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- DELIBERATIONS ON THE PUBLIC PROCUREMENT BILL WILL HAVE REAL AND LASTING CONSEQUENCES FOR THE CONSTRUCTION SECTOR
Wolfgang Neff | 13 February 2024 Construction is also the largest employer of unskilled workers and one of the biggest employers of youth in South Africa. This makes it a major driver of economic upliftment and an integral flywheel for economic recovery and growth. This year’s opening of Parliament occurred in a difficult economic climate. Just last week, the International Monetary Fund downgraded its economic outlook for South Africa. Given that the outlook was only 1.8% growth to begin with, the possibly of even slower growth (just 1%) should concern us all as we strive to build a more inclusive economy that significantly addresses unemployment, poverty and inequality. In this context, the work of Parliament carries even more weight, with a greater responsibility to safeguard critical industries. Nowhere is this truer than in the construction sector. The South African construction industry is a critical economic contributor. It makes up 3% of the national gross domestic product, to the value of more than R30 billion, provides much-needed employment to some 1.3 million people while improving the public and private infrastructure in the country. Construction is also the largest employer of unskilled workers and one of the biggest employers of youth in South Africa. This makes it a major driver of economic upliftment and an integral flywheel for economic recovery and growth. More importantly, the construction sector’s work brings immediate and tangible benefits to communities across the country, from roads and bridges to schools and hospitals. This is especially true in rural communities. In the process of delivering the important projects, the construction sector also offers a direct and rapid economic injection to communities who often need it most in the form of jobs. In recent years, the sector has faced many headwinds, having been badly impacted by the stagnating economy, a decline in government infrastructure expenditure, the Covid-19 national lockdowns and the growth of the construction Mafia, all of which resulted in reduced revenue and job losses. There has, however, been a notable recovery in the construction sector over the past year, with many construction firms reporting stronger financial results than was previously experienced. Wilson Bayly Holmes-Ovcon (WBHO), which employs 9 413 people, provides a good example of this recovery. WBHO has been responsible for some of the biggest building construction, civil engineering and roads and earthworks projects across the continent. Although also impacted by the downturn of the past few years, WBHO’s recent results for the financial year ended June 30, 2023 show operating profit from continuing operations having increased by 30% with African operations contributing R995 million from R701m in the previous year. Furthermore, WBHO’s order book levels have increased to R33bn, a growth of 47% when compared to the previous year. This stronger financial performance has led to the empowerment of thousands of South African beneficiaries. WBHO, for example, has invested heavily in transferring a large percentage of its shareholding to permanent black employees over the past few years through its Akani Broad Based Incentive Share Scheme programme while spending hundreds of millions of rand on skills development and enterprise development programmes aimed at benefiting black employees and black-owned businesses in the sector. To illustrate the point, WBHO has invested more than R480m in skills development over the past decade as well as nearly R150m to develop black-owned businesses in the sector. In many ways, WBHO is doing something unprecedented – the company is investing resources to grow its own competition. From an operational perspective, WBHO’s executives own less than 1% of the business while more than 20% is owned by largely black permanent employees. During the first phase of WBHO’s employee share initiative, more than 2 966 employees received shares in the company, worth approximately R110m. It is in this context that the Public Procurement Bill was passed by the National Assembly in December with minor changes, and is being considered by the National Council of Provinces. While the imperative to accelerate and advance transformation is widely recognised, it is also important that legislation passed for this purpose does not undermine the significant progress made in transforming the construction sector. There was considerable criticism of the Public Procurement Bill when it was tabled in the National Assembly. This criticism varied from procedural issues – a short notice period, rushing the legislative process and rendering it impractical – to more substantive issues which identified specific long-term consequences such as the impracticalities of implementing the Public Procurement Bill in its unamended form as well the negative impact of Bill on the Constitutional considerations of fairness, equity, transparency, cost-effectiveness and competitiveness to the bidding process. The issues create reasonable grounds on which to question the constitutionality of the bill. The bill would also impede the ability of municipalities and provinces to determine their own procurement criteria. If passed in its unamended form, it seems clear it will invite lengthy and costly legal challenges. The construction sector operates under the 2017 Amended Construction Codes (ACSC). The preferential procurement element of the ACSC’s scorecard has specific targets aimed at advancing businesses owned by black South Africans, women and black youth, as well as disabled and rural South Africans. Within this framework, the sector has seen tremendous efforts to not only meet, but also exceed expectations. In addition to requiring new infrastructure, South Africa needs a thriving construction sector to help rebuild and repair critical infrastructure that has suffered as a result of insufficient and delayed maintenance. This is required in various parts of the country impacted upon by crises including social unrest and climate-related incidents. Now more than ever, our priority as a nation must be to safeguard the skills and investment necessary to build and maintain globally competitive infrastructure that keeps apace with global trends and technological innovation. South Africa’s construction sector was once globally respected, and it can be again. But to achieve this, we must narrow our focus to policy and legislative changes that support the growth of the economy more broadly and the construction sector in particular. We need to recognise those who lead in transformation instead of burdening them with further requirements that hamper further transformative contributions and sap the economy of its vitality. Parliament must revisit the Public Procurement Bill and what its impact on the economy will be. In this watershed moment, mistakes can be costly, setting back the critical recovery the country so desperately needs. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/deliberations-on-the-public-procurement-bill-will-have-real-and-lasting-consequences-for-the-construction-sector-19c9b08c-a74b-496f-a2b5-b0bcc9954cd3
- SANAS ACCREDITATION WITHDRAWAL
From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials. This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation. B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid. B-BBEE Verification Services are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.
