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Daily News Reporter | 5 December 2023 Durban — The Construction Education and Training Authority (Ceta) and the Council for the Built Environment (CBE) are hosting the inaugural Built Environment Recognition Awards on Thursday evening at The Capital Zimbali Hotel in Durban, under the theme “Road to Professional Registration’’. At least 200-300 persons representing various Built Environment Professions are expected to attend the awards. Dr Msizi Myeza, the chief executive of CBE said the awards form part of the transformation agenda aimed at professionalisation, building a capable and ethical built environment sector. These awards will be held for the first time. “The awards recognise outstanding achievements in engineering, architecture, urban planning, construction, and related fields. They promote innovative and sustainable practices in the built environment sector while showcasing exemplary projects and individuals as role models for future initiatives. “They foster collaboration, knowledge exchange, and networking among professionals in the industry and raise public awareness about the importance of the built environment and its impact on quality of life.” He said the CBE represents roughly 100 000 members across six professional councils: 65 000 registered professionals and 35 000 candidates. “There is also a huge number of trained built environment personnel who have transitioned to other sectors such as banking, insurance, real estate, asset management, etc.” He said through ongoing human resource development, CBE has actively been on the road to promote professional registration in the built environment sector through impactful engagements with key stakeholders such as provincial and local government, industry players and various institutions of higher education and training such as the University of Johannesburg, UCT, University of KwaZulu-Natal, Durban University of Technology and TVET colleges. Collectively, the initiative has gained considerable traction. “The benefit of the recognition awards is that they will serve as motivation to built environment candidates and professionals that professional registration is an additional safeguard against unsafe practices. “Publicly, it demonstrates the practitioner’s ethical credentials and industry status (eg, Pr Eng, Pr Pln).” Myeza said professional registration increases practitioners’ chances of being employed, locally as well as abroad. “Professionalism builds confidence, promotes ethical conduct, and embodies as assurance that a person charged with the responsibility of driving public infrastructure is competent, among other credentials.” He said professional registration in the built environment is the highest order that a person can be accorded as part of his or her professional journey. “Besides, the monetary benefits that are accrued post obtaining a PR status, it enhances credibility to individuals within the sector. For example, as clients, employers, stakeholders and communities increasingly demand accountability and expertise when projects are implemented, having a recognised professional registered person becomes crucial. It not only instils confidence in clients that they are working with competent professionals but also helps employers in identifying and hiring the right talent for their projects.” He said statistics recorded in the CBE Annual Report 2022/23 are telling that only 14% of registered professionals in South Africa are women. Furthermore, looking at racial demographics, the report noted that 62% of registered professionals are white, followed by 25% African males, 9% Indian and 4% coloured. He said the picture becomes even bleaker when dissecting the slow progress or blockages in transforming the skills pipeline, where Africans and women are stuck as candidates due to a lack of employment opportunities and mentorship. For example, 62% of candidates are African, followed by 24% white, 9% Indian and 5% coloured. Only 28% are women. “It is glaringly obvious that 30 years into democracy, the built environment sector has not transformed and, therefore, by extension has not been professionalised. It is against this background that urgent interventions are required to ensure the built environment not only transforms its racial make-up but to that its representation is reflective of South Africa’s demography profile,” Myeza said. In October 2022, the Cabinet approved the National Framework towards Professionalisation of the public sector. Key in the Framework was the call for professionalising the built environment profession, which has “unfortunately been engulfed by several unethical dilemmas, including corruption.” The Council for the Built Environment, an overarching body and a developmental regulator of the built environment in South Africa has a legislative mandate to drive the transformation, professionalisation and skills development of the built environment together with various stakeholders, tertiary institutions, and the industry in line with CBE Act 43 of 2000. He said Ceta has a mandate to embark on research initiatives, accredit training providers and employers, develop occupationally directed qualifications and offer bursary opportunities, and create access to skills development for rural and township-based communities in line with the NSDP 2030. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/news/awards-to-recognise-excellence-in-the-built-environment-27d6751e-2f82-4a46-a60c-7b97c979c33d

