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- SA: SINDISIWE CHIKUNGA: ADDRESS BY TRANSPORT MINISTER, LAUNCH OF DISABILITY RIGHTS AWARENESS MONTH (11/11/2024)
Polity | 12 November 2024 1. Background and Introduction On behalf of the Department of Women, Youth and Persons with Disabilities, I wish to thank each of you for joining us in celebrating the launch of the 2024 Disability Rights Awareness Month (DRAM), which runs from 3rd November to 3rd December. This year’s DRAM is under the theme “Celebrating 30 Years of Democracy: Creating a Disability-Inclusive Society for a Better Quality of Life and Protection of the Rights of Persons with Disabilities.” The month culminates on 3rd December, celebrated globally as the International Day of Persons with Disabilities (IDPD). On this significant day, I will present a Ministerial Statement on Disability Rights Awareness Month in the National Assembly of Parliament, highlighting the progress and ongoing commitment to creating an inclusive society for persons with disabilities. From the outset, I would really like to thank our host, the Johannesburg Council for the Disabled, for the incredible work you have been dedicated to since 1995. Your commitment to providing a holistic, essential, and value-added approach to transform and uplift the social, economic, and professional lives of persons with disabilities has been exemplary. I was truly inspired when I was briefed on the range of services you provide, from social work and skills development to learnerships and enterprise development. We draw direct inspiration from the incredible amount of concrete measures that your institution has undertaken to champion the social, economic, spatial, and technological advancement of persons with disabilities. I am deeply moved by the extent to which you have elevated the participation of persons with disabilities in key income-generating economic activities such as wheelchair repair, catering, sewing, farming, and detergent manufacturing , among others. We witnessed this level of commitment to economic empowerment during Italy’s G7 Forum on Disability and Inclusion, and we are especially pleased to see it here at home. I would therefore like to commit that our engagement will not end here today. I am committed to a continued collaboration with your institution that goes beyond Disability Rights Awareness Month. I am certain that, working together, we will be able to take inclusion, self- representation, accessibility, and the empowerment of this community from theory to practice, and to greater heights. 2. Key objectives of DRAM 2024 The key objectives of DRAM 2024 are: To unite South Africans with and without disabilities—including children, women, youth, men, and gender non-conforming persons—in pursuit of the goal of building a disability-inclusive, barrier-free South Africa , where persons with disabilities can actively contribute to the development of their communities. To mobilize an active and patriotic citizenry and forge sustainable social compacts that rejuvenate our society’s efforts to promote a national identity that celebrates cultural diversity, inclusive of persons with disabilities. To inspire hope and confidence in the ability of the South African government, working in partnership with civil society, to address the common challenges facing persons with disabilities and society as a whole. To advocate for the accelerated implementation of the White Paper on the Rights of Persons with Disabilities. To communicate disability inclusion commitments contained in the 2024-2029 Medium Term Development Plan as well as national and provincial programmes of action. To monitor and evaluate the state of disability inclusion across all government departments, provinces, municipalities, and entities, ensuring that disability mainstreaming becomes a permanent component of policies, programs, and infrastructures—not only during Disability Rights Awareness Month, but year-round. 3. Progress on the realisiation of rights of persons with disabilities The United Nations has issued three documents dealing with the concerns of people with disabilities. These are: United Nations Standard Rules for the Equalisation of Opportunities for Persons with Disabilities, the World Program of Action Concerning Disabled Persons, and the United Nations Convention on the Rights of Persons with Disabilities. All these documents call for extensive changes in the environment to accommodate the diverse needs of persons with disabilities in society. The emphasis is on a fundamental shift in how we view persons with disabilities, moving away from an individual medical perspective to one focused on human rights and the development of persons with disabilities. As a government, we endorse these principles. The White Paper on the Rights of Persons with Disabilities reflects our government’s vision for what must be done—now and in the future—to advance the rights and development of this community. We believe in a partnership with persons with disabilities. As we launch Disability Rights Awareness Month, we are called to reflect on the status of persons with disabilities globally, across the continent, and within our own borders. This reflection is essential to evaluate where we have been, where we are, where we still need to go, and how we should measure progress in advancing the rights of persons with disabilities. The answers to these questions are crucial for the inclusive formulation of policies and legislative instruments, as well as for the co- design of our priorities and interventions. The World Health Organisation (WHO) estimates that persons with disabilities make up 16% of the world's population. In other words, 1 in 6 people globally has a disability. The community we are gathered to celebrate today represents about 1.3 billion people in all their diversity, with roughly 80% residing in the Global South. In our country, around 3.3 million individuals have been identified as persons with disabilities. However, this number does not include those under the age of 4 or those who are institutionalised. Old age is increasingly linked to experiences of disability. As people age, some degree of difficulty arises in areas such as seeing, hearing, communicating, remembering, and self-care. We are, therefore, recognising and celebrating a community that has always been, and continues to be, an integral part of the human experience. With this understanding, as a department, we have elevated the principle of self- representation and the mantra “nothing about us, without us” not merely as one of our advocacy points but as a central tenet in everything we do. 4. Achievements in disability inclusion Over the past 30 years, numerous policies, legislative instruments, and government programs have earned our country recognition as a respected champion of the global disability inclusion movement. This was evident during the recent G7 Forum on Disability and Inclusion held in Italy. Disability inclusion is not merely a matter of advocacy; it is a constitutional imperative enshrined in our Bill of Rights. Over the past 30 years, we have embedded disability inclusion into various laws that comprise the country's legislative framework. These include (a) the recently gazetted Framework on Self-Representation, which has implications for the composition of Boards of State-Owned Enterprises; (b) the National Strategic Framework on Reasonable Accommodation; and (c) the Universal Access and Design Framework, with norms and standards for universal accessibility in the built environment . In education, all persons with disabilities have access to free basic education and any young person coming from a home with an income bracket of R600 000 receives free higher education through our National Student Financial Aid Scheme. In social security , persons with disabilities receive a monthly direct cash transfer to