- EXCLUDING VAT AS PART OF AN ORGANISATION’S TOTAL MEASURED PROCUREMENT SPEND
VAT is a Total Measured Procurement Spend (TMPS) exclusion as per Clause 6.1 of Statement 400 of the Amended Generic Codes of Good Practice : “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government." Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements. Support Services are available to guide members on TMPS Exclusions.
- INFORMAL TRAINING | CATEGORY G
Informal training is the means that many organisations use to drive their Skills Development mandate. Category G is Informal Training whereby the Skills Matrix references work-based informal programmes. It refers to the workplace or internal training, whereby one employee trains another. The following evidence substantiates a claim for this category (not limited to): Certified copy of a South African identity document; A signed EEA1 or any documentation confirming race and gender presented by the trainee; A training register confirming the date, the number of hours, as well as the trainer’s and trainee’s names. All parties must sign off this evidence; and The payslips of the trainer will verify the hourly rate paid in the month training took place. It may include presenting the trainer’s IRP5 if the Measurement Period is a February year-end. Skills Development Services are available to guide members on how to claim such Training initiatives.
- ONYI NWANERI | YOUTH FALLING THROUGH THE CRACKS OF EDUCATION SYSTEM
Onyi Nwaneri | 13 February 2024 Reflecting on what might be his final state of the nation address pending the upcoming elections, President Cyril Ramaphosa’s speech seemed to prematurely celebrate anti-corruption reforms while downplaying the profound impact of state capture on youth development, education and empowerment in SA. In his address, Ramaphos recounted the hypothetical success story of Tintswalo, a young girl who transcended generational inequality and poverty with the aid of government services and opportunities throughout her life. The reality in the communities we serve, however, is that for every Tintswalo, there are millions of children and young people who are grossly let down by the systems in which they are told to place their hope. While progress has been made, more needs to be done. SA is far from resolving the persistent triple challenges of poverty, inequality unemployment. Corruption, state capture and ethical erosion in both private and public sectors are significant barriers to effective youth development policies. Though Ramaphosa highlighted the success of various initiatives such as the Youth Employment Tax Incentive and the National Youth Service Programme, this is against a stark backdrop of 4.6 million unemployed youth (43.4%) in the country. The efforts of private-public partnerships in providing access to skills and employment opportunities for young people must be applauded, but these initiatives need to be broadened and accelerated. We need to change the status quo with bold steps. Let’s consider mandating that final year students transition to a one-year youth service immediately after graduating for a chance to be absorbed within the year of service in whatever organisation they are placed, earning at least minimum wage during this period. In this digital age, solvable infrastructure challenges are hampering access to quality information and affordable internet connection. Dependable infrastructure is going to be the deciding factor in how fast we can close the gaps allowing our youth to fall through the cracks of a broken education system. Reliable universal broadband, as was promised at least a decade ago, would go a long way in helping to alleviate the need for children to walk many kilometres to school and enable them to finish secondary education. Though this year’s matric results were positive and deserve to be celebrated, SA’s education and literacy rates are not globally competitive, and the current education system is not producing quality graduates whose skill level matches global industry demand. As a result, the country is producing wealth at a rate far below its potential to the detriment of millions of young people who deserve a fighting chance at becoming productive, self-sufficient members of society. We need to change our attitude toward education, skills development and work experience, placing a focus on potential. Focus should be on whether the prospective employee has the requisite skills and values, and is likely to add value to the company: the rest will follow. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/columnists/2024-02-13-onyi-nwaneri-youth-falling-through-the-cracks-of-education-system/
- MIXED REACTIONS TO SONA 2024
Glenneis Kriel | 13 February 2024 Opposition parties and agricultural role players feel that President Cyril Ramaphosa’s State of the Nation Address (SONA) was out of touch with reality and used as a tool to raise votes. Ramaphosa highlighted progress made in South Africa since the fall of apartheid 30 years ago in his address, held in Cape Town on Thursday. One of the highlights for agriculture specifically was his mention that roughly 25% of farmland was now in black ownership, and that the country was on track to exceed the 30% target for 2030. Francois Strydom, Agbiz chairperson, welcomed the recognition of land reform gains. “In the absence of adequate state support, the industry has played a significant role in this transformation through skills transfer and financial and technical support. Acknowledgement of the progress is a breath of fresh air, especially after recent attempts to amend the Constitution to allow expropriation without compensation,” he said. Noko Masipa, the DA’s shadow minister of agriculture, however felt that Ramaphosa only scratched the surface in his reference to land reform progress. “The president’s failure to grasp the hardships endured by these farmers is deeply disappointing and indicative of a disconnect from the realities on the ground. The crux of the matter lies in the intricate details overlooked in his statement. Many of these farmlands are lying