundation’s Inclusive Dialogue conference towards the end of last year, Finance Minister Enoch Godongwana painted a stark picture of South Africa’s national accounts being under significant pressure.  The proposed 2% VAT increase is a stark reminder of our fiscal fragility, and its implications are too profound to be ignored. Aside from the troubling socio-economic consequences that this proposal entails, the very fact that it was under consideration reveals a deeper concern: that the government is struggling to balance its books and generate sufficient revenue. The country’s debt-to-GDP ratio is projected to peak at 75.5% in the 2025-26 financial year, higher than the 60% threshold considered sustainable for emerging markets and expenditure will surpass revenue collection. This means there’s a significant shortfall in funds required to support envisioned development projects.  The proposal is also indicative that the government has limited alternatives to swiftly bolster revenue. VAT increases are typically considered a last resort to provide a rapid influx of funds. Unlike other taxes, which are collected periodically and susceptible to evasion, VAT is collected at the point of sale, making it a more efficient means of generating revenue — albeit highly risky from a socio-economic perspective.  A pressing question ahead of the 15 March budget speech demanding our attention and consideration is: where will the necessary funds come from?  A national development mindset for economic recovery  Economic history provides us with an important reminder of the critical role collective effort and fiscal responsibility plays in tackling fiscal crises and advancing national development. During the 1997 Asian financial crisis, South Korean citizens came together in a remarkable display of national unity and sacrifice, donating large amounts of their personal gold to the government through the Gold Collection Campaign.  This effort helped pay off the country’s debt to the International Monetary Fund and stabilise the economy. Through a combination of prudent policy measures, South Korea restored fiscal stability, regained the trust of foreign investors and emerged from its financial crisis.  Key initiatives included providing guarantees for Korean banks’ external liabilities and leveraging its substantial foreign reserves to maintain foreign exchange liquidity. As a result, South Korea transformed into a vibrant and resilient emerging economy, solidifying its position among the world’s leading nations.  I’m not suggesting that South Africa adopt a similar approach, but the underlying message is clear: a national development consciousness coupled with transparent fiscal management are essential ingredients to fiscal redemption.  True progress ultimately hinges on the government’s ability to be honest, transparent and accountable. Over the years, corruption and wasteful expenditure have plagued South Africa, resulting in significant financial losses and exacerbating widespread distrust among citizens.  The empirical evidence of the negative effects of corruption on economic growth is clear — even a modest 3-4% decrease in corruption could lead to a significant 2.8% increase in economic growth. This issue transcends partisan politics and mere convenience. Rather, it is a pivotal determinant of the nation’s fiscal wellbeing and long-term economic prosperity.  As we navigate the complexities of our fiscal landscape, it is imperative that we remain attuned to its subtle rhythms, for only then can we unlock innovative solutions to our most pressing economic problems.  Siseko Maposa is the director of Surgetower Associates management consultancy. He is a regular commentator on the South African political economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://mg.co.za/thought-leader/2025-02-20-proposed-2-vat-hike-indicative-of-a-deep-fiscal-health-crisis/

Staff Writer | 20 February 2025 The Department of Labour and Employment (DoL) will finalise consultations over South Africa’s new BEE targets by the end of February 2025 and publish two new employment equity regulations by the end of March. This follows the new Employment Equity Amendment Act (EEAA) coming into effect on 1 January 2025. The EEAA introduced several changes to South Africa’s black economic empowerment laws, including reducing the definition of designated employers to businesses employing more than 50 people and easing the administrative burden on small businesses. However, one of the biggest additions was empowering the minister of employment and labour to set specific sectoral employment targets for designated employers to follow. The DoL has drafted BEE regulations that require businesses in South Africa to employ a workforce that reflects the country’s “economically active population” (EAP), nationally or provincially. These targets would apply across each of the 18 national economic sectors. Broadly, the department wants all companies that employ more than 50 people to rapidly transform over the next five years and have their workforces more demographically representative. This is especially true in top and senior management. The orignal draft targets, published in 2023, set very specific numerical targets for the workforce across unskilled, semi-skilled, skilled and top management. It also made a clear distinction between national and provincial EAP make-ups. The updated draft in 2024 removed targets for the semi-skilled and unskilled levels—though still included a focus on EAP—and removed the distinction between provincial and national targets. It also removed the distinction between specific racial groups, opting for “designated groups” in the targets. Designated groups are defined in the Employment Equity Act as black people (Africans, Coloured, and Indians), women and people with disabilities who are citizens of South Africa by birth or descent. As a practical example: 2024 draft regulations : At least 40% of the top management of a manufacturing company must be from designated groups, while at least 15% must be women. Original 2023 regulations: The top management of a national manufacturing company must be 35% African (22% male, 13% female), 4% coloured (2.5% male, 1.5% female), 1% Indian (0.7% male, 0.4% female) and 8% white (4.5% male, 3.5% female). While the numerical targets appear to be quotas—unlawful in South Africa—the government has argued that the five-year implementation period and ability to apply for exemptions disqualify that definition. Regardless, analysts and experts have noted that the targets are highly problematic for businesses, sometimes requiring designated group representation to more than double. Considering South Africa’s weak economic growth, high levels of unemployment and lack of necessary skills, businesses are unlikely to find success in meeting the targets. Next steps The DoL has been hosting roadshows and consultation sessions, trying to dispel “misconceptions” about the laws. This includes explaining the justifiable reasons and grounds for which business can be exempted. These consultations will be completed by the end of February 2025. Following the consultation process, the department will publish two more sets of regulations by the end of March 2025: The General Administrative Regulations, which will contain the reporting forms, employment equity plan templates, enforcement tools and the employment equity compliance certificate template; Regulations on the 5-year sector employment equity targets. According to legal experts at Werksmans Attorneys, the department will then move on to conduct internal training for labour inspectors on the new laws and regulations to enforce them. They said that, pending the publishing of the regulations, there is no certainty that the department’s way forward will materialise, but warned businesses to keep a close eye on developments. “Employers…risk substantial financial sanctions and/or not being issued with a compliance certificate” should they be caught by surprise, they said. Legal firm Cliffe Dekker Hofmeyr (CDH) noted that once the regulations are in effect, designated employers will have until 31 August 2025 to conduct a workplace analysis and develop new employment equity plans. The 2025 reporting period will then run from 1 September 2025 to 15 January 2026, CDH said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/813269/noose-tightening-for-businesses-in-south-africa/?fbclid=IwY2xjawIjz6tleHRuA2FlbQIxMQABHYESqL8eWXGgROldhrWspwG7CCBUHNn7kGsleNneLBusCBHz9SuMafe-Bw_aem_11eQSKJxOAdKHLHMN-DJUA

Polity | 19 February 2025 The hotly debated Companies Amendment Bills have now been signed into law by the President and were promulgated on 30 July 2024, with the date of implementation yet to be announced. Certain amendments in the Companies (First) Amendment Act (Act 16 of 2024) introduce groundbreaking changes to corporate pay gap disclosure practices in South Africa . Both listed and state-owned employers will need to prepare to comply with these. Summary of Amendments: Remuneration Policy approval requirements (Section 30A) All public and state-owned companies (Companies) must prepare a remuneration policy. The policy must be approved by shareholders at the annual general meeting (AGM) via ordinary resolution. If the policy is not approved by shareholders, it must be re-submitted for approval at the next AGM or an extraordinary general meeting called for that purpose. Once approved, the policy remains in effect for a period of three years and must be approved every three years thereafter. However, where a material amendment is made to the remuneration policy prior to the end of the three-year period, shareholder approval must be obtained before the amendment can be implemented. Remuneration Report approval requirements and sanctions (Section 30B) To date, Companies have been required to disclose the total remuneration received by each director and prescribed officer