Susan Comrie | 2 December 2023 Former chief justice Sandile Ngcobo has eviscerated Karpowership’s Turkish owner over its “biased” and “oppressive” shareholders’ agreement with its black empowerment partners. Powergroup SA turned to arbitration when Turkey’s Karadeniz tried to evict it from the R218-billion deal to supply emergency power to Eskom for the next 20 years. In February, Karadeniz told Powergroup that it needed to fund its portions of a $5-million (R93-million) the Turkish parent said was needed to get the Karpowership deal over the line. When Powergroup did not deliver the funds, Karadeniz exercised a call option in its shareholders’ agreement that allowed it to seize Powergroup’s 49% for the princely sum of R83. Karadeniz, Karpowership’s Turkish parent company, owns 51% of the local joint venture through a subsidiary in Malta. Powergroup, which is owned by local businesspeople – Sechaba Moletsane, Ravin Rajoo, Sureshan Moodley and George Mokoena – held 49% until recently. But Ngcobo’s confidential ruling, delivered last week Friday, found that key clauses of the shareholders’ agreement – which only applied to Powergroup and not Karadeniz – smacked of discrimination, and were inconsistent with Powergroup’s constitutional right to equality. “The problem here is that the Call Option as well as the Trigger Events have as their only target, Powergroup,” Ngcobo wrote in his ruling, which amaBhungane has seen. “The impugned provisions are heavily biased in favour of Karadeniz. They were obviously tailored from Karadeniz’s point of view.” He continued: “They were not merely designed to secure contribution to additional funding but were designed to ensure maximum protection for Karadeniz against any breach of the [shareholders’ agreement] … by Powergroup while at the same time subjecting Powergroup to the most stringent and oppressive terms … This is manifestly unfair and unreasonable.” During the arbitration hearing, Karadeniz’ lawyers argued that the one-sided clauses were necessary to ensure Powergroup did not get a “free ride” in the deal. Summarising Karadeniz’ argument, Ngcobo wrote: “Reduced to its essence the assumption is that because Powergroup is a BEE entity and has brought neither capital nor technical skills to the Company, it has no vested interest in the success of the project. “This is so notwithstanding access to both capital and technical skills that Powergroup stands to gain by participating in the project. This assumption seems to be based on the premise that because of its contribution to the project, Karadeniz has much to lose if the project does not succeed and therefore it will not do anything that might constitute a trigger event. For this reason, there is no need to put in place contractual mechanisms to ensure it does not fall foul of any provision of the [shareholders’ agreement].” But Ngcobo rejected this argument: “No facts have been put forward to justify this assumption. There is utterly no basis for this assumption. If anything, it exposes the irrationality of the basis of the discrimination and its unreasonableness. The ineluctable conclusion is that the assumption is based on a predisposition about Powergroup as an entity. This is inimical to our foundational value of equality.” Powergroup also asked Ngcobo to consider whether the arrangement constitutes “fronting”, which is a criminal offence and punishable by up to 10 years in jail. However, while Ngcobo found that there is “a compelling argument” that the clause in question “violates the fronting provisions of the Empowerment Act”, he did not make a ruling on this, reasoning that it was enough to declare the clauses violated the “foundational value of equality” in the Constitution. The ruling, which is binding, gives Karadeniz 21 days to return the 49% stake in Karpowership to the BEE shareholders. The only upside for Karadeniz was that Ngcobo agreed that Powergroup had failed to respond to previous calls for funds, which in theory would allow Karadeniz to start the process to push Powergroup out of the deal again. Although it will struggle to get this right after Ngcobo declared the call option – that allowed Karadeniz to seize back the shares if Powergroup failed to provide funding for the project – “unenforceable”, leaving the two sides in a stalemate. This story was updated post-publication to include additional context on how Ngcobo’s ruling impacts Karadeniz’s ability to push Powergroup out of the deal for a second time. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://amabhungane.org/stories/verdict-karpowerships-owner-slammed-for-discrimination-against-bee-partners/