idle, serving no purpose in the community. “The frustration among farmers leasing these lands is palpable, as beneficiaries grapple with the challenge of raising capital, rendering the farms uncultivated unless they receive grants. Beneficiaries need title deeds. They are fed up with leasing and government’s red tape.” Masipa added that the plight of genuine farmers was exacerbated by the fact that a significant portion of these lands had been allocated to ANC-connected cadres who lack farming expertise, further exacerbating the plight of genuine black farmers. Along with this, Masipa felt that the president’s failure to acknowledge the resilience of farmers, amidst the dual challenges of the COVID-19 pandemic and the conflict in Ukraine, demonstrated a blatant disregard for their critical contribution to our nation’s food security. “Despite soaring input costs and the spectre of crime, farmers have steadfastly persevered to sustain our agricultural backbone. This oversight not only undermines the sacrifices of those in the agriculture sector, but also the urgent need for our leaders to prioritise and support those who labour tirelessly to feed our nation,” Masipa said. Johann Kotzé, CEO of Agri SA, said the organisation acknowledged the progress highlighted in land reform initiatives, but stressed the need for concerted efforts to align with the objectives of the National Development Plan 2030. “Agriculture stands central to this plan, and comprehensive strategies are imperative to address the sector’s challenges and capitalise on its opportunities.” He also echoed Ramaphosa’s sentiment regarding the need for strong public-private partnerships to drive progress in key sectors such as energy, logistics and infrastructure. “We are pleased to see tangible progress resulting from collaborative efforts between the sector and government in addressing key issues, such as logistics, energy, and combating crime and corruption, as highlighted by the president.” Agbiz CEO Theo Boshoff commented that the address provided little in the way of policy direction for the coming year, and instead gave a status update on processes that are underway. “This either indicates that the address is devoid of any new ideas or major announcements to stimulate economic growth, or it was an affirmation that the state is not deviating from commitments made in the previous SONA, but allowing critical processes to reform our electricity, logistics and water infrastructure to unfold.” Boshoff added that business had invested a great deal of time, capital and goodwill into these collaborative efforts: “It seems as if these processes are being supported at a critical time when the temptation must be there to shelve longer-term pragmatic processes in favour of a populist approach. We hope this trend will continue after the election, as our economy sorely needs a dose of pragmatism.” Bennie van Zyl, TLU SA’s general manager, was unimpressed by Ramaphosa’s account of progress made in fixing ports, logistics, poor service delivery and in growing the economy, saying the address was merely another performance staged to garner votes in the upcoming election. “Over the past few years, agriculture has learned a very clear lesson about the difference between words and actions. We have learned that the promises made during SONA are not implemented. They are always empty words that mean nothing for South Africa’s progress. Just look at how our unemployment rate has risen from 29,1% in 2019 to 31,9% in 2024, and inflation has increased by 1,74% since 2019.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.farmersweekly.co.za/agri-news/south-africa/mixed-reactions-to-sona-2024/
- COMPETITION BODY SETTLES: PRIMEDIA HIT WITH R2.7M PENALTY, GIVES R1.3M FREE AD SPACE TO SMMES
Philippa Larkin | 15 February 2024 Primedia has once again fallen foul of competition law as it was announced on Thursday that Primedia Outdoor, a division of Primedia, was slapped with a R2.7 million penalty and has to give R1.3m free ad space to small, medium and micro enterprises (SMMEs). It is not the firm’s first brush in with the competition authorities. In 2019 cash-strapped public broadcaster the SABC, Primedia and Ster-Kinekor agreed to pay millions of rand in penalties, bonus advertising and Economic Development Fund contributions in a settlements agreement with the Competition Commission. The Competition Commission on Thursday said it welcomed the Competition Tribunal’s green light to a consent deal reached between the Commission and advertising company Primedia Outdoor. The February 13 Tribunal order follows an investigation by the Commission. It found that between September 2004 and March 2018 media firms, under the auspices of an industry association Out of Home Media South Africa (OHMSA), had entered into collusive agreements, which fixed prices and trading conditions in contravention of the Competition Act. OHMSA members include: Boo! Media; Insight Outdoor; Outdoor Network; Adreach; Tractor Outdoor; SP Media; Primedia Outdoor; JB Media; Likhwane Media; Anchor Zedo; Jonet Outdoor; Airport Media and OHMSA. In December 2018, the Commissioner initiated a complaint alleging that various media firms, under OHMSA, agreed to develop a code of practice and standards that fixed payment and settlement terms, penalties and cancellation fees that they impose on advertising agencies, advertisers and poster buying specialists that purchase advertising space from them. The Commission explained, “At the conclusion of its investigation, the Commission referred the complaint to the Tribunal for adjudication. Primedia, one of the respondents in the matter, has settled with the Commission agreeing to pay an administrative penalty of R2 717 950. “Primedia has also agreed to provide free out-of-home advertising services to small, medium and micro enterprises (SMMEs) owned by historically disadvantaged persons (HDPs) to the value of R1 358 975 over a period of 12 months.” Commissioner Doris Tshepe said in the statement, “Primedia is the first respondent to settle with the Commission. The Commission is