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Kayla Zhu | 22 August 2024 How is wealth distributed across countries, and what is the scale of these disparities? This graphic shows wealth inequality by country in 2023, based on data from UBS. How Wealth Inequality Compares Globally One common way of measuring wealth distribution in a country is the Gini coefficient. In this index, scores closer to zero indicate more equal wealth distribution, while a score of 100 indicates that one individual holds all the wealth. Here are Gini index scores across select countries, highlighting how they have changed over time: South Africa ranks highest overall, with 10% of the population controlling approximately 80% of the country’s wealth. Over the last 15 years, wealth inequality has increased. Unemployment has surged to 32%, up from 20% in 2008, while inflation-adjusted GDP per capita has declined. Even though apartheid took place three decades ago, race remains a key factor in income disparities. Ranking in second is Brazil, a country where the richest 10% control half of the nation’s wealth. Between 2023 and 2024, the number of billionaires in the country jumped from 51 to 64, making Brazil home to the tenth-highest number of billionaires in the world. Despite being a socially democratic country, Sweden ranks fifth overall. The country has one of the highest billionaires per capita, at one per 250,000 people. By comparison, the U.S. has roughly one per 500,000 people. Driving this concentration of wealth is the country’s thriving tech sector, which has produced over 40 unicorn companies, such as Spotify and Skype, over the last two decades. We can see that the U.S. follows next, a country whose wealth inequality has fallen marginally since 2008. A similar trend of declining wealth inequality can be seen across other European nations including Germany, Switzerland, and Austria in addition to South Korea and Hong Kong. Particularly in developed countries, the wealth gap has narrowed since 2008 as the middle segment experienced faster wealth gains than those in higher wealth brackets. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.visualcapitalist.com/wealth-inequality-by-country/

Tayron Mhlongo | 21 August 2024 As this year’s Women’s Month draws to an end, there continues to be widespread celebrations across the length and breadth of the country to mark this important period in the South African history calendar. This is no exception to the Vaal University of Technology (VUT) – there is a series of events by various departments and faculties university-wide to recognize and honor the strength, resilience, and achievements of our women staff and students. Very recently, the Department of Civil Engineering in partnership with the Building and Construction Society Organization (BCESO), hosted the Engineering Women’s Day event aimed to spotlight and empower those in the male-dominated field of engineering, while encouraging students to pursue careers in this dynamic sector. The event brought together a diverse array of departments and units from VUT, including Chemical, Civil, Electrical, Metallurgy, Industrial, NDT, Power, Process Control, Computer Systems, and Mechanical Engineering, as well as Alumni Relations and the Institutional HIV & AIDS Unit (IHAU). This cross-disciplinary collaboration underscored the importance of unity and collective support in advancing women’s roles in engineering. The day was marked by the presence of several distinguished guests and speakers. Ms. Yvonne Daluz, a career advisor, and Ms. Nonhlanhla Mthembu, a life coach, were among the notable attendees who contributed to the day’s success. Their participation, along with that of guest speakers from various professional backgrounds, added depth and variety to the discussions and presentations. The centerpiece of Engineering Women’s Day was a panel of accomplished women from different engineering disciplines. These panelists shared their personal and professional journeys, offering firsthand accounts of the challenges and triumphs they have experienced in their careers. Their stories provided invaluable insights into the realities of working in engineering, highlighting both the unique opportunities and the obstacles that women often encounter. By showcasing the achievements of these trailblazing women, the gathering sought to motivate and encourage the next generation of engineers. The panel discussions and interactive sessions were designed to provide students with a clearer understanding of what it means to be a woman in engineering, and to offer practical advice and encouragement for pursuing a career in this field. “Never feel the need to make excuses or justify yourself to others. People may try to bring you down, but it is important to speak up for yourself. Failing to meet traditional expectations does not diminish your worth as a woman,” advised Ms. Mthembu. Engineering Women’s Day also served as a platform for addressing broader issues related to gender diversity in engineering. The presence of various departments and units reflected a holistic approach to addressing these challenges, emphasizing the importance of creating inclusive and supportive environments for women in all engineering disciplines. The event not only celebrated the achievements of women in engineering but also reinforced the importance of supporting and encouraging female students to pursue their dreams in this vital field. As the engineering community continues to evolve, events like these are essential in paving the way for a more inclusive and diverse future in engineering. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://vut.ac.za/womens-day-dialogue-empowers-women-in-engineering-field/