in their annual remuneration reports. The remuneration report comprises three sections: (i) a background statement, (ii) the remuneration policy (referenced above), and (iii) an implementation report. Going forward, the total remuneration of the highest and lowest paid employees; the average and median total remuneration of all employees; and the remuneration gap between the top 5% highest paid and lowest paid employees must also be disclosed in the remuneration (implementation) report. If the remuneration (implementation) report is not approved by shareholders, then, at the next AGM, the remuneration committee must explain how shareholder concerns over the report have been considered and the non-executive directors on the remuneration committee must stand for re-election. If the report is still not approved at the following AGM, non-executive directors can remain directors if they are re-elected, but they cannot serve on the remuneration committee for a period of two years. Key Considerations for Companies: Remuneration Policy and Remuneration Report amendments Due to the new shareholder approval requirements, remuneration policies should be amended to articulate the organisation’s overall philosophy on remuneration, based on its business strategy. For example, companies should set out their position on, among others, remuneration and benefits, fixed and variable pay mixes, annual increases, appointments and terminations of executives and prescribed officers, short-term and long-term incentive performance conditions, and pay gap measures. Specific details on these items should, however, only be incorporated into the Company’s remuneration (implementation) report, which is subject to annual approval by shareholders. This will guard against Companies’ having to resubmit their remuneration policies for shareholder approval prior to the end of the three-year period as a consequence of ‘material’ amendments being made to the remuneration policy. Pay gap disclosures To ensure that pay gap disclosures are transparent but also not over- or understated, Companies should carefully consider which ‘employees’ (eg, permanent, contractor , labour broker) and legal entities (eg, subsidiaries, associations, joint ventures) to include for purposes of its disclosures, and what elements of pay constitute ‘total remuneration’. Strategies that address the findings of the pay gap calculations will be a key consideration and a measured approach should be adopted to ensure sustainability. Governance processes Companies will need to adapt their governance documents and processes to achieve compliance. Consideration should be given to whether, and the extent to which, board charters, delegations of authority, terms of reference, and resolutions need to be updated and amended. AGM resolutions will need to be updated to make provision for binding ordinary resolutions for the remuneration policy and remuneration (implementation) report. Employees who are responsible for collating and interpreting pay-gap data should be trained on the amendments and thought should be given to how pay-gap disclosure requirements under the Companies Act may overlap with or duplicate work on pay-gap disclosure requirements under the Employment Equity Act. Finally, contingency measures should be developed to secure stable governance of Companies in circumstances where sanctions have been imposed on remuneration committee members (eg, removal from the remuneration committee and/ or the board, particularly where the company’s remuneration (implementation) report is not approved at two consecutive AGM meetings). Shareholder engagement Companies will need to find ways of proactively engaging shareholders in an effort to seek upfront consensus and alignment on their remuneration policies and practices. Regular updates and clear communication with shareholders will be crucial for the approval of remuneration policies and reports. Understanding and addressing shareholder concerns promptly could prevent the need for re-elections and potential disruption in the board’s composition and company governance. Compliance and guidance Companies will need to comply with the new legal requirements whilst adhering to best market and international practices. Ongoing disclosure in terms of King IV and the JSE Listings Requirements will also be required, as will adhering to best practices in relation to pay for performance. The United Kingdom has had binding remuneration policies for company directors for many years and would provide useful comparative guidance. Conclusion It is important to stay abreast of and be prepared for the impending amendments to the Companies Act. Strategic and considered approaches to remuneration and financial disclosure will be crucial to achieving practical compliance that provides a meaningful outcome for all stakeholders. Written by Lenja Dahms-Jansen, Partner and Norma Mazibuko, Executive Rewards Consultant at Bowmans Law   ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://polity.org.za/article/companies-act-changes-impact-on-remuneration-and-financial-disclosure-2025-02-19