support their basic needs. South African Sign Language is now recognized as the 12th official language in South Africa . More recently, the President signed the Public Procurement Act, which mandates that a portion of government procurement be sourced from businesses owned and controlled by persons with disabilities. During the Medium Policy Budget Statement, the Minister of Finance revealed that “Public procurement accounts for about 19% of consolidated government spending, totalling R1.5 trillion over the next three years.” As a department that represents the interests and well-being of this community, we will ensure that as the Treasury develops the regulations, priority is given to the work of institutions like the Johannesburg Council for the Disabled and others who are engaged in facilitating income-earning and productive opportunities for the community of persons with disabilities. In fact, at a recent Women’s Economic Assembly Webinar, I requested WECONA to assemble a team of experts to examine the entire government procurement system to ensure that 40% of the R1.5 trillion is directed toward businesses not only owned by women but also creating economic opportunities for youth and persons with disabilities. I believe we need representatives of persons with disabilities on that team of experts. 5. The challenges that continue to undermine the prospects and future well-being of persons with disabilities Despite progress at global and local levels, conditions for persons with disabilities worldwide remain far from ideal. The United Nations’ World Report on Disability highlights numerous factors that leave people with disabilities without equal access to healthcare, education, employment, and disability-related services . Structurally, stigma against persons with disabilities persists in ways that impact both their physical and mental health . Around the world, many laws and policies still permit harmful practices in the health sector, such as forced sterilisation, involuntary admission and treatment, and institutionalisation. Exclusion from education and employment, and poor living conditions increase the risk of poor health and unmet healthcare needs among persons with disabilities. Persons with disabilities are twice as likely to develop conditions such as depression, asthma, diabetes, and stroke and remain more vulnerable to non-communicable diseases. A major reason for this is that they are often left out of public health interventions, from planning to implementation. The lack of awareness, negative attitudes, and discriminatory practices among some healthcare workers—along with inaccessible health facilities and information—all contribute to inequality and barriers to public health access. Regarding mobility, the report highlights that persons with disabilities experience inaccessible and unaffordable transportation challenges 15 times more frequently than those without disabilities. Last Friday, I joined President Ramaphosa at the Presidential Imbizo in Umgababa, KwaZulu-Natal. Among the voices from the floor, a gentleman who uses a wheelchair explained that each time he takes a taxi, he is charged extra to accommodate his wheelchair. This is not only an added financial burden but a reminder of the need to engage with sectors like transport to build inclusive systems that eliminate these barriers and foster truly inclusive communities. 6. Key priorities and interventions going forward One of our key priorities is to apply to UNESCO for a Research Chair on Disability and Inclusion. This research chair will enable us to establish transformative regional and transnational knowledge networks that will serve as vital hubs for creating disability-inclusive climate coalitions, alliances, and solutions . Through a co- design process, we aim to generate, prototype, and share examples of community-based interventions that advance justice for persons with disabilities. We will also prioritise efforts to leverage the potential of Artificial Intelligence (AI) and Emerging Digital Technologies in improving the wellbeing and prospects of persons with disabilities. I recently visited the CSIR where I interacted with scientists who are working on various speech- to-text and text-to-speech technology that incorporates African languages. Again on Friday at the Presidential Imbizo, citizens raised the concern on the lack of inclusive education in the country. Allow me to share that we have conceptualised a project , working with the Department of Basic Education, that will profile the State of Special Schools across South Africa and the educational journeys of Youth with Disabilities. This is part of a major project we have in mind to pair every special school with a State-Owned Company that will dedicate sections of their social investment budget to support teaching and learning, assistive devices, and the school’s infrastructure needs. Finally, the world will soon descend on South Africa as we assume the G20 Presidency later this year. Throughout our calendar of events, Disability Inclusion will not just be one of the things we do, it will be at the centre of everything we do. In fact, we have already started lobbying for the establishment of a G20 Disability Inclusion Forum at Ministerial Level, which is something that was raised by all G7 countries and others when we were at the G7 Disability Inclusion Ministerial Meeting. This demonstrates a growing global movement to elevate disability issues to the highest decision-making forums, positioning South Africa as a leader on this front. 7. Embracing government-wide efforts in advancing disability rights When we presented our plans for Disability Rights Awareness Month to Cabinet, chaired by the President, we emphasized one clear goal: that we would leave no stone unturned. Every single government department, province, municipality, state entity and even private sector must be found active and committed during this month. We have called on all sectors of government and civil society to ensure that Disability Rights Awareness Month is marked by visible, impactful actions that contribute to a more inclusive South Africa . However, our commitment must not end with this month. We expect each department to conduct a thorough audit of their mainstreaming of persons with disabilities, ensuring that disability inclusion is embedded in their policies and practices year-round. In this month, guided by the weekly themes on: 1) economic empowerment, 2) inclusion of children, 3) a progressive government, and 4) safer communities, we have already witnessed powerful examples of this commitment. On 3rd November, the Department of Small Business Development hosted the Disability Business Indaba Awards, celebrating businesses led by persons with disabilities and showcasing how inclusive entrepreneurship can transform lives and communities. On 4th November, the Department of Social Development launched their Disability Rights Awareness Week in Cape Town, where they engaged public hearing reports on the Draft Policy on Social Development Services for Persons with Disabilities. This event marked a significant step in centering the voices and rights of persons with disabilities in social policy. Other departments still have programs underway. For example, the Department of Transport has initiated virtual sessions focused on promoting inclusive infrastructure , ensuring that public transport systems are accessible to persons with disabilities. The Department of Labour is actively educating its workforce on disability etiquette and promoting disability disclosure in the workplace, fostering a supportive environment for all employees. The Department of Public Service and Administration will host sensitization workshops and disability management sessions for its staff, while the Department of Water and Sanitation is conducting reasonable accommodation inspections to ensure accessible working environments. Additionally, the National Prosecuting Authority is running campaigns to inform disabled child witnesses and their families about resources within the justice system , offering essential support for one of the most vulnerable groups in our society. These examples reflect a government-wide commitment to promoting inclusivity and safeguarding the rights of persons with disabilities. This collective dedication, from national to local levels, underscores the theme of this year’s DRAM, “Celebrating 30 Years of Democracy: Creating a Disability-Inclusive Society for a Better Quality of Life.” 8. Conclusion As we move through this month and beyond, let us all stay engaged, support these efforts, and encourage every sector of our society to make disability inclusion a permanent priority. Together, we are paving the way for a truly inclusive and accessible South Africa , where every person with a disability can thrive. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/sa-sindisiwe-chikunga-address-by-transport-minister-launch-of-disability-rights-awareness-month-11112024-2024-11-12