SA News | 21 August 2024 The National Minimum Wage (NMW) Commission is inviting all stakeholders with an interest in the National Minimum Wage to make representations of possible adjustments in the policy instrument. “The closing date for submission of written comments/representations concerning possible adjustments to the National Minimum Wage is 30 September 2024,” the Commission said in a statement. This as the Commission is conducting an investigation into possible adjustments to the NMW and will submit its recommendations to the Minister of Employment and Labour Nomakhosazana Meth later in 2024.  This is in accordance with section 6(2) of the National Minimum Wage Act, No. 9 of 2018. The NMW is the minimum amount of pay that an employer is legally required to remunerate employees for work done. The amount does not include payment of allowances (such as transport, tools, food or accommodation) payments in kind (board or lodging), tips, bonuses and gifts, among others. The National Minimum Wage is the floor level below which no employee should be paid. The NMW first came into implementation in 2019 at a minimum of R20 per hour. The NMW is enforced by law and violations are subject to fines.  Commission Chairperson, Professor Imraan Valodia said written representations will be forwarded to the Minister together with the Commission’s report to decide on the 2025 determination. The current rate of NMW as announced by former Employment and Labour Minister Thulas Nxesi in February 2024 is set at R27,58.Written inputs should be sent to: Directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001, or nmwreview@labour.gov.za on or before the closing date. – SAnews.gov.za ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/have-your-say-2025-national-minimum-wage-determination

IT-Online | 21 August 2024 Vodacom Business, in partnership with Anani Technologies and Unisa, has launched a call centre designed to respond to the country’s severe unemployment crisis. Through this partnership, much-needed jobs are being created, uplifting families and communities while serving the staff and students of Unisa. At launch, more than 50% of the employees at the centre are women, a milestone that aligns with Vodacom’s purpose pillar of inclusion for all. Since the call centre went live, it has exceeded standard call centre metrics, boasting a 98% service level, an 85% first contact resolution score, and an abandonment rate of only 0.74%, a result of extensive training of Anani consultants, who are well-equipped to meet the needs of Unisa’s students and staff. “At Vodacom, we partner with like-minded brands with a shared vision and purpose to create an impact in our communities and the country. Through partnerships such as this one, we wanted to tackle the scourge of unemployment that the country is currently facing,” says Videsha Proothveerajh, director of Vodacom Business. “Not only are we aiming to create employment, but we also want to create transformative opportunities for small to medium enterprises (SMEs) through the use of technological solutions, thereby advancing socio-economic progress in South Africa. We are proud of the number of women this initiative has onboarded, especially during Women’s Month. We remain committed to making impactful changes in our communities for the greater good.” Vodacom Business has invested in Anani as an SME partner and reseller of desk support for Unisa’s mobile internet services – a critical component for enabling distance learning. This forms part of Unisa’s ongoing partnership with Vodacom Business, which includes supporting SMEs in contract fulfilment to align with national development goals. “At Unisa, we are proud of the partnership we have forged with Vodacom Business, which has now resulted in a call centre launched with Anani Technologies. The call centre aims at bridging the gap between the university and our students. Unisa students are scattered around the continent, and the only way to reach them, is through this call centre initiative,” says Sibusiso Mthembu, director of supply chain management at Unisa. In the past financial year, Vodacom invested R8.8 billion in enterprise development and preferential procurement of small enterprises, with R7-billion spent on 1 037 qualifying small enterprise (QSE) and exempted micro enterprise (EME) suppliers, such as Anani Technologies. “Through our partnership with Vodacom and Unisa, Anani Technologies has built a customer experience centre that supports mobile internet services to enable distance learning to Unisa staff and students. This call centre represents Vodacom and Unisa’s commitment to supporting SMEs and creating tangible opportunities for economic growth through enterprise development and youth employment. At Anani, we are proud to be at the forefront of crafting innovative connectivity solutions with the support and investment of Vodacom,” says Derrick Kupa, MD of Anani Technologies. “We believe SMEs are critical for economic growth and employment. By providing them with business support and innovative technology, we aim to build an inclusive, sustainable, and trusted digital society where individuals and businesses can thrive,” concludes Proothveerajh. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2024/08/21/vodacom-business-unisa-launch-anani-call-centre/