Staff Writer | 18 February 2025 Starlink is a fantastic Internet access technology, perfect for South Africa’s rural areas, but it is blocked locally because SpaceX does not have enough black ownership. Starlink is a satellite Internet constellation operated by Starlink Services – an international telecommunications provider wholly owned by SpaceX. The satellite Internet service covers over 100 countries and territories and aims to provide global mobile broadband. The advanced low-orbit satellites allow users to use the service for activities that have historically been impossible with satellite internet. It is also easy to set up. Subscribers only need to plug it in and point the terminal to the sky. The rest is automatic. All Starlink subscription plans include unlimited high-speed data on land with no long-term contracts or commitments. This means households and businesses in the most rural settings can enjoy streaming, video calls, online gaming, and remote working. Starlink is a game changer and can significantly impact rural development and economic growth in South Africa. However, the Independent Communications Authority of South Africa’s (Icasa) regulations prevent the service from launching in South Africa. To launch in South Africa, Starlink must comply with the Electronic Communications Act, Rica, tax laws, and all other regulations local ISPs are subject to. One set of regulations require licensees operating a national network or selling Internet services nationally to be 30% owned by historically disadvantaged groups. New regulations Icasa published in 2021 include provisions that changed this requirement to 30% black ownership. Simply put, Starlink Services cannot launch its satellite offering in South Africa unless it has 30% black ownership. Many stakeholders, including the Democratic Alliance and the business sector, have slated this requirement. DA member of parliament Natasha Mazzone said South Africa is kept in digital darkness until connected cadres can get their slice of the pie. She explained that the BBBEE requirements demand that 30% of the implementing corporation’s equity be “transferred into their greedy hands”. “They do not care that South Africans are trying to lift themselves out of poverty, access jobs online, teach themselves skills, and educate their children,” she said. Well-known fund manager Piet Viljoen said it is fascinating that so-called Black Empowerment laws are holding back Starlink. “I would have thought that if you wanted to empower black people, access to cheap, fast Internet in rural areas would be quite a powerful tool,” he said. “I guess the ANC regards the enrichment of a few tenderpreneurs as more critical than uplifting its voting base.” South Africans cannot get Starlink until a black partner gets a share Starlink is a fantastic Internet access technology, perfect for South Africa’s rural areas, but it is blocked locally because SpaceX does not have enough black ownership. Starlink is a satellite Internet constellation operated by Starlink Services – an international telecommunications provider wholly owned by SpaceX. The satellite Internet service covers over 100 countries and territories and aims to provide global mobile broadband. The advanced low-orbit satellites allow users to use the service for activities that have historically been impossible with satellite internet. It is also easy to set up. Subscribers only need to plug it in and point the terminal to the sky. The rest is automatic. All Starlink subscription plans include unlimited high-speed data on land with no long-term contracts or commitments. This means households and businesses in the most rural settings can enjoy streaming, video calls, online gaming, and remote working. Starlink is a game changer and can significantly impact rural development and economic growth in South Africa. However, the Independent Communications Authority of South Africa’s (Icasa) regulations prevent the service from launching in South Africa. To launch in South Africa, Starlink must comply with the Electronic Communications Act, Rica, tax laws, and all other regulations local ISPs are subject to. One set of regulations require licensees operating a national network or selling Internet services nationally to be 30% owned by historically disadvantaged groups. New regulations Icasa published in 2021 include provisions that changed this requirement to 30% black ownership. Simply put, Starlink Services cannot launch its satellite offering in South Africa unless it has 30% black ownership. Many stakeholders, including the Democratic Alliance and the business sector, have slated this requirement. DA member of parliament Natasha Mazzone said South Africa is kept in digital darkness until connected cadres can get their slice of the pie. She explained that the BBBEE requirements