- AGRISETA DRIVES WOMEN’S EMPOWERMENT IN AGRICULTURE SECTOR
Staff Reporter | 11 November 2024 At its AGM, AgriSETA celebrated big wins in skills training and gender equality, fuelling opportunities for women to lead farming’s future. CEO Dr Innocent Sirovha called collaboration the key to overcoming barriers facing women in the sector. “As we continue to navigate the challenges facing women in agriculture, it is clear that collaboration is our most powerful tool,” These were the words of Dr Innocent Sirovha, CEO of AgriSETA, as he addressed participants at their annual general meeting last week. Sirovha’s call to action highlighted the need for cross-sector partnerships to empower women and bridge gender disparities within South Africa’s agricultural landscape. The AGM marked the celebration of AgriSETA’s accomplishments in the 2023/2024 fiscal year, with chairperson Sharon Sepeng sharing some remarkable milestones, including AgriSETA’s achievement of artisan development targets far ahead of schedule. Artisanal skills, crucial for the industry and scarce across South Africa, have been a key focus, and AgriSETA’s progress has created a much-needed pipeline of skilled workers, helping reduce unemployment and strengthen the sector’s capacity. Furthermore, AgriSETA earned a clean audit, reinforcing its dedication to transparency and responsible resource management. Amid these advancements, AgriSETA’s efforts to uplift women in agriculture took centre stage. Women are an essential yet underrepresented demographic in the country’s agriculture sector. They are pivotal to ensuring food security, driving rural development, and advancing environmental sustainability. However, challenges persist: from limited access to funding and training to structural barriers that restrict their active participation. Through initiatives targeting these barriers, AgriSETA has been an ardent advocate for the empowerment of women, ensuring they receive the tools and support necessary to contribute to the sector’s future. “Women are not just beneficiaries of change in agriculture; they are the architects of it,” noted Sirovha. “We are witnessing a paradigm shift where women are leading the charge in innovation, sustainability, and food security. It is essential that we empower them through funding, skills development, and collaborative partnerships that allow them to shape agriculture confidently and sustainably.” Leaders in sustainable, climate-resilient agriculture AgriSETA’s vision includes driving sustainable practices through the adoption of environmental, social, and governance (ESG) standards, as well as promoting access to training and educational resources. These actions are essential for unlocking women’s potential in agriculture, allowing them to lead with resilience and innovation. In the face of climate change, which often impacts women in rural communities first, AgriSETA is also focusing on fostering climate-resilient practices and renewable energy adoption, highlighting women’s critical role as agents of environmental change. The AGM also featured discussions on women’s roles in championing renewable energy solutions and building sustainable agricultural models. AgriSETA’s initiatives aim to build a resilient ecosystem that prioritises environmental sustainability and enhances economic opportunities for women in agriculture. “As we continue to navigate the challenges facing women in agriculture, it is clear that collaboration is our most powerful tool,” Sirovha concluded. “We must work together across sectors and industries to create an ecosystem that not only supports women but champions their leadership in transforming agriculture.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.foodformzansi.co.za/agriseta-drives-womens-empowerment-in-agriculture-sector/
- SOUTH AFRICA’S BIGGEST AIRLINE COULD BE GROUNDED – FLYSAFAIR RESPONDS
Malcolm Libera | 11 November 2024 FlySafair has responded to a recent ruling by the Chairman of the International Air Services Licensing Council (IASC) concerning its compliance with South African nationality provisions in its ownership structure. This ruling, which surfaced in early November, highlights that FlySafair’s ownership arrangement does not align with South African legal requirements. Under current law, foreign entities are limited to a 25% ownership stake in South African airlines, yet FlySafair’s main shareholder, Ireland-based ASL Aviation Holdings, reportedly holds a 74.86% stake. The outcome of the Council’s review could lead to sanctions, potentially impacting FlySafair’s operations. However, the airline has clarified that this ruling affects only its international services and has no bearing on its domestic flights, which are governed by a different license and remain unaffected. The scrutiny of FlySafair’s shareholding structure began in October 2022 after complaints by Airlink and Global Aviation, the latter operating under the brand LIFT. These complaints raised concerns that FlySafair’s foreign ownership exceeds the permissible limits and questioned the airline’s adherence to local regulations. According to FlySafair’s financial records, ASL Aviation Holdings’ majority stake indicates that FlySafair’s primary ownership resides abroad, a configuration that raised regulatory concerns, especially since FlySafair did not apply for an amendment to its air service license after restructuring in March 2019. Following the inquiry, the IASC now plans to impose sanctions, which could include suspending FlySafair’s license or levying fines unless the airline modifies its shareholding structure to conform to local laws. In response, FlySafair has moved to address the Council’s decision, emphasising its ongoing commitment to regulatory compliance and transparency. The airline has filed an urgent interdict application to protect international customers from any potential service disruptions while it works through the matter with the IASC. FlySafair said it remains confident that it has adhered to regulatory standards over the years and is committed to ensuring uninterrupted service for its international customers as it navigates the regulatory process. FlySafair reiterated that this decision solely pertains to its international routes, leaving its domestic flights unaffected. Its domestic services are governed under a different licensing framework, meaning passengers on local flights can continue flying without concern. FlySafair has underscored the importance of an outcome that supports the broader interests of travellers and the South African public. To reassure customers and mitigate any potential service disruptions, FlySafair noted it is actively engaging with relevant authorities and has prepared contingency measures if necessary. The airline intends to safeguard its service