Publicity | 21 August 2024 The success stories that young Africans aspire to achieve, African governments aim to facilitate through their policies and educational institutions that strive to prepare students. However, as the world celebrates International Youth Day the challenges are substantial, says Vera Ng'oma, country director of Malawi for the British Council. Each year, at least 10 million youth enter Africa's labour market, but only 3.1 million new formal wage jobs are created.According to the International Labour Organisation, employability — defined as "portable competencies and qualifications that enhance an individual's capacity to secure and retain decent work, and to progress within the enterprise" — is attainable. But what steps are needed to more purposefully pursue youth employability? How can this agenda gain the focus and urgency required to achieve much-needed results? Revitalising the Vision for Employability   Skills and jobs are crucial for Africa's economies, especially as its youth population is projected to be the world's largest by 2050. However, progress on Sustainable Development Goal (SDG) 8.6 — promoting youth employability, education and training — remains slow. Employability is a key issue for the education sector but must be addressed as a cross-cutting matter. The urgency lies in creating a coordinated approach that aligns school-work systems, promotes collaboration between training institutions and employers and integrates educational and economic considerations to boost the job market and create necessary skills. A clear vision of employability is essential. This vision should: define what is at stake identify what needs to be accelerated to tap into and build potential leverage existing assets, and coordinate the various parts, roles and actors. This will help embed an understanding of the world of work in education and training. Building Skills With the Workforce in Mind  Unfortunately, education and industry have often failed to collaborate as needed, leading to a mismatch between the labour market and the skills it requires. A more integrated approach is essential for developing labour market-responsive curricula and fostering entrepreneurial learning to reduce barriers to youth employment and entrepreneurship. Institutional leadership is crucial. The British Council's Innovation for African Universities (IAU) programme demonstrates how academia can enhance youth employability through Africa-United Kingdom partnerships that support innovation and commercialisation. This initiative helps students build job skills and entrepreneurial capabilities tied to real market opportunities. In technical and vocational education and training (TVET), apprenticeships and work-integrated learning initiatives that combine real work with training could become a reliable model for developing industry-specific skills and providing valuable exposure for learners. If successful examples can be scaled up, both businesses and society will benefit. Focusing on growth and productive sectors of the economy is a sustainable way to enhance employability. Ensuring that skills are demand-driven and deployable into existing and new jobs will support national productivity, economic growth and the futures of young people. Empowering Through Digital   Across Africa, jobs are much sought after but self-employment is increasingly becoming a pragmatic option for earning a livelihood. It has been exciting to note how technologically-enabled initiatives are igniting young people's potential and capacities.  SoCreative , the British Council's free, self-paced online learning platform, is equipping thousands of creative entrepreneurs and leaders with business skills, knowledge and understanding.   In Nigeria, Kenya and South Africa, our Skills for Inclusive Digital Participation (SIDP) programme is helping bridge the digital divide. About 18 000 people with disabilities, disadvantaged youth and women have improved their digital skills, started businesses and are accessing new markets. This impact story shows how an inclusive approach is making a difference.   However, entrepreneurship in sub-Saharan Africa would need deeper investment to become a real source of jobs as it still faces challenges, including financing, regulatory barriers and a lack of a supportive ecosystem. Influencing Progressive Industries Improving youth employability requires actions that go beyond individual efforts, focusing on harnessing the dynamism of networks, the diversity of employers and the energy of industries. A groundbreaking initiative in African fashion, the TechStitched Fashion Residency — a collaboration between the British Council and Hub of Africa Fashion Week in Ethiopia — promotes growth, innovation, creative exchange and skill development across the continent's fashion industry. Recognising that the quality of business environments affects the health of enterprises, we support businesses through our EU-funded Investment Climate Facility (ICR). This initiative provides technical assistance and tools to help businesses operate more efficiently and create more decent work opportunities, especially for youth. Adopting a Pipeline Approach The focus on youth employability often centres on tertiary education, but the entire formal education cycle needs to evolve, starting from earlier stages. Strong learning foundations determine the quality of learners transitioning into later stages. The British Council's approach encompasses basic, secondary and tertiary education, aiming to build robust, inclusive education systems through partnerships. These systems enable youth to develop cognitive and life skills as they progress through the educational journey and enter the workforce. Our non-formal education interventions, such as Youth Connect , facilitate agency, leadership and peer learning. By addressing the entire education lifecycle, our work