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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

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

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/

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/

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/

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

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.

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 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.

Edward West | 15 January 2024 Employment and Labour Minister Thulas Nxesi yesterday advised young people that there is “no job that is a dirty job … there is no job that is too lowly – that is how we start out to gain experience and work our way up from the bottom”. Speaking at a jobs fair at Bushbuckridge, he said taking an entry-level job might lead to processes of discovery of talents and skills. He told the community that paperwork was at an advanced stage to open a labour centre to bring departmental services to the community. He said the unemployed should use the jobs fair to launch their entry or re-entry into the job market “in this constrained jobs environment”. The gravity of the unemployment situation was exhibited by the 1 111 people who came to register as work seekers and were provided with employment counselling services during the jobs fair. “We are hoping that with the assistance provided to work seekers to apply for various opportunities, within the coming weeks, the majority will be contacted and assisted to prepare for interviews with prospective employers in the province and beyond. We also received 1 244 applications for the Unemployment Insurance Fund (UIF) and enquiries, and where all documents were complete, payments were effected. We also received and processed 68 applications and enquiries for Compensation for Occupational Injuries and Diseases,” Nxesi said. The Bushbuckridge jobs fair followed similar ones held the previous year in Gauteng, Mpumalanga, Eastern Cape, KwaZulu-Natal, North West and Limpopo. The next jobs fairs will be held in the Free State and Western Cape, respectively. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/no-job-is-lowly-if-you-are-young-and-can-work-your-way-up-from-the-bottom-minister-3ae02956-6a92-4bac-a483-5e029a512246

Edward West | 15 January 2024 The Eastern and Southern regions were allocated bigger portions as they included significant infrastructure projects such as the N2/N3 expansion in KwaZulu-Natal and N2 Wild Coast project in the Eastern Cape. The South African National Roads Agency (Sanral) on Friday announced a R28 billion boost for the construction industry after some 70 new tenders would be put to the market in coming weeks. Last year Sanral ruffled feathers in the construction industry when its board implemented a new black economic empowerment (BEE) scoring system which the state-owned enterprise uses when adjudicating tender bids. Sanral faced legal challenges in an effort to overturn the board’s new BEE scoring system, and in October Sanral withdrew its tenders. Then in December, its tenders were put out again, but not under the new BEE procurement policy. Sanral CEO Reginald Demana said they had closed 77 tenders worth R6.43bn in December 2023. They intended to put out at least another 70 tenders to the market in the next couple of weeks. This would result in about R28bn of tenders advertised under the Interim procurement policy in the current 2023/2024 financial year. He said the agency was on a mission to accelerate work in the construction industry early in the first half of 2024. “There is a lot of work we want to dish out. By March, we want to have about R28bn’s worth of tenders in the market. However, some will be closed towards April when we enter the new financial year,” he said. The work would be spread across the entire country. The Western Region (Western Cape and Northern Cape) would get contracts worth R600 million. The Southern Region (Eastern Cape) would get contracts worth R2.8bn. The Eastern Region (Free State and KwaZulu-Natal) would get contracts worth R2.1bn. The Northern Region (Gauteng, Limpopo, Mpumalanga and North West) would get contracts worth more than R500m. The Eastern and Southern regions were allocated bigger portions as they included significant infrastructure projects such as the N2/N3 expansion in KwaZulu-Natal and N2 Wild Coast project in the Eastern Cape. “We try make sure we are distributing work and tenders equitably so we don't leave any part of the country feeling that we are not looking after the national road network in their area,” said Demana. He said that as part of Sanral’s efforts to deepen transformation and in terms of its Interim Preferential Procurement Policy, at least 30% of the contracts would be allocated to smaller black-owned construction companies. Sanral hoped to see these small businesses graduate to become major construction companies through these contracts He said that wherever the Sanral projects were, the agency had a mandate that saw value flowing through to small, medium and micro enterprises (SMMEs), local contractors and local communities. He said Sanral’s projects were always on time and within budget, as the 25-year organisation had qualified project managers who tracked the projects and monitored expenditure and the quality of execution. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/sanral-expects-to-put-r28bns-road-contracts-out-to-tender-50ba4458-99bc-489d-b6d6-c96583ec4397

Topco Media | 15 January 2024 Topco Media, a leading B2B media, digital and events company, is set to host the 2024 sustainability conference, focusing on successful, sustainable principles, practices, funding and ESG. The event, scheduled for March 19-20, 2024, in Johannesburg, aims to connect, celebrate and profile sustainable, ethical, and green companies to a local and global audience of global sustainability experts. In a bold move towards greening economies and promoting sustainable practices, the conference will underscore the three pillars of sustainability: environment, social, and governance. Topco Media is proud to announce Coca-Cola Beverages South Africa (CCBSA) as a platinum partner for the Future of Sustainability Conference. CCBSA's commitment to sustainability aligns seamlessly with the conference's core objectives. Ralf Fletcher, CEO of Topco Media, emphasises the significance of this collaboration, stating that, "Through this conference, participants will be learning how to implement world-class sustainability practices, be guided by future-thinking leaders, and collaborate with like-minded industry experts." Commenting on why CCBSA decided to partner with Topco Media, CCBSA Head of Communication and Reputation, Motshidisi Mokwena, said, “For CCBSA, profitability is important, but not at any cost. People matter. Our planet matters. We do business the right way by following our values and partnering for solutions that benefit us all. Our strategic sustainability focus areas are ambitious, but we believe that we have put in place robust plans to ensure we realise our vision of a sustainable future that will benefit future generations”. Ralf Fletcher further states, "CCBSA is a prime example of a company dedicated to making a positive impact on the environment and society. Their involvement as a platinum partner is a testament to their commitment to the principles of sustainability." The Future of Sustainability Conference provides a platform for companies like CCBSA to showcase their commitment to positive change, inspiring others to look at how they can have a positive impact on society by implementing relevant Sustainable Development Goals (SDGs). Through the support of influential sponsors and partners, the conference aims to drive actionable strategies towards a more sustainable future. Join the conversation and secure your spot by purchasing a ticket here. More about CCBSA’s Sustainability Initiatives Environmental Policies and Achievements - CCBSA's key sustainability areas include waste management, water stewardship, consumer well-being, local sourcing, economic inclusion of women and youth, and climate change. In line with the Coca-Cola Company’s World Without Waste Vision 2023, CCBSA has set ambitious goals, including making all packaging 100% recyclable by 2025, achieving 50% recycled content in packaging by 2025, and making 25% of packaging reusable by 2030. Environmental and Social Impact on Surrounding Communities - CCBSA's Water Stewardship Strategy 2030 focuses on ensuring universal and equitable access to affordable drinking water for all, with a special emphasis on the vulnerable girl child and women in rural areas. Initiatives like Coke Ville, an off-grid, solar-powered groundwater harvesting and treatment programme, have provided millions of litres of water to communities across South Africa and the company has set clear targets to reduce the amount of water used per litre of product produced and water used in our entire operations. Regarding economic inclusion, CCBSA believes its pillars that look at employability, education, and entrepreneurship will enable young people and women to become productive members of society. The company has been running programmes like ‘Bizniz in a Box’, the company’s bursary programme, and Study Buddy Fund which supports youth from previously disadvantaged backgrounds to access higher education and has developed campaigns primarily aimed at targeting young people into CCBSA. Local Sourcing and Supplier Development is part of CCBSA’s efforts to integrate black-owned and black women-owned businesses in its value chain and is actively driving its preferential procurement plan, ensuring procurement spend is allocated to black-owned companies. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/article/future-of-sustainability-conference-to-spotlight-corporate-giants-committed-to-positive-change-456469a