encouraging the remaining 12 respondents to settle the case against them.” Background September 2004 to about March 2018, OHMSA issued the Code of Practice and Standards for its members recording the following arrangement between the respondents: – Where a Out of Home Media campaign is cancelled by an advertiser or the advertising agency, a cancellation fee of 75% of the balance of the contract is payable to the media owner; – Where illumination of a sign has been sub-standard for a month or part thereof, 25% of the monthly rental fee is to be credited to the customer; – Where a client or advertising agency is responsible for the supply of material for display on or in Out of Home Media and such material is delivered later than the date agreed, the media owner will be entitled to charge for full period of exposure without any compensation for late flighting; and – Where campaigns run for three months or less, a fee for removal offaces or blanking of boards will be levied. “This conduct may amount to price fixing and/or fixing of trading conditions in contravention of section 4(1)(b)(i) of the Act,” the Commission said. 2019 brush with the law Primedia, following the admission of price and trading fixing in contravention of the Competition Act, had to pay an administrative penalty of more than R9.6m and provide 25% bonus advertising space for every rand of advertising space bought by qualifying small agencies over a period of three years, capped at R24m annually. The company at the time also had to contribute roughly R3.4m to the EDF over three years. The case is related to an investigation initiated in November 2011, which found that, through the Media Credit Co-Ordinators (MCC), various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with MCC members. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/competition-body-settles-primedia-hit-with-r27m-penalty-gives-r13m-free-ad-space-to-smmes-90f9e567-c849-4093-90a4-b1b2f5a96f53
- IS THERE A NEED TO ABOLISH THE TENDER SYSTEM?
Dr John Ntshaupe Molepo | 14 February 2024 The government of South Africa uses tendering system to procure goods and services. This procurement system is seen as one of the mechanisms to empower the disadvantaged members of the society. The system was also introduced to welcome new participants in the mainstream economy particularly the marginalised black as it was difficult for new players to participate in government procurement. Over the years tendering system has had many unintended consequences. It has contributed to poor delivery of public services and in some instances resulted in people (service providers and/or procurement officials) being killed. In light of this, the critically important question we ought to be asking ourselves is whether we still need tendering system with its many deleterious consequences? In other words, is there no way in which public institutions can be better capacitated to reduce heavy reliance on the procurement system? These questions are asked specifically because there are concerns that the tendering processes seems to be benefiting politicians and those who are politically correct and connected. South African procurement system has resulted in high corruption. Harry Munzhedzi, a senior lecturer of Public Administration at the University of Venda, calls corruption and public sector corruption the “inseparable twins”. Munzhedzi’s argument is an important one in the context of this article. Implied in this argument is the reality that you cannot deal decisively with corruption in the public sector if you do not abolish the procurement system. This point was also emphasised in the founding manifesto of the EFF. The events of the past week where an executive from Rand Waters, Teboho Joala, who was responsible for the procurement at the said institution was brutally murdered with his bodyguard in the purview of learners while they were doing outreach programme allegedly on the basis of projects and its procurement processes are very disturbing. We are still going to witness a lot of death associated with procurement. In a township slang, they call this “borotho”. In communities, projects are stopped because people demand 30% which the Preferential Procurement Policy states that institutions must plan properly their procurement, identify tenders that will be used to promote SMMEs, co-operatives, rural and township enterprises. Decide on the appropriate regulations to be used to achieve the desired outcomes. Now, those who are given tenders are unable to complete their projects because of ‘mafias’ demanding the 30% share in literal cash and failure to deliver, they stop your project. President Cyril Ramaphosa in one of his Sonas, strongly condemned this kind of behaviour and promised that government will harshly deal with this phenomenon. Most government departments and municipalities use consultants even for services which could be easily done by them. The Auditor General has also complained about this overuse of consultants who most of them do not necessarily have the capacity to perform. The use of consultants is premised on the neo-liberal logic that government does not have the requisite capacity to perform certain functions and should therefore turn to the private sector through outsourcing. But why cannot we capacitate government institutions to perform optimally? Recently, the South African government introduced the framework for the professionalisation of the public service which stresses the importance of employing qualified and skilled workers to do the work. This, among others, is intended to capacitate government and to reduce oversubscription of consultants. The state should be the hub for qualified and skilled workers for anything required in the country. It cannot be correct that a tender is issued to procure small items such as toilet paper, papers, coffee, and other items something that can be bought by a leader and account. Just because people want friends to benefit, they issue it for tender because the rules allow for it and the provision of such a service often takes time and at a high price. The government has proposed various reforms particularly changing on the policies however those changes do not address the fundamental issues of capacity, service delivery and deaths that we are witnessing. All these is as the result of the neo-liberal mode of governance we have adopted in the democratic dispensation. Because of this, there is a propensity to put profits before people as government institutions are run like businesses. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/pretoria-news/opinion/is-there-a-need-to-abolish-the-tender-system-84a5b78b-c2a8-40d0-a2f9-418d631b8107