leverages policy, practice and partnerships that are locally led and informed by global best practices. We connect: students educators policymakers academics creatives, and entrepreneurs. All of these people are focused on increasing opportunities for youth. This approach strengthens systems and identifies and tests incentives to develop effective solutions. Moving the Needle on Gender Equity   The youth unemployment rate for females is nine to 13% higher than for males in most African countries. Young women face various workplace inequities, including unequal pay and fewer promotions. Our efforts to not only make more young women employable but also to ensure they remain in the workforce are yielding positive results. The findings from a gender audit, supported by our ICR facility programme, are successfully mobilising companies in Malawi to adopt stronger anti-sexual harassment policies in the workplace. Our Ignite Culture programme, operating in 14 African countries, provides grants and business support to creative and cultural enterprises, many of which are led by women. In Uganda, Bold-in-Africa, supported by an Ignite Culture grant, exemplifies how our work is increasing the visibility of women creatives. We continue to create an enabling environment by partnering to influence legislation, policy and practice. Through dialogue, research and evidence-based decisions, we aim to improve the lives of women and girls. Time to Raise the Stakes High unemployment is not just an economic risk; it is also a social risk, as insufficient economic opportunities can threaten community stability. The youth employability agenda must go beyond individual programmes, embracing a bold, continent-wide ambition, collective leadership and imaginative approaches that involve the agency of young people facing these challenges. A commitment to reliable data, measurement and evidence is essential. The Africa Youth Employment Clock , a dynamic tool that projects current employment growth in real-time, could be invaluable in this regard. The clock is ticking. We must accelerate our efforts to improve life prospects for Africa's youth through systemic solutions that create opportunities, skills and jobs, and stimulate the socio-economic growth essential for the continent's prosperity. It is a call to action to step it up. For more information, visit www.britishcouncil.org.za . You can also follow the British Council on Facebook , X , Instagram , or on TikTok .  ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.mediaupdate.co.za/publicity/156696/stepping-up-youth-employability-for-jobs-and-better-life-chances

The core aim of Socio-Economic Project Contributions is to support income generation. Therefore, any contributions must pass the income generation test at the time of an organisation’s B-BBEE Verification.   Schedule 1  of the Amended General Codes of Good Practice defines Socio-Economic Project Contributions, which must be pre-approved by organs of state or a sector as:   “Socio-Economic Project Contributions means monetary or non-monetary contributions carried out for the benefit of any projects approved for this purpose by any organ of state or sectors including without limitation:   o   Projects focusing on environmental conservation, awareness, education and waste management; and o   Projects targeting infrastructural development or reconstruction in underdeveloped areas; rural communities or geographic areas identified in the government’s integrated sustainable rural development or urban renewal programmes; o   New projects promoting beneficiation.”   Socio-Economic Development Services   are available to Members to assist meeting requirements under the element of Socio-Economic Development.

Virtual informal learning, otherwise referred to as distance training, has become the norm over the past few years.  Providing evidence of a training intervention according to the Skills Development requirements, includes an attendance register or certificate of attendance (not limited to). However, virtual learning or distance training sometimes poses a challenge in terms of producing an attendance register.   Some Members have arranged for an attendance register to be shared via email or on a document sharing platform at the end of the training initiative which records the attendees for each session allowing the learners to sign once for all sessions.   There is no official clarity on how an Entity should record attendance for a virtual learning or distance training intervention, but it would be important to provide evidence in some form that indicates that the training initiative has taken place.   Skills Development Services   are available to Members in assisting with collating evidence for virtual learning or distance training.

Intra-group procurement spend is a normal part of spending, especially for groups of vertically connected companies, which in many cases is a sizeable amount. Internal procurement between holding companies and their subsidiaries must be included in an organisation’s Total Measured Procurement Spend as per Statement 400 of the Amended General B-BBEE Codes of Good Practice.   Paragraph 5.1.2 states: Intra-group procurement: all goods and services procured from subsidiaries or holding companies of a Measured Entity (BEE Credentials of the entity supplying goods and/or services must be confirmed in the way of a BEE Certificate).     Requirements for Consolidated B-BBEE Verifications amongst a group of Entities will have an impact on the above.   Enterprise & Supplier Development Services   are available to Members to assist in understanding the Intra-Group Procurement spend.