availability, particularly in light of the rising demand for flights during the summer holiday season. FlySafair expressed hope that all stakeholders, including its competitors, recognise the broader impact on the aviation sector. In this vein, the airline noted that limiting service on its international routes could inflate fares and disrupt travel plans for South Africans and visitors alike. FlySafair cited its impact on the Johannesburg-to-Harare route, where increased seat availability introduced by FlySafair last year significantly reduced fares by up to 50% during certain periods, underscoring the positive impact of competition on airfares. Competitors have raised objections to FlySafair’s interdict application, positioning the issue as a matter of competitive interest. FlySafair, however, said it remains dedicated to minimising disruption for travellers and believes the broader aviation community stands to benefit from a balanced resolution. The airline continues to work closely with regulatory bodies to ensure a swift and fair outcome and emphasizes its dedication to upholding the highest operational standards. FlySafair’s response highlights its priority on transparency and service continuity as it addresses the Council’s concerns regarding its ownership structure. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/799287/south-africas-biggest-airline-could-be-grounded-flysafair-responds/
- HOW EFFECTIVE CAPITAL ALLOCATION CAN TRANSFORM SA’S SOCS
Maropene Ramokgopa | 10 November 2024 SOCs such as Eskom, Transnet, and Sanral must prioritise projects that not only drive economic growth but also have a measurable impact on employment, social equity, and service delivery. SINCE the advent of democracy in 1994, the role of state-owned companies (SOCs) has become an integral part of South Africa’s economy and its development. These institutions have over the years provided essential services, driving industrial expansion and enabling infrastructure growth. SOCs are also key vehicles and catalysts for inclusive growth, and for the implementation of the National Development Plan (NDP), which is our country’s lodestar for inclusive prosperity. Despite their indisputable contribution to the country’s economy, the financial instability, underperformance and malfeasance at SOCs in recent years have raised concerns about their capacity to fulfil their expected role effectively. In this regard, SOCs need a more strategic approach to capital allocation and optimal capital structure. Efficient capital allocation ensures that financial resources are directed toward projects that drive meaningful social and economic transformation, while a well-balanced capital structure reduces debt dependency and enhances long-term sustainability. Accordingly, reforming the financial management of SOCs is crucial for achieving impactful and inclusive growth, allowing them to support South Africa's broader developmental objectives without imposing excessive burdens on the national budget. Efficiency for greater impact Efficient capital allocation is inextricably linked to the success and high impact of SOCs, especially in cases where the goals are broader than mere profit maximisation. The NDP emphasises infrastructure and industrial growth as pillars of economic inclusion. This means that SOCs such as Eskom, Transnet, and Sanral must prioritise projects that not only drive economic growth but also have a measurable impact on employment, social equity, and service delivery. Over the years, there has been mixed success in relation to investment in rail infrastructure. Transnet, South Africa's freight and logistics SOC, has made significant capital allocations to expand and modernise its rail infrastructure. This has been particularly important considering that the rail sector, especially in freight transport, is an enabler of industrial growth. For Transnet, as a key player in South Africa's transport infrastructure, a well-strategised capital allocation and a balanced capital structure are essential to drive both financial stability and developmental goals. Some aspects at Transnet that contribute to inclusive growth and economic competitiveness include: Infrastructure upgrades and expansion: Targeted capital allocation allows Transnet to invest in critical infrastructure, such as rail and port upgrades, which can support more efficient logistics, reduce transport costs, and enhance trade flows. These improvements can lower the cost of goods and services, positively impacting the cost of living. Focus on rail over road: Capital allocation towards rail, rather than road, aligns with South Africa’s environmental goals by reducing carbon emissions and negative transport externalities. This can also decrease road maintenance costs and congestion, which benefits the broader economy. Innovation and technology: Investment in advanced technology, such as automated port handling and digitalised rail tracking, can increase operational efficiency, reduce service disruptions, and attract private sector confidence in SOC projects. Striking the right balance SOCs in South Africa have historically been heavily reliant on debt, which has often led to unsustainable debt burdens, especially when combined with operational inefficiencies. Eskom, for example, has accumulated a debt of more than R400 billion, placing a significant strain on the national economy. Equally, Eskom’s high debt levels have contributed to its inability to maintain and expand infrastructure. Its reliance on government bailouts crowded out other critical spending areas, like education and healthcare. Moving forward, SOCs like Eskom need to adopt a more balanced capital structure by increasing equity contributions, particularly from private sector partnerships and development finance institutions (DFIs). This approach would most likely reduce debt exposure while still allowing SOCs to expand their infrastructure and service delivery capabilities. Furthermore, SOCs need to leverage on blended finance models, where public and private capital are combined. An example is the development of renewable energy infrastructure through independent power producers (IPPs). This model not only relieves pressure on the balance sheet but also drives growth in the green economy, contributing to the country’s climate goals and creating new employment opportunities. Partnerships to unlock new capital sources The NDP emphasises the important role of collective action, which includes the private sector, in achieving the country’s development objectives. Thus, private sector participation is key in optimizing the capital structure of SOCs in our country. SOCs should transition from being predominantly reliant on state support to exploring more innovative financing mechanisms that engages and embraces the private sector. The Airports Company SA (Acsa) is a testament to the partnership with the private sector. Acsa’s ability to attract private investors for its expansion projects, like the upgrade of Cape Town International Airport ahead of the FIFA 2010 World Cup, helped reduce reliance on state funding. The dividends declared by Acsa of over R800 million, further illustrate how an efficient SOC can provide a return on investment, creating fiscal space for the state to invest in other critical areas of the economy. The key to SOCs successfully driving inclusive growth is to identify and invest in key sectors. There are several sectors with the high-potential areas for success in South Africa. Firstly, the advanced manufacturing sector can create a competitive export hub, focusing on industries such as automotive, machinery, and chemicals. Secondly, infrastructure enhancement can support growth across the economy by improving transportation, energy supply, and digital connectivity. Thirdly, diversifying the energy mix with natural gas can provide a reliable and low-cost energy source, supporting