Staff Writer | 1 December 2023 The Broad-Based-BEE Commission has called for tighter legislation and greater powers to address companies that undermine transformation efforts in South Africa. The commission briefed the media on its work over the past 20 years on Thursday (30 November), highlighting the body’s intentions of rooting out and clamping down on businesses that are fronting as BEE-compliant. “To date, we have received 1,273 complaints that the commission has registered. Of those, 84% of them pertain to fronting,” said Lindiwe Madonsela, senior compliance manager of the BEE Commission. The B-BBEE Act has defined fronting practices to mean transactions, arrangements or other acts or conduct that directly or indirectly undermines or frustrates the achievement of the objective(s) of the B-BBEE Act or the implementation of any of the provisions of the B-BBEE Act. This effectively means businesses are misrepresenting their transformation standing. The Broad-Based BEE Commissioner Tshediso Matona has slammed these findings and described them as efforts to frustrate and oppose the commission’s work and undermine transformation in the country. “Recently, in my view, there has been an emergence of certain civil society groups that represent white interests, that have made it their business to attack transformation in South Africa,” he said. He also lamented the slow pace of law enforcement to take action against businesses that have been found to be inviolation of the current BEE legislation. The commission gave an update on the status of transformation across businesses in South Africa, stating that 33.9% of businesses are black-owned in South Africa – a 4.4% increase recorded in 2021. Madonsela said while this is an improvement, she noted with concern that, from a Johannesburg Stock Exchange (JSE) perspective, there are no companies that are 100% owned by black people in the country – based on reports the commission has received. Matona also highlighted the surge in fraudulent BEE-compliance certificates across businesses and has encouraged professionals to speak up against compliance issues and called for companies to play by the Triple BEE legislation. Matona added that efforts are now underway to strengthen legislation to ensure the prosecution of those businesses – calling for more powers to prosecute guilty entities, which he said will drive incentives to follow legislation and make the penalties clear. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/735407/bee-commission-is-coming-after-these-businesses-in-south-africa/

Shoprite Holdings | 27 November 2023 Small suppliers Hope Sonic, Jacobs Jam and Crispe Cookies are among the exceptional suppliers honoured at the Shoprite Group's 2023 Supplier of the Year Awards. Held at Blaauwklippen Wine Estate in Stellenbosch this past weekend, the awards recognise the invaluable contribution suppliers make to the Group’s success. Finalists across 12 categories were evaluated on criteria including the extent to which they had contributed towards the retailer’s growth and improved earnings, their stockholding and service levels, the efficiency of their administration processes, and their support at store level. The 2023 winners in each category are: General Merchandise & Furniture: Hope Sonic Toys Professional Suppliers: OUTsurance Insurance Fruit & Vegetable Producers: Stephan & Seuns Boerdery Fresh Departments: Crispe Cookies Alcoholic Beverages: Edward Snell & Co Groceries: Unilever Snacks & Beverages: Coca-Cola Perishables: Lactalis South Africa Personal Care: AMKA Products SMME: Jacobs Jam Company Sustainability: Faircape Group Private Label & Supplier Partnerships: Cleopatra Tissue Products In addition to the category awards, Tiger Brands was announced as the first ever winner of the Grand Prix accolade, which is awarded to a supplier that demonstrates exceptional overall performance and impact on the Group’s operations. Jacobs Jam is the winner of the 2023 SMME Award after their business recorded exponential growth after striking a deal with the Group a little over a year ago. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.shopriteholdings.co.za/newsroom/2023/shoprite-supplier-awards-2023.html

Karen Singh | 29 November 2023 The University of KwaZulu-Natal (UKZN) announced on Wednesday that it has received R20 million to assist in providing debt relief for students. The university said the cash injection was from the Moses Kotane Institute (MKI) and the newly-established merSETA Skills Development Fund, which helped ease the problems of skills gaps and the student debt burden within KZN. “The debt relief assistance is a beacon of hope, particularly for students from historically disadvantaged backgrounds, helping alleviate financial constraints and open doors to brighter futures,” said UKZN. Acting executive director of the UKZN Foundation, Steve Camp, said this assistance offered support to students during tough economic times. “Philanthropic support from UKZN partners such as the Moses Kotane Institute and merSETA lifts a weight from our students in tough economic times, freeing them to get into the job market, to lead healthy, joy-filled lives and find purpose in work, play, family and more. It is a gift beyond measure,” said Camp. MKI Acting CEO Thembelihle Mapipa said the institute was dedicated to addressing challenges faced by students from historically disadvantaged backgrounds. “Our focus over the years has been on making a significant contribution to improving the skills development of KZN’s younger generation. In approaching merSETA, we sought support to develop strategies that not only enhance employability and productivity but also contribute to economic growth and promote a more inclusive and equitable society,” she said. KZN MEC for Economic Development, Tourism, and Environmental Affairs Siboniso Duma said he supported the initiative. He said it was a testament to MKI's commitment to empowering the youth and fostering a stronger, more equitable society. “This programme is a significant step in the right direction for our province,” said Duma. UKZN said merSETA was committed to enhancing workforce employability, fostering economic growth, and promoting social inclusivity and equity. “The merSETA Skills Development Fund, championed by MKI, reflects a collective ambition to close the skills gap as well as upskill and re-skill individuals – a crucial component of the economic reconstruction and recovery plan. “The initiative not only holds the potential to drive KwaZulu-Natal’s economic resurgence but also promises sustainable growth in the long run.” Other higher education institutions, including the Mangosuthu University of Technology (MUT), Durban University of Technology (DUT), and University of Zululand (UNIZULU), will also benefit. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/mercury/news/ukzn-receives-r20m-cash-injection-to-relieve-student-debt-8170cc9d-bcc5-4b43-a969-048504cc2b0d

Editorial | 28 November 2023 The National Youth Development Agency (NYDA), working under the banner of the Presidential Youth Employment Intervention (PYEI), has officially opened applications for the second phase of the National Youth Service (NYS) programme. The NYS is a paid community service initiative designed by the NYDA to provide opportunities to young South Africans between the ages of 18 and 35 years who struggle to find jobs due to a lack of work experience, qualifications, or a matric certificate. The first phase of the NYS delivered 47 234 service opportunities to unemployed youth. And 7 456 of this cohort exited the programme and went on to long-term opportunities. It was a success, producing a group of individuals who have gone on to become entrepreneurs with the skills they learnt through the initiative. Nicholas Hlabane, 23, from Baloyi Village in Limpopo, completed his community service at Matome Malatji High School. With his NYS stipend, Hlabane purchased equipment to open his own internet café. He also set up an online studio where he hosts his own podcast. Abel Baloyi, a 31-year-old from Witten, Limpopo, used his skills and stipend acquired from the NYS programme to purchase a lawnmower and start his own grass-cutting and yard-cleaning service. With business thriving, he currently employs two other young people in his community. The NYS, along with its partners, is hosting roadshows across the country with the aim of encouraging the youth to apply for the programme. The first roadshow took place on November 21 at Letlhabile Community Hall in the North West. On November 23, the team was welcomed by a vibrant community of young people in De Aar, Northern Cape, where they further presented the opportunities NYS has to offer. The roadshow hit the Free State today (Tuesday) at Thaba Nchu Civic Centre and will be wrapped up in the Eastern Cape on November 30 at Jakes Gerwel Multipurpose Centre, Somerset East. Asanda Luwaca, the executive chairperson of the NYDA, urges the South African youth to apply for the NYS programme. “The National Youth Service is an opportunity for young people to serve their country through building their communities and bettering themselves. It is an opportunity for young people to grow, gain skills and increase their employability for absorption into longer-term opportunities.” Those looking to apply can visit the SAYouthmobi site on https://sayouth.mobi/Home/Index/EN, and once registered, search for “NYS” and follow the instructions on the opportunity card. Applications close on November 29. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/partnered/nyda-unveils-second-phase-of-national-youth-service-b29412ef-0abc-40e8-819b-e5136ae13dbf

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice, a Black Designated Group Supplier is defined as follows: “means a supplier to the Measured Entity that is at least 51% owned by one or more of the following categories of ownership within its structure: (a) unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution; (b) Black people who are youth as defined in the National Youth Commission Act of 1996; (c) Black people who are persons with disabilities as defined in the Code of Good Practice on employment of people with disabilities issued under the Employment Equity Act; (d) Black people living in rural and under developed areas; (e) Black military veterans who qualifies to be called a military veteran in terms of the Military Veterans Act 18 of 2011;” The above definition/concept is applied under the elements of Ownership and Enterprise & Supplier Development Amended General B-BBEE Codes of Good Practice. Technical Services are available to assist Members in further understanding the above as well as the application thereof.

Persons with disabilities are the largest marginalised group globally. Paragraph 2.1.1.3 under Statement 300 of the Amended General B-BBEE Codes of Good Practice encourages the inclusion of persons with disabilities in terms of Bursaries, Learnerships, Internships, Apprenticeships and any other training initiative. The clause is stated as follows: “2.1.1.3 Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for 'Black' employees with disabilities as a percentage of Leviable Amount”. The points on offer are four with a 0.3% target.” Human Capital Services are available to assist members in implementing sustainable Skills Development Strategies for Persons with Disabilities.