- DIGITAL DIVIDE ROBS YOUTH OF OPPORTUNITIES FOR THE FUTURE
Yershen Pillay | 17 February 2024 Globally, the world observed the International Day of Women and Girls in Science at the weekend. Amid the lofty promises is the harsh reality that considerably more needs to be done to ensure that women and girls are given the tools to succeed in science and society at large. The Chemical Industries Training and Education Authority (Chieta) is mandated to facilitate skills development, education, and training in the chemical industry. We are striving to create opportunities for the youth, women, and girls. We were proud to hear about hard-working matriculant Liyabona Ncanywa being recognised by the Eastern Cape Department of Education as one of the province’s top achievers in the National Senior Certificate Examinations. Chieta assisted her with tuition and school fees through our Science, technology, engineering, and mathematics (Stem) fund, which supports 1000 learners throughout the country. Through its various programmes, including the upcoming Discretionary Grant Funding Windows and working with corporations, Chieta provides potential opportunities for 615 internships, 1085 leadership, 1 395 skills programmes, and 1285 TVET students for Work Integrated Learning. Such investment in skills development is vindicated when learners like Liyabona make us proud. It certainly encourages us to do more to ensure that the goals of the UN become a reality for women and girls worldwide. In 2016, the UN declared February 11 International Day of Women and Girls in Science. The main reason for this declaration was to encourage more girls and women to take jobs in science, technology, engineering, and mathematics (known as Stem subjects). As an organisation, Chieta takes a broad view of the need to provide skills training for the chemicals industry, which, traditionally, would mean chemical skills, especially for women and girls. As industries like ours and others digitise, we are seeing a demand for what one could call cross-over skills, skills that are as valuable in mining or retail as they are to our industry. For example, our research shows that data analysis is the number one skill petroleum companies seek. We are thus duty-bound to do what we can to deepen the pool of data analytics talent for the benefit of our stakeholders, and that means broadening how we interpret our remit. With youth unemployment considerably high, these efforts are critical. An essential pillar of Chieta’s vision is to overcome the difficulty that many communities in South Africa, predominantly in rural areas, have in accessing digital skills and opportunities. These rural communities often need more basic connectivity, and grinding poverty means that essential equipment like laptops or cellphones are not readily available. Not only does this rob rural youth, especially girls and women, of opportunities, but it also robs the economy of brainpower and motivation. Therefore, bridging the digital divide is crucial if the country is to address the challenges around skills in Stem. Chieta launched a novel initiative to create nine Smart skills centres, one in each province, to then set up many more once the concept has gained traction. Digital skills are taught to rural learners for them to keep abreast of artificial intelligence developments. The thinking is to provide rural communities, particularly their unemployed young people, with a way to gain vital digital experience and proficiency and use the technology to gain a foothold in the economy by accessing job and partnership opportunities. Smart skills centres have already been set up in Saldanha Bay, Gqebera and Babanango. The next one to be launched will be in the Highveld Industrial Park in Mpumalanga, on the former Highveld Steel and Vanadium factory site. Another project that stands out is the AlgoAtWork Robotics Academy in Richards Bay, in which children are taught essential skills for an AI-driven workplace in the future. Numerous bursaries flow into learning support and programmes for retrenched employees, a fundamental way the Chieta supports the Economic Reconstruction and Recovery Plan (ERRP) – a government initiative that aims to build a new economy. While the centres come in different sizes depending on the communities they serve, they all feature several pods in which virtual reality and augmented reality technologies can be used, with other pods providing laptops for surfing the internet, doing training or even job interviews. Connectivity and data are also provided. Getting people, especially women and girls, familiar with and confident in using technology is part of making them work-ready. Another important part of the smart skills centre offering is a smart boardroom, which SMMEs can book for meetings with potential customers, investors, or any other use. The smart boardroom concept speaks to Chieta’s understanding that hand in hand with upskilling the youth, jobs are needed, which means a more vibrant SMME sector. The National Development Plan relies heavily on SMMEs to provide the millions of jobs South Africa needs. While SMMEs make up some 95% of the companies in the country, most are purely survivalist enterprises that fail often and never get big enough to become providers of sustainable jobs, especially for women and girls. Secondary Education in Africa: Preparing Youth for the Future of Work – A Gender Brief was a report sponsored by the Mastercard Foundation in 2020 which looked at young people’s preparedness