industrial development. Fourthly, expanding agricultural exports, particularly high-value crops and food processing, can drive rural growth and create jobs. Lastly, leveraging South Africa’s strong service sectors, such as financial services and tourism, can capture growth opportunities in regional and global markets. Lessons from fast-growing economies While South Africa has made significant progress in this area, it is important to draw practical lessons from like-minded countries and fast-growing economies in order to get valuable insights for our country. China’s focus on infrastructure development and manufacturing has been pivotal in its rapid economic growth. South Africa can emulate this by prioritising infrastructure investments and fostering a robust manufacturing sector. India has focused on information technology and service exports to drive significant economic growth. South Africa can leverage its strong service sectors to boost exports and economic diversification. Brazil’s agricultural sector has been a major driver of its economic growth. South Africa, with its vast arable land, can enhance its agricultural productivity and exports by adopting modern farming techniques and improving market access. Sustainable funding and governance reform Alongside efficient capital allocation and an optimal capital structure, SOCs need robust governance frameworks to ensure that capital is used responsibly. The introduction of performance-based management and accountability frameworks, like those used by China’s State-owned Assets Supervision and Administration Commission (SASAC), could significantly improve the operational performance of South African SOCs. This approach would also help attract private investment, as clear governance standards and transparency are key requirements for private sector involvement. The proposed establishment of a National State Enterprises Holding Company could centralise and professionalise the management of SOCs, ensuring that capital allocation and structuring are optimised across the board. Such an entity would allow for greater financial oversight, performance management, and accountability, creating a system where SOCs are both financially sustainable and contribute to the country’s broader development objectives. For South Africa to realise the potential of its SOCs, capital must be allocated efficiently, with a focus on high-impact sectors and projects that promote inclusive growth. Moreover, SOCs need to adopt an optimal capital structure that reduces reliance on debt and leverages equity, particularly from private sector partnerships. The reform of governance structures and the introduction of innovative financing models are critical to the long-term success of South Africa’s state-owned entities. By prioritising capital discipline, South Africa can ensure that its SOCs remain key drivers of impactful, inclusive economic growth. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/sundayindependent/news/how-effective-capital-allocation-can-transform-sas-socs-2a8b2a85-c61b-4075-b929-9572d3e5ba01
- COLLECTIVELY BUILDING A FUTURE FOR LOCAL YOUTH
Tshego Walker and Mosuoe Sekonyela | 10 November 2024 As South Africa's Grade 12 exam season is underway, we cannot help but be reminded of the steep and uncertain path facing youth after completing formal schooling. The reality is clear: statistics show that of the approximately one million young people who enter the labour market annually, 60% of them will find themselves not in employment, education, or training (NEET), within the next year. . Only 30% of these youths will find employment in the formal economy, with the remaining 30% venturing into small-scale entrepreneurship. In short, our country is grappling with a crisis that prevents young South Africans from accessing sustainable livelihoods and threatens our nation's progress. We must all be acutely aware that these young people are the future policymakers, teachers, entrepreneurs, artisans and more, forming the bedrock of South Africa’s socio-economic stability and economic prosperity. With a 45.5% youth unemployment rate, the depth and breadth of the crisis is not in question. So, the real question becomes, what will it actually take to absorb SA’s youth into the labour market, earning incomes, at scale? Much like the challenge, the answer is complex, but what is apparent is that it is far too large to be solved by a single actor. What is of utmost importance is strategically coordinated collaboration between businesses, government, civil society, and the youth. This collaboration should be supported by a detailed roadmap and a shared performance dashboard to ensure collective accountability. By doing so, we will be breaking down silos and leveraging the strengths of all sectors to overcome the challenges of youth economic inclusion. We know that a young person’s chances of landing and keeping a job is greatly influenced by their level of education. Compared to those without matric, youth with tertiary education have a greater chance of transitioning from unemployment into formal employment. To this end, government has stepped up its public employment opportunities over the past decade to ensure that they provide much-needed transferrable skills training to enable youth to learn on the job and move on to jobs in other sectors of the economy. Gaps that need to be plugged include a critical review of how young people are equipped for the job market in the first place. The full journey from education, training and placement needs to be analysed, to ensure that youth leaving the school system have the basic attributes that would attract employers to support their transition into the workplace. As such, we must place strong emphasis on pathwaying young people from one opportunity into the next, keeping them engaged, learning and earning whilst we build the economy South African youth can actively participate in. As a country, we need to ramp up demand-led skilling programmes to ensure that young people are equipped for the work that exists now, as well as jobs of the future. Understanding the power of technology to transform society, the SA Youth Platform was launched in 2021 and is a core tenet of the Presidential Youth Employment Intervention (PYEI). SA Youth is an easy-to-use, online hiring platform through which over 1,100,000 unique opportunities have been created, but given the fact that over half of South Africa’s youth are NEET, we must do more, faster, together. After graduating in 2020 Thabiso, unable to find employment opportunities, signed up on the SAYouth.mobi platform, where he came across and subsequently applied for a Teacher Assistant position. A product of a partnership between the Department of Basic Education and the Presidential Employment Stimulus (PES), the programme successfully recruited 319 000 Teacher Assistants through the SA Youth Platform that year. Thabiso was successfully matched with a school in his neighbourhood, enabling him to get practical work experience along with an earning opportunity. When the programme ended, Thabiso got back onto SAYouth.mobi to search for more opportunities. He came across the Youth Employment Services (YES) 12-month internship at a large corporate, where he was later absorbed as a Client Service Specialist. “After spending some time unemployed, I had all but given up hope. I am now able to provide for myself and my family.” Public Employment Programmes (PEPs) have the ability to assist millions of young people in a predicament similar to Thabiso’s to gain the work experience that they need to get absorbed into the labour market. Since the advent of COVID-19, approximately 2 million young people were able to earn some income, stay active, engaged and contributing meaningfully to their communities whilst gaining the skills required to enter the labour market. Criticism of PEPs tends to centre on