Linda Ensor | 28 November 2023 The National Treasury will review a clause in the draft Public Procurement Bill that emphasises price as a criterion for evaluating bids so as to give empowerment a stronger role. Leanda Pietersen, the director of supply chain management legal advisory services at the Treasury, gave the undertaking during a meeting on Tuesday of parliament’s finance committee, which is deliberating on the bill. The bill lays down a broad framework for procurement by organs of state and includes sections aimed at empowerment and transformation such as set-asides, pre-qualifying criteria, and mandatory subcontracting and localisation in certain circumstances. Pietersen said the Treasury reconsidered the clause relating to the role of price in awarding bids before appearing at the committee and would review it to include other criteria. Pietersen was commenting on clause 18 (7) of the bill, which deals with set-asides and states that price must be used as a criterion for the evaluation of set-aside bids that meet other criteria such as functionality. In the Treasury’s revised bill, the clause states “the contract must be awarded to the bid that scored the highest points for price”. The points being assigned to price are calculated according to a prescribed formula. The wording aligns with the provision in the constitution that states “when an organ of state in the national, provincial or local sphere of government or any other institution identified in national legislation contracts for goods or services it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost effective”. It notes, however, this does not preclude a preferential procurement policy. The question of price and value for money has been a key issue raised during public hearings on the bill. EFF MP Mzwanele Manyi voiced objections to the use of price as a criterion, saying black businesses suffer from a number of disadvantages, which make them less competitive from a price point of view relative to their white competitors. These include the distance of their businesses in townships from the central business districts — the spatial development legacy of apartheid — which involves additional transport costs. Other disadvantages are their lack of economies of scale and the high risk placed by banks on black businesses. If price were to be rewarded, then the bill would in effect say that the government doesn’t want black suppliers, Manyi said. He indicated the inclusion of price as a criterion for bids is a deal breaker for him in terms of his further participation in the committee’s deliberations and urged it be removed altogether. Stellenbosch University law professor Geo Quinot, who heads the African Procurement Law Unit, said there are other important criteria besides price to consider when assessing bids, such as quality and environmental concerns, though he doesn’t believe price should be discarded altogether. DA finance spokesperson Dion George emphasised that “price is crucially important because government is running out of money and can’t afford to overpay for anything”. He said: “The irony here is that money for service delivery to the poorest South Africans is crowded out by paying more to service providers apparently to empower them. So money is diverted from the poorest households to other beneficiaries, many of whom are already empowered. “By not focusing on price, businesses will be incentivised to focus more on meeting preferential criteria than on improving their efficiency, productivity or quality of service. “This will disrupt the market signals that prices convey about the value and scarcity of resources, which will lead to significant inefficiencies and increased costs for the government and ultimately taxpayers.” The committee is racing to complete its deliberations on the bill, which is due for debate in the National Assembly next Tuesday. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/national/2023-11-28-treasury-to-juggle-price-and-bee-in-procurement-bill/

Publicity | 27 November 2023 SAP has reaffirmed its commitment to youth skills by profiling its SAP Educate to Employ initiative and its public-private partnership with UNICEF and the government. This commitment was addressed at an event held in Johannesburg. The event showcased the SAP Educate to Employ initiative and aimed to educate youth aged between 16 and 24 years on soft skills, foundational knowledge and SAP skills using the student zone on the SAP Learning site. On the site, students can learn about the latest SAP solutions for free to kickstart their careers. The initiative forms part of SAP's global commitment to supporting UNICEF's Generation Unlimited (GenU), a public-private youth partnership that aims to deliver innovative solutions to challenges youth face around the world. In the region, the partnership is aimed at helping young people in Nigeria, Kenya and South Africa gain skills for employment, with 100 youth forming part of the initial intake in South Africa. "Skilling of our youth to meaningfully participate in the digital economy is essential to an equality-centric and prosperous nation. We welcome SAP's continued investment in skills development for the youth and extend our congratulations to UNICEF and SAP on their partnership," says Pinky Kekana, deputy minister in the presidency for planning, monitoring and evaluation. "The South African government is encouraged by the initiative, and we look forward to supporting efforts to scale the SAP Educate to Employ initiative," adds Kekana. SAP says that