Portia Thokoane | 19 August 2024 The recent surge in South Africa’s unemployment rate reaching 33.5% in the second quarter of 2024, serves as a stark reminder of the significant challenges our nation faces. This troubling statistic, coupled with the losses in key sectors such as trade and agriculture, underscores the need for a more robust approach to job creation and economic reform, and the creation of entrepreneurship opportunities for youth as we navigate a period of political transformation, and economic uncertainty. Despite the addition of 1.8 million jobs since the start of 2022, the labour force has expanded by 2.2 million, resulting in a significant increase in the number of people unable to find work. This discrepancy highlights a persistent structural issue within the economy, where traditional sectors that once absorbed unskilled and semi-skilled labour – such as trade, agriculture, and construction – are now shedding jobs. The manufacturing sector, despite a modest gain of 49 000 jobs is not sufficient to offset the broader losses in the economy. Businesses must play a critical role in addressing these challenges. The rising unemployment figures, particularly in sectors that have traditionally been pillars of the economy, signal an urgent need for innovation and collaboration between the public and private sectors. The decline in agricultural employment is particularly concerning, given that this sector is not only a key source of jobs but also integral to the nation’s food security and rural development. Stanlib’s chief economist, Kevin Lings, has noted that the rise in unemployment is persistent despite improvements in electricity production, indicating that business confidence remains low. Companies are focusing on cost-cutting measures rather than investing in growth and expansion, which points to a broader issue extending beyond the immediate economic environment and highlights the need for a concerted, long-term strategy to revitalise South Africa’s economy. Statistics South Africa also reports a troubling increase in discouraged work-seekers, with the expanded definition of unemployment rising to 42.6%. This trend reflects a growing sense of disillusionment among the working-age population and serves as a call to action for all stakeholders to intensify efforts in creating meaningful employment opportunities that can reinvigorate the labour market. The structural unemployment problem is particularly acute among younger South Africans, with alarming unemployment rates of 60.8% for those aged 15-24; and 41.7% for those aged 25-34. The Bureau for Economic Research (BER) has highlighted that while tertiary sectors such as trade and finance are growing, they are not equipped to absorb the country’s unskilled and semi-skilled labour force. This mismatch between the skills required by the economy and the skills available in the labour market is a critical challenge that demands urgent attention. The new governing alliance’s focus on economic reform and job creation is a positive step, but it is clear that the private sector must be an active participant in this process. For over a decade, South Africa’s economic growth has been stifled by factors such as load shedding which, despite recent improvements in Eskom’s performance, remains a barrier to sustained growth. Businesses, including ours, must continue to innovate and invest in solutions that address these systemic issues. The private sector, while cautious remains a vital partner in this endeavour. As Busisiwe Mavuso recently highlighted, the commitment from the Department of Trade, Industry, and Competition (dtic) to engage with the private sector is a positive development. However, for this partnership to be effective, there must be a clear and stable regulatory environment that fosters business confidence. Streamlining regulations, clarifying industrial policies, and ensuring greater transparency between the dtic and the private sector are crucial to creating the conditions necessary for investment and job creation. The current unemployment crisis presents an opportunity for South Africa to rethink its approach to economic growth. By focusing on sectors with high potential for job creation, such as the green economy, and by aligning educational outcomes with the needs of the labour market, we can begin to address the structural challenges that have plagued the economy for years. In conclusion, the rising unemployment rate should serve as a catalyst for action. It is a call to all stakeholders – government, business, and civil society – to come together and create a sustainable, inclusive economy that provides opportunities for all South Africans. The path forward requires collaboration, innovation, and a relentless focus on creating jobs and entrepreneurship opportunities that can lift millions, especially our youth, out of poverty and into active economic participation. Portia Thokoane, human resources director, Nestlé East & Southern Africa Region ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/opinion-our-youth-are-the-highest-among-the-lowest-employed-9e33b0ae-2e18-49bc-8f76-97c12dc57480