the fact that they are often short-term. However, the numbers tell a revealing story: young people with work experience are four times more likely to find employment than those without it. This "experience dividend" underscores the critical role that internships, apprenticeships, and workplace exposure play in bridging the gap between education and employment. Furthermore, because PEPs are enabling service delivery in all parts of the country, they create earning opportunities for youth who live in job deserts which provides some stability to a fragile labour market, mitigating the risks of social unrest that we saw in July of 2021. As we confront the challenge of youth unemployment, the question is not just how we create jobs, but how we equip our youth with the skills and experiences that make them truly employable. The PYEI was launched to do exactly this, through providing the country with a national coordinated strategy that reduces the structural barriers that young people face to entering the economy. From giving young people access to quality work experience programmes, to ensuring that they are skilled for jobs that are in demand in today’s economy to giving young entrepreneurs the tools to succeed. At its core, this initiative aims to pathway young people successfully from learning to earning. It focuses on linking young people to existing opportunities, addressing the systemic barriers to youth unemployment and creating new jobs for youth. Partnership is core to the PYEI and key partners include, the Department of Employment and Labour, the Department of Higher Education and Training, the National Youth Development Agency, the Department of Trade, Industry and Competition and Harambee Youth Employment Accelerator. The intervention brings together government, civil society, development partners, academia and the private sector. The truth is, tackling youth economic participation isn’t just about ticking boxes on policy reforms or launching well-intentioned programmes. The elephant in the room is that we have been well-intentioned yet slow to move beyond talk to sustainable action—and that is on all of us: government, private sector, and civil society. Without multisectoral collaboration, there will be no meaningful change. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/collectively-building-a-future-for-local-youth-f405bd13-76a9-4169-b805-68b5ba2c4516
- BEWARE THE IMPLICATIONS OF CIPC NON-COMPLIANCE
IT-Online | 6 November 2024 South Africa’s business owners face serious consequences for not complying with the Companies and Intellectual Property Commission (CIPC) requirements. More than 650 000 companies were deregistered last year mostly due to missed annual returns, according to the CIPC’s annual report. Deregistered companies could find themselves unable to trade and invoice their clients. In a worst-case scenario, the state can legally absorb assets of non-compliant businesses, according to local startup InfoDocs. Joshua Alexandre, InfoDocs founder and CEO, says: “Imagine your business being unable to operate or own assets; your business bank account is at risk of suspension with deregistration. It’s a nightmare, but one that can be avoided.” The Department of Trade, Industry and Competition (DTIC) recently announced that companies must register their beneficial ownership information with the CIPC by 30 November 2024. This action is part of South Africa’s commitment to address its greylisting by the Financial Action Task Force and tighten governance on beneficial ownership. Failure to comply could result in sanctions and restrict businesses’ ability to operate. The CIPC issues new directives often, which are missed by many business owners who do not proactively check the website for changes. Filing an annual return through InfoDocs is simple and can be completed in a few minutes with all of the required supporting documents. Users can file both beneficial ownership and annual return in 10 minutes from R349. Tips for submitting CIPC returns Alexandre says that while the complexity can vary greatly from business to business, CIPC compliance is based on providing relatively straightforward information. He provides some tips: Annual CIPC returns cannot be filed if your beneficial ownership has not been submitted in the same calendar year. You need to capture your share register to file beneficial ownership – every registered company must keep a share register, something InfoDocs offers at no charge. It’s not necessarily the same as beneficial ownership. You’ll need some supporting information to file beneficial ownership: names, ID numbers, addresses, and copies of IDs for all shareholders with more than 5% equity. You can file directly with CIPC and save yourself about R100, but it can be a minefield for those not experienced in dealing with the CIPC. If you use an accountant or professional, ask them to confirm all due dates as they differ for each business. Also, confirm that your contact details with CIPC are up to date. Several InfoDocs clients realised that their returns were overdue when they signed up with InfoDocs, as they thought this important function was being managed by their accountant or bookkeeper. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://it-online.co.za/2024/11/06/beware-the-implications-of-cipc-non-compliance/
- SKILLS AND JOBS SUMMIT TACKLES YOUTH UNEMPLOYMENT TIME-BOMB
Edwin Naidu | 6 November 2024 Deputy Minister Higher Education and Training, Mimmy Gondwe hosted a Skills and Jobs Summit at the University of Johannesburg earlier on Wednesday to find solutions tackling South Africa’s youth unemployment crisis. “This is a social and political time bomb”, Gondwe said in her address, adding that the economy was neither inclusive or created jobs, which resulted in soaring levels of poverty and the high cost of living. “The good thing is that we have it in our hands to defuse this ticking time bomb. For me, that is why we are here today. To collectively find ways of defusing this ticking time bomb,” she said. One of the ways of doing this, she said, was through education and skills development. A 2019 report by the National Skills Authority indicated that despite efforts to improve the impact of SETAs, there were still significant gaps in skills development, with many learners who had completed training programmes struggling to find employment. The deputy minister said youth unemployment currently stood at around 45%, meaning that nearly half of the young people in the country could work and wanted to do so, but could not find work. “This summit must further answer the question of what are we going to do, as a collective, to ensure that we meet the priorities of the current seventh administration, which are to drive inclusive growth and job creation, to reduce poverty and tackle the high cost of living, and to build a capable and ethical developmental state,” she said. “Everything we do as the department and as a key role player in the sector must touch on all these priorities. I am possibly restating the obvious when I say: we are all in this together. The success of this summit will be everyone’s success,” she added. Hosted by the university’s Johannesburg Business School, Gondwe told the meeting that youth unemployment was a significant problem in South Africa, and she raised concerns about the skills mismatch, with graduates from training programmes struggling to find employment. She said the Skills and Jobs Summit was part of a vision to bring the higher education sector and business into one room to engage on the very critical issue of youth unemployment and skills development. “We are gathered here this morning in the understanding that all of us, whether as business or members of the Post School Education and Training (PSET) sector, we have the common responsibility of being the villagers helping to raise the young of our village. “Each of us