the admission of the first 100 participants was announced at the event. A competitive set of students selected from a pool of 18 000 applicants across the continent will receive fully remote learning over a six to 12-month period, with the aim of joining the SAP ecosystem as a young professional upon completion of the course. Anele Chulayo, an SAP Educate to Employ candidate, says, "I have been passionate about coding since high school and the possibility of creating apps and technology that can make a difference to young people from all walks of life. I applied for SAP Educate to Employ in August this year and am delighted to have been selected as part of their programme." "The programme is already underway, and I'm excited to be learning new things each and every day including programming language and web development. I believe in the power of technology to do good and make a positive impact and difference in people's lives, regardless of background," adds Chulayo. Kholiwe Makhohliso, managing director at SAP Southern Africa, says, "Upskilling and mobilising Africa's youth population is one of the defining challenges of our time. To build a prosperous future for all, we must urgently address one of South Africa and the continent's greatest challenges — youth unemployment — which affects a disproportionate number of African youth." "We are proud to introduce a new Corporate Social Responsibility initiative as a demand-driven job creation initiative that empowers youth with vital skills, knowledge, attitudes and values to build their competencies for the 21st-century digital economy," adds Makhohliso. The initiative builds on SAP's other extensive youth skills development initiatives throughout Africa. This includes Africa Code Week, which has trained nearly 14 million African youth in basic coding skills, as well as the SAP Young Professional Program, which has equipped nearly 2 000 youth in Africa with work-ready SAP skills and certification as well as direct job placements, says SAP. SAP and UNICEF first joined forces in support of GenU in 2019 launching in: India Turkey, and Vietnam. The partnership was further extended in 2022 with a USD$4.55-million over three years investment focussed on impacting youth in: Kenya Nigeria the Philippines, and South Africa. It has since generated opportunities for over 7.6 million adolescents through inclusive and innovative skills development programmes. According to SAP, the initiative launches in South Africa at a time when youth unemployment was at a peak. More than half of South Africa's youth are currently unemployed. Without concerted efforts by public and private-sector role-players, South Africa will not reap the benefits of its substantial youth skills pool. Christine Muhigana, UNICEF's representative in South Africa, says, "To remain competitive in a dynamic and changing job market, youth need access to work-relevant skills and training opportunities. Through our partnership with SAP and working closely with key public sector role-players, we believe that this initiative can potentially make a lasting positive impact on youth job prospects in South Africa and beyond." UNICEF concludes that it does not endorse any company, brand, product or service. For more information, visit www.learning.sap.com. You can also follow SAP on Facebook or on X. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.mediaupdate.co.za/publicity/155208/sap-unicef-and-genu-activate-sap-educate-to-employ-youth-skills-initiative-in-sa

Dirk Hermann | 27 November 2023 Solidarity is going to appeal to the United Nations that South Africa should rather shift its focus from affirmative action to training and the social economic position of people. Solidarity and the government will appear before the UN’s Committee on the Elimination of Racial Discrimination (CERD) this week. Solidarity will argue on this international platform that the government’s focus on racial representivity is counterproductive and violates the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD). The battle between the government and Solidarity dates back to as far as 2016. CERD already voiced its concerns in 2016 that South Africa was still using apartheid race classifications. The committee also recommended that South Africa’s empowerment decision-making should focus on the socio-economic position of people. In 2017, the South African Human Rights Commission also found in a report that South Africa’s affirmative action programme action contravenes the international convention. South Africa’s focus on racial representation has in no way reduced inequality. As a matter of fact, the opposite is true. Only a small privileged group of elites became enriched by black empowerment and many people used black empowerment as a vehicle to commit corruption. Solidarity calls for a focus on people’s socio-economic position. We are also calling for a shift from an output-based approach (racial quotas) to an input-based approach (training and development). A combined focus on people’s socio-economic position and training and development will empower people on a broad basis without harsh racial divisions. Solidarity and the government recently reached an agreement following a previous complaint Solidarity had brought before the United Nations’ International Labour Organisation (IAO). Among other things, this agreement stipulates that race programmes must be temporary in nature, that race may not be the sole criterion when appointments are made, that skills must be taken into consideration, that no one’s services may be terminated on the grounds of race, that no absolute ceilings may apply in the workplace and that companies’ unique circumstances must be taken into consideration when appointing staff. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/abolish-racial-quotas-focus-on-training--solidarit