Puseletso Mofokeng | 19 August 2024 Equipping young people with soft skills can reduce joblessness. Youth unemployment is a widespread problem that impacts economies around the world, and particularly SA. Globally, according to the International Labour Organisation (ILO) and World Bank, an estimated 14% of young people are unemployed, however, this masks the high numbers experienced by certain countries. In SA, the youth unemployment rate in 2024 stands at a staggering 45% according to Stats SA. While economic factors, educational discrepancies and technological advancements are commonly cited as primary causes of youth unemployment, increasing evidence indicates that a lack of soft skills and work readiness also plays a significant role. Soft skills, such as communication, teamwork, problem-solving and emotional intelligence, are crucial for success in the workplace. Unlike job-specific technical skills, soft skills are universally valuable and transferable across different roles and industries. According to a report by the World Economic Forum, employers are increasingly looking for candidates who have a combination of technical and soft skills. This combination is essential because it allows individuals to adapt to changing job requirements, work effectively in teams and navigate the complexities of modern work environments. This is why many companies are more inclined to hire candidates with these skills, as they know they can handle the required job with minimal oversight and training. Work readiness is about the preparedness of an individual to effectively enter and perform in the workforce. It encompasses not only technical and academic competencies but also soft skills, professional behaviours and an understanding of workplace norms and expectations. It’s evident that the lack of these soft skills is resulting in employers spending a significant amount of money on capacitating employees’ skills to enhance their competence. This is not the ideal situation. A study by the National Association of Colleges and Employers found that employers prioritise work readiness skills, including professionalism, work ethic and critical thinking, when evaluating job candidates. Young people need to develop strong soft skills to enhance their employability. Attributes such as communication, teamwork, problem-solving, initiative and self-motivation are highly valued by employers. These skills enable individuals to effectively manage tasks, set goals and drive projects forward without constant supervision. Additionally, effective resource management skills are critical for maximising productivity and meeting deadlines. Without these competencies, young people may face challenges in retaining jobs and advancing their careers, which could impact their long-term professional growth and success. The lack of these skills among youth can result in difficulty securing employment and succeeding in their roles. Various reasons can explain the lack of soft skills among youth. Factors such as digital communication, technology dependency and lack of experience contribute to this issue. Parental and societal pressures often prioritise academic and technical achievements over the development of interpersonal skills. This leads to an environment where success is measured by grades and test scores rather than emotional intelligence and communication abilities. Educational systems frequently mirror these priorities, emphasising standardised testing and core academic subjects while neglecting the importance of soft skills such as teamwork, problem-solving and adaptability. In many cultures, a higher value is placed on individual success and competition, which diminishes the emphasis on collaboration and empathy. These skills are essential for thriving in a diverse and interconnected world. The Seriti aRe Bapaleng Early Childhood Development Programme aims to tackle the lack of interpersonal and emotional skills among young people. The programme’s focus is on changing the perspectives of parents and society to emphasise the importance of emotional intelligence and social skills from an early age. It actively involves parents and caregivers, educating them about the crucial role of promoting emotional and social development alongside academic success. Through providing resources, workshops and home visits, the programme encourages practices that integrate technical learning with the nurturing of empathy, communication and teamwork. This comprehensive approach aims to create an environment where success is not solely determined by grades and test scores, but also by a child’s ability to manage social interactions and develop strong emotional resilience. The ILO stated in 2018 that work-based learning opportunities are crucial for young people to acquire the skills and experience needed for employment. In support of this point, the Stats SA report, states that young people who have some form of experiential learning, apprenticeships and work experience are more able to find and retain employment. Furthermore, youth from disadvantaged backgrounds may face additional barriers, such as lack of access to quality education, training programmes and professional networks, which can hinder the development of soft skills and work readiness. The lack of soft skills and work readiness is a significant factor contributing to youth unemployment and unemployability, addressing this issue requires a collaborative effort from educational institutions, employers and policymakers. By prioritising the development of soft skills and work readiness, we can better prepare youth for the demands of the modern workforce and improve their chances of securing meaningful employment. Mofokeng is programme officer of aRe Bapaleng ECD at Seriti Institute ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/columnists/2024-08-19-puseletso-mofokeng-acquiring-soft-skills-can-help-youth-become-employable/