for work, specifically girls and young women, and was aimed at forward-looking solutions that meaningfully contribute to the acceleration of the continent’s economic transformation. The report focuses on what needs to be done for more African girls and young women to acquire the necessary skills, knowledge, and competencies to be engaged, productive, and employed citizens. While secondary education is needed to give young women and girls the opportunity to gain the skills and knowledge they need to succeed in work and entrepreneurship, this cannot be overemphasised. Women make up more than 50% of the continent’s 1.3 billion inhabitants. African women should, therefore, contribute to the global workforce equally. South Africa’s Department of Science and Innovation and the National Research Foundation (NRF) should take a bow for the work done to boost opportunities for women in science. Against funding cuts, they have valiantly sought to address the gender imperatives through bursaries and fellowships. Most of their recipients are from previously disadvantaged groups – black South Africans, particularly those from low-income households. About 86% of all postgraduate funding goes to black South Africans, and that is at least 55% for women. Eventually, these efforts will bear fruit as women and girls are already beginning to lead in the Stem fields. Future days to observe the International Day of Women and Girls in Science will hopefully celebrate these and other success stories. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capetimes/opinion/digital-divide-robs-youth-of-opportunities-for-the-future-0be8f521-f2b7-4e8f-9759-907a0426ca2a
- EMPLOYMENT EQUITY: WHY DOES GOVERNMENT WANT TO HOBBLE LARGE BUSINESSES?
Michael Bagraim | 18 February 2024 Draft Regulations on Proposed Sectoral Numerical Targets were printed in The Government Gazette on February 1, 2024. This set of regulations is open for public comment for 90 days from February 1, 2024. Should any member of the public wish to comment on the regulations after having read them, they should write to: Innocent. makwarela@labour.gov.za Although I do not accept the necessity or the legality of the Employment Equity Act and its regulation, it is necessary to carefully look at these regulations and to comment thereon. I will be sending in my comments in due course to the ministry. The minister may set Sectoral Numerical Targets after identifying National Economic Sectors. The minister must consult with the relevant sectors to ensure the equitable representation of suitably qualified people from designated groups at all occupational levels in the workplace. Furthermore, the minister may set numerical targets for any National Economic Sector identified. Indeed, the minister has identified 18 economic sectors which covers almost the entire economy. The minister is hellbent on social engineering of the worst kind. One would have thought that South Africa has had enough of social engineering when the apartheid government was dismantled. Once again, here in South Africa in 2024, we find ourselves structuring employment on the basis of skin colour. The employment targets complicate at almost industry and every region. The targets are set for five years and the government would have us believe that they took some factors into account in setting these targets. I have no doubt in my mind that the factors they outline were not taken into account. For instance, they were supposed to take into account skills availability, economic and market forces, ownership and the demographic profile of the National and Regional – Provincial Economically Active Population. All this whilst almost 50% of the workforce are unable to find work. They have the gall to tell us that the proposed targets are minimum targets and are key milestones toward achieving the equitable representation. One would think that any reasonable and efficient government would rather try and improve the economy and grow the economic cake instead of shrinking the cake and then cutting it up in terms of targets. It makes no sense whatsoever. There is one small piece of good news which does shine out in this ridiculous set of circumstances. The regulations define who a designated employer is: “Designated Employers are those who employ 50 or more employees”. In other words, a business employing less than 50 employees will not be bound by these regulations. Small businesses under 50 employees are not designated employers and are not enforced to adhere to the archaic draft regulations. It is a well known fact that it is the small business sector (in other words businesses employing under 50 employees) are the engine room of job creation of the future. Government understands the need to free up small business and are in this piece of regulation at least structuring it that small businesses do not suffer under the yoke of these harsh numerical targets. In other words, government fully understands that the targets are harsh and businesses will suffer. If that is the case, then why is government wanting to hobble businesses who employ over 50 employees? Is this not encouraging businesses not to grow beyond 50 employees? In essence, our government seems hellbent on destroying the business community’s capability of employing South Africans. Is it not easier to avoid the regulations and get your goods manufactured abroad? Why is government wanting to encourage people to rather outsource manufacturing to other jurisdictions? Government wants us to believe that this affirmative action will create more employment for black people, women and the disabled. It should not come as a shock to them to hear that in fact it’s done exactly the opposite. In fact, any affirmative action anywhere in the world has not been effective. Even here in South Africa the whole idea was for the affirmative action to be put in for a short period of time to obtain equality. This concept is in fact repeated in the regulations: “Affirmative action is a coherent packet of measures, of a temporary nature, aimed specifically at correcting the position of member of a target group as defined in the Employment Equity Act in the workplace, in order to obtain effective equality”. Well, it is important for me to state again that we have done exactly the opposite. The target groups in South Africa have suffered the most under the ANC government. It is quite apparent when one looks at the employment figures. Those who make up the majority of the unemployment queues are the very people that the legislation had purported to help but, 30 years later, the situation continues to go from bad to worse. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capeargus/opinion/employment-equity-why-does-government-want-to-hobble-large-businesses-2035f1f6-9bac-4eeb-ac2d-7e52ba36c3c0