comes to the table with different skill sets, resources and influence. What we must not undermine is that while we may not bring the same amount of whatever resource is at our disposal, what we bring to the table is worthy and necessary,” the Deputy Minister said. Currently, the overall unemployment rate in South Africa is high, reaching 33.5% in the second quarter of 2024. The Deputy Minister noted that poverty and low education levels contributed to the high unemployment rates, while women and people with disabilities faced even higher unemployment rates, with the latter approaching 100% in rural areas. Gondwe warned that there was an urgent need to address these issues to prevent social unrest and create a more inclusive and prosperous society. She challenged delegates to ensure that at the end of the summit, they pledge on how each of them, given their different areas of activity, would help ensure that opportunities for identified skills that are needed and demanded by this economy. One of the attendees, Jacques Basson, committed to work with the department to develop a call centre with the potential to create 1000 white-collar jobs within a year. “Basson has further placed before us ideas on how the agricultural sector can help train young people in the use of biometric technology and another how we can turn farm workers into farmers owning their farms. These are the kinds of pledges and commitments that I am asking for from the business community,” Gondwe said. For her, success would resemble access to the economy either as an employer or an entrepreneur, therefore, the higher education sector must create a skilled workforce and a cohort of young people who were able to either find work or create work for themselves and others. “It is no longer good enough for the PSET sector to measure itself by the number of enrolments or the number of certificates, diplomas and degrees awarded. The sector is now compelled to measure itself on whether the young people who emerge from it, can be absorbed into the economy either as employees or entrepreneurs,” she reiterated. This would mean that the sector would have contributed to pushing back against the high levels of unemployment and poverty, especially amongst the youth. “We need both short-term and long-term interventions. We must identify what it is that we can do today as we prepare for what can be done in the long term to ensure that the country’s economy thrives and grows.” Challenging delegates to move on from old ways, she said: “We are here to invest in the future of our youth, which is investing in the future of our country. We cannot do this without being fully intentional and deliberate.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://insideeducation.co.za/skills-and-jobs-summit-tackles-youth-unemployment-time-bomb/
- SPONSORED: GOVERNMENT-PRIVATE SECTOR PARTNERSHIP DRIVES KEY ECONOMIC PROGRESS
The Citizen | 6 November 2024 The ADG said the deployment of technical expertise, particularly at key power stations like Kusile, has been central to the turnaround. Government’s strategic partnership with the private sector is yielding tangible results in tackling critical economic challenges, with major strides made in stabilising energy supply, improving logistics, and addressing crime and corruption. This collaboration, which began over a year ago, entered a new phase with President Cyril Ramaphosa’s launch of Phase 2 of the Government-Business Partnership on 1 October 2024. Phase 2 of the Government-Business Partnership aims to address critical economic challenges facing the country. Amongst others, this partnership will ensure that the country addresses corruption and crime both in business and government, has a secure energy supply, and efficient freight and logistics to facilitate trade. Speaking to SAnews , Government Communication and Information System (GCIS) Acting Director-General (ADG), Nomonde Mnukwa, highlighted the significant progress made under the auspices of the Government-Business Partnership, citing key milestones in the energy, logistics, and law enforcement sectors. Stabilising the energy sector Mnukwa emphasised the pivotal role the partnership has played in addressing the country’s energy crisis. As part of the Energy Action Plan, President Cyril Ramaphosa’s appointment of the Minister of Electricity (renamed Minister of Electricity and Energy) ensured dedicated leadership that unlocked bottlenecks, which has reassured both investors and citizens. “As a result of the partnership and steps that we have taken through the Energy Action Plan, we have experienced over 200 days without load shedding. Reforms in the energy sector have unlocked hundreds of billions of Rands in investment, helping to address the long-standing shortfall in our electricity supply,” Mnukwa stated. The ADG said the deployment of technical expertise, particularly at key power stations like Kusile, has been central to the turnaround. “The focus has been on ensuring that Eskom becomes a stable institution. This included appointing a new CEO and collaborating with businesses to deploy technical and project management expertise, particularly at key power stations. These efforts have ensured continuous maintenance of power plants, and we are seeing tangible results,” she said. Furthermore, the partnership has attracted significant investment into the energy sector. Reforms have unlocked hundreds of billions of rands in investment, addressing the long-standing shortfall in electricity supply. The country has also received international funding to support its Just Energy Transition, with several Green Economy projects, such as Green Hydrogen and Electric Vehicle initiatives, poised for implementation. Reforming freight and logistics South Africa’s port and rail infrastructure are strategic national assets, and 2023 saw President Ramaphosa putting in place a roadmap for the freight logistics system in order to improve the performance of South Africa’s ports and rail network and drive economic growth. Mnukwa underscored the progress made by the National Logistics Crisis Committee which led efforts to streamline logistics, reducing congestion at the country’s ports and improving traffic flow. Through the National Logistics Crisis Committee, government is making progress in stabilising and improving the logistics system to support the nation’s key export industries. Recent government interventions, coordinated through Operation Vulindlela, resulted in a significant reduction in port congestion and contributed to ensuring the ease of doing business, which is crucial for the growth of our economy. Both exports and imports play a vital role in driving economic growth, and addressing these logistical challenges is key. “Interventions at Transnet are already yielding encouraging results in reducing port congestion and progress is also being made to support economic recovery,” Mnukwa said. In a bid to ensure long-term efficiency, government has introduced the Freight Logistics Roadmap, which opens up the logistics network to private sector participation, particularly in container terminals. The reforms are aimed at stabilising and modernising the sector to facilitate trade and growth. “As echoed by our President, government has embarked on a process of fundamental reform through the Freight Logistics Roadmap, enabling open access to the freight logistics network and introducing private sector participation in container terminals for the first time,” ADG said. Fighting corruption and strengthening law enforcement The partnership between government and business has also focused on combating corruption and strengthening law enforcement agencies. Mnukwa highlighted the progress made in reversing the effects of State capture and rebuilding the capabilities of institutions such as the Hawks and the National Prosecuting Authority (NPA). “The second component, in terms of the