demand that 30% of the implementing corporation’s equity be “transferred into their greedy hands”. “They do not care that South Africans are trying to lift themselves out of poverty, access jobs online, teach themselves skills, and educate their children,” she said. Well-known fund manager Piet Viljoen said it is fascinating that so-called Black Empowerment laws are holding back Starlink. “I would have thought that if you wanted to empower black people, access to cheap, fast Internet in rural areas would be quite a powerful tool,” he said. “I guess the ANC regards the enrichment of a few tenderpreneurs as more critical than uplifting its voting base.” Bad news about Starlink in South Africa Many stakeholders hoped that the government and Starlink could come to a compromise, launching the service in South Africa. People called on the regulator to relax its black ownership requirement on Starlink as it is misplaced for an international company. However, SpaceX withdrew from the recent regulatory hearings on a new licensing framework for satellite services in South Africa, which ICASA organised. SpaceX said in its written submission that the requirement of 30% shareholding by historically disadvantaged groups is impossible. It explained that foreign satellite operators, like Starlink, with direct-to-consumer business models, have global policies that prevent local shareholding. This means that foreign satellite operators are prevented from operating in South Africa, even if they invest in initiatives that directly benefit the target communities. It advised that the regulator align licensing and ownership regulations to recognise equity equivalent programmes as an alternative to local shareholding. Such a change to the ICT sector code would remove a significant barrier to foreign satellite operators. It would increase foreign investment in South Africa and create broader industry benefits, supporting innovation, competition and long-term growth. Economists and the business sectors agree that Starlink’s proposal is reasonable and would benefit the country. However, South Africa’s Presidency lashed out at Elon Musk, who controls SpaceX, for harbouring “unprogressive, racist views”. “If Elon Musk harbours the kind of unprogressive, racist views that we’ve witnessed, we’re not going to pursue having his investments,” Presidency spokesman Vincent Magwenya said. Bloomberg reported that this stalled talks between South Africa and SpaceX to launch the Starlink internet service in the country. There is a glimmer of hope that Communications Minister Solly Malatsi will be able to change regulations regarding foreign companies. Malatsi is in discussions with Icasa about introducing equity equivalents as an alternative to existing black ownership requirements. The minister said he would also consider instruments other than a policy directive to address the issue if a policy directive isn’t appropriate. Unless the regulatory red tape is cleared, South Africans will be the only people in Southern Africa without legal access to Starlink in 2025. The reality is that South Africa can benefit far more from Starlink than the company, and Elon Musk, can benefit from South Africa. Therefore, it is in the interest of South Africans to allow Starlink to launch in the country to offer affordable Internet access for all. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/telecommunications/812222/south-africans-cannot-get-starlink-until-a-black-partner-gets-a-share/

Staying competitive and innovative in today’s evolving business landscape demands more than just a solid product or service. It requires an empowered and capable workforce. Skills Development, the proactive investment in employee growth, has become an essential component of a business’s long-term strategy. While this often aligns with Broad-Based Black Economic Empowerment (B-BBEE) compliance, the benefits of Skills Development go far beyond regulatory requirements. Enhancing employees' professional skills enables companies to build an agile, engaged, and growth-driven culture that fuels sustainable business success.     Beyond Compliance: Building a Skilled and Capable Workforce In many South African businesses, Skills Development is often seen as a means to meet B-BBEE targets and gain a competitive edge. However, the value it brings to the business extends far beyond this compliance. When employees receive certain opportunities for training and upskilling, they are empowered to take on more complex and fulfilling roles. A workforce that is continuously developing is not only more capable of meeting the demands of their current roles but is also prepared to adapt to industry changes, ensuring the business remains resilient and future-ready.   