- YOUNG PEOPLE, EVEN WHEN THERE IS NO HELP FOR YOU, THERE IS STILL HOPE
Given Majola | 18 Feb 2024 The beginning of every new year marks a fresh opportunity to resolve personal strife and overcome our social plagues. When the sun rises on New Year's Day, everyone wakes up and opens their main doors to usher in a new spirit of prosperity into their households. Most welcome this moment as a long-awaited friend, who comes from a special part of the universe, bearing a solution for all their problems. Many young people would still be filled with this euphoria as they return to school or work despite the amount of pain and hardship experienced in the previous year(s). The hundreds of thousands who have sat for their National Senior Certificate (NSC) examinations would welcome their results with grace. Their success affirms their potential to lend a hand in the country’s quest to overcome its long-standing challenges. However, sooner than later, many are thrust into the den of South Africa's unfortunate history where poverty, unemployment and inequality await with sharp teeth and long nails. Many land in this with no preparation and back-up whatsoever. The reality is that many successful matriculants come from households where the only source of income is in the form of a social grant. Some have parents who are either unemployed or who are financially overstretched because whatever they earn struggles to catch up with the household's growing needs. These households that fail to sufficiently feed, clothe and fully support the matriculant and his/her siblings throughout the year are then visited with an even harder problem of taking the successful matriculant(s) to a higher education institution. While the National Student Financial Aid Scheme (NSFAS) stands ready to assist such students, for many that process begins once they enter the gates of the university, university of technology or TVET college. Considering the fact that the country has far fewer seats than the heads that pass matric, some students secure spaces in institutions very far from home. Imagine a student from the rural parts of the of KwaZulu-Natal, or Eastern Cape, securing a studying spot in an institution in the North West or even the Limpopo provinces. This means they have to travel hours to Gauteng before connecting with the relevant transport to that province that heralds a better future. For many of these students, it is difficult to get a fare to get to their destination. If they do get there, some need to have money to get proper accommodation before they successfully secure student accommodation. Most of them do not have that money so they sleep in university sports centres, lecture halls or under trees on campus. In the morning, the wake up to queue to secure accommodation. This may happen for a few days. A cousin of mine spent the past weekend in a very despondent state. Having left home earlier in the past week, she and many others had to stand in the searing heat as housing officials were bargaining for the resolution of their own issues. She only secured accommodation on Tuesday this week. Elsewhere, another TVET college student and her sibling, told me that over the past weekend, a group of heavily armed thugs with one dressed in what looked like police uniform, came into the place they and many others rent in at night, bundled everyone (male and female) into one of the rooms, ransacked all the other rooms and made off with the poor student’s cellphones and other valuables. Another cousin of mine, who passed matric in 2022, but failed to get tertiary admission last year, spent the whole year applying in various institutions. To her dismay, some time last month, they received an email from on institution they applied to at around 3pm informing them to come and write an entrance exam at 10am that very same day. Unbelievable I know. But true. At the time of writing this column, the latter's own cousin, who applied last year, had an application status that said “awaiting results” towards the end of the week in which classes officially began on Monday. Should they be fortunate, they are at risk of finding the accommodation full, a situation that would result in a crisis. I have heard that some returning students, who contended with the controversial allowance disbursements last year, are waiting to receive these a few days since returning to class. Others had to borrow money here and there to get back to school and secure accommodation. Others wait for that disbursement notification with empty stomachs. Others may be waiting at home missing the initial classes. While these are well-known anecdotes that sadly define where a significant number of where young people find themselves in this country almost 30 years into the democratic dispensation, there is another story that is being born. And that story tells itself. We should listen to it. That is the story of hope. While many young people are subjected to a tough livelihood, they keep on hoping. In a time when situations conspire to sink them, they miraculously emerge. Another student who matriculated in 2021, had applied to a tertiary institution in that same year, was only admitted this year. This would have been their final year. But despite applying for 2022 and last year, challenges conspired against them and they could do nothing. They only kept hoping and only hope, paid off. While the young generation