partnership, was to deal with criminality, and we’ve seen the prosecution of individuals involved in criminal activities at Eskom. Assets have also been seized because of the work between the NPA, the SIU and the Hawks. The morale among Eskom staff has also improved, as highlighted by the Minister of Electricity and Energy, and this is essential for productivity,” she said. Government has also prioritised removing South Africa from the Financial Action Task Force (FATF) grey list by strengthening anti-corruption measures. In the past few months, the President signed several Acts into law to advance these reforms, including the Electricity Regulation Amendment Act, the Economic Regulation of Transport Act, and the NPA Amendment Act. Accelerating progress with Phase 2 With Phase 2 of the Government-Business Partnership now underway, Mnukwa stressed that the focus is on accelerating interventions to deliver quicker results. “The launch of the second phase is about shifting into high gear, accelerating interventions to achieve faster results. We’ve learned valuable lessons from the first phase, and we’re now applying those insights to improve and enhance our efforts going forward. We’ve moved from stabilising the economy to saying let’s grow it for our people,” Mnukwa said. The President stated this during the launch of Phase 2 of the Government-Business Partnership, emphasising the importance of sustaining and amplifying these efforts. “We’ve made real progress in stabilising critical sectors, and now it’s time to grow the economy for the benefit of all South Africans,” President Ramaphosa said. Job creation As part of this new phase, the partnership is expanding its reach to tackle more areas, including job creation, particularly for the youth. “Through existing partnerships with business, such as the Youth Employment Service (YES) programme, we have been able to create over 155,000 work placements for unemployed young people. “Significantly, as much as 45% of these young people went into full-time jobs after their internship, demonstrating the impact of the partnership,” Mnukwa said. Government has also developed SAYouth.mobi, in partnership with Harambee, with strong support from the private sector. More than five million young South Africans are now registered on the SA Youth network. Mnukwa stressed the need to continue fostering business-government cooperation to create a brighter future for South Africa. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.citizen.co.za/business/government-private-sector-partnership-drives-key-economic-progress/
- RAMAPHOSA SUPPORTS EMPLOYMENT OF WOMEN AND ADULTS OVER 35
Siyabonga Sithole | 13 January 2024 President Cyril Ramaphosa says the ANC has taken a decision to prioritise the employment of young people and adults aged over 35. Ramaphosa said the country’s current laws were discriminatory towards adults over 35 as well as as people living with disabilities. He said it was important for these laws to be amended as these groups felt sidelined by the laws which prioritised those below the age of 35 while having a negative effect on those older. “We as the ANC must make sure that those over 35 years and older are given opportunities. We must make sure that they have access to jobs and employment opportunities. “Over the years, the ANC has made efforts to open opportunities of employment. The ANC has also made efforts to ensure that our manifesto reflects this,” he said. Ramaphosa, who addressed a capacity crowd at Mbombela Stadium, said the country’s youth should benefit from the country’s minerals. “Our country is blessed with mineral resources and the youth league has been saying to me that they are tired of exporting all our minerals. They told me that we must locally beneficiate our minerals and only export them as finished goods in order to re-industrialise our economy as the current situation does not benefit them. I agree and support the youth league,” he said. Delivering Sanco’s message of support to the president, chairperson Skhumbuzo Mpanza said red tape was the reason why millions of young people and those over 35 remained excluded from job opportunities. “These red tapes are stopping South Africa from participating in the economy of their land. We need to ensure our kids are in school and that when they finish school they are given access to jobs. It is important for us to campaign for the ANC in order to ensure South Africans benefit from the economy,” he said. Ramaphosa said people living with disabilities were also excluded from jobs and urged government departments to open their doors to them. “We must open employment opportunities also to people living with disabilities because they too deserve to work and earn a living. They tell me that they are unemployed and they do not enjoy the same opportunities as everyone. We must include them and not relegate them to the back,” he said. | Sunday Independent ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/sundayindependent/news/ramaphosa-supports-employment-of-women-and-adults-over-35-2acf71d9-8518-4363-92d7-64d09c96f0ca
- WHICH ENTITIES DO THE B-BBEE CODES OF GOOD PRACTICE APPLY TO?
A B-BBEE Code of Good Practice is a framework of measurement on how a Measured Entity scores points to achieve a specific B-BBEE Status Level. It consists of all principles, calculations, and methodologies on how this is executed. As per Clause 3 of Statement 000 of the Amended General B-BBEE Codes of Good Practice , the following is stated: 3. APPLICATION OF THE CODES 3.1 The following Entities are measurable under the Codes: 3.1.1 all Organs of State and Public Entities; 3.1.2 all Measured Entities that undertake any economic activity with all Organs of State and Public Entities; 3.1.3 any other Measured Entity that undertakes any economic activity, whether direct or indirect, with any other Measured Entity that is subject to measurement under paragraph 3.1.1 to 3.1.2 and which is seeking to establish its own B-BBEE compliance. Technical Services are on hand to assist with the understanding of the above.
- A LOAN MUST TAKE THE FORM OF A DEBT INSTRUMENT
Although entering into an Enterprise or Supplier Development loan contract is generally done with the best intentions, some loans issued will inevitably be defaulted on or, in the worst case, a Beneficiary will refuse to repay it. When giving a loan, an organisation has the full rights of recovery; however, this has to be clear in the terms and conditions. First and foremost, a loan must take the form of a debt instrument; thus, it must never be a grant disguised as a loan. Any loan made with the intention of not receiving repayment of the capital amount is not a loan but a grant and must be claimed as such. Consequently, claiming a loan under Enterprise or Supplier Development instead of a grant is Fronting Practice. However, if a beneficiary fails to repay a bona fide loan, an organisation may offer a Beneficiary a grant which will allow them to repay the loan. Otherwise, an organisation can write off the loan or follow the legal route based on the terms and conditions of a particular loan. Enterprise & Supplier Development Services are available to guide Members to ensure their contracts align with the requirements of the relevant code.
- THE DEFINITION OF “BLACK NEW ENTRANTS”
The concept of “Black New Entrants” is found under the Ownership scorecard whereby the Amended General B-BBEE Codes of Good Practice allows for Two Points to be scored based on a 2% Compliance Target. The definition contained under Schedule 1 of the Amended General B-BBEE Codes of Good Practice defines “Black New Entrants” as “ Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in any Entity which has a total value of more than R50,000,000.00 measured using a standard valuation method.” Technical Services are on hand to assist with the understanding of the above and how it is recognised.