Investing in Skills Development means that businesses are showing their commitment to their employees’ growth which leads to increased motivation and a sense of ownership in their work. This investment, in turn, builds loyalty and reduces turnover rates. Skilled and experienced employees are more likely to stay with a company that values their professional growth, which saves on recruitment and training costs while preserving valuable institutional knowledge.   Productivity and Innovation Skills Development drives a culture of continuous improvement, which is important for business growth. When employees are equipped with updated skills and knowledge, they can perform their tasks more efficiently, resulting in higher productivity. Enhanced productivity directly impacts the company’s profitability, as tasks are completed faster, with fewer errors and less need for rework.   Moreover, employees who are empowered through learning bring fresh ideas and perspectives to the table. Innovation flourishes in environments where employees feel confident to experiment and apply new skills. In competitive industries, this ability to innovate can be a decisive factor in differentiating a business from its competitors. Skills Development Programmes encourage employees to contribute actively to problem-solving and to propose process improvements that can streamline operations and create value for customers.     Leadership Development and Succession Planning Leadership Development is another critical aspect of Skills Development that benefits businesses in the long-term. Investing in programmes that focus on soft skills such as communication, conflict resolution and strategic thinking prepares employees to step into leadership roles. This approach to succession planning ensures the company has a pipeline of competent leaders ready to take on new challenges.   Developing leaders from within means that businesses can benefit from leaders who already understand the company culture, values, and goals. This approach also boosts morale as individuals can see a clear path to advancement and feel encouraged to pursue leadership roles, knowing they have the support and resources to succeed.   Future-Proofing the Business through Adaptable Employees Skills Development also future-proofs businesses by creating a versatile and adaptable workforce. As technology and market demands evolve, businesses must be able to respond swiftly to change. Employees equipped with a diverse skills set are better prepared to take on new roles and responsibilities, helping businesses pivot when necessary. This adaptability is especially valuable in times of economic uncertainty, where the ability to quickly upskill or reskill employees can be the difference between survival and stagnation.   Businesses that prioritise continuous learning demonstrate resilience and readiness for whatever the future brings. This adaptability is not only advantageous in meeting unforeseen challenges but also positions the business as an industry leader, proactive and prepared for innovation.     Skills Development Services  are available to guide members on understanding these concepts to implement sustainable Skills Development strategies.

The 5 Bonus Points for Skills Development in exchange for meeting Absorption targets can meaningfully impact an organisation’s overall B-BBEE Scorecard. At a B-BBEE Verification, an organisation will be measured against c lause 2.1.3 of Statement 300   of the Amended General B-BBEE Codes of Good Practice , which states:   "Number of ‘Black’ People absorbed by the Measured and Industry Entity at the end of the Internship, Learnership and Apprenticeship programme under Paragraph 2.1.2.1"   Skills Development Services  are available to guide members in accessing the Bonus Points on offer.  Please note that the General Amended B-BBEE Codes of Good Practice requirements may differ from those of the B-BBEE Sector Codes of Good Practice.

Additional enhancements are available for organisations that procure from EMEs and QSEs with more than 51% Black Ownership that are Supplier Development Beneficiaries. Paragraph 3.5 of Statement 400  of the Amended General B-BBEE Codes of Good Practice states:   “If a Measured Entity procures goods and services from a supplier that is:   3.5.1 A recipient of supplier development contributions from a Measured Entity under Code series 400 which has a minimum 3-year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2;   3.5.2 A Black-owned QSE or EME which is not a Supplier Development beneficiary but that has a minimum 3-year contract with the Measured Entity, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2; and   3.5.3 A supplier to the Measured Entity that is at least 51% Black-owned or at least 51% Black Woman-owned utilising the Flow Through Principle, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by a factor of 1.2”.   A reminder, a Supplier Development Beneficiary that elevates from an Enterprise Development Beneficiary allows an organisation to claim the 1 Bonus Point on offer.   Enterprise & Supplier Development Services  are available to guide Members on enhancements under Enterprise & Supplier Development.