of 1976 will always be remembered for their gallantry against the apartheid regime, today's youth should be remembered for being hopeful even when many things stand in their way as they try to claim the fruits of democracy. Many still respect the Constitution. They hope that somehow, it will help them too. They hope, that when they no longer have the strength to fight, because disenfranchisement has dealt them too many blows over a very long time, the Constitution will fight for them and ultimately deal with those who visit injustice to them. With less than 50 days into this new year, hope has spoken loudly as the South African men's national team, Bafana Bafana, which nobody expected much from returned home with bronze medals after coming third in the 2023 Africa Cup of Nations tournament that was held in Ivory Coast. Just last week, 22-year old South African musician Tyla bagged the first African Music Performance Grammy award. Before that, a boxer from Tembisa Jackson Chauke won vacant IBO flyweight world title. Before him, South African professional mixed martial artist Dricus du Plessis (born in 1994) who competes in the Middleweight division of the Ultimate Fighting Championship (UFC) recently became the first South African to win a UFC championship. As I celebrated my 33rd birthday on Tuesday, it dawned on me that South Africans, especially the youth, will not allow their country to crumble under the injustices of the past combined with the modern day incompetence. I learnt that poverty, unemployment and inequality that are exacerbated by infrastructural failures and lack of political breakthrough will not crush this country. But the hope in the youth who refuse to allow the triple challenges to bring us down, is what will let this country rise to glory. Young people, even when there is no help for you, there is still hope. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/young-people-even-when-there-is-no-help-for-you-there-is-still-hope-f20b962b-8a3d-4ec2-a416-ea73bee16ab9
- YOUTH UNEMPLOYMENT IS TOP PRIORITY
Mpho Sibanyoni |19th February 2024 Members of the public will be on tenterhooks as Finance Minister Enoch Godongwana delivers the last national budget speech before the upcoming elections expected to take place between May and August. Godongwana will need to answer simple questions on whether the ANC government will have the wherewithal to reduce the high youth unemployment. There are calls for Godongwana to use the speech on Wednesday to increase the R350 social relief distress grant and produce measures to create jobs. Others have proposed he should raise the value added tax by 0.5% to 14.5%, something that will put more pressure on low income households choked by high food prices. “[Godongwana should announce] a massive expansion of the Presidential Employment Stimulus to accommodate at least 1-million people by April and 2 million by November 2024, to help break the back of youth unemployment,” Cosatu acting spokesperson Matthew Parks told Sunday World. Parks also argued that raising the social relief distress grant will help beneficiaries to recover from the grant’s value that has been eroded over the years due to runaway inflation. Members of the public will be on tenterhooks as Finance Minister Enoch Godongwana delivers the last national budget speech before the upcoming elections expected to take place between May and August. Godongwana will need to answer simple questions on whether the ANC government will have the wherewithal to reduce the high youth unemployment. There are calls for Godongwana to use the speech on Wednesday to increase the R350 social relief distress grant and produce measures to create jobs. Others have proposed he should raise the value added tax by 0.5% to 14.5%, something that will put more pressure on low income households choked by high food prices. “[Godongwana should announce] a massive expansion of the Presidential Employment Stimulus to accommodate at least 1-million people by April and 2 million by November 2024, to help break the back of youth unemployment,” Cosatu acting spokesperson Matthew Parks told Sunday World. Parks also argued that raising the social relief distress grant will help beneficiaries to recover from the grant’s value that has been eroded over the years due to runaway inflation. Introduced in May 2020, the social relief grant is offered to SA citizens, refugees, asylum seekers and special permit holders aged between 18 and 60 years at a cost of R35-billion a year. “There should be a massive injection of financial support for industrial, localisation and export programmes to boost our manufacturing sectors and jobs,” he said. Parks added there should be additional resources for key law enforcement organs to turn the tide against crime, corruption and tax evasion . “He should also announce a stabilisation package for local government, including the 36 municipalities routinely failing to pay staff and those struggling to provide quality municipal services.” Financial institution Investec predicted SA’s budget deficit to narrow to 5% of GDP in the financial year 2024/2025. “Gross debt has grown to 76% of the GDP and is projected to climb to 78% over the next three years,” said the bank. Black Business Council chief executive Kganki Matabane said Godongwana should prioritise economic growth and job creation. “The budget should be a step to fund interventions that will attempt to deal decisively with the 75% of youth unemployment. Youth unemployment is the single most significant threat to our democratic project. “We have raised the issue of funding of small businesses, black businesses, women businesses and businesses owned by people living with disabilities. They will then create employment but also contribute to the fiscus in the form of taxes.” He said it would be a bad idea to raise VAT. “Businesses and individuals are still trying to recover from the negative impact of Covid-19 and other challenges. Increasing VAT may not be an ideal preferred solution,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/youth-unemployment-is-top-priority/