Dimpho Sepeng and Yuneal Padayachy | 20 August 2024 The Broad-Based Black Economic Empowerment (B-BBEE) Scorecard is a crucial framework in South Africa, designed to drive economic transformation by promoting inclusivity and equal opportunities. Comprising of five (5) Elements under the General Amended B-BBEE Codes of Good Practice, namely; Ownership Skills Development, Enterprise and Supplier Development, Management Control and Socio-Economic Development, each with its own specific criteria, the B-BBEE Scorecard serves as a comprehensive measure of a company's commitment to Transformation. This article explores the significance of each element and how they collectively contribute to shaping an organisation's B-BBEE Score.   Understanding the B-BBEE Scorecard   1.       Ownership Ownership stands as a fundamental pillar, emphasizing the need for Black individuals to have a meaningful stake in the company. Businesses are assessed on the percentage of Black Ownership and Black Women Ownership and the mechanisms in place to ensure genuine participation, such as Employee Share Ownership Schemes and Broad-Based Ownership Schemes. Businesses need to make sure that the required percentage of Black Ownership & Black Women Ownership is achieved and that it is meaningful and not simply tokenistic. Ownership has Weighting Points of 25 points under the Amended General B-BBEE Codes of Good Practice and businesses must achieve a sub-minimum requirement of 40% of the Net Value points (8 points). 2.       Management Control: This element evaluates the representation of Black individuals at management and executive levels. It focuses on the development and advancement of Black talent within the organisation, including succession planning and skills transfer. Management Control has Weighting Points of 19 points and businesses achieve compliance by meeting the targets for the participation of Black people and Black women at Board, Executive, Senior, Middle and Junior Management levels as well as Black employees with disabilities.   3.       Skills Development: Skills Development is pivotal in empowering Black People through training and education. Organisations are scored on their commitment to fostering skills development initiatives, including formal training programmes, learnerships, and mentorship opportunities. Businesses that want to become B-BBEE compliant must meet specific targets for spending on skills development initiatives and the number of Black employees benefitting from these programmes. Skills Development has Weighting Points of 20 points, excluding bonus points, and businesses must achieve a sub-minimum requirement of 40% of the targets set out in the Skills Development Element. 4.       Enterprise and Supplier Development: Encouraging the growth of Black-Owned businesses, this element assesses efforts to support and procure from qualifying enterprises. Initiatives such as supplier development programmes, mentorship, and financial assistance contribute to this area. Businesses must allocate a portion of their spend to qualifying Black-Owned suppliers and invest in the development of these enterprises. Enterprise and Supplier Development has Weighting Points of 42 points, excluding bonus points, and businesses must achieve 40% of each of the targets set out under Preferential Procurement, Supplier Development and Enterprise Development categories under the ESD Scorecard. 5.       Socio-Economic Development: Socio-Economic Development requires companies to invest in projects that uplift communities. Contributions may include donations to education, healthcare, and community development initiatives, demonstrating a commitment to making a positive impact beyond the business realm. Businesses are required to invest a percentage of their Net Profit After Tax (NPAT) towards socio-economic development initiatives, with a focus on community upliftment. Socio-Economic Development has Weighting Points of 5 points. 6.       Youth Employment Service (Y.E.S) Initiative The Y.E.S Initiative is an optional mode of increasing the level of a business on the B-BBEE Scorecard. Businesses that choose to participate in the initiative will be employing young Black People in order to achieve a higher B-BBEE Status. It is a government- private driven programmme aimed at addressing youth unemployment by creating work opportunities and bridging the gap between education and employment for young people. Navigating Compliance Ensuing B-BBEE compliance involves a multifaceted approach and a commitment to transformation. Businesses need to: 1.       Set clear and measurable objectives for each B-BBEE element and align them to broader transformation and business goals. 2.       Regularly monitor and assess the business’s progress against the set targets, which is key to identifying areas of improvement. 3.       Prioritise skills development initiatives, providing training opportunities that enhance the capabilities of the workforce, especially Black people. 4.       Actively promote diversity in management roles, which will help create opportunities for advancement. 5.       Build and nurture relationships with Black-Owned suppliers and contribute to their development through various support mechanisms and mentorship. 6.       Highlight tangible contributions to socio-economic development and community upliftment through well-executed socio-economic development projects. Understanding the nuances of each element within the B-BBEE Scorecard is essential for businesses seeking to navigate and excel in South Africa's transformative landscape. By strategically aligning with B-BBEE principles, organisations not only enhance their overall Score but actively contribute to building an inclusive and equitable business environment. Embracing the essence of transformation, companies can play a pivotal role in shaping a more economically empowered and socially responsible South Africa.