Media Statement | 18 February 2025 The GOOD Party is appalled by the tragic mismanagement of higher education students in South Africa . The recent protests occurring at University of Cape Town ( UCT ), Wits, the University of Western Cape (UWC) and Nelson Mandela University (NMU), reeks of poor administration and a direct result of a failed response to address the student issues encapsulated in the Fees Must Fall protest held years ago.  The start of the university year is supposed to be a time where students experience education, new cultures and an overall opportunity for growth. The South African experience is a stark contrast, littered with financial , accommodation and administrative failure. Higher education in South Africa is still barred in red tape, financial mismanagement and inadequate accommodation. The failure of NSFAS to digitise holds a large amount of responsibility for these failures which impact students annually.  Student bodies have consistently raised these concerns to university governing bodies, who have a responsibility to act on these concerns with the department of Higher Education and Training . Instead of reform, these institutions remain the same. Students now have to rely on a clunkier digitised payment system which in itself is a barrier to education for non-digitised communities.  In addition, accommodation is still a critical issue with thousands of students nationwide at the mercy of their university as they are outsourced to private accommodation. GOOD condemns the recent reports of exploitation (both financial and sexual) by landlords which is a direct result of this housing failure.  As an organisation, we demand that the reality of our higher education system be reformed through these first steps. A national dialogue held between the Department of Higher Education and Training , student representatives and representatives from the various higher education institutions The creation of a regulation ruleset regarding private accommodation that must be legally protected and enforced to ensure that should accommodation outsourcing occur; student exploitation is not a result.  Release all data related to the NSFAS digitised system , including the costs, total breakdowns and buglist. Youth face a grim reality once they graduate from higher education as a shrinking job pool and high unemployment is a South African youth reality. Our higher education institutions are one of the critical areas where reform is needed to reverse this reality.  Students challenging this reality should be met with aid and concise communication, not rubber bullets and academic exclusions.  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/nsfas-student-accommodation-the-shackles-that-bind-higher-education-2025-02-18

Anton Visser | 18 February 2025 If your business has an annual payroll exceeding R500,000 or 50+ employees, you should be in full swing preparing your workplace skills plan (WSP) and annual training report (ATR). These must be submitted to your Sector Education and Training Authority (Seta) by 30 April 2025 – no exceptions, no extensions! Why Your WSP-ATR matters Your WSP is more than just paperwork - it’s your roadmap for employee skills development and a key to unlocking the skills development component of the BBBEE Scorecard. A well-prepared WSP not only boosts business performance but also helps close the skills gap among historically disadvantaged groups, driving inclusive economic growth. Your WSP-ATR isn’t just a formality - it’s vital to your business’s sustainability and competitiveness. Neglect it at your peril. Who needs to submit a WSP & ATR? If your company’s payroll exceeds R500k per annum, you must be registered to pay skills development levies (SDL). Submitting a WSP and ATR allows you to claim back 20% of the SDL via a grant from your Seta and, critically, secure 20 points on your BBBEE scorecard. What is the WSP & ATR? WSP (workplace skills plan): Identifies the skills your workforce needs and outlines your training strategy for the coming financial year. ATR (annual training report): A record of all skills development initiatives completed in the current financial year, crucial for claiming BBBEE points. Your ATR measures your training progress against the previous year’s WSP, making it a key indicator of skills development within your company. Your WSP-ATR checklist: Get it right To ensure a smooth submission, your WSP-ATR must include: Current employee list Employee list for previous training period Total payroll figure Comprehensive training completed summary Proof of training completed Comprehensive training plan Proof of bank details Registered SDF (skills development facilitator) SDF appointment letter Signed authorisation form Hard-to-fill vacancies & reasons Training committee members & ID numbers The cost of not submitting Miss the deadline, and your business takes a massive hit. Here’s what’s at stake: BBBEE level downgrade: Your business can earn up to 20 points for the skills development element on the B-BBEE scorecard – that’s two levels. The loss of the 20 skills development points by not submitting your WSP-ATR on time will see your BBBEE level drop by two levels – your level 2 gets demoted to level 4 – with serious repercussions for your current and future business opportunities especially in the government, corporate and public sectors. No submission, no points. And any grant linked to the WSP will then also be suspended for the following year until the submission window opens again. In essence you’re losing the benefits of two years of L&D investment, not just one. Lost grants: You’ll forfeit your mandatory grant which is 20% of your SDL spend to SARS - as well as any discretionary grants. This means losing invaluable opportunities to improve the skills of your own employees and your business competitiveness suffers as a result. Tender