Yuneal Padayachy | 27 November 2023 ESG, the bedrock of global ethical and sustainable practices, is making waves in South Africa and for good reason. It compels organisations to reflect on their environmental impact, social responsibilities, and governance structures. With over 13 years of working in the Broad-Based Black Economic Empowerment (B-BBEE) space, Yuneal Padayachy, chief support officer at The BEE Chamber, has witnessed an evolving landscape of transformation. From verifying compliance to fostering inclusivity, his path has taken him from corporate corridors to government initiatives. Now, as business moves from transactional to transformational strategies, environmental, social and governance (ESG) is the new, emerging force that he urges organisations to focus on: “Over the years, I have seen many organisations moving from the transactional approach to the transformational one in implementing their B-BBEE strategy which the BEE Chamber advocates for quite aggressively. The concepts that I am hearing more and more often in discussions is the concept of ESG – environmental, social and governance - which looks at the implementation of initiatives in these areas.” ESG principles have gained worldwide prominence as a framework for evaluating an organisation’s ethical and sustainable behaviour. This framework encourages organisations to consider the environmental impact of their operations, their social responsibilities, and their governance structures. While ESG is a global phenomenon, its relevance to South Africa is particularly significant. B-BBEE is a uniquely South African concept aimed at addressing the historical economic inequalities for Black People. B-BBEE focuses on increasing the participation of Black People, in the economy. This initiative includes Ownership, Management Control, Skills Development, Enterprise & Supplier Development, Socio-Economic Development, and the Youth Employment Service Initiative as its core components. There are a few linkages between ESG and B-BBEE in South Africa that drive sustainability; Padayachy unpacks them below: Economic transformation: ESG principles encourage responsible business practices, including fair labor practices, ethical procurement, and community engagement. “These aspects closely align with the objectives of B-BBEE, which seeks to drive economic transformation in South Africa for Black People by promoting equity, diversity, and inclusion within organisations.” Social equity: “The "S" in ESG emphasises the social dimension of business operations, including promoting diversity and inclusion, philanthropy, and community development. B-BBEE directly addresses these concerns by empowering Black People in the workforce and fostering social development, which contributes to social equity,” explains Padayachy. Governance and transparency: “The "G" in ESG underscores the importance of strong governance and transparency within an organisation. Similarly, B-BBEE emphasises governance and compliance to ensure that transformation is not just a superficial exercise but a structural change in the business landscape.” So what are the benefits of linking ESG and B-BBEE in South Africa? Enhanced corporate reputation: Aligning with both ESG and B-BBEE principles can significantly improve an organisation’s reputation in South Africa. This is particularly valuable in a society that values ethical and sustainable practices. Market access and competitive advantage: Organisations that embrace ESG and B-BBEE not only meet regulatory requirements but also gain preferential access to new business and retain existing business, which is a strategic advantage in South Africa. Innovation and risk mitigation: Embracing ESG and B-BBEE encourages organisations to innovate and adapt to changing societal and environmental conditions. This not only mitigates risks but also positions them to seize emerging opportunities. Economic growth and social development: The linkage of ESG and B-BBEE accelerates economic growth in South Africa by fostering entrepreneurship and empowering marginalised communities with a specific focus on Black People. This, in turn, contributes to the overall development of the nation. Global attractiveness: Companies that are ESG and B-BBEE compliant become more attractive to international investors and partners, facilitating foreign investments and trade relationships. Long-term sustainability: By integrating ESG principles and B-BBEE into their core operations, companies in South Africa ensure long-term sustainability, which is vital in an ever-changing global business landscape. “The synergy between ESG and B-BBEE in South Africa is a powerful catalyst for economic transformation, social equity, and sustainable development. Companies that embrace these frameworks not only benefit from improved reputations and market access but also contribute to the broader goal of creating a more inclusive and prosperous South Africa,” says Padayachy. “The convergence of ESG and B-BBEE embodies a vision for a South Africa that is economically vibrant, socially equitable, and environmentally sustainable. It is a path forward that holds promise for both businesses and society.” https://www.bizcommunity.com/Article/196/750/244125.html