Seth Thorne | 17 August 2024 The World Bank has suggested several key trade policy reforms for South Africa. It says that driving an export-oriented strategy can enhance economic growth and job creation while strengthening the economy’s resilience to shocks. In a new report titled Unlocking South Africa’s Potential: Leveraging Trade for Inclusive Growth and Resilience , the World Bank said that “over the past 15 years, South Africa has lost its economic growth momentum, systematically underperforming other middle-income economies.” Although the country has been subject to challenging global and domestic shocks over the past several years, the World Bank notes that some of the current policies have not done enough to ease these woes. “Promoting inclusive growth and development in South Africa requires bold microeconomic reforms to adapt to global changes and address domestic constraints,” said the World Bank. The report argues that spearheading an export-oriented strategy can enhance economic growth and job creation in South Africa while strengthening the economy’s resilience to shocks. These arguments are based on seven key findings from the World Bank, which include: South Africa’s exports have grown more slowly and are concentrated in a few products and markets. Regional exports face high tariffs and logistics barriers. Despite global growth, South Africa’s services exports have stagnated, though knowledge-intensive sectors show potential. Goods exports are dominated by a few firms, with declining new entrants and low survival rates. Rising transport and logistical costs have hurt export competitiveness. While overall exports haven’t significantly increased, higher firm-level exports have boosted wages for low earners. Current policies promoting local industries may reduce competitiveness and harm export performance and consumers. While these suggestions are to emphasise an export-oriented economy, the Department of Trade, Industry and Competition’s (DTIC) Deputy Minister Andrew Whitfield said that this is already part of the new administration’s priorities. The Deputy Minister said that South Africa’s economic growth is grounded in manufacturing-led growth and export-oriented economy. “The creation of an export-oriented economy can be realised through a dedicated focus on implementing measures to boost the competitiveness of local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters, and cultivating beneficial trade alliances with other nations,” explained Whitfield. Suggestions for South Africa to see broad-based gains from trade The World Bank said that adopting an export-oriented strategy and making the most of it for South Africa’s economy will require policy changes in at least three key areas. 1 – Structural reforms “Firstly, a more dynamic export performance requires addressing long-standing structural constraints related to input markets that have continuously eroded private sector competitiveness and profitability over the past decade,” said the World Bank. They said that continuing macro-fiscal and structural reforms to restore business confidence and stimulate private-sector investment is essential to restart growth. Additionally, they ensure social policies and education align with labor market needs while coordinating efforts across government agencies. This is seen to have been in motion with the government’s Operation Vulindlela, which is a joint initiative of the Presidency and National Treasury which hopes to accelerate the implementation of structural reforms and support economic recovery. It aims to modernise and transform network industries, including electricity, water, transport and digital communications, through collaboration with the private sector. 2 – Improve export competitiveness “This encompasses taking a multi-dimensional lens when analysing specific policy reforms and their implications at the level of the firm, industry and macroeconomy,” said the World Bank. The researchers point out that in recent years, the DTIC and, in turn, trade policy have increasingly focused on localisation and increased domestic value addition.  The report indicates that the net benefits of localisation in South Africa and SACU members are limited due to low growth, constrained domestic demand, and higher consumer costs from restricting imports. “If localisation policies can, under certain circumstances, support growth and job creation, they also need to be assessed given their potential costs throughout value chains and on consumers,” said the World Bank. “A sound analysis of these proposals, as well as clearly stating the objectives and concrete plans to achieve them, developed in consultation with the private sector and other social partners, will be essential,” it added. 3 – Reforms in trade policy and facilitation The crux of the report is that the World Bank suggests making the most of new trade agreements and other opportunities for diversification. They said that modernising trade policies and leveraging new agreements like the African Continental Free Trade Agreement can help South Africa capitalise on emerging digital services and green sectors, diversify exports, and expand into advanced markets. They say that this will ultimately position the country to better seize competitive trade opportunities. Additionally, it said that the country must improve trade facilitation and address non-tariff barriers by reducing trade costs through infrastructure investment, more competition in logistics, and streamlined processes, which is essential for boosting South Africa’s export sector. Overall, the bank said that to boost export capabilities, South Africa should enhance export promotion, centralise trade information, improve SME access to finance, and attract foreign direct investment. Identifying cross-government priorities for integration The researchers suggest that significant, targeted interventions could be led through Operation Vulindlela, enhancing visibility and ensuring cross-government coordination with high-level support. “The foundations for trade to drive inclusive growth are in place,” said the World Bank. “South Africa has enormous potential to drive forward Africa’s integration and industrialisation – however, the cost of inaction is high.” “Realising this potential will require a shared and coordinated effort by the country’s leadership, government departments and agencies, the private sector, and workers,” concluded the report. The full report with detailed suggestions can be found here . ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/786576/3-ways-to-jumpstart-south-africas-economy-according-to-the-world-bank/