rejections: Many tenders require a WSP submission as a pre-qualifying criterion. No WSP? No chance of winning tenders. No retrospective claims: Any financial benefits of the training undertaken are permanently lost to you, as you cannot account for them retroactively or recoup any of the levies in the following financial year. The doors are closed in terms of the BBBEE scorecard points you could have claimed. The price of poor planning – a costly mistake Picture this: A company spends over R900k on training and development during the year and starts with their BBBEE verification just a few weeks ahead of the WSP submission deadline. However, the business has no WSP in place for the coming year, no skills audits were done, nor is there any documented ATR for their training spend. This means that not only is all their L&D investment for the current year lost in terms of their BBBEE points, but they will have to wait another year to submit their WSP. The business then decides to register a rushed learnership programme rollout before their financial year-end to make up for the error in terms of their lost skills development spend - however this provides no benefit for the current year as the learnerships will not be implemented and completed before the Feb financial year-end – which means none of the spend will fall within the current financial year. Two levels on their BBBEE scorecard are wiped out with the loss of 20 points. There’s another big opportunity cost. By not planning ahead and having their WSP in place, the business also loses the opportunity to implement learnerships for their own employees, which would have meant their employees could improve their skills and productivity, while the business could have allocated the spend on their learnership training AND the salaries of their employed learners towards their skills development spend! Overall, the lack of planning and knee-jerk reaction to rectify it will cost the business three times more in L&D spend than necessary. The HR and financial directors will find themselves in a tough spot accounting to their board for the gross oversight and lack of planning. WSP-ATR: More than compliance – it’s a competitive edge A WSP-ATR submission isn’t just about ticking boxes for BBBEE compliance. When done right, it’s a powerful strategic tool that helps businesses build a skilled workforce, gain competitive advantage, and drive economic transformation. It’s time to ditch the last-minute scramble and start using WSPs to fuel business growth, create jobs, and develop real, in-demand skills. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/dont-forget-to-submit-your-workplace-skills-plan-your-bee-score-depends-on-it-143086a

Modiegi Mashamaite | 13 February 2025 More than 1.5-million jobs have been created through the presidential youth employment initiative (PYEI) since its launch, deputy minister in the Presidency Nonceba Mhlauli said this week. The initiative launched by President Cyril Ramaphosa in 2020 was designed to address the high levels of youth unemployment by providing young people with opportunities to transition from education to the workforce. Mhlauli said more than 53,379 earning opportunities were secured through the national pathway management network, which brought the total number of opportunities created to 1.57-million. More than 38,864 young people accessed earning opportunities through the SA Youth platform, while an additional 14,515 opportunities were secured via the Employment Services of SA. Mhlauli said the youth employment service initiative successfully placed 10,337 young people in workplace experiences across different sectors. Additionally, the National Youth Development Agency and department of small business development supported more than 14,600 young entrepreneurs by offering financial and non-financial opportunities. The revitalised national youth service phase 3 was launched successfully, recruiting 13,568 new participants, which contributed to 82,378 youth placed in service opportunities. The progress of the PYEI is specially significant given the 32.1% unemployment rate. “The PYEI remains a cornerstone of our national efforts to address the persistent challenge of youth unemployment, ensuring young South Africans have access to meaningful economic opportunities,” said Mhlauli. The PYEI was created in response to the challenge faced by many young South Africans  who struggle to transition from learning to earning. Mhlauli said the initiative sets out priority actions that aim to stimulate demand and create a seamless mechanism for young people to connect with available opportunities while receiving support that suits their unique circumstances. A recent addition to the PYEI portfolio is the jobs boost outcomes fund, a R300m initiative launched in November 2023. The fund focuses on creating employment opportunities in areas such as digital inclusion, enterprise development and work-integrated learning. “Unlike traditional approaches to job creation, which focus on inputs and activities such as training and mentorship, the jobs boost outcomes fund ensures funds are allocated to implementing organisations on the successful placement and sustained employment of excluded young people in quality jobs,” said Mhlauli To date 3,347 young people have been enrolled in training programmes, 1,603 have been placed in jobs, and 1,247 have sustained employment for at least three months. Mhlauli reaffirmed the initiative’s commitment to the youth. “To our young people, I reaffirm that this initiative exists for you — your ambitions, growth and future. Let us continue working together to ensure every young person has access to the opportunities they need to thrive.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.timeslive.co.za/politics/2025-02-13-presidential-youth-employment-initiative-has-created-15-million-jobs/